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MANAGEMENT FOR DESIGN Summer eMag Spring 2014
Top financial mistakes faced Business Intelligence by design firms for the profession
Most designers agreeare that financial acumen isthe notrelease their strong Management forwill Design excited to announce of oursuit. However, when it comes totools business success, financialfor know-how can make or new Business Intelligence specifically designed Architects, Engineers break your business strategy. and designers. Like most businesses you are probably used to seeing a variety of reports that track how your business is performing. These typically Is your design business making financial mistakes? will include your profit and loss statement, balance sheet, your cash flow statements, and perhaps project specific reports. Drawing on our extensive experience and expertise working with professional services businesses our Business Intelligence tool allows you to access, view and analyse your business performance at anytime from anywhere. Not only can we provide the ability to interrogate the information on the spot but we also forecast your business performance into the future from any financial system.
The top 5 financial mistakes made by design businesses are listed below: 1.
Failure to plan is your biggest foe. Budgeting and forecasting regularly will help to even out cash flow and by being aware of upcoming project costs, businesses can better prepare for months when money will be tight. By planning ahead, measures can be put in place to ease the financial strain of project-based workflows, allowing businesses a clear picture of individual project finances as well as the big picture business forecast.
2.
Stay on top of cash flow and accounts receivables. With multiple projects running simultaneously and with different payment milestones, it can
regular distributions and dividend payments. Invoicing systems and clear payment terms can both help to ensure prompt payment from clients. Our clients operate with 14 to 30 day payment terms Lack of reliable systems. A financial management system can be a significant asset in understanding the strengths and weaknesses of your beour difficult for Management architecture and engineering businesses tohave maintain Using inherent for Design methodologies we also business. Strong and up-to-date systems can help you to clearly developed a sophisticated Performance Assessment (KPA) across the critical a balanced cash reliable flow Key throughout the year. A successful business will your incomings and expenses so that you can react to issues areassee of your always bebusiness: aware of current cash flow and accounts receivables tobefore enable they arise. Your business also benefit fromInvoicing the abilitysystems to quickly regular distributions andwill dividend payments. andfilter clear • Profitability financial data by revenue stream so that you can quickly see which areas payment terms can both help to ensure prompt payment from clients. Our • Liquidity of the business are and aren’t making money. Financial and business clients operate with 14 to 30 day payment terms • Resourcing management systems can significantly ease the administrative burden • 3. Project Lack of Efficiency reliable systems. A financial management system can be a through automation and efficiency. • Business Development significant asset in understanding the strengths and weaknesses of your 4. Reducing costs rather than increasing revenues: of a Strong reliable systemsthe canebb helpand youflow to clearly that business. let you know quickly howand youup-to-date are performing. project-based workflow mean so fluctuations between gain see your incomings and can expenses that you can react tofinancial issues before So what’s the benefit to your business? and strain. It’s easy rush to cutfrom costs in ability times of but theyfinancial arise. Your business willto also benefit the to difficulty, quickly filter be careful not by to spreadsheets cut off valuable revenue streams and / or people the • No more data ad-hoc and financial revenue stream socalculations that you can quickly see whichatareas same time. If money is being spent to stimulate growth then the revenue • Information is accessed directly and available any-time, of the business are and aren’t making money. at Financial andanywhere business • Forecast where your business is heading as well as where it is now generated from spending could be far more valuable. Have a good look management systems can significantly ease the administrative burden • Graphical representation your information rathercut than numbers at your business development strategies and only once you have through automation and of efficiency. • Make decisions at the time analysed what is and isn’t working for your business. Reducing costs rather than increasing the ebb and flow of a • 4. Productivity improvements across the revenues: finance team 5. Big picture thinking. Profit for the sake of it is all good and well, but project-based workflow can mean between financial gain • R eduction in report generation andfluctuations more time on business analysis and sometimes a small profit gain can get in the way of long-term business and financial strain. It’s easy to rush to cut costs in times of difficulty, but decision making. success. Always about the big picture and long-term goals ofatyour be careful not tothink cut off valuable revenue streams and / or people the If you are ready to move your business performance analysis to — thebefore next business — with that financial forecasting you’ve done in mind same time. If money is being spent to stimulate growth then the revenue generation then pleasethat contact us and we will demonstrate the value it saying yes to projects will bring in more money in the short-term, butlook that generated from spending could be far valuable. Have a good will bring to your business. may ultimately obstructivestrategies to future progress. at your businessbut development and only cut once you have analysed what is and isn’t working for your business. 3.
How embracing can boost sometimes a small profit gain canchange get in the way of long-term business Top business tips for 2015 success. Always think about the big picture and long-term goals of your your — with for that2015 financial you’ve done in mind — before The businessbusiness climate looksforecasting set to be tough once again as the 5.
Big picture thinking. Profit for the sake of it is all good and well, but
Australian continues from being by mining to the sayingeconomy yes to projects that its willtransition bring in money in thedriven short-term, but that Global financial markets are in constant fluctuation, areout increasingly services and construction industries. is progress. a lot ofbusinesses uncertainty there as may ultimately but obstructive toThere future operating on will a global rather local and the world around us is a world to how 2015 unfold. Onethan thing thatscale, is certain however, is that businesses going into theeverything year with agoing strongdigital. strategic with will in a of pixels, with Yourplan ability toclear copeobjectives with and thrive perform than those restfactor on their changingbetter marketplace canwho be the thatlaurels. sets your business apart.
How embracing change can boost The IBM Institute for Business Value recently published the results of their your business Making Change Work study. The study surveyed 1,400 business professionals in 48 countries to get a closer look at the way change is met within business and the impact that markets attitude are to change has on companybusinesses performance. Global financial in constant fluctuation, are increasingly operating on a global rather than local scale, and the world around us is a world of pixels, with everything going digital. Your ability to cope with and thrive in a changing marketplace can be the factor that sets your business apart.
The IBM Institute for Business Value recently published the results of their Making Change Work study. The study surveyed 1,400 business professionals in 48 countries to get a closer look at the way change is met within business and the impact that attitude to change has on company performance.
Management recently conducted ourbusinesses annual Business Conditions be difficultFor forDesign architecture and engineering to maintain Survey, which highlights key issuesthe for year. owners and seniorbusiness executives a balanced cash flowthe throughout A successful will looking intobe 2015. Youofcan viewcash the full results here. always aware current flow and accounts receivables to enable regular and dividend payments. systems Below are 5 distributions top tips to help your business prepareInvoicing for the year ahead.and clear payment terms can both help ensure prompt payment clients. Our be difficult forto architecture andtoengineering businesses tofrom maintain 1. Use Big Data your advantage clients operate to 30 day payment a balanced cashwith flow14throughout year.itterms A business will a Big data is everywhere whether wethe realise orsuccessful not. Almost every action always of current flow and accounts receivables to aenable 3. business Lack ofbe reliable systems. A cash financial management system be oraware consumer takes these days leaves a record. Yourcan business should regular distributions andofdividend payments. Invoicing systems and clear significant asset in understanding strengths and weaknesses ofclient your at least have a database historicalthe information detailing how your payment terms can both help to ensure prompt payment from clients. business. Strong reliable and up-to-date systems can help you to clearly base behaves in terms of project frequency, size and type. Information Our clients operate with 14 toexpenses 30 day payment terms see your incomings and so conditions that you can reactalso to issues before about prospective clients and market should be collected they arise. Your business will also from ability quickly filter — to be drawn on to benefit enhance yourthe advantages in any 3. and Lackcollated of reliable systems. A financial management systemtocan be asituation. financial data byin revenue stream sothe that you canand quickly see which significant asset understanding strengths weaknesses ofareas your 2. Embrace mobile of the business are and aren’t making money. Financial and business business. Stronghas reliable up-to-date can help you to clearly If your business yet toand fully realise thesystems potential behind mobile management systems can significantly ease the administrative burden technology it is pastand time you did. so Mobile technology enables businesses see your incomings expenses that you can react to issues before through automation and efficiency. to have unprecedented of connectivity clients, suppliers, they arise. Your businesslevels will also benefit frombetween the ability to quickly filter management and thought leaders. can provide instant situational financial revenue so Itthat you canthe quickly which Reducingdata costsby rather thanstream increasing revenues: ebb see and flow ofareas a awareness and enable your business to act on or react to market of the businessworkflow are and aren’t making money. Financial business project-based can mean fluctuations betweenand financial gain conditions or potential problems while projects are in those crucial management systems can significantly ease the administrative burden and financial strain. It’s easy to rush to cut costs in times of difficulty, but early stages. through automation andvaluable efficiency. be careful not to cut off revenue streams and / or people at the same time. Ifservice money isthan being spent 3. your the bestincreasing it can to bestimulate 4. Make Reducing costs rather revenues:growth the ebbthen and the flowrevenue of a generated from spending could be far more valuable. Have a good look One of the key findings from our Annual Business Conditions Survey project-based workflow can mean fluctuations between financial gain at your development and only once youbiggest have but was thatbusiness businesses seeeasy improving services ascut one of and financial strain. It’s to strategies rushtheir to cut costs in times ofthe difficulty, analysed what is and isn’t working for your business. priorities for 2015. Take a good hard and — importantly — unbiased look be careful not to cut off valuable revenue streams and / or people at the at thetime. features and benefits of your to offering, plus that ofthen yourthe competitors If money is being stimulate revenue 5. same Big picture thinking. Profit forspent the sake of it is allgrowth good and well, but and see what can be done to create advantage. generated spending could farinmore valuable. Have a good look sometimesfrom a small profit gain canbeget the way of long-term business 4. Communicate collaborate at your business development and only cut oncegoals you have success. Alwaysand think about thestrategies big picture and long-term of your Ask your management, your peers, clients and employees what they analysed what is and working for youryou’ve business. business — with that isn’t financial forecasting done in mind — before think can be improved. Create an environment that isshort-term, conducive but to yes to projectsProfit that will bring in money in the 5. saying Big picture thinking. for the sake of it is all good and well, but that collaboration between stakeholders — sometimes people can be reticent may ultimately butprofit obstructive to future progress. sometimes a small gain can get in the way of long-term business to speak up or ask that all important question ‘why do we do it like this?’ success. Always think about the big picture and long-term goals of your 5. Act on your findings business — with that financial forecasting you’ve done in mind — before Last and importantly, whileinthe iron is because youbut canthat rest saying yes to projects act. thatStrike will bring money inhot, the short-term, assured that your competition is not sitting still! may ultimately but obstructive to future progress. 4.
How embracing change can boost your business
Global financial markets are in constantchange fluctuation, businesses increasingly How embracing canareboost Business for operating on a global objectives rather than local scale, and the world around us is a world of pixels, with everything going digital. Your ability to cope with and thrive in a your business the year ahead changing marketplace can be the factor that sets your business apart. Now is the time markets to be looking at where you want your businessare to be in 12 Global are inValue constant fluctuation, businesses increasingly The IBMfinancial Institute for Business recently published the results of their months time and it is important to compile a clear set of objectives and operating on a global local scale, and 1,400 the world around us is a world Making Change Work rather study. than The study surveyed business professionals in milestones to get you there. The process of setting objectives can be as simple of pixels, with everything going digital. Your ability to cope with and thrive in a 48 as countries closerit look thekey waything change is met within business and or difficultto asget youawant to be.atThe to remember is that simple, changing marketplace can be the factor that sets your business apart. the impact that attitude to change haslikely on company performance. easily understood objectives are more to be achieved. The IBM Institute for Business Value recently published the results of their Making Change Work study. The study surveyed 1,400 business professionals in 48 countries to get a closer look at the way change is met within business and the impact that attitude to change has on company performance.
1. Where are for we architecture now? be difficult and engineering businesses to maintain The first aspect setting objectives to understand where your will business a balanced cashofflow throughout theisyear. A successful business is now. be Take the time to carefully review business and to discover always aware of current cash flow andyour accounts receivables to enable what you are doing well, needs to be improved, what is holding you regular distributions and what dividend payments. Invoicing systems and clear back and what needs to be removed completely from your horizon. payment terms can both help to ensure prompt payment from clients. Our operate with 14 to 30 day payment Onceclients you have gained awareness of where youterms stand now you can look to where you want to be. 3. Lack of reliable systems. A financial management system can be a significant asset in understanding the strengths and weaknesses of your business. Strong reliable and up-to-date systems can help you to clearly see your incomings and expenses so that you can react to issues before they arise. Your business will also benefit from the ability to quickly filter financial data by revenue stream so that you can quickly see which areas of the business are and aren’t making money. Financial and business management systems can significantly ease the administrative burden through automation and efficiency. 4.
Reducing costs rather than increasing revenues: the ebb and flow of a project-based workflow can mean fluctuations between financial gain and financial strain. It’s easy to rush to cut costs in times of difficulty, but be careful not to cut off valuable revenue streams and / or people at the same time. If money is being spent to stimulate growth then the revenue generated from spending could be far more valuable. Have a good look at your business development strategies and only cut once you have analysed what is and isn’t working for your business.
5. Big picture thinking. Profit for the sake of it is all good and well, but 2. Where do we wantprofit to go? sometimes a small gain can get in the way of long-term business Almost all business leaders their business be respected to success. Always think aboutwant the big picture andto long-term goalsand of your grow. These are great aims to aspire to but you’ve in themselves far— toobefore vague. business — with that financial forecasting done inare mind Get specific or you are doomed to not achieve anything. saying yes to projects that will bring in money in the short-term, but that may ultimately obstructive to future progress. Some examplesbut of specific objectives include:
• • • • •
Expand your revenue by 20% Reduce your employee attrition rate Expand into the health sector Source external advice to help your business develop a new service line Upgrade your key business management systems
How embracing change can boost your business Take the time to get your wish list down and take even more time to be Global financial markets are constant fluctuation, businesses are increasingly sure these wishes are asinconcise as possible. operating on a global rather than local scale, and the world around us is a world 3. How will we get there? of pixels, with everything goingunless digital.you Your ability to cope andit. thrive An objective is just a wish plan an action towith achieve This in a changing can be the factor that sets your is the marketplace stage that is easy to overcomplicate. Start bybusiness breakingapart. down your objectives into parts. Talk to stakeholders them tell you The IBM Institute forsmaller Business Value recently publishedand theask results ofto their the Change key elements will surveyed help you achieve your objectives — bein Making Work they study.believe The study 1,400 business professionals sure to tell them not to overcomplicate as well! 48 countries to get a closer look at the way change is met within business and The next step is to look at the hard numbers. Areperformance. you adequately the impact that attitude to change has on company resourced and can you afford to chase this objective? If not, what do you need to do to free up what is necessary? As you can see, even objectives need planning!
management systems can significantly ease the administrative burden through automation and efficiency. 4.
Reducing costs rather than increasing revenues: the ebb and flow of a project-based workflow can mean fluctuations between financial gain and financial strain. It’s easy to rush to cut costs in times of difficulty, but 4. Make difficult a commitment for to architecture and engineering businesses be careful not cut off valuable revenue streams and / to or maintain people at the One oftime. the main reasons businesses their objectives is that a balanced flowisthroughout year.achieve A successful business will same Ifcash money being spentthe todon’t stimulate growth then the revenue they don’t commit to them. Placing your objectives under the scrutiny always be aware of current cash flow and accounts receivables to enable generated from spending could be far more valuable. Have a good look of key people within yourdividend business puts them out there in ayou wayhave thatclear regular distributions and payments. Invoicing systems and at your business development strategies and only cut once encourages action. payment what termsiscan to ensure prompt payment from clients. Our analysed andboth isn’thelp working for your business. clients operateand withget 14to to 30 day payment terms 5. 5. Be Bigtenacious picture thinking. Profitwork! for the sake of it is all good and well, but Ensure that all stakeholders know their in the plan and 3. sometimes Lack of reliable systems. A financial management canthat be athey talk a small profit gain can get inplace the way ofsystem long-term business to each other. There isabout no room fiefdoms! Never sight of where significant asset in understanding strengths andlose weaknesses ofyour your success. Always think thefor bigthe picture and long-term goals of you want to be. Use situational awareness and mobile technology to keep business.— Strong and up-to-date systems help you to business with reliable that financial forecasting you’ve can done in mind —clearly before track ofyes your soexpenses if will necessary you can your onthat see your incomings and soin that you adjust can react toplanning issues but before saying to progress projects that bring money in the short-term, the Communicate, communicate, communicate! theyfly. arise. Your but business will also from the ability to quickly filter may ultimately obstructive tobenefit future progress. financial data by revenue stream so that you can quickly see which areas of the business are and aren’t making money. Financial and business management systems can significantly ease the administrative burden through automation and efficiency.
Howtop embracing boost The financialchange tips forcan 2015 4. Reducing costs rather than increasing revenues: theatebb andpoint flowin of a your business All signs point to there being a shift in monetary policy some
workflow fluctuations 2015project-based and interest rates have can beenmean sitting at historic between lows for afinancial very longgain time. and financial strain. easy toasrush to cut lending costsbusinesses in market times ofslows difficulty, Competition is fierce for It’s business thefluctuation, home downbut and Global financial markets are in constant are increasingly be careful not to cut off valuable revenue streams and / or people at the new sources revenue are hunted. A cursory look international markets will operating onof a global rather than local scale, and theatworld around us is a world same time. If money is being spent to stimulate growth then the revenue tell you things are starting to heat up in the USA and the Fed will most likely of pixels, with everything going digital. Your ability to cope with and thrive in a generated spending could be economy far more Have a good look raise rates marketplace later from this year. ThebeAustralian isn’t tied to apart. the US as it changing can the factor that setsvaluable. youras business your business development strategies and onlyrates cut once you have onceatwas but historically speaking where US interest go others follow! The IBM Institute forisBusiness recently published the results of their analysed what and isn’tValue working for your business. Making Change Work study. The study surveyed 1,400 business professionals in 5. Big picture thinking. Profit the way sakechange of it is all goodwithin and well, but and 48 countries to get a closer lookfor at the is met business sometimes a small profit gain can get in the way of long-term business the impact that attitude to change has on company performance. success. Always think about the big picture and long-term goals of your business — with that financial forecasting you’ve done in mind — before saying yes to projects that will bring in money in the short-term, but that may ultimately but obstructive to future progress.
How embracing change can boost your business Global financial markets are in constant fluctuation, businesses are increasingly operating on a global rather than local scale, and the world around us is a world of pixels, with everything going digital. Your ability to cope with and thrive in a changing marketplace can be the factor that sets your business apart. The IBM Institute for Business Value recently published the results of their Making Change Work study. The study surveyed 1,400 business professionals in 48 countries to get a closer look at the way change is met within business and the impact that attitude to change has on company performance. Read on for our top tips to see you through the economic shifts on the horizon for 2015.
business. Strong reliable and up-to-date systems can help you to clearly see your incomings and expenses so that you can react to issues before they arise. Your business will also benefit from the ability to quickly filter financial data by revenue stream so that you can quickly see which areas of the business are and aren’t making money. Financial and business 1. Simplicity be difficult is forkey architecture and engineering to maintain management systems can significantly ease businesses the administrative burden In his 2014 shareholders letter Warren Buffet commented that “if you athrough balanced cash flow throughout the year. A successful business will don’t automation and efficiency. invest know, you’re just and gambling”. Businesses should invest alwaysinbethings awareyou of current cash flow accounts receivables to enable 4. within Reducing costs rather than increasing revenues: the ebb and flow of azone. knowledge and avoid risks outside of their comfort regulartheir distributions andbase dividend payments. Invoicing systems and clear project-based workflow can mean fluctuations between financial gain payment can both help to ensure prompt payment from clients. Our 2. Get back terms to basics and financial strain. It’s easy to rush to cut costs in times of difficulty, but clients what operate with 14 to 30 day payment terms Assess budgetary reductions are within your control, leaving aside be careful not to cut off valuable revenue streams and / or people at the for now those that aren’t. Every dollar saved is a dollar thatcan canbe beaused to 3. same Lack of reliable systems. A financial system time. If money is being spent tomanagement stimulate growth then the revenue reduce yourasset company’s liabilities. the strengths and weaknesses of your significant in understanding generated from spending could be far more valuable. Have a good look business. reliable and up-to-date systems clearly 3. Get outbusiness ofStrong debt or consolidate what you have at your development strategies and onlycan cuthelp onceyou youtohave see your incomings expenses so you can issues before Take a good hard at your business’s budget andreact maketo the decisions that analysed what is look andand isn’t working forthat your business. theyhelp arise. Your also from the ability filter will clear thebusiness balancewill sheet. Forbenefit most businesses this is to by quickly no means an 5. Big picture thinking. Profit for the sake of it is all good and well, but financial byincomes revenuefor stream that you can quickly which areas easy task,data where manyso have suffered during thesee latest slowdown. sometimes a small profit gain can get in the way of long-term business of the business are and aren’t making money. Financial and business 4. Invest your people success.inAlways think about the big picture and long-term goals of your management systems can of significantly ease to theensure administrative burden Investing from within one theforecasting easiest ways financial uplift business — with thatisfinancial you’ve done in mind — before through and efficiency. in 2015.yes Ifautomation businesses invest promoting enhancing talent the business will saying to projects thatinwill bring in and money in the short-term, but that in correspondence withincreasing an engaged, inspired and workforce. 4. grow Reducing costs but rather than revenues: the rewarded ebb and flow of a may ultimately obstructive to future progress. project-based workflow can mean fluctuations between financial gain and financial strain. It’s easy to rush to cut costs in times of difficulty, but be careful not to cut off valuable revenue streams and / or people at the same time. If money is being spent to stimulate growth then the revenue generated from spending could be far more valuable. Have a good look Management for Design are pleased strategies to advise that have at your business development andwe only cutpartnered once youwith haveConsult Australia to undertake the Consult Australia Performance Survey (PPS). analysed what is and isn’t working forPractice your business. Global financial markets are in constant fluctuation, businesses areuser-friendly, increasingly Consult Australia’s Practice Performance Survey is a secure, 5. Big picture thinking. Profit for the sake of it(PPS) is all good and well, but operating on a global rather local scale, and the world around us is a world automated survey tool. Withthan more thanget 40in metrics available, it allows firms sometimes a small profit gain can the way of long-term business of pixels, with everything going digital. Your ability toand cope with and thrive in a to benchmark their performance against their peers competitors and success. Always think about the big picture and long-term goals of your changing marketplace can be the factor that sets your business apart. to select KPIs based tailored segmentation. includes: business — withon that financial forecasting This you’ve done ingeographical mind — before regions; revenues; number of employees; utilisation; gross margins; profits; The IBM Institute for Business Value recently published the results ofnet their saying yes to projects that will bring in money in the short-term, but that and working capital investment days. Making Work study. The study surveyed 1,400 business professionals in mayChange ultimately but obstructive to future progress. The PPS also to highlights operational inefficiencies and identifies 48 countries get a closer look at the way change is met withinexpense business and and performance indicators, which are shown in concise graphs. This the impact that attitude to change has on company performance. assists management to strategically plan the growth of their business and take corrective action, if necessary, to address areas where performance has fallen behind the industry average.
How embracing can boost Consult Australiachange benchmarking your business
How embracing change can boost your business To participate in the Consult Australia PPS, your firm must be a member of Consult Australia. Global financial markets are in constant fluctuation, businesses are increasingly For more information on thethan Consult PPS, hereusoriscontact operating on a global rather localAustralia scale, and theplease worldclick around a world Rob Peake or Gordana Milosevska at Management forcope Design. of pixels, with everything going digital. Your ability to with and thrive in a changing marketplace can be the factor that sets your business apart. Consult Australia website www.consultaustralia.com.au
The IBM Institute for Business Value recently published the results of their Making Change Work study. The study surveyed 1,400 business professionals in Management for Design provides integrated business 48 countries to get a closer look at the way change is met within business and systems and services to the design industry across the impact that attitudeStrategy, to change has on Information company performance. Finance, Technology, Human MANAGEMENT
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