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Empowering the Workforce with Comprehensive Financial Management
Michael S. O’Brien, Principal, Rusk O’Brien Gido + Partners, LLCPS-169
Agenda
Current Situation
What Makes Your Firm Attractive?
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Impact of Recession
Sudden revenue decline put a strain on cash flow Many firms realized their exposure to market changes Many firms were stuck with fixed obligations Depth of management team was exposed Ownership transition plans stalled or cancelled Firms are taking longer term views to their business
Profitability Sustainable growth Leadership/Ownership succession planning
Current Situation
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Current Situation
I II III IV I II III IV I II III IV I II2009 2010 2011 2012
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
Quarter to Quarter Growth In GDP
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Current Situation
Labor Trends
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Aug-1
2 0.90
1.00
1.10
1.20
1.30
1.40
1.50
Population
Labor Force
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Shifting Demographics
Current Situation
2000 2005 2010 2015 2020 2025 203040,000
50,000
60,000
70,000
80,000
35 to 49 Years 55 to 64 Years
Po
pu
lation
(000's)
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Shrinking Supply of Buyers
Current Situation
2000 2005 2010 2015 2020 2025 20300.80
1.00
1.20
1.40
1.60
1.80
Buyer to Seller Ratio
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Competition for Investments is Fierce
Current Situation
0%
100%
200%
300%
400%
500%
600%
Debt as % of GDP
Households and Nonprofit Non-Financial Business Financial Business
Federal/State/Local Total Debt
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More Burden on Employees
Current Situation
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
YTD 201
2($10,000)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
GDP/Labor Force Public Debt/Labor Force Net Value/Labor Force
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Pre-distribution Profit Margin (% of NSR)
Current Situation
What Makes Your Firm Attractive?
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Internal and External Investors Seek Certainty
Growth Risk Minimization Depth of Management Diversification
Product/Services Market Sectors Geography Client Types
Volatility is NOT your best friend.
What Makes Your Firm Attractive?
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Institutionalizing Your Company Seller - Doer Business Models
Limits Growth Limits Time For Planning/Thinking Limits Training/Leveraging Staff
Mentoring“Example isn't another way to teach, it is the only way to teach” Albert Einstein – 1879-1955
Train your employees to think beyond, the task, job, or role Training and development is more than seminars and brown bags
What Makes Your Firm Attractive?
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What is Comprehensive Financial Management? Utilization Rates Overhead Rates Labor Multiplier Collection Rate Project Management Predictive Metrics
Sales Proposals Outstanding Proposals Made
What Makes Your Firm Attractive?
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Call to Action
