ABC Refrigeration & Air Conditioning Inc.
I would like to commend the work and efforts provided by your organization to ABC Refrigeration and Air Conditioning Inc. over the course of the last 12 months, and particularly the work of your Senior Consultant, Mike Lockey and the group leader, Robert Lamp.
With the help of American Management Services, we have put in place key tools and processes to increase our level of profitability, team performance, and the accountability of our employees. Here are some of the key items that have implemented:
- A weekly flash report and management meeting were started to monitor key operating and performance metrics, allowing us to manage progress toward our targets.
- We implemented an eight-week cash forecasting process to plan and manage cash flow.
- We completed a thorough review of our labor rates and indirect and overhead costs, identifying several key adjustments to reduce our costs.
- We increased our focus on operating performance with new construction project management and service work order management procedures.
- Improvements to our inspection deficiency estimating turnaround and conversion to sales process were made.
- We developed a functional organization focus to improve our organizational performance and accountability, designating functional area leaders and process owners. Job descriptions including measures of performance were implemented.
- Key tools directed at improving our company communications included scheduling of key weekly and monthly meetings, agendas, and a renewal of our core company values.
- A predetermined profit plan that incorporated our process imporvements and actions for profit is in place, allowing us to put strong management focus on achieving our targeted profit. Our monthly financial reviews now include analysis of key variances to our plan and corrective actions. To involve our key employees, we instituted a pay for performance program.
We expect the work described above to produce incremental operating profit to our company of more than $11.2 million over the next three years, a benefit that far exceeds the cost of the program. Our expectations have been met in an efficient and professional manner and we will be happy to recommend the services of your firm and your consulting team to any prospective client.