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

Poll #1Do you personally manage

projects?

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 $$$

Challenges to being a Superstar PM

No Real PM Track or Role

No PM Job Description

What they do doesn’t match their job description

No control over project scope or resources assigned

Not given the data they need to manage projects

Lack of PerformanceMetrics and Goals

No Accountability!

Poll #2What else can your firm do to help your PMs to be more successful?

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

How Can You Help PMs to Become Superstars?

Establish Project Management as a Professional Discipline

Develop A Project Management Career Path

Create Individual Employee Professional Development Plans

Formalize Your Project Management Role

Develop a Project Management Process

http://www.fhwa.dot.gov/

Business Skills / Financial Management TrainingProject Management Training Training on software and reports that your firm is usingMentoring

PM Financial Training

Project Control Administrative Role

Instant Access to Real Time Proposal and Project Data

Send Alerts, Notifications and Reminders

Use Project Budgeting and Resource Management Tools

Accountability - Clear Cut Goals and Measurable Results!!!!!

What is one change you can make today to help your Project

Managers become Superstars?

COPYRIGHT 2015 AEC BUSINESS SOLUTIONS

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