PM EVOLVED
Transcript of PM EVOLVED
PM EVOLVED THE JOURNEY FROM TRAFFIC TO OPS
©2018CreativePerformanceInc.AllRightsReserved
1. Consultant, Entrepreneur, Jet/Helicopter Pilot, MBA
2. Digital Agency CFO. Acquired in 2010
3. Principal, Creative Performance Inc. - Portland, OR Consultancy
- Mid-Cap, High Growth and In-House (50 – 1,400 FTE)
- Workamajig®, WorkBook® and Oracle Agile PLM®
- Expertise in harmonizing People, Process and Technology
4. Partner, AgencyStory® - Business Intelligence for Marketing Services Industry - Patent-Pending
5. Published Content: Big Book of Dashboards (2017)
VANESSA EDWARDS
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INDUSTRY OBSERVATIONS
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INDUSTRY OBSERVATIONS WHAT I’M HEARING
• Build High-Performance Teams
• Create Balanced Client Relationships
• PM to Increase Throughput, Project Profit and Insight
• Data-Driven Decision Making
• Establish / Protect Vibrant Culture
• Retain Key Talent
• Integrate / Leverage Technology
• Preparing for Exit / Liquidity Event
• Profit that Drives Sustainable Growth
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INDUSTRY OBSERVATIONS WHAT’S GETTING IN THE WAY
• Management Teams Not Aligned
• Terminal Client Relationships
• Compromised PM Rollouts / Not Properly Leveraging Discipline
• Poor Data: Incomplete, Disparate…Non-Actionable
• Volatile Culture: Highs and Lows
• Talent Attrition: Recruiting / Retraining
• Low ROI on Technology Investments
• Not Understanding Valuation Drivers / Multipliers
• Ignoring Financial Potential + Opportunity Cost
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HOW PM IMPACTS…EVERYTHING
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CURRENTFinancialSnapshot
OPPORTUNITYCOST
FINANCIALPOTENTIAL
PredicatedonFINANCIALMODEL,whichhasbeen:
ü Validated+TestedwithKPI’sü ContinuouslyImproved
AGENCYPOTENTIAL
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OPPORTUNITYCOST
OPPORTUNITY
FINANCIALOPPORTUNITYCOST???
FINANCIALPOTENTIAL
Whatisthecompositionofthisbox?
AGENCYPOTENTIAL
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Whatisthecompositionofthisbox?
2M
Realization Gap The gross dollar amount of all billable transactions NOT billed to clients (all over budget transactions).
800K
RealizationGap
Utilization Gap The difference in billable hours between employee targets and actual hours logged, multiplied by each employee’s average billable rate.
1M
UtilizationGap
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Rate Margin The difference between an employee’s gross billable target in dollars (billable rate * annual target utilization hours) and their annual fully loaded compensation.
200K
RateMargin
Are you saying ALL agencies are the SAME?
AGENCYTWO
1M
RealizationGap
500K
UtilizationGap
500K
RateMargin
NO
AGENCYONE
800K
RealizationGap
1M
UtilizationGap
200K
RateMargin
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UTILIZATION GAP
ü Reduce work on internal initiatives
ü Reduce non-billable client administrative work
ü Timely and accurate time entry
ü Log all billable hours to projects (not Admin)
ü Reduce excessive pitching with low win rate
ü Reduce idle resources waiting for work
©2018CreativePerformanceInc.AllRightsReserved
2M
HowdoweFIXthis?
1M
UtilizationGap
RATE MARGIN
ü Increase standard rates
ü Increase client negotiated rates
ü Reduce senior staff executing junior work
ü Increase compensation rate ratio above 2.5x
ü Increase contractor/freelancer margins
©2018CreativePerformanceInc.AllRightsReserved
2M
RateMargin
HowdoweFIXthis?
200K
REALIZATION GAP
ü Timely and accurate time entry
ü Reduce over servicing + over delivering
ü Reduce senior staff executing junior work
ü Reduce internal mistakes
ü Reduce planned investments (discounts)
ü Reduce unbilled out-of-scope client requests
THAT’S GREAT… NOW WHAT?
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2M
RealizationGap
HowdoweFIXthis?
800K
PM EVOLUTION FROM 101 TO 501
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101 TRADITIONAL TRAFFIC
• 2 Traffic : 28 AMs
• Responsible for routing deliverables
• Responsible for on-time delivery
• Not client facing
• Not scoping or estimating
• Not creating schedules
• Not managing budgets or transactions
• No visibility into project pipeline
• Forced to be reactive
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201 BASIC PM
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• 8 PMs : 22 AMs • Seen as an assistant to Client Services • Not a ‘sexy’ role • Not allowed to be client facing • Responsible for schedule creation + management • Rarely involved in scoping or estimating • Often only managing production budgets • Minimal visibility into project pipeline • Still reactive • Often mid-level to junior skillsets • Reports to Account Lead • High turnover
301 ADVANCED PM
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• 12 PMs : 18 AMs • Dedicated Project Management discipline (by brand) • Works with SME Producers for specialty work • Recognition of natural inclinations • Client facing to drive projects • Significant visibility into project pipeline • Ability to be proactive • Responsible for Schedule Creation + Management • Responsible for Scoping, Estimating + Budget Management • Visibility into Billing • Discipline managed by Director of Client Services • Still experiences a lack of respect
401 PM AS AGENCY ADVOCATE
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• 15 PMs : 14 AMs : 1 RM • Equal partner to Client Services • Respect for natural inclinations + complementary skillsets • A true career path for PM; reports to Director of Ops/CFO • Attracting better talent with low turnover • Established junior to senior roles • Effectively resourcing + load balancing • Increased financial aptitude • Proactive client + program Budget Management • Responsible for Transaction Management (data stewardship) • Write Off recommendations + Rev Rec participation • Continued responsibility for scoping, estimating + schedules
401 PM: THE PATH TO OPS
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PROJECT COORDINATOR
• Schedule Updates • Assignment Updates • Project Support
PROJECT MANAGER
• Manages Projects • Scoping + Estimating • On-Time • On-Budget • On-Quality (Tactical)
PROGRAM DIRECTOR
• Manages AORs • AOR Scoping +
Estimating • AOR Budgets • Drives RFP Process • Escalated Rev Rec • Account Mapping • Team Development • Template Design
PROGRAM SUPERVISOR
• Manages Programs • Manages Campaigns • Program Budgets • Campaign Budgets • Sr. Level Scoping +
Estimating • Rev Rec Participation
VP OPS
• Workflow Improvement
• Process Improvement • Rev Rec Facilitation • Write Off Approvals • Agency Utilization • Agency Realization • Agency Rate Margin • Labor Budgets • Capacity Planning • Department Training
501 A SEAT AT THE TABLE
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• Identifying + Managing Principal Investment Budgets
• Managing Planned + Unplanned Write Off Investments
• Optimizing Utilization Rates
• Increasing Throughput
• Optimizing Realization Rates
• Improving Scoping + Estimating
• Developing Labor Budgets + Capacity Planning
• Enabling Data-Driven Decision Making
• “What If” Scenario Planning
DATA IS KING THE NEXT FRONTIER FOR PM
©2018CreativePerformanceInc.AllRightsReserved
$10.7MRevenue
●
$1.9MPotential
$0.7MDeferredRevenue
$0.3MOpenAR
●
$0.0MCash
$5.3M $7.2M_____AGI
P&LSummaryShowBudgets(Revenueat100%) ShowUtilizationPotentialat100%ofTarget ShowRealizationPotentialat100%ofGap
Actual %AGI Budget %AGI Potential %AGI
Revenue $10,698K 202% $12,004K 196% $12,642K 175% $10,698K $1,943K
COGS $5,407K 102% $5,869K 96% $5,407K 75% $5,407K
AGI $5,292K 100% $6,135K 100% $7,235K 100% $1,943K$5,292K
DirectLabor $1,867K 35% $1,673K 27% $1,867K 26% $1,867K
GrossMargin $3,425K 65% $4,462K 73% $5,368K 74% $1,943K$3,425K
OPEX $3,560K 67% $3,558K 58% $3,560K 49% $3,560K
NetIncome ● ($135K) 3% $903K 15% $1,808K 25% $1,943K
ConcentrationChildClient AGI
Client1210 ● $1,640K 7.2FTEs
Client1262 $1,050K 3.3FTEs
Client1987 $465K 3.5FTEs
Client2036 $379K 1.2FTEs
Client2121 $339K 1.8FTEs
31%
20%
9%
7%
6%
AgencyRatiosSalary/AGI
BestPractice 50%
Actual ● 74%
Potential 54%
D J F M A M J J A S O N
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
AGI
ActualIncomeKPIs
Actual IncomeKPIs
FocusonNetIncomevsBudget
($0.4M)
($0.2M)
$0.0M
$0.2M
D J F M A M J J A S O N
NetIncome
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$10.7MRevenue
●
$1.9MPotential
$0.7MDeferredRevenue
$0.3MOpenAR
●
$0.0MCash
$5.3M $7.2M_____AGI
P&LSummaryShowBudgets(Revenueat100%) ShowUtilizationPotentialat100%ofTarget ShowRealizationPotentialat100%ofGap
Actual %AGI Budget %AGI Potential %AGI
Revenue $10,698K 202% $12,004K 196% $12,642K 175% $10,698K $1,943K
COGS $5,407K 102% $5,869K 96% $5,407K 75% $5,407K
AGI $5,292K 100% $6,135K 100% $7,235K 100% $1,943K$5,292K
DirectLabor $1,867K 35% $1,673K 27% $1,867K 26% $1,867K
GrossMargin $3,425K 65% $4,462K 73% $5,368K 74% $1,943K$3,425K
OPEX $3,560K 67% $3,558K 58% $3,560K 49% $3,560K
NetIncome ● ($135K) 3% $903K 15% $1,808K 25% $1,943K
ConcentrationChildClient AGI
Client1210 ● $1,640K 7.2FTEs
Client1262 $1,050K 3.3FTEs
Client1987 $465K 3.5FTEs
Client2036 $379K 1.2FTEs
Client2121 $339K 1.8FTEs
31%
20%
9%
7%
6%
AgencyRatiosSalary/AGI
BestPractice 50%
Actual ● 74%
Potential 54%
D J F M A M J J A S O N
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
AGI
ActualIncomeKPIs
Actual IncomeKPIs
FocusonNetIncomevsBudget
($0.4M)
($0.2M)
$0.0M
$0.2M
D J F M A M J J A S O N
NetIncome
THE POWER OF FINANCIAL OPPORTUNITY COST
ü No additional COGS, Direct Labor or OpEx needed
ü 15% increase in Revenue could give you 14x your Net Profit!
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4,897■WriteOffHours
●
$682K■UnplannedWriteOffs
$186K■PlannedWriteOffs
$283K■WriteOffNetCost
●
+3.5■FTEOverstaffed
79% 16% 5%Realization
RealizationGapby ChildClient Labor
$0K $50K $100K $150K $200K
Client1210 6% $214K
Client1987 22% $150K
Client2208 ●●● 80% $90K
Client2121 15% $86K
Client2036 9% $84K
Client2064 16% $57K
Client1262 2% $45K
Client2124 ● 26% $39K
Client1252 ●●● 77% $26K
Client2171 ●●● 76% $23K
Client598 ●● 68% $15K
Client2141 ●●● 100% $14K
Client1981 ●●● 81% $9K
Client1752 21% $5K
Client1243 ●●● 77% $3K
Client1743 1% $2K
Client39 ●● 69% $2K
Client1185 ●● 67% $1K
Client2102 3% $1K
Cost|UnplannedGapbyDepartment
Creative 13% $167K
AccountManagement 13% $110K
DigitalMedia 25% $95K
PublicRelations 49% $83K
Planning 19% $61K
Production 15% $46K
ProjectManagement 10% $43K
Video 34% $30K
$0K $50K $100K $150K $200K $250K $300K $350K
OverServicing/OverDelivering $382K
Mis-Scoped $187K
InternalMistake/Rework $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
Cost|UnplannedGapbyReason
Unplanned 79%
Planned 21%
PlannedvsUnplanned
$0K $500K
Labor 100%
Expense 0%
LaborvsExpense
Realization
D J F M A M J J A S O N
0%
50%
100% 90%
2016-2017
Realization
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4,897■WriteOffHours
●
$682K■UnplannedWriteOffs
$186K■PlannedWriteOffs
$283K■WriteOffNetCost
●
+3.5■FTEOverstaffed
79% 16% 5%Realization
RealizationGapby ChildClient Labor
$0K $50K $100K $150K $200K
Client1210 6% $214K
Client1987 22% $150K
Client2208 ●●● 80% $90K
Client2121 15% $86K
Client2036 9% $84K
Client2064 16% $57K
Client1262 2% $45K
Client2124 ● 26% $39K
Client1252 ●●● 77% $26K
Client2171 ●●● 76% $23K
Client598 ●● 68% $15K
Client2141 ●●● 100% $14K
Client1981 ●●● 81% $9K
Client1752 21% $5K
Client1243 ●●● 77% $3K
Client1743 1% $2K
Client39 ●● 69% $2K
Client1185 ●● 67% $1K
Client2102 3% $1K
Cost|UnplannedGapbyDepartment
Creative 13% $167K
AccountManagement 13% $110K
DigitalMedia 25% $95K
PublicRelations 49% $83K
Planning 19% $61K
Production 15% $46K
ProjectManagement 10% $43K
Video 34% $30K
$0K $50K $100K $150K $200K $250K $300K $350K
OverServicing/OverDelivering $382K
Mis-Scoped $187K
InternalMistake/Rework $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
Cost|UnplannedGapbyReason
Unplanned 79%
Planned 21%
PlannedvsUnplanned
$0K $500K
Labor 100%
Expense 0%
LaborvsExpense
Realization
D J F M A M J J A S O N
0%
50%
100% 90%
2016-2017
Realization
MEASURING FINANCIAL POTENTIAL REALIZATION
REALIZATIONOPPORTUNITYCOSTTHE POWER OF REALIZATION
ü Billable hours not billed to clients
ü Where are my biggest Realization Gaps?
ü Realization Gap equal to 3.5 FTEs
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MEASURING FINANCIAL POTENTIAL REALIZATION
4,897■WriteOffHours
●
$682K■UnplannedWriteOffs
$186K■PlannedWriteOffs
$283K■WriteOffNetCost
●
+3.5■FTEOverstaffed
79% 16% 5%Realization
RealizationGapby ChildClient Labor
$0K $50K $100K $150K $200K
Client1210 6% $214K
Client1987 22% $150K
Client2208 ●●● 80% $90K
Client2121 15% $86K
Client2036 9% $84K
Client2064 16% $57K
Client1262 2% $45K
Client2124 ● 26% $39K
Client1252 ●●● 77% $26K
Client2171 ●●● 76% $23K
Client598 ●● 68% $15K
Client2141 ●●● 100% $14K
Client1981 ●●● 81% $9K
Client1752 21% $5K
Client1243 ●●● 77% $3K
Client1743 1% $2K
Client39 ●● 69% $2K
Client1185 ●● 67% $1K
Client2102 3% $1K
Cost|UnplannedGapbyDepartment
Creative 13% $167K
AccountManagement 13% $110K
DigitalMedia 25% $95K
PublicRelations 49% $83K
Planning 19% $61K
Production 15% $46K
ProjectManagement 10% $43K
Video 34% $30K
$0K $50K $100K $150K $200K $250K $300K $350K
OverServicing/OverDelivering $382K
Mis-Scoped $187K
InternalMistake/Rework $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
Cost|UnplannedGapbyReason
Unplanned 79%
Planned 21%
PlannedvsUnplanned
$0K $500K
Labor 100%
Expense 0%
LaborvsExpense
Realization
D J F M A M J J A S O N
0%
50%
100% 90%
2016-2017
Realization
ü Realization Gap is almost $900k
ü Client 1210: $200k in write offs; only 6% of work
ü ~$200k Planned; ~$700k Unplanned
ü Client 1252: $26k in write offs; but 77% of work
ü But why did we write off this much work?
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MEASURING FINANCIAL POTENTIAL REALIZATION
4,897■WriteOffHours
●
$682K■UnplannedWriteOffs
$186K■PlannedWriteOffs
$283K■WriteOffNetCost
●
+3.5■FTEOverstaffed
79% 16% 5%Realization
RealizationGapby ChildClient Labor
$0K $50K $100K $150K $200K
Client1210 6% $214K
Client1987 22% $150K
Client2208 ●●● 80% $90K
Client2121 15% $86K
Client2036 9% $84K
Client2064 16% $57K
Client1262 2% $45K
Client2124 ● 26% $39K
Client1252 ●●● 77% $26K
Client2171 ●●● 76% $23K
Client598 ●● 68% $15K
Client2141 ●●● 100% $14K
Client1981 ●●● 81% $9K
Client1752 21% $5K
Client1243 ●●● 77% $3K
Client1743 1% $2K
Client39 ●● 69% $2K
Client1185 ●● 67% $1K
Client2102 3% $1K
Cost|UnplannedGapbyDepartment
Creative 13% $167K
AccountManagement 13% $110K
DigitalMedia 25% $95K
PublicRelations 49% $83K
Planning 19% $61K
Production 15% $46K
ProjectManagement 10% $43K
Video 34% $30K
$0K $50K $100K $150K $200K $250K $300K $350K
OverServicing/OverDelivering $382K
Mis-Scoped $187K
InternalMistake/Rework $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
Cost|UnplannedGapbyReason
Unplanned 79%
Planned 21%
PlannedvsUnplanned
$0K $500K
Labor 100%
Expense 0%
LaborvsExpense
Realization
D J F M A M J J A S O N
0%
50%
100% 90%
2016-2017
Realization
LET’S BREAK THIS DOWN:
ü PR: $83k; but 49% of dept work!
ü Creative: $167k; only 13% of dept work
ü $382k of Over Servicing/Over Delivering
ü $187k of Mis-Scoping
ü But what if we could get even more detailed?
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ProjectPerformanceAllWriteOffs
$0K $100K $200K $300K $400K $500K $600K $700K $800K
Billed+WIP
$0K
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Writ
tenO
ff
+2
5%
+5
0%
+7
5%
$0K $200K $400K $600K $800K
Project9390 Client2036 ●● 61% $17K $56K
Project9449 Client1210 25% $19K $49K
Project9747 Client2208 ●●● 84% $13K $45K
Project9638 Client2121 ●● 56% $16K $37K
Project9331 Client1210 ●●● 100% $12K $35K
Project9345 Client1987 ● 44% $10K $34K
Project9365 Client1987 ● 27% $9K $29K
Project9728 Client2208 ●●● 88% $10K $28K
Project9448 Client1210 3% $9K $26K
ProjectList
AgencySummary
4,897WriteOffHours
$682KUnplannedWriteOffs
$186KPlannedWriteOffs
$283KWriteOffNetCost
+3.5FTEOverstaffed
Creative
$235K
Account..
$142K
Planning
$106K
Digital..
$104K
PublicR..
$83K
Project..
$49K
Product..
$49K
Media
$35K
Video
$34K
Admin
$23K
NoDep..
$6K
Busines..
$2K
OverServicing/O.. $382K
Mis-Scoped $187K
PrincipalInvestm.. $186K
InternalMistake/.. $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
$0K $100K $200K $300K
StrategicPlanning
Video/BroadcastTV
AgencyManagement
AllOthers
WriteOffsbyProjectType
$0K $100K $200K $300K
Employee142
Employee212
Employee127
AllOthers
WriteOffsbyPM
25% 50% 75% 100%
Billed+WIP
OverServicing/OverDeliv..
Mis-Scoped
PrincipalInvestment
InternalMistake/Rework
BeyondScope
MediaOverages
Retainer
ComparisonwithinAgency
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ProjectPerformanceAllWriteOffs
$0K $100K $200K $300K $400K $500K $600K $700K $800K
Billed+WIP
$0K
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Writ
tenO
ff
+2
5%
+5
0%
+7
5%
$0K $200K $400K $600K $800K
Project9390 Client2036 ●● 61% $17K $56K
Project9449 Client1210 25% $19K $49K
Project9747 Client2208 ●●● 84% $13K $45K
Project9638 Client2121 ●● 56% $16K $37K
Project9331 Client1210 ●●● 100% $12K $35K
Project9345 Client1987 ● 44% $10K $34K
Project9365 Client1987 ● 27% $9K $29K
Project9728 Client2208 ●●● 88% $10K $28K
Project9448 Client1210 3% $9K $26K
ProjectList
AgencySummary
4,897WriteOffHours
$682KUnplannedWriteOffs
$186KPlannedWriteOffs
$283KWriteOffNetCost
+3.5FTEOverstaffed
Creative
$235K
Account..
$142K
Planning
$106K
Digital..
$104K
PublicR..
$83K
Project..
$49K
Product..
$49K
Media
$35K
Video
$34K
Admin
$23K
NoDep..
$6K
Busines..
$2K
OverServicing/O.. $382K
Mis-Scoped $187K
PrincipalInvestm.. $186K
InternalMistake/.. $37K
BeyondScope $36K
MediaOverages $33K
Retainer $7K
$0K $100K $200K $300K
StrategicPlanning
Video/BroadcastTV
AgencyManagement
AllOthers
WriteOffsbyProjectType
$0K $100K $200K $300K
Employee142
Employee212
Employee127
AllOthers
WriteOffsbyPM
25% 50% 75% 100%
Billed+WIP
OverServicing/OverDeliv..
Mis-Scoped
PrincipalInvestment
InternalMistake/Rework
BeyondScope
MediaOverages
Retainer
ComparisonwithinAgency
ü Projects with high write off %
ü Projects with low write off %
ü Strategic Planning: largest write offs
ü Video/Broadcast TV: 2nd largest write offs
ü But what if we could get even MORE detailed?
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ProjectPerformanceAllWriteOffs
$0K $100K $200K $300K $400K $500K $600K $700K $800K
Billed+WIP
$0K
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Writ
tenO
ff
+2
5%
+5
0%
+7
5%
$0K $200K $400K $600K $800K
Project9390 Client2036 ●● 61% $17K $56K
Project9449 Client1210 25% $19K $49K
Project9747 Client2208 ●●● 84% $13K $45K
Project9638 Client2121 ●● 56% $16K $37K
Project9331 Client1210 ●●● 100% $12K $35K
Project9345 Client1987 ● 44% $10K $34K
Project9365 Client1987 ● 27% $9K $29K
Project9728 Client2208 ●●● 88% $10K $28K
Project9448 Client1210 3% $9K $26K
ProjectList
ProjectSummary Project9390
270WriteOffHours
$56KUnplannedWriteOffs
$0KPlannedWriteOffs
$17KWriteOffNetCost
+0.5FTEOverstaffed
Creative
$28K
AccountManagement
$23K
ProjectManagement
$5K
NoDepartment
$0K
BusinessDevelopment
$0K
OverServicing/O.. $56K
$0K $20K $40K
Video/BroadcastTV
WriteOffsbyProjectType
$0K $20K $40K
Employee127
WriteOffsbyPM
25% 50% 75% 100%
Billed+WIP
OverServicing/OverDeliv..
Mis-Scoped
PrincipalInvestment
InternalMistake/Rework
BeyondScope
MediaOverages
Retainer
ComparisonwithinAgency
ü Video/Broadcast TV project
PROJECT 9390
ü $56k in write offs/61% of total project L
ü Equal to ½ of an employee
ü Over Servicing in 3 departments
ü But what if we look at a good project?
PatentPen
ding
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
ProjectPerformanceAllWriteOffs
$0K $100K $200K $300K $400K $500K $600K $700K $800K
Billed+WIP
$0K
$10K
$20K
$30K
$40K
$50K
$60K
$70K
$80K
$90K
Writ
tenO
ff
+2
5%
+5
0%
+7
5%
$0K $200K $400K $600K $800K
Project9390 Client2036 ●● 61% $17K $56K
Project9449 Client1210 25% $19K $49K
Project9747 Client2208 ●●● 84% $13K $45K
Project9638 Client2121 ●● 56% $16K $37K
Project9331 Client1210 ●●● 100% $12K $35K
Project9345 Client1987 ● 44% $10K $34K
Project9365 Client1987 ● 27% $9K $29K
Project9728 Client2208 ●●● 88% $10K $28K
Project9448 Client1210 3% $9K $26K
ProjectList
ProjectSummary Project9448
157WriteOffHours
$26KUnplannedWriteOffs
$0KPlannedWriteOffs
$9KWriteOffNetCost
+0.2FTEOverstaffed
Creative
$18K
Production
$4K
Video
$2K
ProjectManagement
$2K
NoDepartment
$0K
BeyondScope $26K
$0K $10K $20K
Video/BroadcastTV
WriteOffsbyProjectType
$0K $10K $20K
Employee212
WriteOffsbyPM
25% 50% 75% 100%
Billed+WIP
OverServicing/OverDeliv..
Mis-Scoped
PrincipalInvestment
InternalMistake/Rework
BeyondScope
MediaOverages
Retainer
ComparisonwithinAgency
ü Good Video/Broadcast TV project!
PROJECT 9448
ü $26k in write offs/3% of total project J
ü Equal to ¼ of an employee
ü Beyond Scope in 4 departments ü Let’s do more of these!
PatentPen
ding
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
$5.2M■Fees
●
$1.3MPotential
$1.8M■NewBiz+ClientDevelopment
$0.9M■InternalInitiatives
●
+5.0■FTEOverstaffed
49% 59%____Utilization
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
●
●
●
●
●
●
●
●
●
● 101%
96%
103%
100%
96%
107%
98%
112%
101%
108%
97%
102%
110%
27%73%
28%68%
39%64%
38%62%
37%59%
51%56%
42%55%
60%51%
65%37%
102%
95%
102%
110%
TargetvsBillablevsNon-Billable%
5,222
6,103
5,095
5,574
3,838
1,369
2,316
1,375
715
286
55
1,932
2,529
3,060
3,396
2,422
1,240
1,773
1,617
1,258
4,836
2,236
5,379
2,896
Non-BillablevsBillableHours
◑
◑
$758K
$1,284K $233K
$851K
$699K
$423K
$307K
$190K$311K
$340K
$206K
$0K
$0K
Cost|Fees|Potential
ShowPotentialat100%ofTarget
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
289hrs
894hrs
996hrs
655hrs
637hrs
299hrs
83hrs
586hrs
52hrs
2,228hrs
1,294hrs
0hrs
0hrs
4%
10%
13%
7%
10%
12%
2%
22%
3%
47%
55%
0%
0%
NewBiz+ClientDev
89hrs
518hrs
162hrs
1,520hrs
113hrs
47hrs
1,119hrs
248hrs
777hrs
495hrs
595hrs
20hrs
114hrs
1%
6%
2%
17%
2%
2%
27%
9%
40%
10%
25%
0%
4%
InternalInitiatives
1,554hrs
1,116hrs
1,903hrs
1,222hrs
1,672hrs
894hrs
571hrs
783hrs
428hrs
2,113hrs
347hrs
5,360hrs
2,783hrs
22%
12%
24%
14%
26%
37%
14%
29%
22%
44%
15%
101%
106%
InternalAdmin
D J F M A M J J A S O N
0%
20%
40%
60%
BillablevsPotential
2016-2017
Cost $599K Cost $283K Cost $1,073K BillablevsPotential
PatentPen
ding
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
$5.2M■Fees
●
$1.3MPotential
$1.8M■NewBiz+ClientDevelopment
$0.9M■InternalInitiatives
●
+5.0■FTEOverstaffed
49% 59%____Utilization
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
●
●
●
●
●
●
●
●
●
● 101%
96%
103%
100%
96%
107%
98%
112%
101%
108%
97%
102%
110%
27%73%
28%68%
39%64%
38%62%
37%59%
51%56%
42%55%
60%51%
65%37%
102%
95%
102%
110%
TargetvsBillablevsNon-Billable%
5,222
6,103
5,095
5,574
3,838
1,369
2,316
1,375
715
286
55
1,932
2,529
3,060
3,396
2,422
1,240
1,773
1,617
1,258
4,836
2,236
5,379
2,896
Non-BillablevsBillableHours
◑
◑
$758K
$1,284K $233K
$851K
$699K
$423K
$307K
$190K$311K
$340K
$206K
$0K
$0K
Cost|Fees|Potential
ShowPotentialat100%ofTarget
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
289hrs
894hrs
996hrs
655hrs
637hrs
299hrs
83hrs
586hrs
52hrs
2,228hrs
1,294hrs
0hrs
0hrs
4%
10%
13%
7%
10%
12%
2%
22%
3%
47%
55%
0%
0%
NewBiz+ClientDev
89hrs
518hrs
162hrs
1,520hrs
113hrs
47hrs
1,119hrs
248hrs
777hrs
495hrs
595hrs
20hrs
114hrs
1%
6%
2%
17%
2%
2%
27%
9%
40%
10%
25%
0%
4%
InternalInitiatives
1,554hrs
1,116hrs
1,903hrs
1,222hrs
1,672hrs
894hrs
571hrs
783hrs
428hrs
2,113hrs
347hrs
5,360hrs
2,783hrs
22%
12%
24%
14%
26%
37%
14%
29%
22%
44%
15%
101%
106%
InternalAdmin
D J F M A M J J A S O N
0%
20%
40%
60%
BillablevsPotential
2016-2017
Cost $599K Cost $283K Cost $1,073K BillablevsPotential
THE POWER OF UTILIZATION
ü Billable employees not meeting target utilizations
ü Utilization Gap equal to 5 FTEs
UTILIZATIONOPPORTUNITYCOST
ü Where are my biggest Utilization Gaps?
MEASURING FINANCIAL POTENTIAL UTILIZATION
PatentPen
ding
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
$5.2M■Fees
●
$1.3MPotential
$1.8M■NewBiz+ClientDevelopment
$0.9M■InternalInitiatives
●
+5.0■FTEOverstaffed
49% 59%____Utilization
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
●
●
●
●
●
●
●
●
●
● 101%
96%
103%
100%
96%
107%
98%
112%
101%
108%
97%
102%
110%
27%73%
28%68%
39%64%
38%62%
37%59%
51%56%
42%55%
60%51%
65%37%
102%
95%
102%
110%
TargetvsBillablevsNon-Billable%
5,222
6,103
5,095
5,574
3,838
1,369
2,316
1,375
715
286
55
1,932
2,529
3,060
3,396
2,422
1,240
1,773
1,617
1,258
4,836
2,236
5,379
2,896
Non-BillablevsBillableHours
◑
◑
$758K
$1,284K $233K
$851K
$699K
$423K
$307K
$190K$311K
$340K
$206K
$0K
$0K
Cost|Fees|Potential
ShowPotentialat100%ofTarget
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
289hrs
894hrs
996hrs
655hrs
637hrs
299hrs
83hrs
586hrs
52hrs
2,228hrs
1,294hrs
0hrs
0hrs
4%
10%
13%
7%
10%
12%
2%
22%
3%
47%
55%
0%
0%
NewBiz+ClientDev
89hrs
518hrs
162hrs
1,520hrs
113hrs
47hrs
1,119hrs
248hrs
777hrs
495hrs
595hrs
20hrs
114hrs
1%
6%
2%
17%
2%
2%
27%
9%
40%
10%
25%
0%
4%
InternalInitiatives
1,554hrs
1,116hrs
1,903hrs
1,222hrs
1,672hrs
894hrs
571hrs
783hrs
428hrs
2,113hrs
347hrs
5,360hrs
2,783hrs
22%
12%
24%
14%
26%
37%
14%
29%
22%
44%
15%
101%
106%
InternalAdmin
D J F M A M J J A S O N
0%
20%
40%
60%
BillablevsPotential
2016-2017
Cost $599K Cost $283K Cost $1,073K BillablevsPotential
ü Production, Planning + Video departments significantly under utilized
ü $1.8M of billable resource time spent on new biz + organic growth
ü $900k of billable resource time spent on internal initiatives
MEASURING FINANCIAL POTENTIAL UTILIZATION
PatentPen
ding
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
$5.2M■Fees
●
$1.3MPotential
$1.8M■NewBiz+ClientDevelopment
$0.9M■InternalInitiatives
●
+5.0■FTEOverstaffed
49% 59%____Utilization
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
●
●
●
●
●
●
●
●
●
● 101%
96%
103%
100%
96%
107%
98%
112%
101%
108%
97%
102%
110%
27%73%
28%68%
39%64%
38%62%
37%59%
51%56%
42%55%
60%51%
65%37%
102%
95%
102%
110%
TargetvsBillablevsNon-Billable%
5,222
6,103
5,095
5,574
3,838
1,369
2,316
1,375
715
286
55
1,932
2,529
3,060
3,396
2,422
1,240
1,773
1,617
1,258
4,836
2,236
5,379
2,896
Non-BillablevsBillableHours
◑
◑
$758K
$1,284K $233K
$851K
$699K
$423K
$307K
$190K$311K
$340K
$206K
$0K
$0K
Cost|Fees|Potential
ShowPotentialat100%ofTarget
DigitalMedia
Creative
AccountManagement
PublicRelations
ProjectManagement
Media
Production
Planning
Video
Admin
BusinessDevelopment
Accounting
Operations
289hrs
894hrs
996hrs
655hrs
637hrs
299hrs
83hrs
586hrs
52hrs
2,228hrs
1,294hrs
0hrs
0hrs
4%
10%
13%
7%
10%
12%
2%
22%
3%
47%
55%
0%
0%
NewBiz+ClientDev
89hrs
518hrs
162hrs
1,520hrs
113hrs
47hrs
1,119hrs
248hrs
777hrs
495hrs
595hrs
20hrs
114hrs
1%
6%
2%
17%
2%
2%
27%
9%
40%
10%
25%
0%
4%
InternalInitiatives
1,554hrs
1,116hrs
1,903hrs
1,222hrs
1,672hrs
894hrs
571hrs
783hrs
428hrs
2,113hrs
347hrs
5,360hrs
2,783hrs
22%
12%
24%
14%
26%
37%
14%
29%
22%
44%
15%
101%
106%
InternalAdmin
D J F M A M J J A S O N
0%
20%
40%
60%
BillablevsPotential
2016-2017
Cost $599K Cost $283K Cost $1,073K BillablevsPotential
TRANSITIONING NON-BILLABLE TIME TO BILLABLE
ü Utilize PM to increase throughput of billable work, increasing utilization
ü Establish PM rigor around non-billable biz dev projects
MEASURING FINANCIAL POTENTIAL UTILIZATION
ü Establish PM rigor around non-billable internal initiatives
©2018Creativ
ePe
rformanceInc.A
llRightsReserved
PatentPen
ding
A PATH FORWARD
©2018CreativePerformanceInc.AllRightsReserved
A PATH FORWARD PRACTICAL NEXT STEPS
ü Establish PM as Discrete Discipline!
ü Empower PM Discipline as Agency Advocate
ü Establish PM Career Path to Operations
ü Deploy Best Practices within Workamajig
ü Adopt Daily + Accurate Time Keeping
ü Establish Monthly Revenue Recognition Meetings
ü Deploy Business Intelligence (BI) Solution
ü Utilize BI to Make Data-driven Decisions
ü Link Employee Compensation to Agency Metrics
©2018CreativePerformanceInc.AllRightsReserved
THANK YOU!
©2018CreativePerformanceInc.AllRightsReserved