Richmond Alarm Company
I want to begin by saying I actually read your book (Profits Aren’t Everything, They’re the Only Thing) as did several of my staff. I liked the ideas and have found the concepts useful this past year, though my implementation has been somewhat less stringent. I have also recommended it to many business friends. My staff was more skeptical of the process but none question the results. We actually had a few employees leave us early on simply because they read excerpts and misunderstood the point of the concepts. I can honestly say we have not missed a single one of them.
The survey and management consulting project conducted by your team at American Management Services has postured our company for a very bright future. Your consultants, Jim Linkenauger and Herb Bachelder, helped us implement and plan the implementation of initiatives that we expect to return in excess of $1,100,000 over the next three years. This far exceeds the cost of the project. I will add that I told them and others at AMS that I felt their projections of the ultimate value of the project were not just too optimistic, but that they were deluded. I admit that I underestimated the potential.
Among the major accomplishments of the consulting project was to improve job reporting to enable better control of our costs on installation projects. The improved reporting allows us to challenge manpower decisions and also refine our project estimating accuracy.
During the project we also implemented new pricing methodologies, focusing on recurring income from monitoring as a profit driver rather than installation revenue. This approach will provide more stability to earnings and long-term value.
We made several major personnel changes during the project. The most important one was the hiring and placing of a competent financial manager with improved people and management skills. This change has had a very positive impact throughout the company. It took us two personnel changes to get the right person, but without Link’s help those changes would not have occurred at all.
We also implemented the Closed-Loop Management Process. This process creates a framework for us to control the destiny of our Compnay by executing, monitoring and chaning our business plan to achieve our goals.
We designed a Pay for Performance plan to be implemented that we refined nad tailered to meet specific objectives. This plan will be instrumental in motivating our managers and employees to focus on profit objectives. It creates a win-win situation that has our employees excited about making the Compnay and themselves more successful. Your consultants, Jim Linkenauger and Herb Bachelder handled themselves very professionally and were able to find solutions to difficult situatuions during the project. Particularly with personnel issues their guidance and assistance was invaluable.
When we made the decision to move forward with this project we did it because Jimmy and I did not want to pass our Company on to the next generation without professional controls in place and we knew we couldn’t do that without help. This was obviously an exceptionally expensive undertaking, but we understood that American Management Services had done this thousands of times before and your staff presented themselves and the Company professionally and confidently. Now we are amazed that we have not only expended this cost but our profit is greater than in any recent year and our profit for this year so far is even greater. This is a process and we will continue to apply what we have learned to gain greater control and greater profitability.
I would be glad to recommend your consultants Jim Linkenauger, Herb Bachelder and American Management Services to your prospective clients.