skills mix presentation
DESCRIPTION
This is a presentation delivered at the Drum Agency Acceleration Day in 2014. It provides a simple model of what to consider to get the right mix of senior and junior staff in a services businessTRANSCRIPT
© 2014 TBG© 2014 TBG
Diogo Freire - TBGCFO & COO
Olympic-sized talent pool
To be ready for growth but still maintain profit, you need to have the right mix of staffand the right talent. Is there an ideal balance of junior, middle and senior places onyour team?
© 2014 TBG
Contents
1. Universal Objectives2. A Key Question3. Getting it wrong4. Skills Matrix5. Getting it right
© 2014 TBG
What’s the right mix of skills?
CFO
• 20% operating margin!
COO
• High quality work• Low Client churn• Low Staff churn• Growth• High staff utilisation• Etc.
Universal Objectives
© 2014 TBG
KEY QUESTION
© 2014 TBG
Who are we?
• Without defining what kind of business you are or want to be, you can’t get your skills mix right
• Skills mix must be align to the services you are providing but also how you are providing them
• This clip from Mad Man is a great reminder of this:
http://youtu.be/QDadJaSERwg
It’s a great clip but more relevant from 1’19”
© 2014 TBG
Skills Imbalance Scenarios
• Clients are Happy• Utilisation 80%+• Low Profitability • High Staff Turnover
• Clients Unhappy• Utilisation 90% +• Profitability declining/ stagnant• Staff retention patchy
© 2014 TBG
Skills Matrix
Too Many Chiefs You’re a Star
Is this your Mission? Too many Indians
HIG
HLO
W
LOW HIGH
REVENUE/ HEAD
CH
IEFS
/ IN
DIA
NS
© 2014 TBG
REVENUE/HEAD: use with care
Brain Surgeons: $457,000
Efficiency geeks: $130,000
The Independents (2012): $179,000
Goliath (2012): $130,000
© 2014 TBG
KPI: Profitability per head
- Define your own
- It’s like a red wine
- Early warning signal
- Does not suffer fools
© 2014 TBG
Getting it right
Too Many Chiefs You’re a Star
Is this your Mission? Too many Indians
HIG
HLO
W
LOW HIGH
REVENUE/ HEAD
CH
IEFS
/ IN
DIA
NS
© 2014 TBG
LOW/LOW
Profitability: high
Type of work: repetitive, difficult to differentiate
USP: what?
Key to profitability: efficiency
Recruitment strategy: grads
Training: formulaic
Staff retention: culture but there is limits
© 2014 TBG
HIGH/HIGH
Profitability: high
Type of work: creative, defining, cutting edge
USP: high level of creativity, expertise
Key to profitability: high charge out rates
Recruitment strategy: seeking the best at all levels
Training: mentorship with Senior Staff
Staff retention: continued stream of interesting/ challenging work –growth!!
© 2014 TBG
The Yellow Brick Road and other Fairy Tales
Too Many Chiefs You’re a Star
Do all roads end here?
Too many Indians or a sweet spot?
HIG
HLO
W
LOW HIGH
REVENUE/ HEAD
CH
IEFS
/ IN
DIA
NS
© 2014 TBG
Dr Jekyll would been a great COO
Type of work: repetitive, difficult to differentiate
USP: pricing
Key to profitability: efficiency
Recruitment strategy: grads
Training: formulaic
Staff retention: culture but there are limits (and that is ok)
Type of work: creative, defining, cutting edge
USP: high level of creativity, expertise
Key to profitability: high charge out rates
Recruitment: seeking the best
Training: mentorship with Senior Staff
Staff retention: continued stream of interesting/ challenging work –growth!!
© 2014 TBG
Conclusion
Define who you are
Match your Skills Mix to your offering
Enjoy the ride but don’t indulge
Stars need growth to keep shining
Embrace change