How are you building your Tech Stack?
What is your tech stack and how did it get there?
By definition, for a corporation, a tech stack is the collection of software applications and technologies used to operate their business.
If you search 'what is a tech stack for a construction company' you'll get some pretty good definitions including things they should include like, managing projects, estimating and bidding. So why does it feel like your tech stack isn't built around those things. Probably because it's not, or at least it wasn't.
In my last post I noted some reasons why this might be (excerpt below):
The common tech stack consists of an Accounting system (ERP) along with other connected systems and tools. Remembering that process precedes technology, it makes sense that this has been the evolution of the construction tech stack. GAAP reporting has been regulated for years and other office functions like HR and Payroll have clear steps that can be documented. So, office processes were mapped and technology was implemented.
If you want to build a tech stack to serve how you make money you need to start by mapping the processes that make you money.
Mapping your processes
I still get hives when I think about my first real introduction to mapping processes for a construction company. It was run by a consultant hired by a company where I worked. The company included multiple lines of business and a large self-perform business group. I was introduced to swim lanes and workflow diagrams that made my head hurt.
Looking back, I realize that what I was learning was a foundational tool anyone could use and apply in various situations. First, for me, I needed to simplify it. How I think about it today, you have things you're trying to do (processes) and people who are doing those things (audience groups).
For a typical self-perform contractor (my background) you can quickly come up with a fairly complete list of both. The high-level processes would include Estimating, Bidding, Project Management, Field Management, Cost Management, Service, etc. Audience groups include Estimating, Accounting (AR/AP), Finance, Operations, Project Managers, Superintendents & Foreman, Safety and Equipment Managers, etc. These lists will vary by business type and size.
It's worth noting, these lists are not unique to your business. The processes are likely not unique either. Your people are and how you chose to build and implement your processes should serve your people. This is your way of doing business. Doing this well is part of building a strong positive culture.
Now, where do you start? You need a master plan, one that visualizes how processes overlap audience groups and then prioritizes the ones that are directly connected to how they make money.
With a master plan, start where it is right for you.
There are articles published regularly about building your tech stack by first selecting an ERP (accounting system). If you make money putting work in place in the field, I strongly suggest starting with field processes and consider your ERP as a piece of the master plan.
As a great example, I recently spoke with a civil contractor doing $50M in revenue, growing and using QuickBooks. Before considering other ERPs they are prioritizing Equipment Management and Field Productivity. They have lots of heavy iron (equipment) and that's how they make money. They are starting with technology to support Equipment Management.
Similarly, one of our early customers (a mechanical contractor) was considering an ERP replacement when we met. Their master plan included processes around job cost and productivity to support their way of finding and retaining skilled workers. Over four years later they are continuing to grow, including retaining and attracting skilled workers, all while still using the same ERP they were when we met. Not only did they apply processes and technology to best support how they make money, I'd estimate that they saved seven figures on an ERP replacement.
Both of these contractors took the time to map how they make money, create a master plan and are following it as they grow.
Closing thought
I didn't talk about who creates this master plan and how that gets implemented in your organization. Process mapping and building a tech stack doesn't have to be done by technology experts but it should be done with them.
Most of your organization understands how you do things (processes) and who does the things (audience) and you know how you make money (priority processes). The exercise of creating a master plan will be a valuable company exercise.
Finally, keep the master plan where everyone can see it when you are considering new technologies. It is not critical to get things 100% right but it is important to not get it wrong. Do not let decisions be made by a group(s) that will negatively impact the processes you have prioritized.
Disclaimer: Unlike working with engineering, product or business (left brain stuff), when I am writing (right brain stuff), I try not to start with the end in mind but instead work from a target idea. Along the way, there are often many connected tangential and parallel threads on which to pull. To compose a concise article is a challenge. Each finished article leaves countless others unexplored. Your time is valuable, I hope I've inspired you with threads of your own to pull.
