Over and Under Billing Metric Trend

Contractors looking for key metrics to manage should be focused on Outcomes or Key Results, and Lead Measures or Leading Activities.

D. Brown Management Profile Picture
Share

 

Cash Flow: Over / (Under) Billing Trend.
  • OUTCOMES: Or Key Results. What metric(s) will best show the final state you want to be in AND progress toward that target level of performance?
  • LEAD MEASURES: Or Leading Activities that will most likely lead to the Key Results or Outcomes you want. The metrics that measure the Leading Activities are typically at a more rapid cycle time than the outcome based metric.  

At the cash flow level, if you want to improve your Cash Metric to 100% or better, the first activity that must be controlled is the monthly billing performance of the projects.  

No amount of excellence in collections will help you get close to 100% if you are continuously under-billed on your Work-in-Progress (WIP) as a whole.

Metrics alone WILL NOT change your outcomes; they will simply let you know the score. The most important aspect of this is the regular Operating Rhythm that reinforces a rigorous PDCA cycle each period, similar to what the Last Planner System does at the project level.


Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

ABC Daily Planning
Effective planning processes are the foundation for great production. The planning process can be seen as a series of tighter and tighter concentric circles with the bullseye being the daily plan. Daily feedback improves performance and mitigates risk.
Retirement Onboarding and Ownership Transitions
The onboarding and integration of a new team member is something the best contractors rigorously manage as one of the 9 critical talent processes. What we don’t always pay as close attention to is what Sue Weiler-Doke frames as “Retirement Onboarding."
Succession Fact #3: Trust Between Parties
Succession Fact #3: No exit strategy or deal structure will work without trust between all major stakeholder groups. Whether it is a large and complex project or a business ownership transition, there will never be a “perfect” set of documents or plan.