Residential Renovation Contractor Improves Sliding Company Employee Productivity & Profits
Background Before Working With Avitan
Roy and Eric owned a renovation business focusing on the residential sector. They had first worked with Avitan when the company was half its current size. With Avitan’s help, they had managed to grow to 35 employees and build a solid financial foundation for their business. They achieved a lot of success and even won numerous awards for their industry.
However, after a few years, growth began to stagnate and they felt stuck. Sales had remained the same for about 3-4 years and they couldn’t work out what they needed to do to hit that next level of growth in the company.
They also noticed employee morale and productivity had been declining and didn’t know how to fix it, and they suspected this was the cause of their company’s sliding net profitability, which was confirmed by end of year reports.
Time in business – more than 20 years
No of employees – 35
What We Did
We began with the Avitan Climate Survey, which is designed to gauge the temperature of a company’s corporate culture and indicates undercurrent employee attitudes and levels of engagement. Specifically, the results of this allowed us to pinpoint the root cause of an underperforming group.
We compiled all of this into a report to show to the Owners, Roy and Eric. To say they were shocked at our findings would be an understatement. Specifically, our Analysis had found that there was a big problem with the company’s culture, which caused employees to feel entitled with little sense of urgency to complete scheduled deadlines, which is a huge killer of cash and profits in the construction business.
However, we never deliver bad news without a game plan for effective change. So we created a detailed 6-month plan to shift the company’s complacency and get the company’s culture back on the right track. This 100% customized program included separate programs for managers, supervisors, and upper management.
After implementing our 6-month plan, the Owners and managers realized that complacency has no role in a growing company. Instead, new standards were established that have now resulted in a sense of pride in hitting scheduled project deadlines, and a sense of responsibility and accountability of every team member are now the benchmarks.
As a result, employee productivity also improved and projects were completed on time, every time causing sales and net profits to increase again. Profit margins are now far greater than what they previously were and the Owners are more satisfied and happier because they’re now working fewer hours and experiencing less stress because their crews are more competent and engaged employees are carrying the ball.
If improving employee culture and productivity is an issue you struggle with then we can help create a customized game plan for you that will allow you to get the best out of your crews.
The first stage is booking a free 30-minute Strategy Session and speaking with an Avitan Senior Advisor.