Performance Benchmarking
Take the first step to unlocking your firm’s potential.
Your most powerful tool is knowledge.
Our Benchmarking tool is a foundational service, and a great place for any firm to start. It deals in one of Punctuation’s most powerful marks—the % sign. The % sign can indicate success or struggle. Benchmarking shows you where you stand.
Our proprietary dashboards will help you understand where your firm is now and what you should be monitoring to get ahead, by identifying key metrics that reveal where you stand.
Our proprietary dashboards will help you understand where your firm is now and what you should be monitoring to get ahead, by identifying key metrics that reveal where you stand.
Why do a Benchmarking?
Our deep background in the independent marketing services industry has given us unique insights into what a successful firm looks like and how to get there. The reasons for conducting a Benchmarking are numerous.
- Operate at peak efficiency. We will give you the tools needed to track utilization the right way, which includes non-billable employees, allowing you to build a more efficient labor model.
- Increase profitability. At the end of the day, you want your bottom line to continue to grow. We’ll show you the levers you should pull to get there.
- Improve results. You aren’t just looking at profitability. What other metrics are most important when looking at whole-firm health and how do you focus on the right ones? We can help.
Upon completion, you’ll be armed with the tools to:
1.
Implement a peak-efficiency operating model
2.
Increase profitability
3.
Improve results (against your own metrics and those of your competitors)
Deliverables
A comprehensive analysis.
Our dynamic, living spreadsheet captures all of your firm’s significant metrics. Designed to be updated by your CFO or Controller, this powerful tool supports your progress long after benchmarking is complete.
An action plan
Our dynamic, living spreadsheet captures all of your firm’s significant metrics. Designed to be updated by your CFO or Controller, this powerful tool supports your progress long after benchmarking is complete.
An estimated timeline for results
You’ll make progress against your own benchmark and that of your competitors.
The Assessment
Upon submission of financial materials, your benchmarking score and action plan will take 13 elements across three subcategories into consideration.
Each recommendation is tailored to your type of firm, firm size, and specific goals.
Each recommendation is tailored to your type of firm, firm size, and specific goals.
Profitability
Monthly Overhead
Cash Cushion
(Appropriate for your client base)
(Appropriate for your client base)
Obligation to Asset Ratio
Net Profit
Accounts Receivable
Outstanding
(measured in turnover days)
(measured in turnover days)
Utilization/Realization
(Financial opportunity vs. financial output)
(Financial opportunity vs. financial output)
Operations
Ideal Facility Size
Unburdened Compensation Allowance
(for employees and principals)
(for employees and principals)
Fee Billings per FTE
Clients
Client Concentration and Distribution
Number of Qualified Clients
Ideal Yearly Client Spend
Timeline
Performance Benchmarking typically takes four weeks to complete. A principal from your firm must participate.
Week 1: Materials Gathering
Week 2-3: Benchmarking Development
Week 4: Delivery
We’ll help you keep an eye on the numbers.
Discover how Performance Benchmarking fits into our suite of advisory services.