Your SlideShare is downloading. ×
0
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Increase Firm Profits Through Client Feedback
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Increase Firm Profits Through Client Feedback

703

Published on

Most firms still suffer a chronic inability to convert their client value into financial prosperity. Profitable firms use methods of understanding and tracking their clients in order to maximize their …

Most firms still suffer a chronic inability to convert their client value into financial prosperity. Profitable firms use methods of understanding and tracking their clients in order to maximize their value. Collecting and incorporating client feedback is the simplest and most effective method of achieving this.

This presentation shows AE firm leaders a simple but powerful system to collect and utilize client feedback in order to:

. Increase project profitability
. Reduce mistakes and project liability
. Boost client satisfaction and marketing effectiveness
. Increase staff satisfaction and accountability
. Improve staff training and assignments

Published in: Business, Design
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
703
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • …after running a design firm for more than two decades,
    Its easy to identify the six basic challenges most firms face:
    PROFITABILITY: making a good living from our efforts
    LIABILITY: reducing mistakes, problems and liability claims
    MARKETING: selling our services
    LEADERSHIP: making & implementing decisions that create prosperity for our firms
    STAFF PERFORMANCE: creating teams that produce strong value with our clients
    And STAFF RETENTION: keeping our best people
    Our Client Feedback Tool works on all six of these challenges.

  • The way it works is simple.
    First, look at how these challenges are related.
    The two basic categories are:
    MECHANICS: how we Price and Promote and the Problems we face,
    (next slide)

  • And HUMAN SYSTEMS: how we Lead and Encourage and Bond with our teams.
    As an profession that is hired to design solutions to our client’s problems,
    our challenges involve a very tricky combination of People, Process and Deliverables.
    (next slide)
  • …which is probably why so many firms barely scrape by, especially when the economy slips.
    We are one of the least profitable white-collar professions in the US.
    While a 10% profit is considered minimum for most businesses just to stay viable,
    Design firms average six. Even the top earners fare worse than other professions.


  • …which is probably why so many firms barely scrape by, especially when the economy slips.
    We are one of the least profitable white-collar professions in the US.
    While a 10% profit is considered minimum for most businesses just to stay viable,
    Design firms average six. Even the top earners fare worse than other professions.


  • The “close cousin” to profit is LIABILITY.
    Nothing can devastate a firm’s hard-earned profit like costly problems and claims.
    On average, design firms suffer a liability claim EVERY 5 YEARS.
    And, the average cost to the firm is nearly a MILLION DOLLARS, BEYOND WHAT YOUR INSURANCE COVERS.
    Add to that what your firm pays in liability insurance premiums,
    as well as the cost of smaller problems that, on average, equal another 8% of a firm’s income in lost billings and time.

    If they ask how $1M was computed:
    Average claim takes three years to defend
    Each of the three years the firm commits approx $300k of lost billable time
    3 years x $300k / year = $900k +
    Often its critical senior staff that are pulled away from productive work
  • The “close cousin” to profit is LIABILITY.
    Nothing can devastate a firm’s hard-earned profit like costly problems and claims.
    On average, design firms suffer a liability claim EVERY 5 YEARS.
    And, the average cost to the firm is nearly a MILLION DOLLARS, BEYOND WHAT YOUR INSURANCE COVERS.
    Add to that what your firm pays in liability insurance premiums,
    as well as the cost of smaller problems that, on average, equal another 8% of a firm’s income in lost billings and time.

    If they ask how $1M was computed:
    Average claim takes three years to defend
    Each of the three years the firm commits approx $300k of lost billable time
    3 years x $300k / year = $900k +
    Often its critical senior staff that are pulled away from productive work
  • Clients talk.
    And since those clients are hiring design firms to SOLVE problems,
    then the fewer problems the firm CREATES, the better their reputation.
    And a better reputation improves your firm’s marketing success.
    What is more successful marketing worth to your firm?
    Well, a typical design firm spends 11% of their budget on marketing..
    But, 70% of it does not produce the desired goals.
  • Clients talk.
    And since those clients are hiring design firms to SOLVE problems,
    then the fewer problems the firm CREATES, the better their reputation.
    And a better reputation improves your firm’s marketing success.
    What is more successful marketing worth to your firm?
    Well, a typical design firm spends 11% of their budget on marketing..
    But, 70% of it does not produce the desired goals.
  • Now lets see how client feedback works on the HUMAN SYSTEMS challenges.
    First up, LEADERSHIP.
    If our goal as leaders, is to improve the results that our teams create for our clients,
    then FEEDBACK provides the objective, ongoing DATA to track your team’s abilities to meet client needs.
    It’s this data that lets you measure your real performance with clients.
    And, as leadership guru Peter Drucker pointed out, “You can’t manage what you don’t measure.”
  • Now lets see how client feedback works on the HUMAN SYSTEMS challenges.
    First up, LEADERSHIP.
    If our goal as leaders, is to improve the results that our teams create for our clients,
    then FEEDBACK provides the objective, ongoing DATA to track your team’s abilities to meet client needs.
    It’s this data that lets you measure your real performance with clients.
    And, as leadership guru Peter Drucker pointed out, “You can’t manage what you don’t measure.”
  • While we’re talking about the benefits of measuring performance;
    if we are seeking to enhance STAFF performance,
    we need to look at the Hawthorne Effect, which states; “Whatever is measured, improves.”
    This was proven by Elton Mayo in a series of experiments with work groups that showed,
    if you measure how well your staff creates value with your clients, then that value will improve.
    To produce the maximum benefit for firms,
    our tool has a patent-pending system to simply,
    but thoroughly measure the staff performance that creates value to clients.
  • While we’re talking about the benefits of measuring performance;
    if we are seeking to enhance STAFF performance,
    we need to look at the Hawthorne Effect, which states; “Whatever is measured, improves.”
    This was proven by Elton Mayo in a series of experiments with work groups that showed,
    if you measure how well your staff creates value with your clients, then that value will improve.
    To produce the maximum benefit for firms,
    our tool has a patent-pending system to simply,
    but thoroughly measure the staff performance that creates value to clients.
  • Last, but not least, is Staff Retention.

    While this issue is certainly affected by the economy and a recession usually slows resignations,
    recessions also increase the ease by which a competing firm can “lure away” your best staff.

    PSMJ’s research has determined that the average firm’s annual turnover of staff exceeds ten percent.
    And the average cost of handling the departure and hiring to fill the open position exceeds $100k.
    This is an expensive problem. That doesn’t even count the hurdle of holding onto clients serviced by departing staff.

  • So how can a client feedback tool help?
    Let’s look at the primary reasons for staff deciding to leave:

    First, and foremost, the perceived lack of awareness of their talents.
    Second, the perceived lack of appreciation of their contributions.
    And third, a perceived lack of growth opportunities within the firm.

    Since firms don’t typically have the time to overly dote on staff,
    our feedback tool improves the awareness, appreciation & growth, automatically,
    By collecting and circulating the data leaders need.
  • So how can a client feedback tool help?
    Let’s look at the primary reasons for staff deciding to leave:

    First, and foremost, the perceived lack of awareness of their talents.
    Second, the perceived lack of appreciation of their contributions.
    And third, a perceived lack of growth opportunities within the firm.

    Since firms don’t typically have the time to overly dote on staff,
    our feedback tool improves the awareness, appreciation & growth, automatically,
    By collecting and circulating the data leaders need.
  • So, now you’ve seen how our client feedback tool addresses a firm’s basic challenges.
    Any questions?
    Any challenges that we missed?

    All right, interestingly enough, the challenges in running firms are closely related to the various aspects
    of what makes us valuable to our clients.
    Since increasing value to our clients will improve our prosperity,
    you will want to see how our Client Feedback Tool works to track what is important to clients.
  • The components that are of critical importance to most clients are divided into two main areas.
  • The components that are of critical importance to most clients are divided into two main areas.
  • RELATIONSHIPS breaks down into three main issues:

    HELPFULNESS: how well we help clients solve their problems
    RESPONSIVENESS: how quickly we respond to their needs
    QUALITY: the overall, subjective sense of our skill as applied to the client’s project
  • DELIVERABLES also breaks down into three main issues:

    BUDGET: how well we help clients manage their costs
    SCHEDULE: how well we help them manage their time
    ACCURACY: their overall, objective sense of our work’s exactness, correctness and precision
  • Important to collect feedback on each of these components, not much will be missed
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • This is a quick graph that shows how projects are better understood with feedback.
    First, we check for how profitable the project was.
    Did you make a normal or high profit? If so, full steam ahead. Do the next one the same way.
    Or, did you just break even or lose money. If so, fire the client, fire the staff, or both.
    Now, if you are collecting client feedback, add those scores to the other axis of the graph.
    If profits and feedback was high; then full steam ahead, you are becoming their expert.
    But if the profits were high BUT the feedback scores are low, look out. There’s dissatisfaction, in client, staff or both. Refine or risk burnout.
    Now, If profits and feedback are LOW; you might WANT to fire the client, but check first to see if the low feedback scores are easy to fix.
    Remember, a dissatisfied client will tell 8 others of their experience. Fixing the problem could be the best thing to do.
    If profits were low but feedback high; then either the fee was too low or the scope creeped but your client thought your value exceeded your fee, so raise it.
    So if you have client feedback, you know when to bill like an expert and how to avoid burnout or bad press.
  • When to collect feedback:
    This shows when to send surveys for feedback for the maximum benefit.
    If you wait till the end, it is an autopsy and its too late
    If you collect feedback from the beginning of a project
    You can better stay on track and maximize your value to your client

    AIA did a study that shows a design firm’s value typically erodes during a project with a slight upturn at the end.
    The erosion is steep whenever the project is priced.
    Even the few firms that collect feedback usually collect it at the end, when its too late.
    What we found is that if you collect small packets of feedback thru-out the project, you stay better aligned with the client and the client’s perception of your value tends to improve as opposed to erode.
  • How to collect feedback:
    We learned that collecting usuable feedback face to face was very difficult
    Using an email tool to collect is more effective
    Use face to face to follow up


    What we endorse, is to first gather small packets of feedback
    from clients on an ongoing basis, thruout the projects.
    Then, Use this feedback to understand the expectations and perceptions of your client.
    When a problem is identified, you can better follow up face-to-face to make sure its handled.
  • Who collects feedback
    The goal is to collect feedback on all of a firm’s client interactions
    The surveys can be sent by firm manager, project leaders, marketing or accounting departments


    Goal is to collect a steady stream of feedback from your clients.
    You can gather this feedback in 3 different ways:
    The First way, which is typically the fastest way to build a useable quantity of feedback, is to have one person send surveys to all clients automatically.
    The typical way this would happen is for your accountant to send surveys whenever a client is invoiced for a certain amount of work.
    The second way is to have one person send all surveys as surveyable events occur. This can be handled by an independent person in your firm, such as marketing, where they would follow the project events and send surveys accordingly.
    The third method involves having each person who is most directly dealing with the client be a dedicated surveyor and send their surveys.
    This method is usually slower to get up to speed, but often results in surveys being sent most effectively.
    Your pricing is $300 a month plus $30 for each dedicated surveyor. This includes unlimited surveys and reports as well as free customer service and customized survey production. There is a discount for annual contracts.

  • How to collect feedback:
    We learned that collecting usuable feedback face to face was very difficult
    Using an email tool to collect is more effective
    Use face to face to follow up


    What we endorse, is to first gather small packets of feedback
    from clients on an ongoing basis, thruout the projects.
    Then, Use this feedback to understand the expectations and perceptions of your client.
    When a problem is identified, you can better follow up face-to-face to make sure its handled.
  • How to collect feedback:
    We learned that collecting usuable feedback face to face was very difficult
    Using an email tool to collect is more effective
    Use face to face to follow up


    What we endorse, is to first gather small packets of feedback
    from clients on an ongoing basis, thruout the projects.
    Then, Use this feedback to understand the expectations and perceptions of your client.
    When a problem is identified, you can better follow up face-to-face to make sure its handled.
  • This graphic scale starts at “Met Expectations” and is slid up or down to quickly capture a highly detailed answer.
  • You can activate an automatic trend line to plot the score averages over time.
  • …after running a design firm for more than two decades,
    Its easy to identify the six basic challenges most firms face:
    PROFITABILITY: making a good living from our efforts
    LIABILITY: reducing mistakes, problems and liability claims
    MARKETING: selling our services
    LEADERSHIP: making & implementing decisions that create prosperity for our firms
    STAFF PERFORMANCE: creating teams that produce strong value with our clients
    And STAFF RETENTION: keeping our best people
    Our Client Feedback Tool works on all six of these challenges.

  • …after running a design firm for more than two decades,
    Its easy to identify the six basic challenges most firms face:
    PROFITABILITY: making a good living from our efforts
    LIABILITY: reducing mistakes, problems and liability claims
    MARKETING: selling our services
    LEADERSHIP: making & implementing decisions that create prosperity for our firms
    STAFF PERFORMANCE: creating teams that produce strong value with our clients
    And STAFF RETENTION: keeping our best people
    Our Client Feedback Tool works on all six of these challenges.

  • …after running a design firm for more than two decades,
    Its easy to identify the six basic challenges most firms face:
    PROFITABILITY: making a good living from our efforts
    LIABILITY: reducing mistakes, problems and liability claims
    MARKETING: selling our services
    LEADERSHIP: making & implementing decisions that create prosperity for our firms
    STAFF PERFORMANCE: creating teams that produce strong value with our clients
    And STAFF RETENTION: keeping our best people
    Our Client Feedback Tool works on all six of these challenges.

  • Transcript

    • 1. Presented by: Mike Phillips & Axium Why Firms Collecting Feedback are More Profitable and How to Join their Ranks
    • 2. About The Presenter MikePhillips AIA President PhillipsArchitecturePA DesignFacilitatorLLC Mike Phillips AIA, IIDA, ASID, is the President and Founderof Phillips ArchitecturePA, a 20-yearold multi- disciplinary design firm in Raleigh, NC,nameto the PSMJCircle of Excellence andwinnerof ZweigWhite's Best Firm to Workfor award in2007and 2009. A registered architect and certified interiordesigner, Phillips has incorporated his morethan 25years of commercial interiors and architectural experience into the development of a method of collecting and incorporating feedback to benefit design firms and theirclients.
    • 3. Agenda •State of the Design Industry •FeedbackSystems •DesignFirmChallenges •CollectingEffectiveFeedback •UsingFeedbacktoImproveYourFirm
    • 4. State of the Design Industry - Challenges • Recessiontightensourclient’sbudgets • Tightercreditreducesnumberofprojects • Firmscompeteforfewer projects • Competitiondrivesdownfees(37%belowcost!) • Firm’scostsclimb(12%eachyear) trends
    • 5. State of the Design Industry - Future Trends • Firm’scostscontinuetoclimb(inflationcoming) • Staffbenefits& trainingbudgetsshrink • Reductionindesignschoolgraduates • Growthinrequiredlevelofexpertise • Increasedclientproblems&liabilityclaims respected
    • 6. State of the Design Industry - Current Status According to a recent survey by Salary.com, US Professionals listed asthe Top 10 Most Respectedin the US include:
    • 7. Doctor $ Teacher $ Firefighter $ Scientist $ Engineer $ Architect $ Professional Avg Salary State of the Design Industry - Current Status Source: salary.com annual survey 150,000 49,900 44,000 88,000 63,000 43,000 Industry profits
    • 8. Source: 2009PSMJ Resources,INC. State of the Design Industry - Current Status #1 problem
    • 9. 2008studybythe ConstructionSpecificationsInstitute FoundthebiggestproblemthatClientsandBuilders havewithArchitectsandEngineersis: WASTE! (wastedtime,effortandexpense) State of the Design Industry - Perception Asking for feedback
    • 10. Agenda •StateoftheDesignIndustry •Feedback Systems •DesignFirmChallenges •CollectingEffectiveFeedback •UsingFeedbacktoImproveYourFirm
    • 11. Traditional Feedback Methods Method Process Issues Result Written Reports Outsider asks client Data is oldand filtered ‘Senile’ Data
    • 12. Method Process Issues Result Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data Written Survey Client writes “story” Difficult, client avoids NoData! Traditional Feedback Methods
    • 13. Method Process Issues Result Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data Written Survey Client writes “story” Difficult, client avoids No Data Verbal Survey Staff asks client Very difficult, often too subjective ‘Soft’ Data Traditional Feedback Methods
    • 14. Method Process Issues Result Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data Written Survey Client writes “story” Difficult, client avoids No Data! Verbal Survey Staff asks client Very difficult, often too subjective ‘Soft’ Data Generic Survey Client wrestles with randomness Survey toolong, difficult, client avoids survey Skimpy Data Traditional Feedback Methods
    • 15. Method Process Issues Result Written Reports Outsider asks client Data is old and filtered ‘Senile’ Data Written Survey Client writes “story” Difficult, client avoids No Data! Verbal Survey Staff asks client Very difficult, often too subjective ‘Soft’ Data Generic Survey Client wrestles with randomness Survey too long, difficult, client avoids survey Skimpy Data Custom Survey Survey customized for design clients Survey short, but concise Data = objective, current Helpful Data agenda Traditional Feedback Methods
    • 16. Agenda •State of the Design Industry •FeedbackSystems •Design Firm Challenges •Collecting Effective Feedback •Using Feedback to Improve Your Firm
    • 17. Design Firm Challenges Profitability Staff Retention Staff Performance Liability MarketingLeadership mechanics
    • 18. Design Firm Challenges Profitability Liability Marketing Mechanics human systems
    • 19. Design Firm Challenges Profitability Staff Retention Staff Performance Liability MarketingLeadership MechanicsHuman Systems profitability
    • 20. Design Firm Challenges - Profitability Minimum profit for viability: 10% Design Firms average: 8% Source:ZweigWhite Profitability chart
    • 21. liability Collect Feedback to: • Measurefirm’svalue from Client’sperspective • IDissues toimprovevalue • Setfees morebyvalue ScoreRange:1 –Unacceptable,4 –MetExpectations,7 -Exceptional ClientName Avg. Score Ranking Gene Laughlin 6.1 Excellent EnergyFarms 5.8 Exceeded Expectations Cinematica 5.4 Exceeded Expectations Tri-CityJewelers 4.5 MetExpectations Issue Avg.Score %Below Acceptable Accuracy 3.2 21% Budget 5.4 2% Helpfulness 5.8 0% Design Firm Challenges - Profitability
    • 22. Profitability Liability Claim: Every5years Costs to Firm: Nearly$1M Client Problems: 6%Billings Source: XL InsuranceCompany Liability chart Design Firm Challenges - Liability
    • 23. marketing Identify PatternofProblems: Improvesfirm’s immediateandlong-termresponse Design Firm Challenges - Liability
    • 24. Profitability Liability Effort: 11%ofBudget Effect: Lessthan25%Commissioned Source: ZweigWhite Marketing chart Design Firm Challenges -Marketing
    • 25. leadership Confirm Value to New Clients: Independentconfirmation ofyourfirm’svalue toprospectiveClients Become Existing Clients’ Expert: Promotes‘expert’status withyourfirm’s existingClients Project Name Avg.Score Top Category ANCInstitute 6.2 Budget WilsonBuilding 6.0 Helpfulness 1110BensonDr. 5.1 Quality FitnessCenter 4.9 Responsiveness Score Range: 1– Unacceptable, 4 – MetExpectations, 7 - Exceptional Category Avg.Score %AboveExcellent Budget 6.2 30% Helpfulness 5.4 23% Quality 5.2 17% Responsiveness 5.1 6% Design Firm Challenges -Marketing
    • 26. Profitability Liability Marketing Create Best Fit: Matchteam’sabilities toclient’sneeds ManageClient Results: “Youcan’tmanagewhatyoudon’t measure.” - Peter F. Drucker Source: Drucker Institute Leadership chart Design Firm Challenges – Leadership & Management
    • 27. performance TrackYourTeam’s Results: Identifybestassignments foreachteammember ImproveYourTeam’s Results: Identifybesttraining foreachteammember ClientName DesignerName Score Gene Laughlin MichaelWalker 6.0 EnergyFarms AmyPace 5.6 Cinematica JoanFranklin 4.7 Tri-CityJewelers MichaelWalker 4.2 Designer Avg.Score Category PamDay 2.4 Budget MichaelWalker 3.0 Budget JoanFranklin 3.8 Quality PamDay 4.3 Responsiveness Design Firm Challenges - Leadership
    • 28. Profitability Liability MarketingLeadership Hawthorne Effect “Whateverismeasured, improves.” EltonMayo Source: HarvardBusinessReviewON-Spot Staff Performance chart Design Firm Challenges – Staff Performance
    • 29. retention UseFeedback Data to: Improveperformance andencouragegrowth UseFeedback Processto: Enhanceaccountabilityand improvefocusonclients Designer 12Month AverageScore Current AverageScore PamDay 3.4 4.8 MichaelWalker 3.7 4.2 JoanFranklin 3.9 4.0 OtisDay 4.3 4.9 Designer AverageScore Client NikkiYoung 5.8 AT&T NikkiYoung 5.5 WellsFargo NikkiYoung 5.2 Silverton NikkiYoung 4.8 SpiritGroup Design Firm Challenges – Staff Performance
    • 30. Profitability Liability MarketingLeadership Annual Turnover: 12% ofStaff Cost of Each Departure: >$100,000 Source: PSMJResources Staff Performance Staff Retention 3 reasons Design Firm Challenges – Staff Retention
    • 31. Profitability Liability MarketingLeadership Top 3 Reasons Why Good Staff Leave: 1.‘TalentsNotSeen’ 2.‘ContributionsNot Appreciated’ 3.‘GrowthNotSupported’ Source:PSMJResources Staff Retention Staff Performance charts Design Firm Challenges – Staff Performance
    • 32. pie UseFeedback To: • Maketalentsvisible • Knowinstantlywhen applauseisearned • Knowspecificallywhere supportishelpfulto staffmember’sgrowth Designer Avg.Score Category JoanFranklin 2.7 Schedule MichaelWalker 2.8 Helpfulness JoanFranklin 2.9 Responsiveness MatthewArnold 3.1 Accuracy Design Firm Challenges – Staff Performance
    • 33. Profitability Staff Retention Staff Performance Liability MarketingLeadership Mechanics Human Systems sim to expectations Design Firm Challenges
    • 34. Components of Client Expectations Mechanics Human Systems
    • 35. Client Value Components RELATIONSHIPS DELIVERABLES Human Systems Mechanics 3 H Sys Components of Client Expectations
    • 36. Quality Responsiveness HelpfulnessEffort and Assistance Quick Reaction Do the Right Thing RELATIONSHIPS DELIVERABLES Components of Client Expectations
    • 37. Quality Responsiveness Helpfulness Accuracy Schedule Budget Help Managing Costs Help Managing Time Do the ThingRight Effort and Assistance Quick Reaction Do the Right Thing RELATIONSHIPS DELIVERABLES 4 square Components of Client Expectations
    • 38. Tracking Project Results High Profit Loss Average Profit Break Even Target Profit “Ohno. Wedidn’tdoitright.” “GreatJob. Doitagainthesameway.”
    • 39. TrackingProject Results High Profit Loss Average Profit Break Even Target Profit add cfb
    • 40. Tracking Project Results High Profit Loss Average Profit Break Even Target Profit CLIENT FEEDBACK scale
    • 41. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 Tracking Project Results
    • 42. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 quads Tracking Project Results
    • 43. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 clients Tracking Project Results Potential Expert Poor Fit Burn Out
    • 44. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 A B C D E Clients LEGEND ExpertPotential Poor Fit Burn Out Tracking Project Results
    • 45. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 Met Expectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 A B C D E Clients LEGEND ExpertPotential Poor Fit Burn Out design team Tracking Project Results
    • 46. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 A B C D E Design Team LEGEND ExpertPotential Poor Fit Burn Out proj type Tracking Project Results
    • 47. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 A B C D E Project Type LEGEND ExpertPotential Poor Fit Burn Out Tracking Project Results
    • 48. High Profit Loss Average Profit Break Even Target Profit Unacceptable - 1 NeededImprovement -2 Acceptable - 3 MetExpectations- 4 ExceededExpectations- 5 Excellent - 6 Exceptional - 7 ExpertPotential Poor Fit Burn Out agenda Tracking Project Results
    • 49. Agenda •StateoftheDesignIndustry •FeedbackSystems •DesignFirmChallenges •CollectingEffectiveFeedback •UsingFeedbacktoImproveYourFirm When to ask
    • 50. Collecting Feedback - WHEN $ $ $ProjectStart LowHigh ProjectCloseout FB FBFBFB FBFBFBFBFBFB FB Meeting KeyDeliverable Designer’sIncreasedValue Start Finish Meeting End of Phase End of Phase FB = Send Survey&Collect Feedback How to ask
    • 51. Collecting Feedback - HOW STEP1. GatherFeedbackEffectively Objective Professional Systematic Comfortable Concise Fast & Simple STEP2. ResolveIssuesandCelebrateSuccesses Utilizing face-to-face communication, live phone calls, meetings, lunches. Who asks
    • 52. Collecting Feedback - WHO Firm Leaders Team Leaders TeamMembers AccountingMarketing HasClientContact Face-to-face
    • 53. Collecting Effective Feedback - Top Ten Techniques 1. Makecomfortabletouseforallparties 2. Askquestionsthatcreatethebestreports 3. Askprocess-orientedquestions 4. Askquestionsregardingclient’sexpectations 5. Askquestionsthatreducefirm’sliability
    • 54. 6. Collectfeedbackthroughoutproject 7. Collectfeedbackintrackableformat 8. Collectfeedbacktoallowinstantalerts 9.Useemailtobuffer&facilitateunderstanding 10.Collect& reviewfeedbackfast(<5 minutes) Scatter plot Collecting Effective Feedback - Top Ten Techniques
    • 55. •AutomaticCentering Starts at “Met Expectations” •Fast&Easy Intuitiveto use, 2 seconds to score •CapturesDetail 60level answer scale MeasurebyClientExpectations Collecting Effective Feedback
    • 56. Viewing Collected Feedback 1 Answer 1 SurveyTrend Line Sender: Billy Bibbit Respondent: Nurse Ratched Category: Responsiveness Project: Activity Center 1st year effects
    • 57. First YearEffects:PhillipsArchitecture Profitability Staff Retention Staff Performance Liability MarketingLeadership Increased 27%after first year,now top 2%in US Zero claims or ‘penalties’ in last three years Improved client loyalty, especially duringrecession Improved assignments & training; leaders more accountable for team Feedback scores improved 42%,metrics published No keystaff defections to other firms Collecting Effective Feedback
    • 58. •StateoftheDesignIndustry •FeedbackSystems •DesignFirmChallenges •CollectingEffectiveFeedback •Using Feedback to Improve Your Firm Agenda
    • 59. Using Client Feedback to Improve Your Firm Profitability Staff Retention Staff Performance Liability MarketingLeadership ImproveYourValue &Billings to Clients ImproveAwareness and Response to Client Problems TrackClient Loyalty, Improve Referrals, Resolve Issues ImproveLeaders’ Awareness, ImproveStaff Assignments &Training Improved Accountability & Reduction of Wasted Efforts ImproveYour Recognition of Staff Contributions
    • 60. Questions? Mike Phillips AIA President Phillips Architecture PA DesignFacilitator LLC Mike Phillips AIA, IIDA, ASID, is the President and Founderof Phillips ArchitecturePA, a 20-yearold multi- disciplinary design firm in Raleigh, NC,nameto the PSMJCircle of Excellence andwinnerof ZweigWhite's Best Firm to Workfor award in2007and 2009. www.designfacilitator.com Axium Axiumhelps architectureand engineeringfirms streamline difficult processes and increaseprofitability with easy to use accounting, project management and business development software. www.axium.com

    ×