The new year presents an opportunity for you to set aside time for strategic review and planning so you can be ready to take on opportunities when you see them. A comprehensive evaluation of your company should include a rigorous assessment of your financial performance and the efficiency of your operations. It’s also the ideal time to conduct a functional review of your construction ERP software so you can be sure it aligns with your future goals.
What is a Functional Review?
A comprehensive assessment and analysis of the operational effectiveness and efficiency of your ERP Software. The aim of a functional review is to identify where the software is not effective and determine areas where you would like to make improvements.
Financial Analysis
Good financial health is the foundation of a successful contracting company. A healthy review of your company’s finances should consider expenses, revenues, profit margins, and net profit. This financial analysis should also include a review of past goals. Compare your annual financial results against years past to show how well you have met your financial goals.
Operational Analysis
Running a construction company isn’t solely about the numbers. To support your company’s growth, you should also review your business operations. Listen to what your employees are saying, include the feedback from customer surveys, and assess how well you’re doing on key performance indicators like employee retention and customer satisfaction.
Technology Analysis
Technology is essential for construction companies operating in the current competitive environment. That means it’s important to also assess whether your current technology is supporting your business. You may want to ask questions such as:
- Does your software deliver value?
- Are there redundant technologies that are draining your time, financial and human resources?
- Does the ERP solution you’re currently using help you meet your operational and financial goals?
With the answers to these questions in hand, you are ready to conduct a functional review of your ERP solution. This review will help you clarify whether your current system can support your company, rather than getting in the way of your goals.
Here are some elements to consider during your functional review:
Is your ERP Software provider right for you?
You’re looking for a partner who can offer customization options that will allow you to tailor the construction ERP software to your specific needs. Look for customization that will help you reduce or eliminate manual and labor intensive processes, as well as ways to deliver ERP data into business analysis that will help you make strong decisions.
Do you fully utilize your ERP software?
In addition to customization, your construction company could also benefit from exploring new ways to use existing software tools. Does your construction ERP software provider offer training or consulting that can help your business to utilize the system more efficiently?
Which construction industry best practices should you incorporate?
Include a review of industry best practices to accompany this functional review. Once your functional review is completed, you should be able to create a solid plan to optimize operations so you can make the best use of your existing or new construction ERP software.
Conclusion
After a full functional review of your construction ERP software and the creation of a forward looking operational plan, you’ll be prepared to be more productive, efficient, and effective in the year ahead. And if you make it an annual practice to evaluate, optimize, measure, and improve your company processes, you’re on your way to ensuring a continuing commitment to improvements.
Find out how eCMS from Computer Guidance helps contractors manage their finances and operations.