This Podcast Is Episode Number 0258, And It Will Be About Construction Company Field Vs Office Profit Growth Strategy Field Vs. Office Battle Where did the insurrection between office and field start? Do you wonder why some Construction Contractors have ongoing rebellions between the two subgroups and other Contractors don't? Better yet what can you as a Contractor do about it and why should you care? Friction Costs Time And Money Start by visualizing what Ten Minutes Of Waste A Day Costs Your Bottom Line. For office staff multiply hourly wage by 1.75 to get a rough estimation of expense. Start with hourly wage + payroll taxes + overhead. Office staff earning $15.00 an hour with payroll taxes and overhead taxes costs roughly $25.86 an hour. $0.43 every minute or $1,120.56 Every Year. At 10% profit you would need $11,205.60 more sales to make up of the loss. For field multiply their hourly wage by 1.42 to get a rough estimation of what they cost your company in terms of hourly wage + payroll taxes + overhead. For example: Your field worker that you pay $25.00 an hour with payroll taxes and overhead taxes cost you roughly $35.64 an hour or roughly $0.59 every minute or $1,544.42 Every Year. At 10% profit you would need $15,444.20 more sales to make up of the loss. Everyone has a conviction of how the reality. Yet not everyone is mature enough to appreciate "We Live In A World Of What Is; Not What Should Be" - Randalism. This is the elemental reason of misunderstandings which lead to massive declines in productivity, steep deteriorations in cash flow and profits. What Gets Measured Gets Managed. Find and stop cash flow leaks and profit drains by walking a mile in the shoes of both office staff and field workers. Management By Walking Around Spend time in your office and become someone's assistant. Observe how they accomplish their work and understand what they do and why they do it. The number of steps required to process payroll will amaze you. If your construction company does Job Costing that adds several steps to preparing payroll and even more steps when entering receipts, bills, invoices, purchase orders, cash payments and checks. Oftentimes your office staff is working with misinformation. A receipt without a job name or address or any clue which job it goes too. A bank statement that only shows the date the check cleared, the check number and the amount without any information regarding who it went too, why or a job name. Office staff believes field workers are lazy and incompetent, field workers believe office staff is too nosy and wasting field workers time. Many times field workers will bring receipts for material, fuel, permits or something else they paid for personally to the office expecting to get reimbursed immediately. Most of the time the paperwork does not have the job name or any authorization from you or your management team and office staff is reluctant to just pay it. Again field workers judge office staff is trying to cheat them or at minimum playing power tripping games. Reimbursements hidden cost. If field workers do not get instant action they will wantonly expend 10-15 minutes which costs the company $5.90 to $8.85 for their time plus $4.30 to $6.45 for your office staff for a subtotal between $10.20 to $15.30 and that does not include the hidden cost of operating the company vehicle which can range upwards of $2.75 or more a mile. Office workers are already overloaded and these interruptions increase their annoyance and strain to a new level which causes them to lash out at the field worker. And so begins the battle between field workers and office staff. Spend time with your field workers and become someone's apprentice. Observe how they perform their work and understand what they do and why they do it. The number of steps required to mobilize on a job site and get tools, material and field workers in place is a process in itself. Most of the time when field workers arrive at the job...