Even a 100-year-old company needs to rethink things once in a while. In fact, acompany that doesn’t stands little chance of making it to 100. So in 2006, presiden tChip Gruver decided it was time to get his 100-year-old company ready foranother century. He assembled his management team to give the business athorough going over and create a “comprehensive redevelopment of our managementenvironment and systems.”
Focusing on the company’s mission, values,and goals and analyzing its strengths, weaknesses, and opportunities, thesessions led to the development of measurable objectives, which were expressedin a formal business plan. Individual members of senior management were taskedwith implementing these objectives. Gruver keeps the group moving forwardwith the plan at bi-weekly meetings in which senior managers report their progress.This has led to an impressive list of accomplishments since the first meetingtwo years ago.
The company has its first overhead budget, which is monitoredmonthly for variances. It has used its Timberline estimating and accounting systemto streamline financial processes and to track subcontractor insurance certificates.
Gruver-Cooley now has a detailed human resources system that includes formal job descriptions andwage and salary scales. It offers a company 401(k) contribution and has been able to maintain affordable healthinsurance.
Using ProCore, an online project management tool, the company now can call up job-specific data,and make it accessible to clients, staff, subs, and vendors. The company has also overhauled its subcontractorcommunications with a new, clearly worded agreement that spells out the scope of work, price, requirements, dispute resolution, andtime commitments. And that’s not all. The company created a selections specialist position to help clients through that taxing process. Ittightened up job costing and billing, especially for change orders. And it restructured the financial management of its jobs.
The hardwork has increased average profitability of jobs by 20 percent. And the new systems have freed Chip Gruver to devote more timeto marketing, which has increased 2007 volume by 50 percent despite the slowdown. It’s a great way to start a new century.
Gruver-Cooley Corp. Leesburg, Va.; Type of business: custom builder/remodeler; Years in business: 100; Employees: 18; 2007 volume: $3.7 million; 2007 starts: 1 custom home, 25 remodels
