In today's business world, having a cohesive technology strategy and high-performance business operating software isn't just a luxury, it's an absolute requirement. However, software by itself is not a solution; it's a piece of the overall puzzle. Software is designed to speed up the performance of tasks, but in the absence of proper processes and workflows, that can mean speeding up making errors instead of achieving proper outcomes.

When I work with clients on implementing business operating software, I always start with the introduction of core standard operating procedures and standard role definitions that align with the steps of each process. This ensures that we are automating the proper steps in the proper order so that proper outcomes are the result:

1. A functional system starts with an estimate that represents the total proposed scope of work, a production cost estimate, and a customer price.
2. The proposal becomes the accepted job with equal cost and price values.
3. Actual costs are then captured from the field by operations management teams and added alongside the estimate.
4. Once complete, the invoice(s) should be equal to the sold value of the original estimate or an amended value through a change process.

This approach provides for a consistent, conscious stream of data that can be accurately compared and evaluated when making management decisions about the work and the business overall.

Role review

Processes outlining which roles are responsible for providing, reviewing, approving and/or adjusting inputs and outputs are essential to ensuring data consistency and the system outputs. The estimating process might involve more than one person, depending on the size or scope of the job:

• The sales professional may gather scope information and take-off data.
• An operations manager or estimator may review the site and system-calculated time and materials to produce the work for possible edits based on considerations on the site.
• A branch or general manager may review the final estimate and pricing for approval with both the sales professional and the operations team.

This process is typically executed partly in the system and alongside it.

Reporting functions

When it comes to the reporting function of the software, it is important to ensure there is enough flexibility to report key metrics to your business approach, and that they align with the role and process definition. Reporting all kinds of data can feel important, but if that data cannot be understood by the people in your business in a way that can inform their decisions and actions, it is worthless.

I suggest no more than five key performance indicator metrics per role in your business, to be determined through a collective review and discussion with the entire team. Each role's KPIs should be tied to outcomes in the business's KPIs.

Regardless of the software you choose, don't overlook the importance of standard defined roles, processes, and KPIs per role before implementation. This approach will set you and your team up for success with your new system and ensure you are not simply making mistakes faster!

Crucial operating software elements

1. A complete connection of the information from the estimate all the way to the invoice
2. The ability to capture and report actual job costs
3. The ability to compare estimated and actual costs
4. The ability to provide visibility to data of this type across your team