Total Synergy CEO on growing your design firm
•
1 like•501 views
Total Synergy is a project management software company founded in 1999 that serves the architecture, engineering, and construction (AEC) industry. The document discusses common pitfalls that firms face in trying to grow, such as not properly budgeting projects, not tracking progress or setting rates, and reluctance to adopt new technology. It argues that growth requires being clear, effective, efficient and informed, and cannot happen through panic or errors. Branding is also important to differentiate the firm, drive growth, and attract the best talent. The software aims to give firms more time for design by handling timesheets, accounting, administration, and providing project management, collaboration, and accounting tools.
Recommended
Recommended
More Related Content
Similar to Total Synergy CEO on growing your design firm
Similar to Total Synergy CEO on growing your design firm (20)
More from Total Synergy
More from Total Synergy (20)
Recently uploaded
Recently uploaded (20)
Total Synergy CEO on growing your design firm
- 1. A Total Synergy product GROWTH BY DESIGN Scott Osborne – CEO, Total Synergy @scottosborneaus | #MoreTimeForDesign
- 2. A Total Synergy producttotalsynergy.com FOUNDED: 1999 – FOR AEC INDUSTRY FIRST CLIENT: CONSULTING ENGINEER OFFICES: SYDNEY / LONDON USERS: >16,000 ABOUT TOTAL SYNERGY
- 3. A Total Synergy producttotalsynergy.com
- 4. A Total Synergy producttotalsynergy.com DO YOU HAVE AN APPETITE FOR BEING A LARGER FIRM? HOW BIG IS BIG ENOUGH?
- 5. A Total Synergy producttotalsynergy.com DO YOU HAVE THE CAPABILITY? HOW BIG IS BIG ENOUGH?
- 6. A Total Synergy producttotalsynergy.com ARE YOU MANAGING YOUR PRACTICE OR DOES IT MANAGE YOU? HOW BIG IS BIG ENOUGH?
- 7. A Total Synergy producttotalsynergy.com COMMON PITFALLS TO GROWTH
- 8. A Total Synergy producttotalsynergy.com THIS PRACTICE RUNS ON GREAT DESIGN Reputation and brand vs Billing and Profits Risks to survival – Cashflow > wages, taxes Profitable rates + Utilisation = $ COMMON PITFALLS
- 9. A Total Synergy producttotalsynergy.com GREAT DESIGN ≠ PROFITABLE PRACTICE
- 10. A Total Synergy producttotalsynergy.com WE DON’T NEED TO BUDGET PROJECTS OR TRACK PROGRESS Fees need to reflect effort expended on projects = time + costs Successful firms do not pin their fees to the hourly rate – value based fees Staff need to deliver to the target of work effort not the total of fees = margin erosion COMMON PITFALLS
- 11. A Total Synergy producttotalsynergy.com WE DON’T NEED TO BUDGET PROJECTS OR TRACK PROGRESS Capacity planning reflects the availability of resources vs the effort estimated – headcount planning Estimating work and tracking actuals vs budgets highlights errors/issues – e.g. wrong project/stage or variations to scope or training issues COMMON PITFALLS
- 12. A Total Synergy producttotalsynergy.com I DON’T SET MY RATES, THE MARKET DETERMINES WHAT I CHARGE Engineers/Architects vs Accountants vs Lawyers COMMON PITFALLS
- 13. A Total Synergy producttotalsynergy.com I DON’T SET MY RATES, THE MARKET DETERMINES WHAT I CHARGE Value based pricing Expertise, innovation, timeliness of service etc Clear on scope and variations – line of communications at all times COMMON PITFALLS
- 14. A Total Synergy producttotalsynergy.com
- 15. A Total Synergy product
- 16. A Total Synergy product
- 17. A Total Synergy producttotalsynergy.com WE HAVE TO KEEP ALL OUR FILES ON A SERVER IN OUR OFFICE Partly true depending on file access speeds Cloud based systems are more secure, more rigorously protected, mobile and connected Working files can be synchronised until projects completed and then should be archived to the cloud COMMON PITFALLS
- 18. A Total Synergy producttotalsynergy.com CLOUD IS NOT SECURE (BUT MY SERVERS ARE!)
- 19. A Total Synergy producttotalsynergy.com I CANT AFFORD TO SPEND MORE ON TECHNOLOGY CAD/BIM | Accounting and office systems CRM | Forecasting | Resourcing Project information management | Collaboration Mobility COMMON PITFALLS
- 20. A Total Synergy producttotalsynergy.com WE DON’T HAVE TIME TO LEARN NEW TECHNOLOGY
- 21. A Total Synergy producttotalsynergy.com I DON’T NEED A SYSTEM TO MANAGE MY FIRM How do we know? Real time decisions Are we stuck in “hamster wheel” mode COMMON PITFALLS
- 22. A Total Synergy product BRAND FOR GROWTH
- 23. A Total Synergy producttotalsynergy.com WHY BRAND IS IMPORTANT There is almost nothing you do that can’t be copied in some way Being ‘design-led’ is not a point of difference Without a clear point of difference and defined value, you can only differentiate on price — that’s a race to the bottom. BRAND FOR GROWTH
- 24. A Total Synergy product CORE VALUES ATTRIBUTES BENEFITS BRAND FOR GROWTH BENEFITS BENEFITS • Value • Innovation • Efficiency via technology • Unique specialist knowledge (sector/location/technology) ATTRIBUTES ATTRIBUTES • What you do • Technology • Industry specialization • Unique expertise • Business model • Niche market focus • Partnerships • Physical appearance CORE VALUES CORE VALUES • Who you are • How you do things • What you stand for • Why people (should/will) work for you
- 25. A Total Synergy producttotalsynergy.com IDEAS FOR DIFFERENTIATION Specialisation Speed of delivery Technology Employer brand Loyalty BRAND FOR GROWTH
- 26. A Total Synergy producttotalsynergy.com HOW BRAND DRIVES GROWTH Brand creates value, stop eroding margin selling on price You win word-of-mouth business You win repeat business from your partners People (customers, industry partners) recognise your identity You attract the best talent (and keep them for longer) BRAND FOR GROWTH
- 27. A Total Synergy producttotalsynergy.com Growth cannot just happen without panic and errors Growth is not for the faint hearted Growth needs to reflect the changing needs of information Success via growth is the result of being clear, effective, efficient and informed SUMMARY
- 28. A Total Synergy producttotalsynergy.com PROJECT MANAGEMENT PROJECT COLLABORATION PROJECT ACCOUNTING SYNERGY GIVES YOU MORE TIME FOR DESIGN WITH…
- 29. A Total Synergy producttotalsynergy.com TIMESHEETS ACCOUNTING ADMIN WHAT IS SYNERGY ABOUT? MORE TIME FOR
- 30. A Total Synergy producttotalsynergy.com SYNERGY PROJECT MANAGEMENT
- 31. A Total Synergy producttotalsynergy.com SYNERGY PROJECT COLLABORATION
- 32. A Total Synergy producttotalsynergy.com SYNERGY PROJECT ACCOUNTING
- 33. A Total Synergy producttotalsynergy.com THE SYNERGY PROJECT DELIVERY LIFECYCLE
- 34. A Total Synergy product GROWTH BY DESIGN Scott Osborne – CEO, Total Synergy @scottosborneaus | #MoreTimeForDesign
Editor's Notes
- Total Synergy has been build business and project management software since 1999. We only have an AEC focus — we don’t serve any other sectors. Our first client was a consulting structural and civil engineer. Still a client today.
- Growth does not simply mean more projects = more fees = more staff = more profits There is an inherent need to look at strategy for growth and to build the business Infrastructure – premises, IT, systems Support team – non billable resources (right people doing right job) Management system Investment in growth usually precedes actual cash generated by the increased activity = cashflow pressures and possibly even negative revenue whilst the work is undertaken
- One of the fundamental principles is to understand your firm’s natural size Do you have the appetite for being a larger firm? Agility Exposure to market fluctuations
- Do you have the capability? Leadership - marketing, finance, operations
- In essence…”Are you managing your practice or does it manage you?”
- Our experience with Engineering practices spans more than 20 years and we have seen common mistakes:
- This practice runs on great design Reputation and brand vs Billing and Profits Risks to survival – Cashflow > wages, taxes Analysis of costs plus a margin for profit allows you to charge correctly Utilisation of staff (without burning out staff) will then provide p[rofit for growth
- CHROFI won design for Times Sq ticket booth but they analyse their non-billable time as much as billable because they understand value of time and profit Budget at the start of every year their target utilisation taking into account: Internal meetings including strategy sessions Business Development functions by three directors Award submissions PR and Public Speaking engagements In essence they design their rates, their costs, their billable hours by studio and director and can reasonable estimate their profits that they use for growth
- We don’t need to budget projects or track progress Fees need to reflect effort expended on projects = Time + Costs Successful firms do not pin their fees to the hourly rate – value based fees Staff need to deliver to the target of work effort not the total of fees = margin erosion
- We don’t need to budget projects or track progress Capacity planning reflects the availability of resources vs the effort estimated – headcount planning Estimating work and tracking actuals vs Budgets highlights errors/issues – e.g. Wrong project/Stage or Variations to scope or training issues
- I don’t set my rates, the market determines what I charge Engineers vs Accountants vs Lawyers Understand their rates and their costs – raw staff costs + overheads + profits Staff costs = estimate billable hours per year excl public holidays, leave, pension, insurance etc Overheads = everything else to keep the doors open for billable team Profits = not a buffer for scope creep, discount, write offs, rework = return to owners for risk to downturn. Investment, future growth
- I don’t set my rates, the market determines what I charge Value based pricing - expertise, innovation, timeliness of service etc Clear on scope and variations – line of communications at all times
- We have to keep all our files on a server in our office Partly true depending on file access speeds Cloud based systems are more secure, more rigorously protected, mobile and connected Working files can be synchronised until projects completed an dthen should be archived to the cloud
- 2 Cloud is not secure (but my office is) - (e.g. disaster recovery — Brisbane floods, double RAID server failure, etc.)
- I cant afford to spend more on technology CAD/BIM has dramatically reduced the requirement for drafting/documentation teams Accounting and Office systems have dramatically reduced the needs for accounts clerks and secretaries Why doesn’t management think they need systems that provide positive effective and efficient outcomes for leading and operating their businesses? CRM = Business Development Forecasting = Cashflow Management Resourcing = Capacity planning and team task throughput Project Information Management = document control and lifecycles + risk management Collaboration/Contract Admin systems = communication of interactions, search and risk control to deliver projects Mobility – work doesn’t always remain on premises > Site visits, inspections, client meetings, subcontractor meetings, material inspections, and even personal life gets in the way
- We don't have time to learn new technology But I play buy the latest tech games/devices play with my kids I don't need BIM, I'm an engineer (e.g. Neil Stebbing winning some of the best architecture design projects because he invested in BIM early
- I don’t need a system to manage my firm How do we know? Real time decisions Priority and “Go/No” go on projects HR and performance metrics Backlogs and Business Development Client management – risks, profitability, win/loss Deadlines and criticality of issues Cashflow and finance Are we stuck in “Hamster wheel” mode
- Brand is the single thing your competitors can’t copy. Who has heard of these points of difference? “Our employees set us apart.” (They’re better than all other employees?) “We’re trusted advisors to our clients.” (So what) “We strive for excellence.” (What does that even mean?) “We provide fantastic client service.” (Hygiene factor — minimum expectation) And the most common one — “We’re design-led.” (I should hope so)
- But what does a brand comprise? A simple way to show that is in three layers: Core values Attributes Benefits
- Specialisation in a sector or location — become THE go to expert Speed of delivery Use technology your customers want — who are they Engineers using BIM get more business from BIM-using architects (less of an issue in UK?) Communicate online — collaborative comms set you apart Employer brand Draw the best talent to you without having to pay over market rates — people motivated only by money are not loyal Partnerships Your culture and business model should enable you to maintain the best partnerships, get the best work, make the best margin
- You’re not eroding margin by selling on price You win word-of-mouth business You win repeat business from your partners People recognise your identity You attract the best talent (and keep them for longer)
- Growth cannot just happen without panic and errors Growth is not for the faint hearted Growth needs to reflect the changing needs of information Success via growth is the result of being clear, effective, efficient and informed
- Synergy helps you focus on three core areas of project delivery: Project management Project collaboration Project accounting
- We know your project delivery comes with a lot of admin overheads. Most software talks about how to do your accounting and admin. We want to give you more time for design. We focus on project delivery with things like: Managing your project work breakdown Assigning tasks Tracking time Sending invoices Sharing documents Managing emails Reporting Planning Timesheets accounting admin
- Project management is about coordinating the project delivery and throughput Breaking out the work in a work breakdown structure Assigning and managing the tasks Forecasting the capacity, resources and revenue Managing files and documents Managing email and communications
- Project collaboration is about communicating and sharing How do you keep track of the conversations? Who do you connect all the disparate parties to the project? How do you link this back to project management and project accounting?
- Project accounting is about ensuring you’re profitable in the work you do. Setting budgets Tracking time with timesheets and timers Creating accurate invoices that reflect the various rates and fee types on stages Track and report on your budget vs actuals and your work in progress Measure your project profitability Connecting to accounting add-ons like Xero, MYOB and QuickBooks Online
- How that looks in a lifecycle is like this: Tracking your project opportunities Breaking your projects down in the work breakdown structure — assigning tasks, tracking time Forecasting your future — what revenue is coming in, what capacity do you have to deliver the work Document delivery — sharing project documents, communicating in an online portal, connecting to important add-ons like 12d Synergy, Drawboard And in the future, we’ll add a contract admin component to complete the cycle