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


INDUSTRY OBSERVATIONS


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


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


HOW PM IMPACTS…EVERYTHING


CURRENTFinancialSnapshot

OPPORTUNITYCOST

FINANCIALPOTENTIAL

PredicatedonFINANCIALMODEL,whichhasbeen:

ü  Validated+TestedwithKPI’sü  ContinuouslyImproved

AGENCYPOTENTIAL


OPPORTUNITYCOST

OPPORTUNITY

FINANCIALOPPORTUNITYCOST???

FINANCIALPOTENTIAL

Whatisthecompositionofthisbox?

AGENCYPOTENTIAL


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


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


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


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


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?


2M

RealizationGap

HowdoweFIXthis?

800K

PM EVOLUTION FROM 101 TO 501


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


201 BASIC PM


•  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


•  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


•  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


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


•  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


$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



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


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




31%

20%

9%

7%

6%

AgencyRatiosSalary/AGI

BestPractice 50%

Actual ● 74%

Potential 54%


$0.0M

$0.5M

$1.0M

$1.5M

$2.0M

AGI

ActualIncomeKPIs

Actual IncomeKPIs

FocusonNetIncomevsBudget

($0.4M)

($0.2M)

$0.0M

$0.2M


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


0%

50%

100% 90%

2016-2017

Realization

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●




$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


Creative 13% $167K




Planning 19% $61K

Production 15% $46K


Video 34% $30K

$0K $50K $100K $150K $200K $250K $300K $350K


Mis-Scoped $187K


BeyondScope $36K

MediaOverages $33K

Retainer $7K


Unplanned 79%

Planned 21%

PlannedvsUnplanned

$0K $500K

Labor 100%

Expense 0%

LaborvsExpense

Realization


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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●




●




$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


Creative 13% $167K




Planning 19% $61K

Production 15% $46K


Video 34% $30K

$0K $50K $100K $150K $200K $250K $300K $350K


Mis-Scoped $187K


BeyondScope $36K

MediaOverages $33K

Retainer $7K


Unplanned 79%

Planned 21%

PlannedvsUnplanned

$0K $500K

Labor 100%

Expense 0%

LaborvsExpense

Realization


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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●




$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


Creative 13% $167K




Planning 19% $61K

Production 15% $46K


Video 34% $30K

$0K $50K $100K $150K $200K $250K $300K $350K


Mis-Scoped $187K


BeyondScope $36K

MediaOverages $33K

Retainer $7K


Unplanned 79%

Planned 21%

PlannedvsUnplanned

$0K $500K

Labor 100%

Expense 0%

LaborvsExpense

Realization


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



Project9345 Client1987 ● 44% $10K $34K




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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$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










ProjectList

AgencySummary

4,897WriteOffHours


$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


Mis-Scoped $187K

PrincipalInvestm.. $186K

InternalMistake/.. $37K

BeyondScope $36K

MediaOverages $33K

Retainer $7K

$0K $100K $200K $300K

StrategicPlanning

Video/BroadcastTV

AgencyManagement

AllOthers


$0K $100K $200K $300K

Employee142

Employee212

Employee127

AllOthers

WriteOffsbyPM

25% 50% 75% 100%

Billed+WIP


Mis-Scoped

PrincipalInvestment


BeyondScope

MediaOverages

Retainer


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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$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










ProjectList

ProjectSummary Project9390

270WriteOffHours


$0KPlannedWriteOffs

$17KWriteOffNetCost

+0.5FTEOverstaffed

Creative

$28K

AccountManagement

$23K

ProjectManagement

$5K

NoDepartment

$0K

BusinessDevelopment

$0K


$0K $20K $40K

Video/BroadcastTV


$0K $20K $40K

Employee127

WriteOffsbyPM

25% 50% 75% 100%

Billed+WIP


Mis-Scoped

PrincipalInvestment


BeyondScope

MediaOverages

Retainer


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?

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$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










ProjectList

ProjectSummary Project9448

157WriteOffHours


$0KPlannedWriteOffs

$9KWriteOffNetCost

+0.2FTEOverstaffed

Creative

$18K

Production

$4K

Video

$2K

ProjectManagement

$2K

NoDepartment

$0K

BeyondScope $26K

$0K $10K $20K

Video/BroadcastTV


$0K $10K $20K

Employee212

WriteOffsbyPM

25% 50% 75% 100%

Billed+WIP


Mis-Scoped

PrincipalInvestment


BeyondScope

MediaOverages

Retainer


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!

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$5.2M■Fees

●

$1.3MPotential

$1.8M■NewBiz+ClientDevelopment

$0.9M■InternalInitiatives

●


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


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



●



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%


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


◑

◑

$758K

$1,284K $233K

$851K

$699K

$423K

$307K

$190K$311K

$340K

$206K

$0K

$0K

Cost|Fees|Potential


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


0%

20%

40%

60%

BillablevsPotential

2016-2017


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



●



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%


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


◑

◑

$758K

$1,284K $233K

$851K

$699K

$423K

$307K

$190K$311K

$340K

$206K

$0K

$0K

Cost|Fees|Potential


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


0%

20%

40%

60%

BillablevsPotential

2016-2017


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


PatentPen

ding

©2018Creativ

ePe

rformanceInc.A

llRightsReserved

$5.2M■Fees

●

$1.3MPotential



●



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%


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


◑

◑

$758K

$1,284K $233K

$851K

$699K

$423K

$307K

$190K$311K

$340K

$206K

$0K

$0K

Cost|Fees|Potential


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


0%

20%

40%

60%

BillablevsPotential

2016-2017


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


ü  Establish PM rigor around non-billable internal initiatives

©2018Creativ

ePe

rformanceInc.A

llRightsReserved

PatentPen

ding

A PATH FORWARD


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


THANK YOU!


Documents

PM EVOLVED