MANAGEMENT FOR DESIGN ----------------------------------------------
BUSINESS JOURNAL 103 Improve Project Success and Profitability ---------------------------------------------Measuring Success
and those that were not. Once we have identified these projects we can analyse the data and draw our conclusions
Architecture and Engineering firms use various measures for success. There are numerous Key Performance Indicators that can be managed, tracked and reported on but the aim of every project is to ensure the client is
as to why they were (or were not) a success. Before analysing the data ensure that you know your specific measurements for success. It can be profit, revenue, staff utilisation, repeat work etc.
satisfied with the outcome and that we are satisfied with the outcome.
Today’s challenging business environment highlights the absolute necessity of accurate and up to date project and
For client satisfaction it is necessary to ensure that the
business data. Firms that automate and streamline their
project has been completed according to contractual
business processes are the ones with a significant
agreement, on time and within budget.
competitive advantage.
For business success the project will meet your design
Improve Project Profitability
aspirations, have been completed on time, has been profitable and will deliver on-going work with the client.
Automating your business processes can lead to a significant increase in project profitability. Eliminating
Improve project efficiency and success
manual processes such as re-entering project data from one system into the next leads to time savings, eliminates
In order to achieve project success and maximise
the risk of errors and also reduces the amount of time
profitability we want to ensure we are as efficient as
spent on administration by your project (billable) resources,
possible, are always up-to-date with project progress, can
meaning they can now spend more time on client work.
spot potential problems early on, we can invoice for all the work involved, and our invoices are correct the first time.
Automating your business processes improves the information flow within your organisation. Information can
Clients of design businesses greatly value prompt
now be shared more easily and quickly between
communication and responsiveness. This is particularly true
departments, thereby increasing efficiency throughout the
in tight economic conditions where clients are diligent
company and reducing the amount of time wasted on
about expenditure. It is crucial to highlight any potential
searching for information (for some design firms up to 10%
problems to projects immediately so that timely action can
of staff time is spent looking for information).
be taken to avoid bigger problems later on. By automating the process between project set-up and One key way to ensure success for current and future
invoicing, you can be confident that all time spent on
projects is to look at previous project data. This allows us to
projects will be captured. If you are working on a fixed fee
identify those projects that were successful (and profitable)
project this information allows you to track project m4d.com.au
performance to date: it allows you to view how much time
Benefits of automating your business processes with an
is needed to complete a project, if you have over-serviced
integrated solution:
clients and, ultimately, it will allow you to view which projects are most profitable (revenue vs. expenditure).
•
One point of data entry; one Client, Company, Contact and Supplier record, shared on a ‘need to know’ basis throughout the company
Using multiple applications •
project entered in Melbourne is instantaneously
Design firms that do not use ‘sophisticated’ integrated
available for viewing by a manager in Singapore
systems to automate their process and capture various
through the project or client record
project related information are at risk of inaccurate data and ineffective processes and thereby not achieving full and
Instant updates - an activity record entry on a client
•
Real time reporting – immediate access to up-todate and accurate reporting for financial
efficient performance.
performance, invoices, revenue, time and expenses against projects
In order to make effective, mission critical project decisions we need to be able to access up-to-the-minute project data
•
need for expensive dedicated links between offices
that can be accessed via reporting with drill-down capabilities – allowing us to view the underlying business
Fully web optimised and enabled – reducing the
•
Fast deployment - standard industry best practice business processes built in, the ability to amend
data within moments.
screen layout and add new fields with no programming and business critical reports provided
When using multiple systems, as opposed to one fully
as standard
integrated platform, businesses are at risk of using data that may be out-of-date. Transferring data from one system
•
Lower total cost of ownership - fast ROI achievement
into the next there is also the risk of inaccuracy due to
with ability for firms to “own” the solution rather
systems not working together efficiently.
than relying on consultants
Design businesses that are still working with multiple
Adopting a fully integrated system provides the greatest
applications may want to review the total costs of
opportunity for efficient business process automation and
ownership and the risk of doing so. With the design and
the tools design businesses need to reduce overall costs,
delivery of “cloud” solutions now mature implementation is
lower project related risks and improve project success and
now more much more cost effective. “Sophisticated”
profitability.
systems are no longer as expensive or extensive as once they were and implementation and maintenance costs have
Conclusion
reduced substantially. Not only that, but businesses now
There are significant savings to be made by professional
have the ability to more easily tap into a more dynamic and
services firm when automating business processes and
skilled support network of people and systems.
improving internal efficiency. The majority of these savings will directly impact a company’s bottom line. In addition,
Automate your business processes with one fully integrated system
automation will allow for more effective and efficient project progress leading to more projects coming in on time and within budget. Investing in a system to automate business processes will improve project success and,
A fully integrated business management system (BMS) can
ultimately, increase a company’s revenue and profitability.
meet the needs of the entire project lifecycle within a design firm. It can greatly improve efficiency, reduce risk, decrease cost and increase profit. An integrated solution will allow you to efficiently automate your business processes, leading to improved resource utilisation through proactive resource management, and increasing company-wide visibility of projects and resources whilst reducing overall costs. m4d.com.au
Management for Design provides integrated business systems and services to the design industry across Strategy, Finance, Information Technology, Human 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
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