IMPLEMENTATION OF BUDGETING SYSTEM IN CONSTRUCTION FIRM
One of the leading construction companies in Russia, specializing in road and bridge sector.
We had a task to develop new budget management system, based on by-project costs and economics. Also, KPI system had to be implemented, driving the achievement of goals set in new budgeting system. Before SBS Consulting, budgeting on a by-project level was non-existent, company used regional approach. Abscence of key metrics, such a project profitability, quality, and terms made impossible understanding the attractiveness of projects and left serious issues hidden. Also, employee performance could not be measured, which complicated matters.
Over 7 months, SBS Consulting proposed a new system of budget management, based on by-project supply planning and the required audit to validate the need in resources. All the departments received quantitative key performance indicators with target levels. Quarterly and annual bonus system was implemented, based on level of KPI achievement.
Management has accepted the results and started implementation of new by-project budgeting system and key performance indicators.