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What is the value of our firm?
How do we increase the value of our firm?
What financial information does the firm need to operate?
Why do these need to be separate questions?
    They’re not…

You want a firm with good design, tight drawings, and satisfied clients. Unfortunately, there is also the business side of the firm.

Key Fact: The salaries and related-expenses of people comprise up to 75% or more of an A/E firm’s operating expenses.

That should be no surprise. We are in the ‘people’ business, and it is the hours and talents of ‘people’ that a firm ‘sells’.

Our Belief: The primary job of any manager at any level of any firm is to efficiently and effectively utilize the people he/she manages to accomplish projects at least up to the quality standards of the firm and the client.

Yes, we believe in and respect project design and quality. However, a firm also must produce a profit, if only just to keep the doors open. The average design firm has Operating Income of 10% of Net Revenues. Take away poorly-run firms and imagine what other firms achieve.

How is your firm doing—and why? Keys to that answer are already inside whatever accounting system you have.

And Managers Know Why helps your firm get that knowledge, understand it, and use it —from Principals at the top, to PMs on the front lines. And Managers Know Why can provide the expertise and focus to help your people produce—and keep producing—bottom-line results.

We also help firms with other unique issues—such as Strategic, Business, and Market Planning, and Merger & Acquisition valuation and implementation—because it’s all tied-in to the same factors.

Net Revenue (not Total Revenue)
Effective & Efficient Utilization of People
Backlog
Cash Flow

We provide ways to focus on the effectiveness and efficiency by which your firm through your managers utilizes your most important asset—your people—an asset that doesn’t even appear on your firm’s balance sheet.

If you don’t track these basic factors—by project, department, and division—you won’t know how your firm is doing quickly enough to do something about it.

They are as fundamental to achieving your firm’s ‘vision’ as are recruiting, developing, motivating, and retaining your design talent. They are also inherent in focusing strategic planning, business development—even marketing activities.

It is important, if not critical, to your firm’s success to use this information in the everyday operations of the firm: Every person, every day doing what he/she can to optimize efficiency & effectiveness - and thereby your firm’s profits and value. And each person can – and without becoming an accountant!

And Managers Know Why supports the business-side of your business to improve your firm’s operations & profitability.

And Managers Know Why has been increasing bottom lines and helping firms like yours better understand and manage their firms. We are proud of fostering long-term, successful relationships with exceptional clients. Combined, we are an exceptional resource to you and your firm.

And Managers Know Why and its affiliates serve clients throughout the country from offices in the Chicago, Los Angeles, and Washington, DC, areas.