The Strategy Spider


The Strategy Spider
  1. The Strategy Spider
    Leaders are continually told to transform their organizations into a data-driven business. Construction firms are not exempt from this concept. There are countless figures a firm can use to create awareness and further its strategic…
    Business

Leaders are continually told to transform their organizations into a data-driven business. Construction firms are not exempt from this concept. There are countless figures a firm can use to create awareness and further its strategic goals.

However, business leaders are constantly trying to extract data from disparate systems. In the end, many construction firms end up looking at only a small handful of figures—net profit, gross profit, cash and modification rate, to name a few. These firms then work feverishly to make connections to correlate their performance with the right information.

Key performance indicators (KPIs) will vary for every firm. Additionally, the gradations within the key performance indicators will vary. For instance, a financial metric will be extremely customized for any firm.

The most important consideration should be measuring the items that directly correlate to the vision and core values of the firm. A vehicle, such as the “Strategy Spider” shown in Figure 1, allows for visualization and compartmentalized metrics for every aspect of the business.

Compartmentalization

A firm’s KPIs are specific to that individual firm. At a minimum, you would expect some main headings to include:

  • Operations quadrant —The processes that will drive superior performance
  • Execution quadrant —The downstream measure of a firm’s ability to perform
  • Finance quadrant —The financial metric that combines several aspects other than profitability
  • People quadrant —Internal and external satisfaction and engagement

The key is to identify metrics that holistically describe the firm. For instance, when a firm only looks at profitability, it loses perspective on other aspects of its health. Just like a patient seeing a doctor, one’s weight might be in line, but health metrics, such as cholesterol, sugar, triglycerides, blood pressure and pulse, might tell another story.

Normalization

One aspect of analyzing data comes in the form of comparing apples and oranges. For instance, “employee satisfaction” is a subjective score, while “collection rate” is a defined, financial formula that is universally recognized.

One aspect of the Strategy Spider is that it creates some level of normalization. Process compliance—or a firm’s ability to follow its processes religiously—is somewhat simple to measure. For instance, if a firm started five projects this month, they should have had five preconstruction planning meetings.

On the other hand, it is more complicated to connect a score relative to training and development. The scores shown are defined by the firm. In this case, if the firm states it ideally expects its associates’ time spent in training and development to be at least 10 percent of their billable time, the correlated score is 100 percent. The key here is that the firm defines what is the correct score. Another great example is collections.

A firm that does work for a government or municipal client might expect a lower collection time, whereas a private client might have a higher collection time. Thus, the firm defines the scoring web criteria that is applicable to its client base, assuming these are also stretch goals that drive higher performance.

Summary for strategy spider

Visualization

The scoreboard in the penultimate piece of this entire equation. Senior management and ownership have the ability to look at financial statements and gauge performance, but what about the rest of the firm’s team?

There is always some trepidation of over-sharing classified information, but by normal…

  1. Tacoma’s Weyerhaeuser mansion sold to nonprofit for nearly $5.9 million

    O.seattletimes.com - Business
    09.22 / 03:22 o.seattletimes.com
    Sale of the estate closed Monday with Trouve, a Lakewood-based nonprofit created last year, according to Pierce County and state records. Trouve announced the Tacoma Waldorf School will occupy the education building on the…
  2. What are homes selling for in Sonoma County?

    Pressdemocrat.com - Business
    09.22 / 03:01 pressdemocrat.com
    One hundred and thirty-three single-family homes sold during the week of Aug. 13 in Sonoma County, ranging in price from $182 thousand to $5.4 million. …
  3. Foley Family Wines nabs key executive from Jackson Family Wines

    Pressdemocrat.com - Business
    09.22 / 03:01 pressdemocrat.com
    Bill Foley, who has sought to emulate the late wine magnate Jess Jackson while building Foley Family Wines into one of the largest wine companies …
  4. Securities And Exchange Commission Finally Discloses 1-Year-Old Hack

    Newsy.com - Business
    09.22 / 02:53 newsy.com
    Watch VideoThe U.S. Securities and Exchange Commission says it found out last year that it got hacked — and we're only just now hearing about it.The hack targeted the SEC's Edgar system, which stores and distributes more that 1.7 million corporate filings to the agency each year. In 2016, the agency found intruders entered the system using a vulnerability in its testing software.The SEC says the hackers didn't make off with any personal information. But they did get access to information b…
  5. Indiana signs purchase deal on possible Ohio River port site

    Ibj.com - Business
    09.22 / 02:52 ibj.com
    he Indiana governor's office said the Ports of Indiana Commission will complete a review by the end of 2018 before finalizing its $8 million purchase of the 725-acre site near…
  6. Purdue picks alumnus to lead transitioning Fort Wayne campus

    Ibj.com - Business
    09.22 / 02:52 ibj.com
    Purdue University says a veteran university administrator will guide its Fort Wayne campus while it transitions away from shared governance with Indiana…
  7. Executive VP & CFO of Installed Building Products (NYSE:IBP), Miller Michael Thomas, sells 4,727 shares worth $283,620

    Empowerednews.net - Business
    09.22 / 02:49 empowerednews.net
    According to Installed Building Products's most recent Form 4 filing with the SEC dated Sep 21 09:11 PM, company Executive VP & CFO, Miller Michael Thomas disclosed selling 4,727 shares at a cost of $60.00. At the time of this transaction (Sep 21), this trade was worth $283,620 in total. As of Sep 21, Miller…
  8. Director of Installed Building Products (NYSE:IBP), Nixon J Michael, sells 2,000 shares worth $120,000

    Empowerednews.net - Business
    09.22 / 02:49 empowerednews.net
    According to Installed Building Products's most recent Form 4 filing with the SEC dated Sep 21 09:12 PM, company Director, Nixon J Michael disclosed selling 2,000 shares at a cost of $60.00. At the time of this transaction (Sep 19), this trade was worth $120,000 in total. As of Sep 19, Nixon J Michael now…
  9. Director of Installed Building Products (NYSE:IBP), Nixon J Michael, sells 747 shares worth $44,820

    Empowerednews.net - Business
    09.22 / 02:49 empowerednews.net
    According to Installed Building Products's most recent Form 4 filing with the SEC dated Sep 21 09:12 PM, company Director, Nixon J Michael disclosed selling 747 shares at a cost of $60.00. At the time of this transaction (Sep 20), this trade was worth $44,820 in total. As of Sep 20, Nixon J Michael now…
  10. Director of Installed Building Products (NYSE:IBP), Nixon J Michael, sells 11,073 shares worth $664,380

    Empowerednews.net - Business
    09.22 / 02:49 empowerednews.net
    According to Installed Building Products's most recent Form 4 filing with the SEC dated Sep 21 09:12 PM, company Director, Nixon J Michael disclosed selling 11,073 shares at a cost of $60.00. At the time of this transaction (Sep 21), this trade was worth $664,380 in total. As of Sep 21, Nixon J Michael now…
  11. Chief Financial Officer of Snap Inc (NYSE:SNAP), Vollero Andrew, sells 37,874 shares worth $554,521

    Empowerednews.net - Business
    09.22 / 02:49 empowerednews.net
    According to Snap Inc's most recent Form 4 filing with the SEC dated Sep 21 09:30 PM, company Chief Financial Officer, Vollero Andrew disclosed selling 37,874 shares at a cost of $14.64. At the time of this transaction (Sep 19), this trade was worth $554,521 in total. As of Sep 19, Vollero Andrew now owns…
  12. The Event-Ticketing Industry Is Ripe for Amazon to Disrupt It

    Billingsgazette.com - Business
    09.22 / 02:45 billingsgazette.com
    If you're a music fan who's tired of being gouged when you buy tickets online, here's some good news for…
  13. Mamapreneur Invents Innovative and Eco-Friendly Baby Teething Solution

    Blackenterprise.com - Business
    09.22 / 02:41 blackenterprise.com
    Tara Darnley pitched her Yummy Mitt teether on Steve Harvey's Funderdome, winning $20,000 for…
  14. The Pipeline: Commercial real estate deals for 9.22.17

    Businessden.com - Business
    09.22 / 02:41 businessden.com
    Retail strips in Littleton and Aurora both sell for $8 million among a busy week in retail and office leases in the latest roundup The post The Pipeline: Commercial real estate deals for 9.22.17 appeared first on…
  15. Downtown gets a sneak peek at Choice

    Businessden.com - Business
    09.22 / 02:41 businessden.com
    A 24-hour convenience store focused on food will open in two weeks in downtown Denver The post Downtown gets a sneak peek at Choice appeared first on…
  16. Got dock? 3-house Grand Lake property listed for $6M

    Businessden.com - Business
    09.22 / 02:41 businessden.com
    A property has been listed on the shores of Colorado’s largest natural lake, with enough room to moor 14 boats The post Got dock? 3-house Grand Lake property listed for $6M appeared first on B…
  17. Tech Center apartment complex fetches $91M

    Businessden.com - Business
    09.22 / 02:41 businessden.com
    A 304-unit property in Arapahoe County is the fifth deal this year to exceeded the $90 million price tag The post Tech Center apartment complex fetches $91M appeared first on…
  18. City of Denver strikes $20M deal to buy Park Hill Golf Course

    Businessden.com - Business
    09.22 / 02:41 businessden.com
    Officials from Denver and the George W. Clayton Trust, which has owned the land since 1900, announced the city will purchase 80 acres and lease-to-own another 75 acres The post City of Denver strikes $20M deal to buy Park Hill Golf Course appeared first on…
  19. Sign at former Vietnamese restaurant stirs controversy in Wheaton

    DailyHerald.com- Business
    09.22 / 02:35 dailyherald.com
    Taped inside the front door of a former Vietnamese restaurant in downtown Wheaton is a sign that says the owners "went back to Vietnam." Was the landlord who put up the sign trying to give notice to would-be patrons? Or was it an act of animosity toward his former tenants, who reopened the Luong-Loi restaurant in a building across Main Street two years…
  20. Japan’s emoji creator shrugs as U.S. firms turn his idea into a global hit

    O.seattletimes.com - Business
    09.22 / 02:24 o.seattletimes.com
    Emoji were created in 1998 by a 25-year-old employee of Japanese mobile-phone carrier NTT Docomo, who designed them for an internet messaging service. But it was Western players Apple and Google that made emoji a global…