Top-performing architecture and engineering firms are not only achieving greater profits (43 percent), but are growing their staffs exponentially (28 percent), and generating record setting labor utilization rates (75 percent).
These are just some of the key performance indicators achieved by the 72 firms recently announced members of PSMJ Resources' exclusive 2019 Circle of Excellence.
To select the 2019 Circle of Excellence members, PSMJ ranked each of this year’s 353 participating firms in its annual AE Financial Performance Benchmark Survey against 13 key performance metrics. Firms received a total score across all of these metrics, and the top 20 percent (72 firms) made it into this year’s Circle of Excellence.
Rather than focus only on the most profitable firms, or those with the highest growth rate, which could be accomplished without solid business practices, our analysis determines the top 20 percent of firms with the best overall business performance.
Together, the 13 benchmarks encompass critical aspects of business operations including cash flow, overhead control, business development, project performance, staff utilization, and overall profitability. We believe outstanding performance across these areas better indicates a well-run and successfully managed firm.
Hailing from all corners of the AE industry, the diversity of this year's winners demonstrates that success isn’t defined by a specific firm size, location, or market niche, notes Frank A. Stasiowski, FAIA, Founder and CEO of PSMJ Resources. "The top-performing firms just think and act differently from the rest of the pack to achieve extraordinary business performance," he says.
In other words, Circle of Excellence members understand the importance of benchmarking, and have raised the bar through top-notch business practices. These 72 firms take the time to benchmark their performance and use what they learn to improve how they work with clients, interact with staff, and complete projects successfully. "To improve your business performance and manage your clients, staff, and projects more effectively, benchmarking is the best way to determine where you are and how you can improve," Stasiowski says.
A closer look at the results these outstanding architecture and engineer firms have achieved can be found in the recently released report Circle of Excellence Best Practices. This
22-page report includes data comparisons from the 10th to 90th percentiles for each of the 13 metrics used to determine the Circle of Excellence.
