EDR Webinar Presented by June Jewell, CPA, President AEC Business Solutions November 18, 2015 Project Managers (PMs) are the key to a professional services firm’s success. Yet many firms promote technical people into roles they are not prepared or ready for. As a result, project profitability suffers and there is frustration at every level of the organization. By enabling project managers, through financial and systems training, automation, and accountability measures, the firm’s profit margins can increase substantially. In this webinar, attendees will be able to: -Evaluate the challenges that cause many Project Managers to struggle with project profitability -Understand the reasons that projects go over budget -Review the financial aspects of project management that Project Managers need to know to be successful -Learn how technology can help Project Managers deliver more profitable projects -Develop some best practices to help Project Managers succeed Speaker June R. Jewell, CPA, President AEC Business Solutions Jewell, a thought leader and expert in AEC firm profitability, has more than 28 years of business management consulting experience, and unsurpassed knowledge of the AEC industry. In addition to this role, she is the original founder and current strategic advisor of Acuity Business Solutions, a Deltek Premier Partner and consulting firm that works with AEC firms to support business profitability through web-based enterprise management technology. She is the Amazon best-selling author of the book “Find The Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms.” Jewell has built and run a successful consulting practice, and is a highly sought after speaker at industry events and conferences. Her past speaking engagements include AIA, ACEC, SMPS, Design and Construction Network (DCN), Society for Design Administration (SDA), Zweig Group (formerly ZweigWhite), PSMJ, ROG Growth and Ownership Conference, Project Management Institute (PMI), Deltek Insight and Business of Architecture (BOA).

1. Developing Superstar
Project Managers
Presented by: June R. Jewell, CPA
President, AEC Business Solutions

2. June R. Jewell, CPA
 Author of best-selling book, Find
the Lost Dollars: 6 Steps to
Increase Profits in Architecture,
Engineering and Environmental
Firms
 President, AEC Business
Solutions
 Over 28 years as a business
management and Deltek
consultant
My mission is to help our client’s
make more money on their
projects

3. Agenda
State of the industry – 2015
Some Anecdotal Indications
Risks to Growth
Some Project Manager Stats
How do we evaluate our Project Managers (PMs)?
What is a Superstar Project Manager?
What Do PMs Really Do?
Challenges to Being a Superstar PM
What do PMs need to know?
What data do they need to do their jobs?
Using software to help PMs deliver profitable projects
How do we help them to be more successful?
Copyright 2015, AEC Business Solutions, LLC

4. Poll #1
Do you personally manage
projects?

5. State of the Industry - 2015
 Long recovery – slower than in the past
 Construction starts up 6% over last year
 Some firms still seeing peaks and valleys
 Many firms hiring
 Shortage of mid-level experienced architects and
engineers is huge
 Firms “poaching” from each other
 9 to 12 months backlog for many firms
 Margins still very tight – fees feel “squeezed”

6. Some Anecdotal Indications
 “Our staff are working
overtime to keep up with all
the work.”
 “Fees are being “squeezed” by
our clients.”
 “Salaries are going up but our
fees aren’t.”
 “We can’t find enough
qualified people.”
 “It is more important now than
ever to make sure our PMs
know how to make profits.”

7. Risks to Growth
Culture challenges
Adding people too fast
Different skill levels
PMs pulled in too many
directions
How do “we” do it?
Inconsistency and
chaos…

8. Some PM Statistics
 52% of firms have a formal Project Manager title*
 45% report their role as a PM is a full-time assignment*
 42% report their PMs always participate in establishing project
budgets
 56% finish projects on budget
 49% face some direct consequences for not staying within the
project budget
 48% say their PMs are always responsible for establishing
project schedules
 43% report they always participate in writing or designing the
project scope
 59% say project managers always review invoices before they go
out
 11% report PMs are always responsible for collecting fees
 46% feel their level of authority accurately reflects their level of
responsibility
*Zweig Group Project Management Survey 2014

9. How do we evaluate our PMs?
1. Technical skills
2. Winning new business
3. Good with clients / happy
clients
4. Outstanding design / product
5. Client wants to hire us again
6. Managing the team – clients,
subs, staff
7. Client paid
8. Projects made money / on
budget

10. What is a “Superstar” Project Manager?
 Able to manage their time and roles
 Good at all phases of project lifecycle
 Technically competent
 Good communication skills/
 Managing people – all stakeholders
 Delegate work
 Schedule and manage resources
 Deliver on time and on budget
 Prepared to move into leadership
 Makes a Profit!!

11. What Do Your PMs Really Do?
Business Development / Sales
Proposals
Develop Scope / Estimate
Manage project schedules
Approve time & expenses
Billing
Collections
Manage Subcontractors
Using resources effectively / Utilization
Manage project deliverables
Solve client problems / nurture client
relationships
Mentor / Train / Discipline staff
Recruit / Interview / Hire staff (HR)
Manage contractual / legal requirements
Manage Project Budgets / Profitability $$$

12. Challenges to being a
Superstar PM

13. No Real PM Track or Role

14. No PM Job Description

15. What they do doesn’t match
their job description

16. No control over project
scope or resources assigned

17. Not given the data they
need to manage projects

18. Lack of Performance
Metrics and Goals

19. No Accountability!

20. Poll #2
What else can your firm do to help
your PMs to be more successful?

21. What Do PMs Need to Know?
 Basics of how profit is made on projects: Labor, Expenses,
Overhead
 Relationship of utilization to profitability: How overhead is
affected by non-billable time
 Terminology: Work-in-Process, AR, Net Revenues, Net Multiplier,
Overhead Rate, Realization, Utilization, Backlog, Variance, etc.
 How to read reports
 Budgeting and planning resources within the scope / fee of the
contract
 Effectively communicating the scope to the team
 Controlling the subcontractor budget, scope and billing
 Managing staff, delegating work, handling difficult clients and
problems that arise during the project.

22. What Data Do PMs Need?
 Budget to actual by project / phase
(real time is best)
 Aged accounts receivable
 Employee utilization for their direct
reports
 Backlog / Burn Rate / Earned Value
 Company overhead rate
 Billing (cost) rates of their staff
 Project profitability
 Departmental analysis (Dept.
Heads)
 Forecast of probable wins
 Staff availability

23. Using Software to Help PMs
Deliver Profitable Projects
 Project Management Tools
 Financial Management Tools
 CRM and Proposal Tools

24. Project Management Tools
 Electronic Time & Expense system and approvals
 Real time reporting & search capability
 Dashboards & Email alerts
 Budgeting, Resource Planning, Forecasting & Earned Value
Management

25. Financial Management Tools
 Departmental P&L
 Government Compliance
– DCAA, SOX, EVM
 Departmental / Office
Budgeting
 Employee Utilization
 Accounts Receivable /
Collections
 Cash Management

26. CRM & Proposal Tools
 Go / No-go
 Opportunity tracking /
Pipeline analysis
 Tracking deadlines &
submittal date
 Estimating at the Proposal
stage
 Fast access to client data
 Qualifications database
 Proposals development

27. How Can You Help PMs to
Become Superstars?

28. Establish Project Management as a Professional Discipline
Develop A Project Management Career Path
Create Individual Employee Professional Development Plans
Formalize Your Project
Management Role

29. Develop a Project Management
Process
http://www.fhwa.dot.gov/

30. Business Skills / Financial Management Training
Project Management Training
Training on software and reports that your firm is using
Mentoring
PM Financial Training

31. Project Control Administrative Role

32. Instant Access to Real Time
Proposal and Project Data

33. Send Alerts, Notifications and
Reminders

34. Use Project Budgeting and Resource
Management Tools

35. Accountability - Clear Cut Goals and
Measurable Results!!!!!

36. What is one change you can make
today to help your Project
Managers become Superstars?

37. COPYRIGHT 2015 AEC BUSINESS SOLUTIONS

38. Connect with Me!