Masonry Magazine June 1997 Page. 14

Masonry Magazine June 1997 Page. 14

Masonry Magazine June 1997 Page. 14
Keeping Score

Profit margins have improved in the industry, according to RMA/CFMA, although still anemic when compared to other industries. Performance benchmarking is gaining traction in the industry. FMI, CII, RMA and CFMA are sources of performance benchmarks.

Management of information technology (IT) is becoming more and more important. Low-priced, high speed computer hardware continues to proliferate. Creative, albeit frustrating, software floods the market. Media attention, skills and interest of younger staff put continual pressure on contractors to upgrade, replace or add information technology. Yet, many companies have failed to gain the organizational productivity promised by the computer age. Contemporary decentralization themes in organizational structure and management processes have collided with this computer age to create "cyber-soup" in a number of companies. Best use of computer power, standards for software and hardware platforms across organizational units, and maintenance of coherent investment policy requires strategic evaluation and planning. Companies are adding information technology as a major agenda item to their corporate planning or conducting separate strategic planning sessions for information technology. The most successful are those taking a customer-focused view of their technology environment. It's not just job-costing anymore.

FMI surveys reveal that owners, developers, and architects are gaining appreciation for the value that new technology can bring to the speed and accuracy of project communications. Proper application of the internet, groupware, e-mail, digital imaging, and other new technologies to improve project communication is a verifiable criterion now being used in contractor selection processes. Contractors not comfortable with these tools will find themselves more and more at a competitive disadvantage.

Customer research and employee surveys are becoming universally accepted tools to provide direction for strategic decisions, to provide goals for quality improvement initiatives, and to surface key issues in corporate acquisitions either during the due diligence or post-purchase integration phase.

Jerry Jackson is president of FMI, management consultants to the construction industry. Jerry consults in areas of business and strategic planning, benchmarking, organizational development, and strategic implementation. FMI has offices in Tampa, Florida, Denver, Colorado, and Raleigh, North Carolina. For more information, Jerry can be reached in FMI's corporate headquarters in Raleigh at (919) 787-8400 or via e-mail at jackson@fminet.com.

14 MASONRY-MAY/JUNE, 1997



ships, and communication in their planning and development sessions. These contractors are remembering that at their core, they are people organizations. People organizations respond more readily to plans and actions that deal with human issues rather than simple market analyses and numerical business plans. High involvement of team members continues to be a key in early buy-in and successful plan execution.

Keep your people healthy. Healthy workers produce more. More companies are providing training and (outsourced) counseling for life-style improvement (exercise, eating, alcohol or drug dependency, quitting smoking, and stress-reduction). More and more overtime is becoming the norm as understaffed organizations work long hours to keep their promises. You can't sustain working days from 6 a.m. to 10 p.m. every week without taking a physical or emotional toll on employees. You can get by with brief bursts of intense workload if your people are equipped with coping skills and are physically fit.

Increased use of computer aided design (CAD) is raising productivity of design professionals but also raises the risk of construction problems with unreviewed automated design documents.

The highway construction sector will see further gains in productivity through new equipment technology, improved mix designs, and improved application methods.

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