We would like to thank you for the work and efforts provided by your organization to Victory Fire Protection Inc. over the course of the last six 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, performance, and the accountability of our employees. Here are some of the key items that have been implemented:
- A business stabilization plan to assist in turning around the company.
- A cash collection process to ensure that we are paid timely for the work we are performing. This process was implemented into our cash forecasts meetings and ensures we are staying on top of our cash collections.
- A weekly flash report to monitor key operating and performance metrics, allowing us to manage progress toward our targets.
- A thorough review of our labor rates and costs, identifying several key adjustments to reduce our costs.
- We increased our focus on operating performance in our Construction department, including a comprehensive review and standards for cost control for each project.
- Assessed the effects of adding additional man-power to our Service Department and developed plans to increase revenue by eliminating idle capacity and better customer management.
- 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.
- A predetermined profit plan that incorporated our process improvements and actions for profit is in place, allowing us to put strong management focus on achieving our targeted profit.
- A monthly financial review process to include analysis of key variances to our plan and corrective actions. To involve our employees, we instituted a pay for performance program based upon performance goals related to the predetermined profit plan.
We expect the work described above to produce incremental operating profit to our company of more than $1.61 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.