holding employees accountable to increase profitability by june jewell

COPYRIGHT 2015 AEC BUSINESS SOLUTIONS, LLC

Holding Employees Accountable to Increase

Profitability

Copyright 2015 AEC Business Solutions, LLC

Imagine A World Where


There is NO Drama!


Employees understand the rela7onship between the value they bring to the firm and their paycheck


You never had to deal with poor results or passive aggressive behavior


Employees follow all of your policies and processes


Every employee is a top performer…


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


Instead, there is another reality in many A&E firms…


#1 – Our performance management process consists

of an annual review


#2 – Everyone is pre[y much given a raise and / or bonus each year even if they didn’t perform


#3 – All of our offices do things their own way – from proposals & es7ma7ng to project budge7ng & billing


#4 – We never fire anyone. We have some “D” players on our team


#5 – We do not have metrics to measure our PMs


#6 -‐ We operate like a family run business


Why do we settle for mediocrity?


What is the PURPOSE of performance management?


To IMPROVE Performance!


Championship Teams have:

•  Alignment – working towards common goals

•  Clear Roles

•  Team work

•  Engagement

•  Constant feedback

•  Consequences

•  Accountability!


What is a lack of accountability leading to poor performance cos7ng you?


1 hour a week X $110 billing rate X

48 weeks =

$5280 /employee X 50 employees

264,000 / year


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


6 Steps to Establishing an Effec7ve Performance Management Process


Step 1: Establish goals and KPIs that provide value for Clients, Employees and Company


Step 2: Develop clear process for giving responsibility / assignments and clear chain of command


Step 3: Clearly Defined Responsibili7es and Job Descrip7ons aligned with company goals


Step 4: Exchange regular feedback between employees and their managers to point out their achievements and their weaknesses and discuss issues


Step 5: Offer help to improve employee skills, knowledge and performance


Step 6: Reward and incen7vize desired behavior. In addi7on to quan7ta7ve results, look at client sa7sfac7on, business development, teamwork and aktude


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.


Business Management Assessment


Connect with Me!

[email protected] 877-‐356-‐9420 x701

www. AECBusiness.com