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Holding Employees Accountable to Increase
Profitability
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Imagine A World Where
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There is NO Drama!
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Employees understand the rela7onship between the value they bring to the firm and their paycheck
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You never had to deal with poor results or passive aggressive behavior
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Employees follow all of your policies and processes
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Every employee is a top performer…
COPYRIGHT 2015 AEC BUSINESS SOLUTIONS, LLC
June R. Jewell, CPA
§ President & CEO, AEC Business Solu7ons § Author of the best-‐selling book, Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms § 25 Years as a Wind2 SoRware / Deltek Partner implemen7ng hundreds of system across U.S. § My MISSION: To help A&E firm leaders to increase profits by improving employee performance and implemen7ng processes to increase efficiency and financial results.
President, AEC Business Solu7ons
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Instead, there is another reality in many A&E firms…
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#1 – Our performance management process consists
of an annual review
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#2 – Everyone is pre[y much given a raise and / or bonus each year even if they didn’t perform
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#3 – All of our offices do things their own way – from proposals & es7ma7ng to project budge7ng & billing
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#4 – We never fire anyone. We have some “D” players on our team
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#5 – We do not have metrics to measure our PMs
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#6 -‐ We operate like a family run business
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Why do we settle for mediocrity?
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What is the PURPOSE of performance management?
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To IMPROVE Performance!
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Copyright 2015 AEC Business Solutions, LLC
Championship Teams have:
• Alignment – working towards common goals
• Clear Roles
• Team work
• Engagement
• Constant feedback
• Consequences
• Accountability!
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What is a lack of accountability leading to poor performance cos7ng you?
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1 hour a week X $110 billing rate X
48 weeks =
$5280 /employee X 50 employees
264,000 / year
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Where are the dollars going? § Keeping poor performers too long
§ Projects go over budget Scope Creep – not asking for money Wri7ng off 7me Not delega7ng
§ Rework
§ Failure to maximize performance
§ Dis-‐incen7vizing good employees
§ Inefficiency Inconsistent prac7ces Failure to use systems Email glu[ony
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6 Steps to Establishing an Effec7ve Performance Management Process
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Step 1: Establish goals and KPIs that provide value for Clients, Employees and Company
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Step 2: Develop clear process for giving responsibility / assignments and clear chain of command
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Step 3: Clearly Defined Responsibili7es and Job Descrip7ons aligned with company goals
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Step 4: Exchange regular feedback between employees and their managers to point out their achievements and their weaknesses and discuss issues
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Step 5: Offer help to improve employee skills, knowledge and performance
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Step 6: Reward and incen7vize desired behavior. In addi7on to quan7ta7ve results, look at client sa7sfac7on, business development, teamwork and aktude
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Copyright 2015 AEC Business Solutions, LLC
Summary: ü Lack of accountability is cultural. It is a process and
communica7on problem.
ü Poor performance has a measurable cost associated with it.
ü The tradi7onal “Annual Performance Review and year-‐end bonus does not work.
ü Employees need measurable goals, regular feedback and coaching to be successful.
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Business Management Assessment
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COPYRIGHT 2015 AEC BUSINESS SOLUTIONS, LLC
Connect with Me!
[email protected] 877-‐356-‐9420 x701
www. AECBusiness.com