FINANCIAL MANAGEMENT FOR A/E/C FIRM LEADERS
Detailed Course Outline
A. FINANCIAL FUNDAMENTALS
Cash vs. accrual accounting
The key financial indicators most firms track and why they aren’t the right ones
How to measure the effectiveness of various business development activities
The 3 key metrics that determine profitability
Key balance sheet metrics
Workshop: How Much Financial Information Should You Share?
B. BUSINESS PLANNING AND BUDGETING
Financial trends in the A/E industry
Why most strategic/business plans are a complete waste of time
Workshop: Benchmarking Your Firm’s Financial Metrics
How does your firm compare to the most successful firms in our industry?
How to align your strategic plan, business plan, and annual budget
Workshop: Using PSMJ’s Simplified Business Plan Template To Create Next Year’s Business Plan For Your Firm
Establishing a salary envelope for technical/design professionals
What are the appropriate salaries for managers?
Why most firms’ incentive compensation is counterproductive
Workshop: How To Compete With Mega-Firms Who Offer Higher Salaries
How to pay bonuses without using cash
D. MANAGING CASH
Workshop: Using PSMJ’s Cash Flow Model To Forecast The Cash Demands Of Your Firm’s Growth
How PSMJ’s Excel® template for cash flow management can benefit your firm
How to get paid faster and reduce WIP to zero or less
Workshop: Streamlining Your Firm’s Invoicing Process
Workshop: Negotiating Contracts That Speed Up A/R Collections
E. MANAGING MULTIPLE BUSINESS UNITS
Why traditional profit center accounting destroys teamwork
How to maintain accountability without traditional profit centers
F. MANAGING OVERHEAD
Why low overhead doesn’t necessarily mean high profits
Workshop: Benchmarking Your Firm’s Return On Overhead
How to cut overhead in ways that strengthen your firm
Workshop: Benchmarking Your Firm’s Largest Controllable Overhead Costs
G. PROJECT FINANCIAL MANAGEMENT
Cost-based vs. value-based pricing
Why most A/E firms underprice their services
How to add more value so you can increase your pricing
Workshop: Determining The Optimum Pricing Structure For Each Of Your Firm’s Major Markets (Using Psmj’s Pricing Model And Benchmark Data)
Pricing to maximize profits under the Federal Acquisition Regulations
How can you benefit from lump-sum contracting?
The best methods for budgeting projects
Using Earned Value Management to keep project under budget
H. OWNERSHIP TRANSITION
What factors impact your firm’s value most significantly?
Workshop: What Is The Value Of Your Firm?
Should you transition your ownership internally or externally?
Most common pitfalls in structuring an internal ownership transition
PSMJ’s 6-step process for a successful ownership transition
I. IMPLEMENTING WHAT YOU LEARNED
Prioritizing your personal action plan
How to make firm-wide improvements
Workshop: Quantifying The Value Of Implementing Your Plans