WHAT’S NEW
MANAGEMENT FOR DESIGN Autumn 2015
Managing your business performance Do you still receive monthly management reports on how your business is performing? And is this a combination of MS Excel reports and graphs, Profit and Loss reports and Balance Sheets? You may not realise it but historical business and financial performance reporting is a thing of the past. Although the AEC industry is typically 2–3 years behind modern management approaches and sometimes doesn’t get there at all there are some elements that are embraced. One area that is currently being actively embraced by the profession is the application of Business Intelligence Tools to more intuitively provide businesses the information they require to access and analyse corporate information to assist in decision making. Management for Design have been overwhelmed with the response to our Business intelligence software that is enabling our clients to access information in real-time to reveal insights to help their business make faster and more accurate decisions. The software typically integrates data from across the business and provides key decision makers with self-service reporting and analysis. Why the positive response? •
F or a start the information is presented graphically rather than in rows and tables of data.
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S econdly there are patterns in the information and design leaders are great at understanding patterns of information that interrelate.
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nd thirdly, just like analysing design problems — the solution is not A black and white and design firm leaders are great at interrogating and looking at issues from all angles.
A key component of Business Performance Management is being able to quickly see how your business is performing but just as importantly to forecast your business performance into the future. How do you do that? By drawing on our extensive experience and expertise, working with professional services businesses
and utilising intelligent Business Management principles Management for Design can identify how your business will perform going forward across:
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• be difficult Profitability for architecture and engineering businesses to maintain cash flow throughout the year. A successful business will • a balanced Liquidity always be aware of current cash flow and accounts receivables to enable • Workflow regular distributions and dividend payments. Invoicing systems and clear • payment Resourcing terms can both help to ensure prompt payment from clients. Our clients operate with 14 to 30 day payment terms • Project Performance Lack of reliable systems. A financial management system can be a • Business Development 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.
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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 Embrace business intellignece at your business development strategies and only cut once you have analysed what and isn’t fortoyour business. So why should youismove yourworking business Intelligent Business software? 5.
thinking. for the sake of it is all good and well, but • Big picture No more ad-hoc Profit spreadsheets and calculations sometimes a small profit gain can get in the way of long-term business • Graphical representation of your information rather than numbers success. Always think about the big picture and long-term goals of your • business Single of information (the truth!) —source with that financial forecasting you’ve done in mind — before yes to projects that will in money in the short-term, but that • saying Information is available atbring any-time, anywhere may ultimately but obstructive to future progress. • Forecast “where your business is heading” as well as “where it is now” •
“What if” analysis and immediate decision making
• Productivity improvements change can boost How embracing • R eduction in report generation and more time on business analysis your business and decision making 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.
If you would like to see how some of our clients are utilising sophisticated business performance analysis then please contact us and we will demonstrate the value it will bring to your business. be difficult for architecture and engineering businesses to maintain a balanced cash flow throughout the year. A successful business will always be aware of current cash flow and accounts receivables to enable 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
Staff retention — top tips on protecting your greatest assets 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.
Big picture thinking. Profit for the sake of it is all good and well, but sometimes a small profit gain can get in the way of long-term business Competition for the best staff in the creative/engineering industries is getting success. Always think about the big picture and long-term goals of your stronger every year. Retaining your most talented and hardest working business — with that financial forecasting you’ve done in mind — before employees is crucial for the long term success of your organisation. saying yes to projects that will bring in money in the short-term, but that may ultimately butmany obstructive future Losing key staff places kinds ofto strain onprogress. a business, from the obvious 5.
financial strains of staff replacement and recruitment fees, to those more difficult to quantify. These include time and money spent training new staff in your systems, developing both internal and external relationships, workplace culture and perhaps worst of all in the creative and technical industries, knowledge drain.
How embracing change can boost your business Five key staff retention strategies: 1. Track and recordare staff Global financial markets in retention constant fluctuation, businesses are increasingly Conduct exit interviews inlocal a completely confidential yet friendly operating on a global rather than scale, and the world around us ismanner a world — encourage exiting staff to open up on exactly why they are leaving. of pixels, with everything going digital. Your ability to cope with and thrive in a A database of when andthe why staffthat leave willyour be an invaluable resource. changing marketplace can be factor sets business apart. It enables an organisation to compare how it is performing against the The IBMcompetition Institute for and Business Valuewhich recently published results their highlights managers maythe need extraofrelationship Making training. Change Work study. The study surveyed 1,400 business professionals Retaining good employees can be difficult to achieve unless in 48 countries to get a closer at the way change metorganisation. within business and you understand whylook people choose to leaveisyour the impact that attitude to change has on company performance. 2. Get the right people to begin with As difficult as it may be, recruit for cultural fit and attitude first and then skills. Typically your future leaders will embrace your cultural values and have the skills needed for the delivery of key projects.
3. Create a fulfilling environment People who have chosen a career in design or engineering are both creative and inquisitive by nature. An environment where they are able be difficult for architecture and engineering businesses to maintain to express their creativity and increase their knowledge is key to job a balanced cash flow throughout the year. A successful business will satisfaction — it can even be more important than financial gain. always be aware of current cash flow and accounts receivables to enable regular distributions and dividend payments. Invoicing systems and clear 4. Increase workplace flexibility payment terms can both help to ensure prompt payment from clients. Our Not only does this mean remote working arrangements but also clients operate with non-work 14 to 30 day payment terms accommodating needs and responsibilities of employees. a staff member to attend a lecture, pick up their 3. LackDoes of reliable systems.want A financial management system canchildren be a from school or regular sporting event? Look at ways to cater to of thisyour need significant asset in understanding the strengths and weaknesses and they will be extremely grateful. Overly rigidcan conditions drive business. Strong reliable and up-to-date systems help youcan to clearly to greener pastures.so that you can react to issues before see employees your incomings and expenses theyStay arise. will also benefit from the ability to quickly filter 5. onYour top business of your employees’ moods. financial data by revenue so that you can which areas Nobody likes working stream in an environment withquickly undue see stress, educate of the business are and aren’t making money. Financial and business your managers to look for indicators of stress amongst staff and in management systems can significantly ease the administrative burden ways to diffuse potential conflict situations. through automation and efficiency. Always remember, a job isn’t just a salary. Sometimes you will need to increase 4. Reducing costs rather than increasing revenues: the ebb and flow of a an employee’s package to retain them but time spent understanding an project-based workflow can mean fluctuations between financial gain employee’s needs and career aspirations will pay true long-term dividends. 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.
Business continuity — are you ready?
Big picture thinking. Profit for the sake of it is all good and well, but sometimes a smallsuccess, profit gain way ofthe long-term business In times of operational it cancan be get easyintothe overlook need to plan for the success. Always think about the big picture and long-term goals of your next downturn. Businesses that don’t take time to predict and plan for this lose — with that financial forecasting you’ve done in mind before profitbusiness and clients. Reduction in workload due to economic changes will— lead to saying yes to projects that will bring in money in the short-term, but that resourcing challenges. The loss of sensitive information due to an IT or systems may ultimately but obstructive to future progress. failure can lead to lengthy lawsuits, not to mention a serious case of losing face. 5.
The list of potential disasters for which a business should be prepared for is extensive.
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.
There are three main elements to business continuity: 1. Resilience be difficult architecture and and critical engineering businesses to maintain Businessfor infrastructure functions are engineered or a balanced flow throughout the year. A successful will form designedcash to be unaffected by most disruptions. This business can take the always be aware of current cash flow and accounts receivables to enable of redundancy and additional capacity. regular distributions and dividend payments. Invoicing systems and clear 2. Recovery payment terms can both help to ensure prompt payment from clients. Our Have systems in place to ensure critical and less critical business functions clients operate with 14 to 30 day payment terms can return to normal operation soon after an incident with minimal or no 3. Lackloss of of reliable systems. A financial management system can be a function. significant asset in understanding the strengths and weaknesses of your 3. Contingency business. Strong reliable and up-to-date systems can help you to clearly the last-resort Contingency plans arereact to betoemployed only if see This yourisincomings andoption. expenses so that you can issues before and Recovery planning has either or not adequately protect theyResilience arise. Your business will also benefit fromfailed the ability to quickly filter the business the disaster. financial data byfrom revenue stream so that you can quickly see which areas of the business are and aren’t making money. Financial and business Make the time to analyse your business operations and liabilities to see where management systems can significantly ease the administrative burden your critical weaknesses lie. If you are unsure where to begin, speak with a Rob through automation and efficiency. Filonzi (M4D). Plan for the worst; hopefully it will just be an academic exercise, but not, if trouble you’ll be prepared. 4. ifReducing costs does rathercome than calling, 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. PSMJ is one of the world’s leading authorities and publishers of effective 5. Big picture thinking.for Profit for the sake of it is all good and well, but management techniques architectural sometimes a small profit gain can get in the way of long-term business and engineering firms. They have freely Always think the big picture and long-term goals of your madesuccess. available a number ofabout informative business — with that financial forecasting you’ve done in mind — before and up-to-date e-books for download. saying to projectsforthat will bring in money in the short-term, but that The team at yes Management Design may ultimately but obstructive to future progress. strongly advise business leaders to exploit
Free e-books for business leaders from PSMJ
this fantastic resource.
How embracing change can boost your business
The first e-book is The A/E Business Development Bible. This book is written by PSMJ’s expert business development and marketing team and provides real-life solutions and advice on: Global financial markets are in constant fluctuation, businesses are increasingly • Creating a long-term client operating on a global rather than local scale, and the world around us is a world capture plan of pixels, with everything going digital. Your ability to cope with and thrive in a • Dmarketplace eveloping a realistic changing can be the factor that sets your business apart. businessdevelopment budget The IBM Institute for Business Value recently published the results of their • Change CreatingWork an effective annual development plan Making study. The studybusiness surveyed 1,400 business professionals in 48 countries to gethow a closer look atyour the way change is met within business and • Learning to expand market the impact that attitude to change has on company performance. • Determining why your best clients are jumping ship — and how to focus on your quality clients And much more!
Along with the eBook, PSMJ will also be sharing the results from their latest Fees and Pricing Survey. With this resource you can see how your firm’s fees stack up against the competition. be difficult for architecture and engineering businesses to maintain balanced cash flow A successful business will Clickahere to download yourthroughout copy of Thethe A/Eyear. Business Development Bible. always be aware of current cash flow and accounts receivables to enable Recomended reading from Management for Design regular distributions and dividend payments. Invoicing systems and clear payment terms can both help ensure prompt paymenteMag, from clients. Starting from the Winter edition ofto Management for Design’s we’ll beOur clients operate to most 30 dayrelevant payment terms recommending the with latest14 and management books for business leaders inof the architecture, design and engineering industries. 3. Lack reliable systems. A financial management system Keep can beana eye out for the Winter issue. 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 thegiven business aren’t on making money. Financial and business Although oneare day,and 8 March, the international calendar, International management systemsacan significantly easeon the administrative burden Women’s Day has created month of reflection the role of women in through automation andsecond efficiency. business as we approach the quarter of the year.
International Women’s Day
4. Thursday Reducing5costs rather than increasing revenues: the ebb and flow of a On March, Management for Design attended the annual project-based workflow can mean between gain International Women’s Day breakfast atfluctuations The Palladium, Crown,financial Southbank, and financial strain. It’s easy to rush toof cut costs in times but along with a number of our guests, ahead the global eventof fordifficulty, International be careful not to cut off valuable revenue streams and / or people at the Women’s Day on Sunday 8 March. All around the world, International Women’s time.the If money is being spentand to stimulate growth thenofthe revenue Day same celebrates economic, political social achievements women, from spending be far valuable. Have a goodthat look whilegenerated focusing world attentioncould on areas stillmore requiring action to ensure at your business development strategiesinand only cutofonce women’s equality is gained and maintained all aspects life. you have analysed what is and isn’t working for your business. The theme for this year’s breakfast tied in with this year’s global ‘Make it 5. Big picture thinking. Profit for the sake of it is all good and well, but Happen’ theme, with the title ‘Does Gender Equality Benefit Us All?’ Panellists sometimes a small profit gain can get in the way of long-term business discussed insights and ideas for action and change, with distinguished success. Always think about the big picture and long-term goals of your speakers including Geraldine Doogue and Judge Frances Millane. The event business — with that financial forecasting you’ve done in mind — before provided a terrific networking opportunity among Melbourne’s business saying yes to projects that will bring in money in the short-term, but that leaders and an opportunity for reflection and engagement surrounding the may ultimately but obstructive to future progress. role of women in business today. The buzz at this year’s breakfast reinforced what Management for Design already know — that with female business leaders on the rise, that glass ceiling is starting to crack. Management for Design is one of a growing number of businesses in Australia with female staff in leadership positions and with a female Director, Gordana Milosevska, at the helm on equal footing with her male counterpart, Robert Peake. Global financial markets are in constant fluctuation, businesses are increasingly At Management for Design believe that business success is amplified operating on a global ratherwe than local scale, and the world around us is a when world men and with women are working together. Working into tandem we have at our in a of pixels, everything going digital. Your ability cope with and thrive disposal of opinion, of your ideasbusiness and a broader changingdiversity marketplace can beincreased the factorvolume that sets apart. skill set for more effective management of all of our service offerings. 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
How embracing change can boost your business
FOR DESIGN
Resource Management and Business Systems.
By working with Management for Design our clients are enabled to focus on what they are great at and to control and build their businesses. For more information visit www.m4d.com.au or phone 03 9645 8834.
