There are hundreds of best practices I have learned over the years, and wrote about in my best-selling book, Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering, and Environmental Firms. But most of us can’t remember or do more than one or two things at a time.
So I decided to try and consolidate all the ideas and tips I have for A&E firm success into 10 tips that should provide the biggest bang for the buck, and help you focus on the most important steps to increasing your firm’s profitability and enhancing growth.
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Commit to a culture of continuous improvement – The firms that continue to question and improve their business management processes are best positioned for growth and success. Just the mindset of challenging “how we’ve always done it” can be empowering and progressive.
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Get feedback from employees and clients – Your employees and clients each have unique viewpoints about what your firm does well or could improve. Ask them! This is free market research that can really pay off.
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Have a plan, strategy and goals – This one is obvious but many firms go on retreats, develop strategies and then fail at implementing them. To be successful, make sure you have measurable goals with specific timelines that are regularly monitored.
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Be the best at something – Those firms that get the highest fees are the ones that develop expertise in a core industry (e.g. healthcare projects) or types of services and focus on thought leadership in those narrow niches.
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Find out what is really going on – Small amounts of money are lost every day because of inefficiencies, poor systems and ineffective processes. A business management assessment that looks at the details of your daily operations can provide insight as to where to find lost dollars.
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Embrace the new world of online marketing – Statistics show your clients and potential clients are researching your firm before they even talk with you about a project. Make sure you’re your online presence truly represents the brand that you want to be recognized for.
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Create a client retention plan – Almost all firms have been surprised by losing a client unexpectedly. A client retention plan will help you intentionally focus on client service, outreach and relationships to ensure that your best clients continue to work with you.
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Train project managers (PMs) on business skills – The skills of your staff are what determine the outcomes on your projects. Your PMs control the majority of your revenue and costs, and your financial success is directly related to their ability to manage the scope and control costs.
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Understand your firm’s metrics – Many firms only have a few people that really understand the reports and metrics that drive decisions. Metrics should be related to every role in the firm and each person responsible for a metric should be trained to learn to control it.
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Hold employees and managers accountable – Many firms struggle with holding staff accountable for performance results. Develop a performance management process with specific goals and regular feedback - not just an annual review.
By focusing on one or two key business improvement initiatives a quarter, your firm can experience growth that is both manageable and profitable. Investing in your firm’s operational effectiveness, skillsets and processes is critical in this time of fast change, fierce competition and declining fees.
About the Author: June R. Jewell, CPA is author of the best-selling book Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms.
She is the president of AEC Business Solutions, focused on helping AEC firms make more money on their projects. Connect with her on LinkedIn and learn more about how to improve your financial performance at www.AECBusiness.com.
To receive a complimentary tip sheet “6 Steps to Increase Profits in AEC Firms”, adapted from the best-selling book “Find the Lost Dollars: 6 Steps to Increase Profits in Architectural, Engineering and Environmental Firms” authored by June R. Jewell, CPA:
