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*Hutchinson, Mike
Message 1 of 6 (118 Views)

Well... profits are down... now what?

118 Views, 5 Replies
11-29-2000 10:50 PM
Goal for this year was a 15 % profit margin...
... previous years were in the 10 - 14 % range..
We just had an all staff meeting...
... the partners announced a disappointing 2 % profit for this year.

... billable time was down near 60%...
... sited were performance issues...
... contributions for 401K and yearly bonus may be next to nothing!

Is anyone else experiencing these kind of numbers?

We just recently incorporated ADT2.
*Tutt, Trevor
Message 2 of 6 (118 Views)

Re: Well... profits are down... now what?

11-29-2000 11:18 PM in reply to: *Hutchinson, Mike
>... the partners announced a disappointing 2 % profit for this year.
>... billable time was down near 60%...
>... sited were performance issues...
>We just recently incorporated ADT2.

My previous employers had shown a quarterly loss for the last quarter
that I was there. They had decided to embark on a company wide
training program involving a third party's "system" Hours and Hours
were spent in training classes, not to mention the large sums that
were spent on aquiring the "system" and for having the creator of the
"system" guide us for a while. The made the training billable to a
project number so that we wouldn't complain about our billable time.

Can you say what caused the drop in billable time?
Can you say what part in it that ADT played?
Have they indicated ADT issues with the loss of billable time?

I think that if you spent up to 40% of your time being non billable
for ADT training and / or problems then I would think that this is a
wake up call for Management to begin considering if their company is
going to be moving forward with production technology or if they want
to stay back and have even more trouble when the time comes that they
have to move forward. It is better to go out onto that bleeding edge
than it is to be dragged across it later.

do you have training sessions for your users to keep them up to date
and improving their skills? or does management see that as a waste of
time as well? If you don't give your system more "energy" once in a
while, the system will slowly wind down. I believe that is called
entropy. I would suggest to them that if they already made the
investment to ADT, that they follow through and get the users up to
speed ASAP, and not worsen the problem by trying to go back to their
old system.

Sorry I went on like that. This very situation is a bit of a raw
nerve with me.
*Follmer, CJ
Message 3 of 6 (118 Views)

Re: Well... profits are down... now what?

11-30-2000 12:58 AM in reply to: *Hutchinson, Mike
I think many companies experience a loss in profit when they first start working with ADT. We probably did. But give it
time and stick with it. It should turn around once everyone is up to speed again.

--
CJ Follmer
For free lisp routines check out my website
For ADT: SaveAsR14, CJsLeader 2.1, CJsKeynotes 2
For 2000: CJsLeader 2.1, CJsKeynotes 2
http://home.att.net/~cjenn

"Mike Hutchinson" wrote in message news:3A26693B.AD1FE1AA@bbsae.com...
> Goal for this year was a 15 % profit margin...
> ... previous years were in the 10 - 14 % range..
> We just had an all staff meeting...
> ... the partners announced a disappointing 2 % profit for this year.
>
> ... billable time was down near 60%...
> ... sited were performance issues...
> ... contributions for 401K and yearly bonus may be next to nothing!
>
> Is anyone else experiencing these kind of numbers?
>
> We just recently incorporated ADT2.
>
*Momeyer, Tom
Message 4 of 6 (118 Views)

Re: Well... profits are down... now what?

11-30-2000 03:55 AM in reply to: *Hutchinson, Mike
Mike,

Productivity should pick up with Adt3 with improvements to walls,
windows, etc. But I can tell you one thing for sure, that we did not
jump to Adt1 or 2 because we use sdsk8/acad14 and adt1 and 2 do not do
production docs as quickly... we all know why... problems with wall
cleanups, limited architectural objects, etc, and all sdsk8 macros
went out with the bath water when adt came in. If I/we had to make a
multi-view block for every door/window that we need to see in
elevation views, I hate to think how long it would take to do the
drawings. Adt3 may have additional capabilities, but it's my guess
that we'll still be short when it comes to architectural objects and
who knows when manufacturer's or others will come up with additional
"i-drop" stuff. So, don't you think it will be prudent to review how
much to use adt3 for schematic/modeling versus production docs? And
when using it on production docs evaluate when it is appropriate to
blow out (create hlr) and keep going with productive methods?

For instance, if adt2 or 2i doesn't have the windows you need and you
have several variable appearances, then do you want to create them in
multi-view blocks or maybe insert plan and elevation views into your
working drawings from a manufacturer's cd and/or from your library
and/or from some other "add-on" (maybe similar to sdsk8 where it only
takes about 5 seconds to create any size window... for instance double
hung with any number of muntin spacings, etc.).

You said "billable time was down near 60%... sited were performance
issues...". You don't say what % the billable time should have been
or was before... we don't need to know, but my comment towards that is
that I hope it was not due only to the switch to adt!

Tom Momeyer, AIA, CCS

On Thu, 30 Nov 2000 06:50:35 -0800, Mike Hutchinson
wrote:

>Goal for this year was a 15 % profit margin...
>... previous years were in the 10 - 14 % range..
>We just had an all staff meeting...
>... the partners announced a disappointing 2 % profit for this year.
>
>... billable time was down near 60%...
>... sited were performance issues...
>... contributions for 401K and yearly bonus may be next to nothing!
>
>Is anyone else experiencing these kind of numbers?
>
>We just recently incorporated ADT2.
>
*Brown, Anne
Message 5 of 6 (118 Views)

Re:

11-30-2000 09:18 AM in reply to: *Hutchinson, Mike
This message with 3 meg attached BMP was moved to the Customer
Files group. A reminder to NOT post attached or embedded
graphics in any newsgroup but Customer Files.

Thanks -
--
Anne Brown
Manager, Moderator
Autodesk Product Support discussion groups
Discussion Q&A: http://www.autodesk.com/discussion

Subject:
Re: Well... profits are down... now what?
Date:
Thu, 30 Nov 2000 17:05:30 -0800
From:
"Luis Esquivel"
Organization:
M+C Architects
Newsgroups:
pn.cadmanager

We are experienced the same problems here in our office a 30
person
architectural firm in San Diego, we upgraded every single
computer to ADT2,
but still we haven't seen any better performance or in finished
the work
easier.

Every one here went to the second full 40 hrs. training and still
no magic
or easy to do with this application. I understand that this
somehow is going
to be the standard but not for a while.

At the same time we developed our own application in order to
help us in the
production, we just draw our grid, define the scale, pick the
bubble-grid,
wall thick and get an architectural floor plan.

Luis Esquivel

Tom Momeyer wrote:
>
> Mike,
>
> Productivity should pick up with Adt3 with improvements to walls,
> windows, etc. But I can tell you one thing for sure, that we did not
(snip)
*Helsel, Dean
Message 6 of 6 (118 Views)

Re: Well... profits are down... now what?

12-01-2000 06:14 AM in reply to: *Hutchinson, Mike
Mike,

70 - 80 person A/E Division of a 450+ full service firm. Profit for this
year in the same neighborhood compared to projections. I have heard from
friends in other firms of similar experiences - none related to ADT or any
other specific tool or technology. We are about 65% transitioned into ADT
and object based technology, and have proceeded nicely over the last year
and a half.

Not that the tools and their implementation don't affect billable time, but
I would guess that there are other factors involved. Clients are arguably
smarter, and expect more and more for their dollars. Schedules and
deliverables reflect this, and are now one a major factor in this
competitive industry. Qualified staff is at a premium, and turnover rates
everywhere are up.

For us, the only way to control these trends and their effect on profit is
to become as organized and efficient as possible. This takes some time and
has affected the bottom line for this year, but should benefit future
efforts when the market gets tougher.
IMHO one of a CADD / Technology manager's toughest battles is to convince
the draftsman / architect / engineer that these technologies are tools of
the trade and the work itself is what is important. Most would prefer to
argue indefinetely over the lineweight associated with a particular color,
or what font should be used for text in a drawing.

Good luck with your ADT implementation.

Dean
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