5 key secrets of successfully scaling your staffing business · 2020-06-09 · stages/revenue sales...
TRANSCRIPT
© 2012 Crain Communications Inc
5 Key Secrets of Successfully Scaling Your Staffing Business
Greg Palmer, Managing Partner, G Palmer and Associates
Concurrent Session: Operations & Finance Track
Tuesday, Oct. 16 | 11:45 am | Ironwood 2
© 2012 Crain Communications Inc
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Concurrent Session: Operations & Finance Track
5 Key Secrets of Successfully Scaling Your Staffing Business
How to Successfully Scale: The 5 Key Steps
4
Mitsui
5
What are the Characteristics of Scale?
Revenue
• Faster growth rates than Industry
Profit •Greater Profit %’s than Industry
Satisfaction
•High Employee •High Client•Low client
concentration
Sustainable Model
And
And
6
You vs. Peers
7
5 steps to Successfully Scale
1. Create the Plan, Strategy, Budget ,Vision
2. The Leadership
+Team 3. Set up the
Model & KPI’s
4. Communication
& Meeting Rhythms
5. Track Adjust / Tackle the
Choke pointes
8
Employee/ Customer Satisfaction
Vision and Strategy – Step 1
$$$
Best in the
world @Passion
What is your Vision and Strategy?
How did you determine this for your organization?
What decision filter did you use to create it and maintain it ?
Source : Jim CollinsHedgehog Concept
x
9
“The Plan” – Step 1
10
StrategyVision
The Plan
Execute
3 Questions to Ask:
1. Vision and Mission2. Life Style company vs. sustainable
Business3. Exit Strategy
Life Cycle of A Business:Where are You ?
Idea and Planning
Mature
11
Entrepreneurial (Processes structure added) Bureaucratic(external focus) New Talent added ( Internal focus)
Time Line
Step 2 – Talent Plan “Internal”What- Why- How
• Training•OJT•Opportunity•Challenge
• Comp•Base•Incentive•Equity
• Retention•Personal growth•Culture•Comp•Equity
• Recruiting• Industry vs. no industry• Education• Personality• Experience• Culture fit Recruiting Retention
DevelopmentCompensation
12
Adding Key Talent – Step 2When?
Source SIA
13
Step 2 – Who Do You Want on the Bus? $0 - $25m
Stages/Revenue Sales / Recruiting CEO/CFO/EXE FounderInfancy $ 1m
Clear Profile
IncentivesShort term/Long term
Clear expectations
FoundersBook keeperCPA
Active
Rapid Rate$5 -10M
Same+Sales Manager
Same – top grade Active
Adolescence$10m - $25m
Same+Sales manager
FounderCFO/CIOOther Executives
Thinks about adding COO or CEO
Prime$25m
Same+VP of Sales
CEOCFOOther Executives
Chairman or Board or exit
14
Step 2 -Talent Plan “Contactors”
Industry Grade commentSourcing A to C
Screening A to B
Forecasting/ Recipe
D
Process D
Inventory of Skills F
Shelf life of inventory
F
Candidate Care F
“Most organization are too busy, being busy to focus and solve the recruiting challenges they face ” – Tim Alderman
15
Step 2 - contactors “A” Talent + “A”Orders =CRQ Matching Process
Commitment Rate Qualifications - talent
AvailableEagerVerifiable time lineAgrees to interview timeGeography is a good match
Market PayNot ridgedMarket knowledge
Has 90% of skills neededHas 90% of experience neededGood culture fit
Commitment Rate Qualification - Job orders
Single providerAbsolute P.O.Interview time has been established
Market BillNot ridged Market Knowledge
Well thought out Job descriptionCandidate matches 90% of skillCandidate matches 90% of experienceGood culture fit
“A “ Candidate
“A ” ClientCRQ matching Process
16
Model/KPI’S – Step 3
• Recruiting KPI•Emails / calls/ presents•Interviews / close•Ratio’s
• Sales KPI•Connects/
Interviews/Extensions
• Financial•GP%, Labor % of
GM•Debt to Equity
• Productivity• GM/FTE• $3000/$5000
HUB/Branch Systems
FocusCulture
17
Step 3 - CEO Dash Board
Cash/DSO
GM/FTE SaleKPI
RecruitingKPI
NewA Candidates
New
A orders
New
Accts
WeeklyAccountsBilled
GP%EBITDA%
Compliance
$ on hand
AR
40 days
$3000/$5000
Calls
Emails
Connects
Time on phone
Calls
Emails
PresentationInterviews
X per week X per week
X per week
xx30%
10%
100%
Disciplined Activity = Results
18
Timing – Invest, Cut Back, Sell
19
GDP% growthTemp growth
rate
Source : GPalmer
Recession
19
How and How Much to Invest?
Expenses - 75% of Revenue Growth
rate
Balance sheet3:1 Quick Ratio
Labor-Variable Vs.
Fixed
20
Account Rep Breakeven(BE)Assumptions:
Fully Loaded cost = $60k , assume $60 bill rate, 20% gp
---------------
$60 bill rate x 20% GP = $12 GM per hour
$60,000 ( acct rep ) / $12 = 5000 hours a year to BE
5000 / 52 week = 96.15 hours per week to BE
96.15 / 37 ( hours worked contractor ) = 2.59contractors on billing per week BE
21
Want to Improve your Profit 20% increase your GP% 1%
Profit % = 5%
Improvement = +1%
Total 6%
1% of 5 % = 20%!
22
GM /FTEGM/FTE$ EBITDA% % increase Productivity %
increase$3000 4%
$4000 8% 50% 33%
$5000
On AssignmentQ2 2012
$4846
12% 50%
11.4 %
66%
23
Meeting Rhythms & Communication/Culture –Step 4Sample communication and meeting rhythms
24
Weekly
Recruiting calls
Sales/ Ops Dashboards
Strategic issues
Forecast
Monthly
P & L
AR/ cash
3 key issue
Forecasts
Quarterly
Advisor meeting
Annually
Year end recap
Next yearplan
Next year budget
Removing the Choke Points Step 5
25
Q 1 Action Who When Resource needed
Q2 WageManagement
Bob 3/31 Bill register
Q3 Price increase Sue 9/15 N/A
Team MemberBig issue Improve
GP% Goal 1%Story
How to Get Started5 steps Current
Grade (A,B,C,D)
Expected Grade(A,B,C,D)
When Leader
1.Plan,Stategy2.Teaders/Team3.Model/ KPI’s4.Meeting Rythms5.Track/Solve choke pointsClient/Staff Satisfaction
26
The 5 Deadly Sins of Scale
WhatWhy How
No Talent recruiting
and retentionPlan
Too man Priorities
Lack of MeticsLack of
accountability
Lack of Focus
You know They know
Everyone knows
Hold on to Talent too
Long
27
High client Concentration
NO PRICE IMPROVEMENT CULTUIRE
Resources 28
6th Step – Emotional Attachment
Transformational(self actualization)
Success(Social, Belonging
Esteem)
Survival(Physiological & Safety)
Employee Satisfaction Customer Satisfaction
29
© 2012 Crain Communications Inc
Give Us Immediate Feedback
A B C D F294268 294269 294270 294272 294273
Please grade your satisfaction with this session on a scale from A (highest) to F (lowest) by texting your grade to #22333.
Concurrent Session: Operations & Finance Track
5 Key Secrets of Successfully Scaling Your Staffing Business