Below are examples of the different issues our clients have faced, and the solutions we have implemented to successfully meet their targeted goals.
Productivity and Efficiency Review
A small graphics design company was having trouble turning their revenue into profit, which kept them from investing in the Company for future growth. The staff was small, so the Owner (also Chief Designer), was wearing too many hats. The company had great clients, a strong reputation, and robust revenue, but they couldn’t monetize enough of these strengths to turn a consistent profit.
Our extensive background in financial analysis and business consulting allowed us to approach this problem very differently from the Business Owner. The key, and most profitable employee was the business owner, yet he billed the least number of hours since he felt he also had to “run the business”. He did not think he could afford a high-level Administrator who could alleviate many of his Administrative tasks.
We asked the business owner to monitor each of his work days for one month, describing in detail each task he performed and the time he spent to perform that task; the result of this analysis was eye-opening to him. 50% of his working day was spent on Administrative, non-billable tasks. He saw that his employee make-up and his need to “run the business” was killing his profitability.
We recommended he take 50% of his Administrative workload and hire a technical Administrator. We also worked with him to institute a client and task-based Project Management system to be controlled by the new Administrator. This organized the designers and increased the billable graphics design hours.
3 months after completing this analysis, revenues grew between 10-15% because the most highly skilled and highly paid designer increased his daily billable time from 36% to 65%. Profits increased substantially – from 29% of total revenue to 35% of total revenue in this same time period, even with the hiring and additional cost of an administrative employee.