Top 10 Ways to Optimize Your Firm s Performance in 2018 and Beyond. February 14, 2018

Transcription

1 Top 10 Ways to Optimize Your Firm s Performance in 2018 and Beyond February 14, 2018

2 Welcome to Today s Webcast Top 10 Ways to Optimize Your Firm s Performance in 2018 and Beyond

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5 Public infrastructure funding uncertainty Growth pressures Evolving contracting structures Lack of pricing power The war for talent Digital disruptors

6 Digital Disruptors in the A/E/C Industry The Internet of Things (IOT) Predictive Intelligence Mixed reality design Digital services (DAM, market intelligence, etc.) Data and analytics Social for the Enterprise Collaboration Mobility

7 The time to adapt to disruptions is shrinking A hundred years ago, the average lifespan of a company listed on the S&P 500 index was 67 years In the 2020s 75% of the S&P 500 will be new (not on the index today) 25% of the S&P 500 will be ones on the index today 67 Years 25 Years 15 Years In A/E/C, only 60% of the 20 largest firms in the ENR 500 from 5 years ago are still on the list! Source: BBC

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10 1. Update your 5-year strategic plan 2. Get your finance and administrative house in order 3. Evaluate your portfolio of service offerings 4. Create a differentiated marketing strategy 5. Update your marketing database 6. Build a differentiated talent strategy 7. Formalize your firm s business intelligence strategy 8. Put (enterprise) social platforms to work for you 9. Be a technology leader not a laggard 10. Empower your employees with the latest technologies

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12 The Impacts of Digital Transformation in A/E/C Leverage disruptive technologies to reimagine how your firm can: customers employees service offerings operations

13 Benchmark and measure key financial metrics Revenue forecasts Expense budgets Net income / Operating profit Cash flow - Average days to collect or DSO Financial ratios (Current ratio, Debt-to-Equity ratio, Return-on-Equity ratio, etc.) Cash is king - find new ways to optimize cash flow Expedited time and billing processes Expedited invoice review and approvals More active cash flow monitoring Evaluate back office processes for automation and optimization Project and Client setup optimization automate from integration from CRM system? Billing automation streamline invoice processing, approvals AP pass-through automation automate document capture, coding, and routing

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17 2 Get Your Finance and Admin House in Order AP Pass-Through Invoice Automation

18 Perform a competitive evaluation What services are your closest competitors offering to be unique? What services do you need to offer to be successful in your market? Leading firms are: Leveraging disruptive technologies to differentiate the client engagement experience Offering new data-driven service offerings to be unique How can you leverage big data/advanced intelligence/iot to offer new services?

19 Traditional Construction Lifecycle Owner-Driven Innovations for Shorter Project Schedules and Risk Allocation Design-Build Maintain & Operate Agreement Build Maintain & Operate CM At-Risk (with GMP) Design-Build Contract Vertical and Value-Chain Integration in the Provider Market Architect-led Design-Build Design Estimation & Construction Management Design-Build & CM At-Risk Maintain/Operate

20 Perform a competitive evaluation What services are your closest competitors offering to be unique? What services do you need to offer to be successful in your market? Leading firms are: Leveraging disruptive technologies to differentiate the client engagement experience Offering new data-driven service offerings to be unique How can you leverage big data/advanced intelligence/iot to offer new services?

21 3 Evaluate Your Portfolio of Service Offerings Four Ways Smart, Technology-Driven Firms are Using Big Data Monitoring sensor data for structural integrity RFID data for equipment and materials tracking Field data collection Project and safety risk mitigation

22 3 Evaluate Your Portfolio of Service Offerings Leveraging Data to Drive New Services

23 Take a walk down the client journey with your firm Look for ways to differentiate your offerings How do you attract new clients and win pursuits? Strong client relationships? Unique project experience? Differentiated service offerings? Better marketing execution? Distinctive client experience? Use predictive insights to focus on the right pursuits Optimize your marketing/bd process (steps, gates, go/no-go, etc.) to win more business Leading firms are: Actively performing win/loss analyses Performing competitive assessments Automating proposal generation Deploying next-generation CRM tools that improve business development execution

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26 Take a walk down the client journey with your firm Look for ways to differentiate your offerings How do you attract new clients and win pursuits? Strong client relationships? Unique project experience? Differentiated service offerings? Better marketing execution? Distinctive client experience? Use predictive insights to focus on the right pursuits Optimize your marketing/bd process (steps, gates, go/no-go, etc.) to win more business Leading firms are: Actively performing win/loss analyses Performing competitive assessments Automating proposal generation Deploying next-generation CRM tools that improve business development execution

27 Proactively answer key questions: Who knows who? Who have we worked with? What have we done with them? Identify higher probability opportunities based on opportunity health Quickly pinpoint trouble spots and who needs the most attention

28 System-driven pursuit checkpoints: Relationships Qualifications Cost of pursuit Profitability analysis Risk analysis System driven Go/No-Go decisions

29 Client and prospect lists Contacts and connections Project history and qualifications Employee experience and resumes Supplier/contractor database and documentation

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33 Create a differentiated experience throughout your employment lifecycle Recruiting / candidate engagement Onboarding Employment Termination Infuse HR with a marketing attitude Minimize costly attrition

34 6 - Develop a Differentiated Talent Strategy Infuse marketing into your recruiting strategies

35 6 - Develop a Differentiated Talent Strategy Create a unique candidate engagement experience

36 6 Develop a Differentiated Talent Strategy Minimize costly attrition Average attrition: Voluntary = 5.6% Involuntary = 4.7% Retention strategies: Employee development plans Goal setting Appraisals Feedback loop Training plans Succession planning

37 Identify your firm s most critical KPIs Build a strategy to harvest data and calculate key measures Where will the data come from? How will we calculate key measures? Empower employees Broadcast KPIs Create dashboards Disseminate, disseminate, disseminate

38 Identify Trends Drive Accountability Support Business Decisions Benchmark vs. Peers

39 Business Development Financial Service Delivery People Bid-to-Win Ratio Revenue (Growth) Bill Rates Headcount Pipeline vs. Bookings Operating Profit (EBIT) Achieved Multiplier Staff Turnover (Attrition) Backlog Average A/R Collection Days On-Time Project Delivery Staff Ratios Financial Ratios Average Project Overrun Revenue per Employee Billable Utilization

40 Review your firm s strategic goals over next 3-5 years Identify key metrics that will drive achievement of goals Are you currently tracking these metrics? Can your current systems calculate and report on these metrics? Measure, measure, measure (and disseminate)!

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43 Enterprise social technologies are delivering significant value to organizations Social is not just a consumer tool anymore Monitor social properties to understand what s happening with your clients and projects Better anticipate their needs Be more responsive than competing firms Use social listening to auto-generate and route marketing leads Use social listening to auto-generate and route service cases Use LinkedIn to build connections and communicate with clients

44 8 Put (Enterprise) Social to Work for You Social Listening in Marketing Leverage social engagement platforms Monitor social activity from popular social platforms (Twitter, Facebook, etc.). Build social profiles of your clients to better anticipate needs Identify and create leads in CRM systems from social media posts

45 8 Put (Enterprise) Social to Work for You Sentiment Analysis and Customer Service Analyze social sentiment to proactively address customer service hotspots Auto-create customer service cases based on social activity

46 Explore contacts and relationships to build new connections Target personalized offerings through integrated content creation and sharing Leverage embedded analytics to understand customer behavior and content response Integrate with leading CRM systems for consolidated view of connections, communications, and activity

47 What tools and capabilities are required to meet strategic objectives? Technical applications strategy (CAD, BIM, Document mgmt., DAM, etc.) Business applications strategy (Accounting, Project Mgmt, CRM, HCM) Productivity systems Mobile strategy Infrastructure > Cloud strategy Required IT skills and capabilities

48 The cloud provides much more than just a place where your software systems are hosted Advanced intelligence tools Predictive analytics / AI Internet of Things (IoT) Business continuity strategy Computing scale and elasticity Security and compliance

49 Access to today s latest technologies Pervasive access to tools and information Self-service everything Mobile everything Collaboration throughout your business Marketing/business development Design processes Project execution process

50 10 Empower Your Employees With self-service everything Timesheets Expense reports Workflow approvals Project plans Reporting and BI HR self-service Resume/experience updates Pay stubs Benefits Compensation details Performance information

51 10 Empower Your Employees With mobile everything CRM Time Entry Expense Capture Contractor Invoice Approvals Customer Invoice Approvals

52 10 Empower Your Employees Collaboration Using Office 365 Groups and Teams Use Teams and Groups to easily collaborate across focused teams Automatically spawn collaboration groups from CRM Embed , calendars, Yammer feeds, SharePoint sites, and OneNote documents into CRM pursuits Easily invite internal and external parties to collaborate on pursuits, proposals and projects!

53 1. Update your 5-year strategic plan 2. Get your finance and administrative house in order 3. Evaluate your portfolio of service offerings 4. Create a differentiated marketing strategy 5. Update your marketing database 6. Build a differentiated talent strategy 7. Formalize your firm s business intelligence strategy 8. Put (enterprise) social platforms to work for you 9. Be a technology leader not a laggard 10. Empower your employees with the latest technologies

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56 Thank You!