The Power of A Peer Group

TL;DR:

A Peer Group (PG) is a group of 6-12 contractors from across the country that don't compete against each other and meet a few times a year. Typically, a third-party facilitator helps organize the group and meetings.

A PG improves decision-making, benchmarking, and understanding what the “best in class” are doing to improve their businesses.

We become the average of the five people we spend the most time with. Don’t underestimate the power of positive peer pressure and camaraderie.

The right PG will help you level up your company.

In 2017, a huge bid opportunity popped up. Across the state line from one of our asphalt plants, the DOT advertised a $50M+ interstate reconstruction project. 200K tons of hot mix, rubblization, A+B bid, and a bunch of subcontractor-heavy work. Right up our alley. The trouble was that we had never bid a DOT job in that state and we only had three weeks to prepare a massive bid. So what did we do?

We called a Peer Group (PG) member who knew that DOT well, having worked for them hundreds of miles away for generations. Their team generously sat down with our estimating team and answered a comprehensive list of technical questions that put our minds at ease. When you venture into a new state, there’s a tendency to miss things. Assumptions make… well, you know. Three weeks later, we won the job, and it became a home run project. I doubt we would have submitted a competitive bid without this support. This is a small example of the power of PGs.

I believe that PG’s are awesome, and more contractors should join them. Here’s why:

Elevated Expectations: When you compare yourself against other “best in class” companies that do similar work, you are more likely to measure what matters and improve over time. The shared insights and experiences from these companies provide benchmarks that push you to elevate your standards and strive for excellence.

Education and Resources: Benjamin Franklin formed the first “Junto” in Philadelphia in 1727, a group of friends whose purpose was to debate questions and exchange knowledge in search of mutual self-improvement. A PG gives you access to resources and experience in areas you may not be familiar with. This knowledge exchange helps you make more informed decisions and avoid common pitfalls.

Innovation: Software is eating the world and revolutionizing the way business is done. Peer groups are often the first to hear about and try new innovative technologies. One of our PG members at Barriere showed us how they did 3D millimeter paving before we had ever tried it. It would have taken us more time (and costly mistakes) to learn on our own.

Benchmarking and Best Practices: Peer groups allow you to compare the efficiency of your operations against other best-in-class contractors. Understanding what top-performing contractors are doing provides tremendous guidance. By adopting these best practices, you can steer your business more effectively and ensure continuous improvement. This applies to technology, people, safety, fleet, shop, plant, accounting, and acquisitions. The list goes on.

Growth Through Diverse Perspectives: A well-structured PG has companies of various sizes that do different types of work. Some folks may do private site work while others may be solely focused on DOT. Understanding the pros and cons of each segment helps you identify growth opportunities in your market.

Personal and Professional Development: The relationships formed within a peer group are deep lasting connections that provide real wisdom and guidance. Running family-held or private businesses is hard work. A network of people you can rely on for advice and support is huge.

Advice for Joining a Peer Group

If you’re considering joining a PG, think of it as an investment in your business’s future and your personal well-being. Here are some things to be aware of:

Evaluate: Consider the existing members and facilitator objectively. This isn’t a marriage, but it could last a long time. Talk to multiple groups. Future geographic growth plans for your company may make it unfeasible. We become the average of the five people we spend the most time with. Choose wisely.

Transparency: Prepare to share financial information.

Hidden Benefits: It’s hard to know how what one sound piece of advice or shared experience can do to help you solve a hard problem.

Act: If you wait for all the stoplights to be green, you’ll never leave the house. Go for it!

The right peer group can be a game-changer for your business. It provides a platform for shared learning, benchmarking, and mutual support that drives both personal and professional growth. Don’t underestimate the power of positive peer pressure and camaraderie. Joining a peer group will level up your company and help you achieve more success.

This week’s post was a team effort. I do not claim all the ideas as my own, as I had tons of help. Thanks to our generous readers who shared their time and expertise in contributing to this post!

Coming Next Week:

Next week, we’ll share a product update from our Engineering and Product team… Stay Tuned!

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About the Author

Tristan Wilson is the CEO and Founder of Edgevanta. We make software that helps contractors win more work at the right price. He is a 4th Generation Contractor, construction enthusiast, ultra runner, and bidding nerd. He worked his way up the ladder at Allan Myers in the Mid-Atlantic and his family’s former business Barriere Construction before starting Edgevanta in Nashville, where the company is based. Reach out to him at [email protected]