2003 Pacesetter Awards: Excellence in Management

3 MIN READ

Tim Cleary, Charles Ross, and Charlotte Ross

Every year for the past four years, Charles W. Ross, Builder, has done something most companies in the Fortune 500 do: It has prepared an annual report. Tim Cleary (right), general manager of this privately held design/build firm, measures the progress the company has made during the past year against its business plan and puts his findings in a written report.

Presented as a letter from Cleary to the company stakeholders, the report goes to the builder’s banker, accountant, and two owners: production director Charles Ross (left) and customer service director Charlotte Ross (center). (“We’re not big on titles,” says Cleary. “It’s nice to know how everyone fits in.”) While keeping these very interested parties informed of how the company is performing, the report also serves as an important planning tool for the coming year. “It helps us see what we did and didn’t do well,” Cleary says. “We can see what we have to fix.”

The first section of the report lays out the company’s accomplishments, both financial and strategic, especially those actions that bolster its goals. Charts show how performance has progressed over the last five years, and photos of completed projects illustrate how the company has moved into its targeted markets.That’s followed up with financial reports that detail how the company performed in the current year in terms of dollars and how that performance compares with the previous two years. The last section of the report focuses on three key objectives for the coming 12 to 24 months. Cleary produces a narrative that lays out exactly how the company will achieve these objectives.

An engineer by training, Cleary joined his in-laws’ building firm in 1999, bringing with him the analytic and strategic planning skills he’d honed over an 18-year career in big corporations. The discipline of preparing an annual plan has enabled him to help the company dramatically improve its financial performance. Revenues have grown nearly 70 percent from 1998 to 2002 and gross margin has nearly doubled.

Charles W. Ross, Builder Williamsburg, Va. Type of business: design/build; Years in business: 20; Employees: 10; 2002 volume: $5.84 million; 2002 starts: 10

Donald J. Dyrness

It’s amazing what revamping your company’s management methods can do. Just ask Don 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

2003 Pacesetter Awards

Introduction
Excellence in Customer Service
Excellence in Innovation
Excellence in Marketing
Excellence in Production

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