The Communication Model

One Key Best Practice - That pays high dividends for all construction companies is to have a communication plan in place as part of their Business Plan

The Communication plan - Has a system in place to the amount of information each group has access to in order to optimize profits and reduce chaos.

M.A.P. - Marketing / Accounting / Production

Marketing - Needs access to the marketing plan and analytic reports to gauge the effectiveness of the variety of advertising and marketing campaigns.

Accounting - Needs access to QuickBooks, UDA Construction Suite all financial data including time cards, Schedule of Values, Job Cost reporting needs, customer lists, vendor lists and employee lists.

Production - Needs access to tools, equipment and material is stored and their immediate work assignments

Owners And Project Managers - You need access to everything including Estimates, Contracts, Job Costing, Job Profitability, Job Progress, Earned Value, Project Management Reports and Key Performance Indicator (KPI) reports.

Communication Channels

Combinatorial Explosion - (communication) is what occurs when your construction company grows and adds projects. The lines of communication added is a process that is sometimes described as being "exponential"; however it is simply polynomial.

Two People - Communicating about a construction project; for example two people in your company need to discuss a particular construction site. The simplest communication model is for them to talk on the phone or meet in person with a set of plans or blue prints and discuss the issues. This is the simplest form of communication - One Communication Channel.

Add One More - Person to conversation for a total of three people and your communication channels just tripled to three Communication Channels

Add One More - Person to conversation for a total of four people and your communication channels just grew to six Communication Channels

Add One More - Person to conversation for a total of five people and your communication channels just grew to ten Communication Channels - See Calculations Below

Communication Channels Calculations

• l = Lines of communication 
• n = Number of people involved      

Five People - Means Ten Communication Channels

Ten People - Means 4.5 times as many or 45 Communication Channels

Communication Costs Money - Spend Your Money Wisely!

Now think about how many bottom line profit dollars are being wasted when someone suggests that everybody has the right to know what is going on. In most cases it is not about keeping secrets from people is about allocating your company's resources wisely. 

For insights on developing your Business Process Strategy click here

QuickBooks Expert Specializing In Construction Bookkeeping Services