Tag: KPIs

What is EBITDA and Why Does It Matter to Software Development Companies

There are many ways to assess your company’s financial performance, profitability, and overall financial health. One of the most common is to look at EBITDA. EBITDA stands for earnings before interest, taxes, depreciation and amortization. In other words, it’s the revenue your company brings in minus standard operating costs like salaries. It’s helpful to look at this figure since things like interest, taxes, etc. are variable and can change over time.

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How to Empower Project Managers to Manage Effectively

What we know from our work with A/E firms is that the “what” of the project manager role is simple; the “how” is incredibly complex. And because the job is so complex, firm principals are often hesitant to give PMs the responsibility and authority they need to be effective in their work. The work gets done, but the principal ends up being far more involved than they need to be because they are the ones who have the necessary information about the project.

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The Key to Growing Your Company? Knowing Your Company

Too often, companies that have the standard off-the-shelf firm management tools try to use all of the many metrics they provide to track, manage, and grow things like their revenue and profitability. That’s where we were many years ago — juggling dozens of figures without knowing which of them would have the biggest impact on our financial health.

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Earned Value Analysis: The Missing Piece in Project Management

As we?ve learned from our work with architecture/engineering (A/E) firms, there are relatively few absolutes when it comes to operating them. But, here?s one: If you aren?t managing projects well, you aren?t going to be successful. And while there are many aspects to effective project management, spending less money than you have budgeted for them is a core competency for any firm.

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AE Firm Performance in 5 Simple Metrics

The average architecture/engineering (A/E) firm has fewer than 20 employees. If your company meets that description, you know that to be successful, most of your team members have to maximize their billable hours. This doesn’t leave much time for managing the accounting side of the business, which can be a problem since the people tallying the numbers typically don’t have a financial background.

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