When asked about their company’s financial management,
49.8% of respondents said their company did not have written goals and initiatives for managing financial performance.
While financial management was the area that generated the
highest “Yes” response to this series of questions, the fact
that only half of all respondents have written financial performance goals and initiatives is truly striking.
Putting the Data to Work
Observations about the state of the industry and its various
segments can provide intriguing insights, but their real value
emerges only when contractors use the information to help
improve financial performance and long-term sustainability.
This is where the practice of performance management can
be especially effective. To understand how these four key
management areas relate to each other (and to the overall
performance management process), it helps to visualize their
MARCUS R. MCKERLEY, CPA, is an Executive with
Crowe Chizek and Company LLC in Nashville, TN. He
has more than 25 years of public accounting experience
in the construction industry.
He currently serves as the lead executive for Crowe’s
southeast construction practice, and heads the firm’s
construction consulting practice. Marc earned his BS
in Accounting from Tennessee Technological University
in Cookville, TN.
Marc is a longtime member of CFMA’s Middle Tennessee
Chapter. He is also a member of the AICPA and the
Tennessee Society of CPAs. He currently serves on the
Board of Directors and the Associate Council for the
Mississippi Valley Branch of the AGC, and is on the Board
of Directors of the Middle Tennessee Branch of the AGC.
Web Site: www.crowechizek.com
Exhibit 4 illustrates how the management areas
addressed in the survey relate to overall company performance and to the process of continuous improvement.
Comparing company performance to industry
benchmarks begins to point the way to areas
where improvement is most likely to produce
results, but it’s only one, early step in the overall
performance management process.
The following four steps are even more critical:
• Develop clear and specific objectives,
• Identify the metrics for measuring
progress toward those objectives, and
• Use those metrics to establish clearly
The next installment in this series will focus on
the process of managing people, including employee recruitment, retention, and development.
Exhibit 4: Performance Management Model
Risk & Safety
In addition, it will examine technologies that provide real-time performance data, so that managers can tell at a glance if they are meeting
improvement targets. BP