The Communication Model

When Construction Company - Assigns people to a project there needs to be communication plan to identify the amount of information each group has access too.

M.A.P. - Marketing / Accounting / Production

Marketing - Needs access to the marketing plan and analytic reports to gauge the effectiveness of the variety of advertising and marketing campaigns.

Accounting - Needs access to QuickBooks, UDA Construction Suite all financial data including time cards, Schedule of Values, Job Cost reporting needs, customer lists, vendor lists and employee lists.

Production - Needs access to tools, equipment and material is stored and their immediate work assignments

Owners And Project Managers - You need access to everything including Estimates, Contracts, Job Costing, Job Profitability, Job Progress, Earned Value, Project Management Reports and Key Performance Indicator (KPI) reports.

Communication Channels Explained

Combinatorial Explosion - (communication) is what occurs when your construction company grows and adds projects. The lines of communication added is a process that is sometimes described as being "exponential"; however it is simply polynomial.

Two People - Communicating about a construction project; for example two people in your company need to discuss a particular construction site. The simplest communication model is for them to talk on the phone or meet in person with a set of plans or blue prints and discuss the issues. This is the simplest form of communication - One Communication Channel.

Add One More - Person to conversation for a total of three people and your communication channels just tripled to - Three Communication Channels

Add One More - Person to conversation for a total of four people and your communication channels just grew to - Six Communication Channels

Add One More - Person to conversation for a total of five people and your communication channels just grew to - ten Communication Channels - See Calculations Below

 

Communication Channels Calculations

  • l = Lines of communication 
  • n = Number of people involved       The Communication Model Formula - Fast Easy Accounting

 

Five People - Means Ten Communication Channels

Communication Model Calculation - Fast Easy Accounting

Ten People - Means 4.5 times as many or 45 Communication Channels

 Communication Model - Formula With Ten People - Fast Easy Accounting

 

Communication Costs Money - Spend Your Money Wisely!

Now think about how many bottom line profit dollars are being wasted when someone suggests that everybody has the right to know what is going on. In most cases it is not about keeping secrets from people is about allocating your company's resources wisely.

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About The Author:

Randal DeHart, PMP, QPA The Construction Accountant Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist and Bill.Com Certified Guru. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.

Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Follow Randal on Google+