One would think our employees went crazy, tore their clothes in mourning, and flew over the cuckoo’s nest when they no longer blocked out their day into 30 min increments and assigned a project number.
In reality, it took a few weeks for the concept to sink it and we couldn’t be happier. Hey, a paradigm shift doesn’t happen over night, just ask the inventors of the spork. Two months later, the theory is proving itself worth the risk.
1) We are improving our pricing and estimating process to charge based on value and not labor. This will take time for us all to adjust and stop reverting back to number of estimated hours needed to complete a project.
2) Ironing out our Key Indicators (predictors of profitability) will take time as well. Right now we are measuring turnaround time, client referrals, client retention, and client happiness via survey. It’s like putting the straight edges of a puzzle together first. Once we figure those out all the other pieces will fall into place.
1) We are able to predict the currents month’s net income before the month begins. We can look at our projects estimated percentage complete for the month and say this is where we will land. Instead of waiting till the end of the month, after we’ve grossed everything up and then start writing things off. We were worried about losing control of profitability when we switched off time sheets. Now we have more control and power to see into the future (now I can throw away our eight ball).
2) We’ve became closer as a team. AE’s aren’t afraid to ask more people to join in on a project if need be. No more fear of going ‘over’ on a job. We are coming together as a team to provide the greatest benefit and exceeding our client’s expectations. I doubt it gets any better than that!
We’ll check back in a few months to keep you in the loop.