Construction Financial Management Releases BKD’s Review & Analysis of Peer Group Program’s Topics & Discussions
The Construction Financial Management Association (CFMA) and BKD have released a white paper detailing the accumulation of various topics observed during CFMA’s Peer Group Program from 2016-2017.
“In 2015, CFMA began evaluating the potential implementation of a peer group program in which Association members could voluntarily join peer groups to explore topics of interest. The huge success of our pilot program led to the rollout of nearly 20 Peer Groups for CFMA members seeking to improve their companies through information sharing and feedback with their fellow construction financial managers in non-competing regions and markets,” noted CFMA President & CEO, Stuart Binstock.
As the facilitator engaged during the pilot program in 2016 and then throughout the full implementation in 2017, BKD has compiled their findings across five broad areas: Technology, Human Resources, Insurance and Risk Management, Succession Planning, and Financial Metrics and Processes.
Throughout the first two years of the Peer Group Program, it was readily apparent that technology-related issues can dominate CFMs’ daily and monthly workload for their construction companies. Many of the CFMs expressed levels of frustration at trying to manage the overall technology strategy of their companies, as the demands of bidding/estimating, operations, finance, accounting, and human resource management intersect with a highly mobile workforce. In many of the peer group companies, the responsibility to develop and implement the strategy has been placed squarely on the CFM.
Tim Wilson, national industry partner for BKD National Construction & Real Estate Group, further elaborated: “Technology in a construction company can be a distinguishing factor for a high-performance contractor versus an average- to low-performing contractor. Developing a well-thought-out and documented strategic technology plan can help you identify weaknesses and opportunities for improvement within the organization. It also allows the decision-makers of the company to make better decisions with real-time information. However, without a strategic plan, the additional data can just become overwhelming.”
Other discussion points covered by the nearly 180 Peer Group members during their monthly/quarterly teleconferences and yearly in-person meetings have included recruiting, retention best practices, surety & bonding, captives, key performance indicators, management reporting, month-end closing processes, and forecasting.
“The overwhelming success of our Peer Group Program could not have happened without the help of BKD and the great partnership we share. BKD’s dedicated professionals and their services have greatly benefitted the Peer Group Program participants and ultimately the peers and companies to whom they will take this knowledge back,” adds CFMA Chairman, Joe McLaughin.
The white paper report can be accessed at CFMA Peer Groups Report.
CFMA, headquartered in Princeton, NJ, is an individual membership organization and the only association dedicated to bringing together construction financial professionals and those partners serving their unique needs. CFMA provides invaluable resources and education to its more than 8,200 members via the headquarters office and 98 chapters across North America. In cooperation with its affiliate organization, the Institute of Certified Construction Industry Financial Professionals (ICCIFP), CFMA promotes industry best practices and continuing education in support of its mission: To be essential to the growth and success of construction financial professionals. Visit www.cfma.org for more information.
BKD, LLP, a national CPA and advisory firm, can help individuals and businesses realize their goals. Our dedicated professionals offer solutions for clients in all 50 states and internationally. BKD and its subsidiaries offer clients a variety of services in accounting, audit and assurance, tax, risk management, technology, corporate finance, forensic and valuation services and wealth management. We combine the insight and ideas of multiple disciplines to provide solutions in a wide range of industries, including health care, manufacturing, distribution, financial services, construction and real estate, as well as government entities, higher education institutions and not-for-profit organizations. To learn more, visit bkd.com