By: Brian M. Andrew
If today’s CFMs have a mantra, it’s probably something like: I know I can accomplish more with fewer resources. I know I can, I know I can . . .
For example, tighter credit markets have pushed CFMs to find better ways to monitor profitability and cash flow. And for many construction companies, overhead reductions have placed bigger burdens on newly downsized accounting teams.
Both of these scenarios drive the need for greater efficiency through process improvement.
In their quest to become more efficient, CFMs frequently turn to their trusted business partners and advisors for assistance. Consultants and CPA firms, along with industry associations and colleagues, are the obvious “go-to” resources for insight. Yet, there is one partner that is often overlooked: the construction software provider and its professional staff.
A Trusted Business Partner
When viewed as a trusted business partner, your software provider delivers an enormous opportunity for greater efficiency. Forging a strong partnership with your software account manager can create a unique learning environment that can’t be replicated through traditional educational channels.
That’s not to downplay the integral role continuing education plays in a CFM’s career development. Formal training programs, conferences, and industry-specific publications (presented and published by industry associations like CFMA) all contribute to a CFM’s body of knowledge.
And, we can’t overlook the value of learning through hands-on trial and error. (I imagine that most, if not all, CFMs have taught themselves a thing or two.)
But, while these conventional training methods provide the core components of a CFM’s ongoing education, they lack an important element that only a software account manager can deliver: personalknowledge of your company’s accounting system combined with intimate knowledge of your business.
Shifting Your Relationship
Utilizing your software provider and its professional staff as a primary learning channel typically requires a shift in how you view the relationship. Many CFMs actually have adversarial relationships with their software providers. Animosity often develops due to staffing frustrations involving software functionality, programming bugs, and lack of training.
Rather than reaching out to their software account managers, it’s not uncommon for CFMs (or their staffs) to create their own work-arounds, either within the software itself or by using other tools, such as spreadsheets.
Over time, minor irritations that are not brought to the provider’s attention (and are therefore not addressed) become splinters that fester under the skin. If these splinters are left untreated, the CFMA’s relationship with the software provider’s professional staff can become irreparably damaged.
However, when you view your software account manager as a valued business partner rather than an adversary, the relationship becomes more personal and dynamic. Instead of creating a work-around when an issue arises, you immediately turn to him or her for a solution.
This creates an environment where your team members are happier and more productive because they are using a solid, optimized software solution. Eventually, you’ll become confident that your software account manager is a trusted resource you can turn to time and again. When this happens, you’ll begin to benefit from all the knowledge your software provider has to share.
A Trifecta of Benefits
While formal training, industry associations, and user groups provide high-level business insights, your software account manager actually helps you apply these insights to your unique operational structure. This is accomplished through a trifecta of benefits.
#1 Industry Expertise
Most construction software developers have years of industry experience and a broad perspective on the specific needs of different trades. In many cases, they have dealt with thousands of different contractors and have come across nearly every construction accounting need imaginable.
Taking advantage of this expertise requires very little effort on your part. Your software account manager wants you to succeed and will often “go the extra mile” to help you and your staff become more efficient. All you need to do is reach out and tap into this resource.
#2 Experience with Your Software Solution
Not only does your software account manager have industry expertise, but he or she also has more experience with your software solution than any other party.
While this seems obvious, it’s an important distinction to make – especially for contractors who have a favorite consultant for business process improvement. If your goal is greater efficiency, doesn’t it make sense to add your software account manager to your trusted consulting team?
#3 Knowledge of Your Staff
Your software provider’s team (account manager, support staff, and training staff) will meet with your accounting staff to better understand what it’s like to work in the trenches of your company. They will learn about the struggles your employees face to keep projects on schedule and on budget, as well as your need to consolidate information while keeping your finger on the pulse of profitability.
After regular interactions, your software account manager also understands your staff’s strengths and weaknesses. For example, there may be a technology-savvy PM who could take the lead on improving change order management. By nurturing your relationship with your software account manager, you can discover untapped possibilities within your own team.
Now that you know the trifecta of benefits, let’s look at how you can leverage them to accomplish more with fewer resources. You might be surprised at what you can learn from your software provider!
Three Interconnected Learning Channels
When looking to your software provider as a resource for process improvement, there are three distinct (yet interconnected) learning channels that promote greater efficiencies: your software, your staff, and emerging technologies.
1. Better Utilization of Your Software
Construction companies typically use only a fraction of the functionality available in their accounting software systems. As I discussed in “Five Steps to Getting More from the Software You Already Own” (November/December 2008), it pays to take a methodical look at your current processes and develop an action plan for getting more from your software.
To illustrate how your software account manager can help to re-engineer your processes to better utilize your software, let’s look at some common workflow situations that aren’t as efficient as they could be.
RFIs
At many construction companies, each PM has his or her own method of creating and tracking RFIs. Information that is readily available in the main software system (such as job details and customer information) is usually re-entered multiple times by each PM into localized programs, which often involves spreadsheets. To create management reports, CFMs must then develop their own spreadsheets to consolidate RFI status across the entire company.
Change Orders
This RFI scenario is often duplicated in the management of proposed and actual change orders. Without an integrated paper trail for tracking project changes, your company risks completing work that’s outside a contract’s original scope and never getting paid for it.
Purchasing Process
The purchasing process also provides room for improvement. Too often, the purchasing function occurs outside the accounting program. When purchase orders are manually created and tracked in spreadsheets, not only is duplicate data entry required, but job-costing details are not adequately captured – limiting your ability to generate accurate, up-to-date reports.
Document Management
Paper-based processes are also a prime source of inefficiency. Paper files can only be used by one person at a time, which greatly hinders collaboration. And, unless you diligently lock your file cabinets each night, your information is not secure. Routing paper invoices for approval affects the accuracy of job costing, and increases the risk of financial surprises at the end of the project.
Whether you recognize these process inefficiencies or have similar issues in other areas of your company, you can appreciate the amount of time it takes to re-enter data over and over – while hoping that critical and costly details don’t fall through the cracks.
Since your software provider understands your business and knows how its software can support your company's objectives, using its resources (including its various professional staff members) to help modify business processes that aren’t working should be a top priority.
Although this can be a painful undertaking, the end results are tangible. Not only will you learn how to do more with fewer resources, but you’ll also gain access to more accurate and timely information – a very valuable commodity for all CFMs.
2. Better Utilization of Your Staff
New knowledge about your staff is part of the trifecta of benefits that your software provider delivers. This knowledge forms the foundation for increased productivity by better utilizing the strengths and weaknesses of all team members.
Most CFMs shoulder significant responsibility and must meet frequent deadlines that require their full attention. Given these pressures, it’s easy to overlook individual employee strengths and weaknesses. However, your software account manager isn’t bogged down by the daily details of managing your company’s finances and has a more objective vantage point for evaluating skill sets.
Sometimes, these interactions with your team will uncover potential strategies for greater efficiency. During a recent conversation with a chief dispatcher, I discovered that he was interested in implementing an electronic dispatching system. The company’s controller wasn’t even aware that the software had this capability – or that the chief dispatcher was eager for automation.
The point is this: Your software account manager is knowledgeable about your software efficiency tools because he or she contributes to their creation. And, even if you haven’t talked to your staff about these tools, they may already be in conversation with your software account manager about them.
So, learning occurs when you begin a dialogue with your software account manager about: Which employees easily use new features or modules? Who could use additional training? How can you redistribute the workload to make the best use of each person’s ability to contribute? The answers to these questions will lead to better utilization of your staff.
3. Better Utilization of Emerging Technologies
With your processes re-engineered to better utilize your software and your staffing strengths leveraged to increase productivity, the final leg of your learning journey is to better utilize emerging technologies. Learning what’s “under development” is arguably the biggest benefit of nurturing a relationship with your software provider and its professional staff. By getting a “sneak peek” at the new features and technologies coming to market, you can better prepare to take advantage of them ahead of your competitors.
Decrease the Use of Third-Party Solutions
Having insider information on emerging technologies allows you to decrease the use of third-party solutions. Assuming you are happy with both your current software and provider, why would you go outside the scope of that software when it isn’t truly necessary?
In general, a single, integrated software system for managing your entire operation is more efficient and cost-effective than using several stand-alone applications, or integrating thirdparty programs with your main accounting system.
Dealing with integration issues is not only tricky at times, but it also tends to absorb valuable IT resources. For example, if you are considering adding remote timecard entry or a GPS tracking product, find out if your software provider will have these capabilities available in the near future before evaluating third-party solutions.
Waiting a little longer for a solution that is natively integrated with your accounting software will allow you to continue working with a single provider. This will save you time and money in the long run, and make your life easier.
Develop a Forward-Thinking Mentality
In the changing construction market, if your company isn’t looking forward, it’s probably not moving forward. As the CFM, you have a significant opportunity to drive forward movement through the use of technology. By learning about what your software provider is developing for future release, you can better plan how to use these emerging technologies to move your company forward.
Early adopters of mobile technology are a prime example of this. By taking the lead and implementing field-based service software, these companies have been able to respond faster to customer service requests, expedite billing for completed service calls, and reduce the need for service trucks to frequently return to the home office for call updates.
Since software development plans are rarely shared in client newsletters or published on company Websites, you’ll need to ask your software account manager for a list of functionality improvements scheduled for upcoming release. In most cases, there will be a dozen or more major enhancements under development. (If not, you should definitely ask, “Why not?”)
And, you might even get an advanced release of a desired product before it’s slated for general release. By being “the first kid on the block” to get the newest construction software “toy,” moving the business forward is just plain fun!
Your ability to better utilize emerging technologies is directly related to how strong your relationship is with your software account manager. Like any worthwhile relationship, this one takes time and effort to establish. But, the rewards are well worth it.
A Mutually Beneficial Learning Experience
Learning from your software provider is a rewarding experience if you are willing to invest the time needed to build a sustainable relationship. To do this, you need to be proactive, offer something in return, and strengthen the relationship over time.
Be Proactive
Pick up the phone and give your software account manager a call. Say something like, “We’d like to take advantage of the relationship we have with you as our software provider. What can we learn from your industry experience, software expertise, and staff knowledge?”
Then, ask for personal introductions to other key individuals in the company (such as the support, training, and product managers) so you can communicate directly with them in the future.
Offer Something in Return
When your provider shares information with you, think of ways to return the favor. Let your software account manager know that you are willing to be a reference or are interested in participating in a marketing case study program.
And, if you want to be a beta test site for the development group, share that as well. Enthusiastic clients are valuable, and software providers will go to great lengths to keep them happy.
Strengthen the Relationship Over Time
Like any relationship, this one will strengthen over time if you are committed to making it work. Don’t stop communicating how your software provider can better meet your construction accounting needs. If your software enhancement ideas are well-formed and constructive, you may even gain some influence over the direction of future development.
Conclusion
Once you’ve established a solid relationship with your software account manager, learning becomes a two-way exchange with mutual benefits. Not only do you get the software support, training, and functionality you need to accomplish more with fewer resources, but your software provider gets the feedback it needs to develop leading industry solutions.
Continue to lean on that relationship to improve your operations. And when asked for something in return, do your best to accommodate that request. Then, instead of having an adversary, you will have a trusted business partner that is invested in your success.
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BRIAN M. ANDREW is the Product Manager for Construction at Jonas Software, a leading developer of fully integrated construction accounting, project management and service software solutions. His 21 years of experience in the construction industry includes seven years as the CFO of an Atlanta-based electrical contractor, six years as a construction software trainer and consultant, and two years in product management for construction software companies. Brian holds a BBA in MIS and Accounting from the University of Georgia.
Phone: 888-789-9073
Website: www.jonas-construction.com
Copyright 2009 by the Construction Financial Management Association. All rights reserved. This article first appeared in CFMA Building Profits. Reprinted with permission