Laser Electrical sees installation profitability increase dramatically through improved teamwork and coaching.
No two installations are alike, especially if you do custom work where everything electrical not only makes the structure functional but also contributes to its aesthetic design. Only highly skilled contractors who constantly refine their methods can expand in such a demanding market. Laser Electrical is working on its fourth year of double-digit growth.
Even with over thirty-five years of experience as an electrician and over twenty years running Laser Electrical, Managing Director Steve Calverley still expected that he could improve his company. “We’d seen quite a bit of growth and had done quite well,” Calverley said, “but we probably hadn’t really realized our potential. So we got some help from RESULTS.com and started working through strategic planning.”
Since new construction is one of Calverley’s main businesses, he knew that of the many critical Key Performance Indicators (KPIs) that impacted his profitability, finishing jobs within the hours estimated was critical.
“So we created a KPI around hours quoted vs. hours actual on one job,” he explained. “The crew knew how many hours they should be working, and we challenged them to try to get below that mark.” As it turned out, the challenge involved a lot more than just marking time, and the RESULTS.com solution did far more than move this one metric.
As soon as Calverley put this KPI in front of everyone and began holding individual installers responsible for their individual contributions to it, several things happened at once. “Initially it was pretty strange for everyone in the company to be using almost a different language to what we were used to,” he explained, referring to the term “KPI” itself. “But once we were into it, it began to make sense to everyone.”
It also became immediately clear that certain electricians performed much better than others.
While some underperformers complained at first, the general reaction was to closely examine how the top performers did it. “One or two of the guys who were struggling changed pretty dramatically -- and pretty quickly as well,” Calverley said. “We started seeing marked improvement.”
Not in the first month, when hours saved were an underwhelming 2% or so. But by the fourth, when savings were 16% and climbing, Calverley and everyone else in the company knew they were onto something significant. “We didn’t even have to say much,” he said, “It was mostly people wanting to challenge themselves, and knowing what the numbers were, they achieved it.”
This cultural shift produced several business results. First, Calverley’s franchise won the Peter Bassett International Business of the Year Award, across all the Electrical and Plumbing franchises in Australia and New Zealand, which is the highest award they give. Competing against all businesses, they also won the New Zealand Business of the Year Award. Their contracting partners have certainly taken note. “Other building companies want more and more to know about what we do, and how we do it,” Calverley told us. And while his crews keep getting better, what KPI does Calverley work towards himself? Well, what else: He intends to enrich the lives of 1,000,000 people by 2030.
About Laser Electrical
Operating in Christchurch for over 25 years, Laser Electrical Riccarton has unsurpassed knowledge of the local environment, and as one of the foundation members of the Laser Group, it has firmly established itself as the go-to company when it comes to electrical needs in Christchurch.
Professional, reliable and totally dependable, they ensure that every client, big or small, receives a high level of professional, friendly and hassle-free service.
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