South Coast Improvement Company is a construction management company that merits its success to its team members’ attentive and passionate execution of plans from beginning to end, and the quality relationship building that takes place every day, both internally and externally. How do you keep your finger on the pulse of a project as it progresses? South Coast Improvement Company tracks success weekly with a grading system that measures how a number of key components effectively support a phenomenal end result. This system is called the Four Metrics of Success. The four constituents measured in this system are client satisfaction, schedule, margin and subcontractor performance. A number between one and three is assigned to represent the positive, neutral or negative standing of each category.
This is the most obvious of measurements that every business, of every kind, in every place pays attention to if they want to achieve success. Your clients are the fund suppliers, so as a business your ultimate goal is going to be to give them reasons to want give you their business, and then reasons to come back and do it again. Your clients have to feel good about what you offer, and have their expectations met or exceeded in order for them to repeat that business and to spread positive word of mouth about their experience. If client satisfaction is rated as a three, the client has concerns that could pertain to any aspect of the work being done. If this category is rated as a two, the client has neither expressed concern nor satisfaction toward the production. A rating of one indicates that the client has given praise about their experience and expressed enthusiasm.
This metric pertains to timeline milestones. A project set up for success will be given an achievable completion date, and it will ideally run smoothly, meeting each milestone on schedule. If a project is scored with a three in this category, it is behind schedule. If it is scored with a two, it is on schedule. If it is scored with a one, it is ahead of schedule.
Margin is the amount of money a business gained or lost in the exchange between the business’ services and a client’s total payment. The services cost money to provide, and must appropriately correspond with the service price. Ideally, a business makes a profit in these exchanges, and that money is used to invest in the business’ maintenance and growth. Simply put, if the business doesn’t make more money than it invests, the business will not survive. If a business earns only enough money to cover costs of function, it will not thrive.
In the construction management line of business, subcontractors are coordinated to complete parts of a large scale construction project based on their pricing and performance. If a construction management company elects a cheaper subcontractor that produces poor quality work, the client is going to feel that any investment, even if it was a lower dollar amount, was a poor investment, because the final product was lackluster or worse. Once prices are negotiated, it is the construction management company’s job to ensure that the subcontractor is doing quality work in a professional manner.
When each of these components are on track, the project is headed for reliable success. Measuring each component weekly means that any hiccup or concern will be noticed and addressed promptly, which could prevent dissatisfaction in the long run. Take some time to break down and evaluate your clients’ experiences, and you will find that success is as easy as one, two, three….four!