Switch on to IT

With more than 20 years’ experience of using industry-specific software in a contracting environment, Eric Johnson of Northwich (EJN) has seen some significant changes in what software can do. At the same time, says director Diane Johnson, the reasons for computerising key processes in the first place remain valid today.

“At the end of the day, the software is there to make our lives easier by saving time and money. It helps us run the business more efficiently and streamlines the mundane work, so we have time to focus on more important issues,” she explains.

EJN was formed by Eric Johnson in 1946, carrying out electrical installation work and also selling white goods from a small shop in Northwich. Some 62 years later the company, now run by Ian and Diane Johnson, employs around 50 staff and offers a comprehensive range of electrical services. During that time the company has trained more than 300 apprentices and currently has 15 apprentices on the payroll.

As well as running the company’s back-office systems and general administration, Diane Johnson is also active in the ECA. She has played a vital role in driving skills issues higher up the agenda. She is also chair of the ECA’s North West region – the first woman to hold this post. Consequently, managing her time efficiently to accommodate these diverse responsibilities is a primary consideration.

Diane joined EJN in the mid-1980s, having worked in the financial sector, and one of her first tasks was to organise the accounts side of the business.

“Everything was done manually and was very time-consuming, so it made sense to introduce accounts software that would help us streamline the operation,” she recalls.

“We decided to work with a relatively new local company called Barnes Computing, which has since become part of Estimation. The main reason for this was that the company had evolved from a contracting business, so the software was designed for our needs and the people understood what we do,” Diane adds.

EJN computerised its accounting operations some 21 years ago, and very soon added a contract-costing package to help with running the finances on each project. Several years later, manual estimating was also replaced by Barnes’ computerised estimating package.

At the time, such software was very much in its infancy and there were some steep learning curves for both parties.

“The relationship between our two companies was all important at the time because we were learning how to incorporate software into the business, and Barnes was learning how to make its software better. As a result, it helped us with any problems we encountered and we gave them feedback on what could be improved in their products.

“Nowadays the software is more reliable and offers more functionality, but the underlying relationship and two-way communication between supplier and user is as important as ever,” she asserts.

EJN’s commitment to staff development, as evidenced by its ongoing apprentice training, also extends to office-based employees. It provides training so that each person can perform a range of key tasks within the business. To that end, the training offered by software suppliers has also been an important aspect of the relationship.

“It’s much easier to learn something by doing it rather than reading a manual, so whenever we get new software we prefer to have someone come in and demonstrate how it works.

“In that way, I can make sure all of the staff feel confident in using the software and everything will run smoothly when I’m away from the office on ECA business.

It’s becoming increasingly difficult to make a profit so we need to improve efficiency and profitability

“In fact, it’s true to say that having the software has enabled me to devote a lot more time to the ECA without it having a detrimental effect on business,” says Diane.

From Barnes to Estimation

Given the strength of the relationship that had developed with Barnes Computing, there were understandable concerns when Barnes became part of Estimation in 2001.

“Estimation had a reputation of working with larger contractors, and we were genuinely worried they would think we weren’t big enough to warrant their interest, and that we would lose the personal relationship we had enjoyed with Barnes.

“In fact, the transition was completely painless and the relationship has gone from strength to strength. They even sent a person to sit in with us to gain a better grasp of how smaller contractors work.”

As with most modern businesses, EJN has become increasingly dependent on its IT systems. For example, information generated in the estimate is now transferred to the contract-costing package, which is also used to raise purchase orders so committed costs are shown alongside anticipated labour and material costs.

“I can look at the details of any job and see how its actual performance compares against what we expected,” says Diane.

Because of this dependence on IT and the time-savings it brings, EJN places a premium on effective technical support when something goes wrong, as well as introducing ongoing improvements in the way the software is used in the business.

“Fast access to technical support is very important to us. This has certainly improved with access to Estimation’s wider resources and technologies, such as being able to connect to our computers so we’re both viewing the same screen and can resolve problems more quickly.

“Estimation has also got us involved in local user groups, where we get the chance to talk to other contractors and find out how they do things. This also provides another medium for feeding our views into future software,” continues Diane.

“The two-way communication that was so important to us in the early days continues to yield benefits for all parties.”

Diane Johnson is convinced that the combination of good software and effective support has made a major contribution to EJN’s success and will continue to do so.

“It’s becoming increasingly difficult to make a sensible profit in this business so we need to do everything we can to improve efficiency and profitability. I really don’t understand contractors that haven’t invested in software because the time-savings and productivity benefits far outweigh the relatively low capital cost,” she concludes.