FOR IMMEDIATE
RELEASE
June 5, 2007
Contact: Tom Smith 919.785.9236 tsmith@fminet.com
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Improving Project Execution
Using Key Performance Indicators
RALEIGH, NC, June 5, 2007 – Ken
Roper, principal and director of strategy at FMI Corporation
conducted an online presentation sponsored by Cardamel
Consulting this past Friday showing how building and
construction companies can use key performance indicators
(KPIs) to build a more profitable portfolio of on-time,
on-budget projects for satisfied customers.
This is a critical topic for companies today. The supply
for construction services exceeds the demand. As a result,
pricing is tight and gross margins are compressed. KPIs
can become the driver of measurable operational excellence
and a compelling differentiator in the competitive marketplace.
Ken emphasizes, “The KPIs were developed by contractors,
not CPAs, to drive the right processes and behaviors
within organizations, provide long-term solutions to
on-going problems, yield higher return on investment
and build long-term value for the companies that employ
them.”
The top five project execution indicators that drive
performance for the top-performing construction companies
are:
1. Schedule Variance
2. Labor Productivity
3. Margin Variance
4. Unapproved Change Orders
5. Committed Cost
During his presentation, Ken demonstrated how companies
can use business management software, like Microsoft
Dynamics SL, to track these KPIs and:
- Stabilize gross profit margins
- Improve cash flow
- Capitalize on change order
opportunities
- Mitigate risk
- Improve stakeholder (owner,
contractor, worker) satisfaction
- Control and predict the outcome
of projects through specific actionable steps
- Improve project communication
and teamwork on project execution
According to Ken, “Firms of any
size benefit from measuring these KPIs, or even putting
the systems in place that will enable them to do so.
Ultimately it is the measurement of right processes and
behaviors that will drive behavior of individuals and
performance of the organization.”
In closing, David Thikoll, co-founder
of and partner with Cardamel Consulting, added, “Following
the establishment of KPIs and desired behaviors, firms
can use business management software to help manage their
processes and outcomes toward continuous improvement.”
For more information about how building
and construction firms can improve their performance
by using KPIs, to get Cardamel Consulting’s whitepaper
New Tools for Contractors, or to schedule an interview
with Ken Roper, please contact Tom Smith at 919-785-9236
or tsmith@fminet.com.
About Cardamel Consulting
Cardamel Consulting, Inc. is the leading provider of
Microsoft-based business management solutions to the
construction industry throughout the United States.
From offices in Denver and Phoenix, Cardamel designs,
implements and supports financial and production management
solutions based on the Microsoft® Dynamics SL™ platform
and other Microsoft technologies.
About FMI Corporation
FMI, management consultants and investment bankers to
the building and construction industry, delivers innovative
solutions to contractors, engineers, architects, environmental
firms, manufacturers of construction equipment, construction
materials producers and distributors, private owners,
government agencies, utility companies, surety companies
and trade associations. FMI’s management consulting
practice provides a wide array of services including
strategy development, leadership and organizational
development, marketing and related research and project
delivery improvement. FMI’s investment banking
practice provides merger and acquisition advisory services,
capital placement and financial advisory services.
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