Job process standardization and margin growth
Situation:
A construction equipment firm providing scaffolding services was highly decentralized, relying on the skills and experience of branch managers. Following its acquisition by a private equity company, the firm struggled to transition from low-margin rentals to the higher margin businesses of selling services and managing jobs.
Actions:
- Evaluated disparate branch systems, processes, & data
- Implemented an end-to-end branch optimization initiative across 10 pilot branches, audited progress, and then implemented across 20 remaining branches
- Empowered Regional Managers to provide a more effective link between Corporate and the branches
- Developed plan for 15% return on labor improvement
Results: Improved companywide execution and reduced job management process variability. Enhanced all value chain elements, including estimating, bidding, planning, execution, documentation, and job costing. Ultimately achieved 2+ point improvement in profit margin.
