Has your company ever won a job where everything appears to be in order until, suddenly, nothing adds up?
Margin erosion is a term used to define loss of margin dollars that occur once a job has been won. More simply, it is a gradual reduction in gross profits over time. In the current economic climate, professional service firms are acutely aware of the threat posed by the erosion of profit margins.
Many things can erode margins on projects. Some are harder to control than others, but by putting a few processes in place, your company can realize greater financial success on your projects. Download our whitepaper to find out tips on how to deal with the 4 primary categories that encompass problems that lead to margin erosion including:
- Establish repeatable processes for providing accurate cost estimating
- Proactively manage the change order process
- Provide visibility and effective coordination of resources
- Arm yourself with information necessary to proactively respond to cases of margin erosion
Ready to grow your business? Contact us for a free evaluation of your business management systems.