developing superstar project managers
TRANSCRIPT
Developing Superstar Project Managers
Presented by: June R. Jewell, CPAPresident, AEC Business Solutions
June R. Jewell, CPA
Author of best-selling book, Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms President, AEC Business
Solutions Over 28 years as a business
management and Deltekconsultant
My mission is to help our client’s make more money on their projects
AgendaState of the industry – 2015Some Anecdotal IndicationsRisks to GrowthSome Project Manager StatsHow do we evaluate our Project Managers (PMs)?What is a Superstar Project Manager?What Do PMs Really Do?Challenges to Being a Superstar PMWhat do PMs need to know?What data do they need to do their jobs?Using software to help PMs deliver profitable projectsHow do we help them to be more successful?
Copyright 2015, AEC Business Solutions, LLC
State of the Industry - 2015 Long recovery – slower than in the past Construction starts up 6% over last year Some firms still seeing peaks and valleys Many firms hiring Shortage of mid-level experienced architects and
engineers is huge Firms “poaching” from each other 9 to 12 months backlog for many firms Margins still very tight – fees feel “squeezed”
Some Anecdotal Indications
“Our staff are working overtime to keep up with all the work.”
“Fees are being “squeezed” by our clients.”
“Salaries are going up but our fees aren’t.”
“We can’t find enough qualified people.”
“It is more important now than ever to make sure our PMs know how to make profits.”
Risks to Growth
Culture challengesAdding people too fastDifferent skill levelsPMs pulled in too many
directionsHow do “we” do it? Inconsistency and
chaos…
Some PM Statistics 52% of firms have a formal Project Manager title* 45% report their role as a PM is a full-time assignment* 42% report their PMs always participate in establishing project
budgets 56% finish projects on budget 49% face some direct consequences for not staying within the
project budget 48% say their PMs are always responsible for establishing
project schedules 43% report they always participate in writing or designing the
project scope 59% say project managers always review invoices before they go
out 11% report PMs are always responsible for collecting fees 46% feel their level of authority accurately reflects their level of
responsibility
*Zweig Group Project Management Survey 2014
How do we evaluate our PMs?1. Technical skills2. Winning new business3. Good with clients / happy
clients4. Outstanding design / product5. Client wants to hire us again6. Managing the team – clients,
subs, staff7. Client paid8. Projects made money / on
budget
What is a “Superstar” Project Manager?
Able to manage their time and roles Good at all phases of project lifecycle Technically competent Good communication skills/ Managing people – all stakeholders Delegate work Schedule and manage resources Deliver on time and on budget Prepared to move into leadership Makes a Profit!!
What Do Your PMs Really Do?Business Development / SalesProposalsDevelop Scope / EstimateManage project schedulesApprove time & expensesBillingCollectionsManage SubcontractorsUsing resources effectively / UtilizationManage project deliverablesSolve client problems / nurture client relationshipsMentor / Train / Discipline staffRecruit / Interview / Hire staff (HR)Manage contractual / legal requirements Manage Project Budgets / Profitability $$$
What Do PMs Need to Know? Basics of how profit is made on projects: Labor, Expenses,
Overhead Relationship of utilization to profitability: How overhead is
affected by non-billable time Terminology: Work-in-Process, AR, Net Revenues, Net Multiplier,
Overhead Rate, Realization, Utilization, Backlog, Variance, etc. How to read reports Budgeting and planning resources within the scope / fee of the
contract Effectively communicating the scope to the team Controlling the subcontractor budget, scope and billing Managing staff, delegating work, handling difficult clients and
problems that arise during the project.
What Data Do PMs Need?
Budget to actual by project / phase (real time is best) Aged accounts receivable Employee utilization for their direct
reports Backlog / Burn Rate / Earned Value Company overhead rate Billing (cost) rates of their staff Project profitability Departmental analysis (Dept.
Heads) Forecast of probable wins Staff availability
Using Software to Help PMs Deliver Profitable Projects
Project Management Tools Financial Management Tools CRM and Proposal Tools
Project Management Tools Electronic Time & Expense system and approvals Real time reporting & search capability Dashboards & Email alerts Budgeting, Resource Planning, Forecasting & Earned Value
Management
Financial Management Tools
Departmental P&LGovernment Compliance
– DCAA, SOX, EVMDepartmental / Office
Budgeting Employee Utilization Accounts Receivable /
Collections Cash Management
CRM & Proposal Tools
Go / No-go Opportunity tracking /
Pipeline analysis Tracking deadlines &
submittal date Estimating at the Proposal
stage Fast access to client data Qualifications database Proposals development
Establish Project Management as a Professional Discipline
Develop A Project Management Career Path
Create Individual Employee Professional Development Plans
Formalize Your Project Management Role
Business Skills / Financial Management TrainingProject Management Training Training on software and reports that your firm is usingMentoring
PM Financial Training