deltek clarity a&e industry study - houston, tx
TRANSCRIPT
Deltek Clarity Tour
Houston, TXOctober 1, 2015
Today’s Agenda
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Time Agenda Item
8:30 a.m. Registration and Breakfast
9:00 a.m. Welcome and Introductions
9:15 a.m. Deltek’s 2015 A&E Clarity Report
10:30 a.m. Product Highlights – Vision
11:15 a.m. Event Concludes
Welcome and Updates
Bryan GrabowskiDirector of Global AlliancesDeltek
Thank You to Our Partners
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DeltekAT A GLANCE
Delivering “purpose-built” capabilities for 30+ years
20,000 clients worldwide Millions of users in 80+ countries Nearly $450 million in total revenue
in 2014 Market leader in AEC and
Consulting 2,000+ global employees
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DeltekAT A GLANCE
99%
Of the Top 100 Federal
Contractors
4 of 5
Largest global accounting and
consulting firms
Top 3
World’s top 3 marketing &
communications networks
80%
Of the Top 200 fastest growing
A&E / environmental
consulting firms
100%
Of the ENR Top 10 design firms and 80% of the Top
500
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Deltek is MoreTHAN JUST A ‘SOFTWARE’
COMPANY
Industry Benchmarking Market Analysis Peer Networking Connecting Commercial and
Government Businesses Strategic Advice Client Advisory Councils
User Groups World-class Insight User
Conference Deltek Dummies Book Series Complete Online Learning Portals Customer Care Deltek MVP Program
Deltek Clarity A&E Industry Study Preview
Deltek A&E Growth Tour
Tim RouchetteSr. DirectorDeltek
© Deltek 2015
AgendaAbout the Study
Key Performance Indicators
Project Management
Business Development
High Performers at a High Level
What to do with this information
36th year of the study Financials Market outlook Business development (NEW) Project management (NEW)
Based on 2014 data
In collaboration with ACEC, ACEC Canada, and SMPS
Free to participants
About the Study
Strong US Dollar Low Oil Prices Manufacturing Renaissance Shrinking Wage Gap Benefits are Returning War on Talent Rebirthing Engineering Cloud Housing is Back! Subdivisions are Back! Women are Leading! Pot Warehouses
Tim’s 2014 Observations
Participant Mix
Engineering or E/A; 63%
Architecture or A/E; 28%
Other; 9%
FIRM TYPE
1-50 em-ployees;
45%51-250 em-
ployees; 44%
251-500 employees;
8%
501-1000 employees;
2%1000+ em-
ployees; 1%
FIRM SIZE
Key Performance Indicators
Operating Profit
2013 2014
Top Quarter 17.8% 18.7%Median 11.1% 11.8%Bottom Quarter 5.2% 6.2%
A&E INDUSTRY 10-YEAR TREND
BY FIRM SIZE BY PRIMARY CONTRACT TYPE
Operating Profit
1-50 51-250 251+5.00%
10.00%
15.00%
20.00%
11.60% 11.80% 12.20%
A or A/E E or E/A Other5.00%
10.00%
15.00%
20.00%
12.80%11.80%
9.70%
Utilization Rate
ALL FIRMS 2013 2014
Top Quarter 65.0% 65.4%Median 59.4% 60.0%Bottom Quarter 54.9% 55.8%
A&E INDUSTRY 10-YEAR TREND
Utilization RateBY FIRM SIZE BY FIRM TYPE
1-50 51-250 251+50.00%
55.00%
60.00%
65.00%
60.40%59.80%
58.80%
A or A/E E or E/A Other50.00%
55.00%
60.00%
65.00%
59.30%60.50%
55.90%
Net Labor Multiplier
Engineering & E/A 2013 2014
Top Quarter 3.27 3.31Median 2.93 2.97Bottom Quarter 2.73 2.73
A&E INDUSTRY 10-YEAR TREND
Net Labor MultiplierBY FIRM SIZE BY FIRM TYPE
1-50 51-250 251+2.50
2.75
3.00
3.25
3.50
2.97 2.98 2.97
A or A/E E or E/A Other2.50
2.75
3.00
3.25
3.50
3.06
2.94
3.16
Business Development
Who is responsible for business development in your organization?
Executive team
Dedicated business development staff
Project managers
Marketing staff
Design team
Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Rank 1 Rank 2 Rank 3
What are your top three business development challenges?
Increased competition
Finding time to nurture client relationships
Limited business development resources/time
Lack of intel for opportunities to position for win
More restrictive spending environment
Identifying new prospects
0% 10% 20% 30% 40% 50% 60%
Rank 1 Rank 2 Rank 3
What are your top three initiatives to address business development challenges?
Earlier identification of opportunities
Better opportunity identification
Strategic networking to expand teaming options
Expand geographically
Additional staff
Improved business development analytics
0% 10% 20% 30% 40% 50% 60%
Rank 1 Rank 2 Rank 3
Does your firm employ a formal go/no go process?
Yes, for all oppor-tunities; 29%
No; 27%
Yes, for strategic opportunities; 22%
Not yet; 13%
Yes, for new clients/prospects
only; 9%
Project Management
Accuracy and visibility of project status reports
Very High; 9%
High; 33%
Moderate; 43%
Low; 13%Very Low; 1%
CONFIDENCE THAT RIGHT PEOPLE HAVE PROJECT STATUS VISIBILITY
Very High; 10%
High; 42%
Moderate; 40%
Low; 7%Very Low; 2%
CONFIDENCE IN ACCURACY OF PROJECT STATUS REPORTED
Rate the maturity of your firm's project management discipline.
Very Mature; 13%
Somewhat Mature; 56%
Somewhat Immature; 26%
Very Immature; 5%
What do you think your firm does well relative to your project management processes?
Qualified project managers
Having the right software tools
Well defined scope
Collaboration and communication
Alignment with executive management
Strong project management procedures
0% 10% 20% 30% 40% 50% 60%
Rank 1 Rank 2 Rank 3
Top three challenges facing the PM function within your organization over the next 2 to 3 years?
Inexperienced project managers
Accurate project cost forecasting
Collaboration and communication
Insufficient project management procedures
Accurate project timeline forecasting
Poorly defined scope
0% 10% 20% 30% 40% 50% 60%
Rank 1 Rank 2 Rank 3
Net revenue contributed by firm's top three clients
Client A
Client B
Client C
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
High Performing Firms
Criteria: 15%+ Operating Profit and 3.0+ Net Labor Multiplier
High Performers at a High LevelHigh Performers Other Firms
Operating Profit 25.9% 9.3%
Utilization Rate 61.8% 59.1%
Net Labor Multiplier 3.34 2.86
Net Revenue Per Employee
$157,634 $122,031
Overhead Rate 160.0% 156.4%
Bonuses Per Employee $11,433 $3,232
Learn More
Join us for the Deltek A&E Clarity Webinars Applying the Clarity Benchmarks
Sign up NOW to participate next year
Details will be included in your follow-up communication from BCS Prosoft
Public Sector Market Overview
05/03/202335 ©Deltek, Inc. All Rights Reserved
Regional Federal AEC Spending Top Cities in TX, FY 2011-2015*
* Spending data reported as of April 2015. Defense spending is delayed for 90 days - due to matters of national security, the Defense Department is supposed to hold back their spending data for 90 days before it is released to FPDS.
Source: FPDS, Deltek
San Antonio total: $904M
Lackland AFB total: $825M
El Paso total: $732M
Dallas/ Fort Worth total: $727M
Fort Hood total: $524M
Houston: $399M
Total reported regional federal AEC spending in TX since FY 2011: $7.3B
Estimated U.S. AEC Spend by Government Type, 2015
Township County Special District School District Municipal State0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
US$ (billions)
44.4
31.5
14.712.9
17.1
2.2
05/03/20238 ©Deltek, Inc. All Rights Reserved
Texas Deltek classifies the
state’s population growth rate as very robust.
Growth is concentrated in the metro areas of east and central Texas.
6/24/1537 ©Deltek, Inc. All Rights Reserved
©Deltek, Inc. All Rights Reserved
Texas U.S. Average
Estimated AEC Spend by Government Type, 2015
6/24/1538
Special District12.0%
School District13.9%
Township1.8%
Municipal25.7%
County10.5%
State36.2%
Special District14.6%
School District21.9%
Municipal25.9%
County9.4%
State28.3%
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0US$ (billions)
Special District
Municipal
County
State
1.19
1.91
0.30
1.67
Estimated Texas Infrastructure Spend, 2015
6/24/1539 ©Deltek, Inc. All Rights Reserved
Deltek ClassificationPublic UtilityTransportation
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4US$ (billions)
Special District
School District
Municipal
County
State
0.23
2.23
0.43
0.54
1.17
Estimated Texas Public-Service Facilities Spend, 2015
6/24/1540 ©Deltek, Inc. All Rights Reserved
Deltek ClassificationCommunity DevelopmentEconomic Development/RegulationEducation (Higher)Education (Primary/Secondary)General Government ServicesHealth CareJustice/Public SafetyNatural Resources/EnvironmentPublic FinanceSocial Services
Estimates of AEC spend at the
public-service level will have a large focus on
higher education at state level and
primary education within school districts.
Have You SeenDeltek VisionLately?
Tim RochetteSr. DirectorDeltek
The Big Deltek Shift to the Cloud
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30,000+ 1,000+Users
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9Vision/ Ajera Customers
Customers inCountries
Vision Performance Management Powerful business intelligence tool Easy-to-read interactive
dashboards to drive more business
Role-based dashboards to get the info you need most
Track KPIs and progress toward strategic goals
WHY YOU CARE• Increased visibility across firm• Turn critical data into usable,
actionable knowledge• Know where your problems are and
drill in for details to fix them now
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.43
Asset Management Dedicated info center to manage and
track assets Integration with the Vision Purchasing
and Accounting modules Full depreciation capabilities to
include the creation of the monthly journal entries
Robust reporting Coming in Vision 7.5
WHY YOU CARE• Manage assets in the system you
already know• One less ancillary system to
manage
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.44
HR and Human Capital Management Leveraging the HRsmart Human Capital Management solution
Bring new efficiency and effectiveness to your organization’s HR
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.45
Kona is a cloud-based, social collaboration platform designed with people and conversations in mind.
Don’t just focus on the tasks. Instead, get people connected, get organized and get things done across different projects, initiatives and spaces.
Use Kona by itself … or…
Collaborate with
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to
future modification.© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.46
Touch CRM Access to Clients, Contacts,
Opportunities & Activities anywhere, anytime
Add, update and manage data wherever the job takes you
Available on iOS, Android & Windows Phones
Activities Management
WHY YOU CARE• More up-to-date CRM details• More accurate pipeline forecasts• Improved client satisfaction
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.47
Touch Time & Expense Timesheet approvals
View submitted timesheets View details Approve anywhere, anytime
WHY YOU CARE• Improves usability and adoption• Helps close financial periods faster• Allows team to access from
anywhere
© Deltek, Inc. All Rights Reserved - Confidential. These plans represent our current estimates on timing and functionality and may be subject to future modification.48
05/03/202349 ©Deltek, Inc. All Rights Reserved
Govwin IQ – Market Intelligence
$9.8 billion 2014 expenditure (Deltek estimate)
05/03/2023
Lead Alert Example
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Water Treatment Plant Expansion – Engineering and Design
Estimated Value: $2 million
Entity Sherman, TexasLead Alert Year(s) FY 15Primary Requirement ArchitectureDeltek Lead ID# 1819265Contact Mark Gibson
Director of [email protected]
Sherman City, Texas, may have a requirement for engineering services for the water treatment plant expansion. This opportunity was identified in the city's 2014-2019 CIP with an estimated cost of $2 million.
©Deltek, Inc. All Rights Reserved
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Call to Action…See Our Products Live and in Action!VPM, CRM, or Resource Planning
Specific Help Needed? Ask us about our Consulting Services
Subscribe to our Vision Blog for the latest and greatest topics in the industry
Visit our Deltek Resource Center for reading materials
Contact Us – We’re Here to Help You
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Upcoming External Events
ACEC Fall Conference – Oct 14 - 15, Boston, MA
PSMJ AEC Industry Summit – Dec 3 – 4, San Francisco, CA
December UGMs with BCS Prosoft – Baton Rouge, LA; Honolulu, HI; Houston, TX, San Antonio, TX; San Diego, CA
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