Everyone Is Busy, But Nothing is Getting Done (Unproductive)
Recently we did a Strategic Planning Day for a Tradie with 6 employees. He was working long hours and not earning much more than his employees.
After many years of self employment he had lost his passion and was very frustrated with his life.
He had lots of work and was searching for a new tradesman to take the pressure off and stop his men from complaining.
We had analysed his numbers prior to the Planning Day and showed them to him in a way he had never seen them before.
It showed him that productivity was 28% (the percentage of hours charged to a customer against hours paid).
We showed him that another tradesman would actually result in less profit.
He was stunned as he had estimated productivity at 65% – everyone was busy and they couldn’t keep up with the work.
By the end of the day we had identified simple strategies to increase productivity to 50% (a much better number, but still a long way to go).
His increased profit and business value would be more than $1M over the next 5 years.
We have helped him redesign his business, measure the right things, manage his employees and the result has been a business that works for him rather than the other way around.
He recently took a month off to go and undertake a long term personal goal.
How can this help you?
Productivity is one of two key drivers of most trade and construction businesses. Measuring productivity is the first step and targeting improvements is the next step.
But, this is no use without developing and implementing strategies to make sure the increased targets are achieved. When productivity isn’t monitored it generally falls to “human comfort level” of around 30%.
Want to know how to measure and improve productivity in your business?