From Financial Management to Business Management

As contractors go through different stages of growth it often makes sense to expand the financial management role into more comprehensive business management role.

D. Brown Management Profile Picture
D. Brown Management
April 7, 2018 1 minute read
Share
Leadership Tools: Financial Management to Business Management.

At exactly what stage a contractor starts to expand this role depends on:

  1. Volume or work
  2. Complexity of work
  3. Complexity of the regulatory environment the contractor operates in
  4. Best Return on Time for other operating executives who are currently doing these functions

Of all these the best Return on Time for other executives is often the most overlooked.  Consider how much time some of these functions take other people in the organization.

Could their time be better spent:

  • Connecting with customers to help develop business?
  • Improving project execution?
  • Spending more time developing talent to build capacity for the future?

A fifth major factor includes succession - sometimes the owner/operator of the company is doing so many of these functions or managing so many direct reports that a clean succession is nearly impossible.  

Schedule a call with us to see if this makes sense for your organization

Management Team Development Phases Within Each Stage of Growth
The management team leading a contractor through the different stages of growth will typically navigate three phases at each stage - Emerging, Hollow, and Ready. Understanding these phases guides growth planning, recruitment, development, and succession.
Related Article
Levels of Preconstruction Value-Add
Preconstruction services translate design intent into a constructable plan that defines scope, schedule, and budget for the actual conditions and risks. Contractor value-add occurs across five levels based on when they are brought into the process.
Related Article
Contractor Exit Strategy 5 of 6: Sale to Management
Contractor Exit Strategy 5 of 6: Sale to Management. A very common exit strategy for contractors and one that might be integrated with passing the business down to family or used when there is no family involved in the management of the company.
Related Article