It’s amazing what revamping your company’s management methods can do. Just ask Don Dyrness (left, with his father, Dan Dyrness). Acting on some suggestions from his Builder 20 club and accounting guru Steve Maltzman, Dyrness increased the annual gross profit of his family’s company, Spectrum Construction & Development, by a whopping 10 percent.
His simple but effective actions included implementing a lead tracking system inspired by that of a fellow Builder 20 member. This monthly report follows leads from the initial phone call through the signing of a design contract, and it’s shown Dyrness that his most fruitful marketing avenues are referrals and job signs. The system also contains financial information like the gross profit needed to break even, so each month he knows exactly where his numbers should be.
Dyrness credits Maltzman for motivating him to get control of Spectrum’s budget. “He told us we had to get our margins in line with other top builders in the country,” he says. “And he helped us get a handle on our costs.” To streamline office procedures and improve time management, Dyrness hired an administrative assistant who takes care of accounts payable, marketing, and other duties. Spectrum also started a bonus system that has positively impacted the company’s performance, thus contributing to long-term customer satisfaction. The bonuses go to job supervisors and carpenters for accomplishments such as achieving high customer survey ratings and completing warranty work within 10 days. “Being a small-volume builder, we want everybody we work with to be happy,” says Dyrness. “The bonus system drives right through what we’re trying to do.”
Spectrum Construction & Development Co. Succasunna, N.J. Type of business: design/build; Years in business: 14; Employees: 3; 2002 volume: $1.4 million; 2002 starts: 4
