This article is sponsored by Bangert.
If you are a contractor reading this, then technology is undoubtedly an integral part of your business operations. The technology in reference is primarily core applications that you rely on for decisions, compliance, and operations, but these same traits apply to any of the technology you deploy.
Throughout the 40 years I have been in the construction software industry, I've witnessed numerous instances where certain companies yield significantly higher returns from identical tech compared to others.
So, what drives this differential? If you are interested in maximizing the return on investment (ROI) on your investments in software, read on.
Traits of High ROI Achievers
This list is in no particular order, but the high achievers exhibit many or all these traits:
They Understand That the Right Software Is Not a Luxury
These companies recognize that having the right software is not just a luxury. When they notice a decline in productivity, they transition from generic solutions like QuickBooks, MS Dynamics, and spreadsheets to specialized construction software. The right software increases speed, offers more and accurate data, cuts down on overhead costs, and prevents expensive mistakes.
They also understand when legacy construction-specific solutions have reached the peak of their development and new platforms are available. A current example of this is the move from Windows-/PC-based software to cloud-native systems (especially in the enterprise resource planning arena).
A historical example is the move from PC/DOS systems to the Windows/PC environment. These significant platform shifts always bring multiplied ROI even when the legacy platform is still “working.”
They Attain Mastery of Their Software Tools
The more you understand your software, the higher your returns and the lower your operational costs will be. So, what holds many companies back?
Typically, it’s the upfront expenses of both money and time. When you pay for consulting and training by the hour, there is a natural tendency to minimize the expense in the near term at the cost of years of increased productivity. The same goes for the time it takes to learn software. It is well worth making the time investment up front for greater gain over time.
They also place high value on making space for their teams to continue to gain greater understanding and to innovate with the software tools they have in place.
They Understand the Value of Operating Lean
High ROI achievers understand that operating lean is of great value over time and during all economic conditions. Software tools support lean operations immensely and can mean the difference between operating at a profit during a downturn vs. burning through cash and credit lines. However, you cannot rest on past results.
There are many companies who are either very inefficiently operating the software they have or continue using outdated legacy software past the point of effectiveness. I have seen similar sized competitors where one has the traits of a high ROI achiever and the other doesn’t; as a result, the high achiever operates with half the office staff and gets better, faster, and more accurate data.
This is worth thinking about if you think new software is too expensive or attaining mastery is too time-consuming.
They Know That Business Strategy & Technology Are Inseparable
Their planning always includes plans for technology that will increase speed, deliver superior results, and create better customer and vendor relationships. They understand how tech leverages the skill and knowledge throughout the organization, relieves their team of mundane tasks, and frees them for high-value work. Most often, they see technology as the foundation for growth.
They Leave No Stone Unturned
High ROI achievers are always on the lookout for new tech that can drive the organization forward, especially when a platform transition is in progress. They see continual research as a key to adding value as new tech opportunities present themselves. This trait encompasses periodic review of software currently in use.
I have seen many cases where companies spend an inordinate amount of time on hard asset equipment acquisition while virtually ignoring tech. These companies always under achieve in the long term.
They Understand the Value of Talent Retention & Attraction
The talent market is tight in many industries, and construction is no exception. Modern tech retains and attracts talent.
There is little career value or growth for an individual if they join or are in a company that is not tech forward, operating on modern platforms across the board. No one wants to step into or remain in a position where hours per week are spent in spreadsheets or outdated systems that do not exercise their real talents.
Tech-forward companies attract tech-forward people. Those people will accelerate ROI naturally.
They Understand the Value of the Right Technology Partners
High achievers seek out tech partners (publishers and providers) that align with their core values and are in it with them for the “win.”
What this means is that they are inclined toward partners where the partner is striving for, and often pioneering, new methods and removing roadblocks, (such as hourly billing and limited knowledge access) in order for a contractor to actualize the traits listed previously. They place especially high value on partners who can show a path to continually increasing mastery of the tools selected.
When Bangert, Inc. was started 40 years ago, my father coined the phrase, “Productivity Through Applied Technology” — this phrase still motivates us to this day. You can see that the traits of high ROI achievers align exactly.
I have had the privilege of working with individuals and companies who are these achievers, and it is thrilling. The results they have gotten are incredible and baffling to their competition that does not understand or apply this core operating philosophy.
As we move into the era of AI and machine learning, adopting these traits will be essential to maintaining competitiveness and operating at optimum profitability. The good news is that it is never too late to adopt these traits and realize the bottom line results they deliver.