To improve visibility into your team’s schedules, we have made some very useful updates to Factor. You are now able to see schedules in a smaller time period, view the days of the week at a glance, and drill down into an expanded view for each team member.
“Accountability”… it’s a word that people either love or hate, depending on whether they are expecting it or it’s expected of them. For architecture and engineering (A/E) firms — and really any type of professional services firm — it’s a concept that everyone should embrace, as it can drive significantly better business results.
Many architecture and engineering (A/E) firms see the terms “accounting” and “financial management” as synonyms. But the truth is that while they’re related, they are very different practices. And while limiting its focus to the former will allow an A/E firm to meet its financial obligations and survive, the latter is required for firms that want to thrive.
Many firm management systems on the market perpetuate the industry’s obsession with perfection. However, we’ve discovered that in order for firms to be financially healthy, they have to shake this obsession. Factor is designed with simplicity in mind and facilitates the production of draft financials within five days and final financials within ten.
Principals and managers at architecture/engineering (A/E) firms are often surprised to hear us say that while software packages can make time entry and tracking easier, they don’t necessarily make it more accurate. But, it’s true. The simplicity of the time entry function in these packages can, without proper policies and training, lead to inaccuracies.
Realized rate is total revenue divided by the number hours of work performed to generate it. The simplicity of that calculation and the positive impact that increasing the figure can have are two reasons it can be so valuable in helping you increase your firm’s financial performance.
Factor AE gives firms doing government work the tools they need to be FAR-compliant. When used properly, the system can minimize the risk of putting costs in the wrong accounts or the wrong format. This makes it easier to show auditors that the company is complying with government regulations and eliminates the fear of penalties.
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.
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.
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.
