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What if I told you that you could become a superstar project manager and it wouldn’t be that difficult. I’ll show you how to set yourself up to be the envy of your peers and you don’t need to be Michael Phelps.

Learn ways to reduce on-the-job stress, enhance your reputation, become a top profit principal and project manager. And, wouldn’t it also be nice to be recognized for your skill at retaining loyal clients?

In my ACEC webinar I shared tips to help project managers set themselves up to become superstars that make money. Although I cover a variety of ideas in the webinar, in this post I’ll share a successful budgeting and contracting tip that you won’t find in any book. Here is an example of a win-win contract that worked for me.

What was the Client Really Asking?

My client wanted me to help them to rehabilitate their 30 million gallon per day water treatment plant. We developed a budget and a contract for the work. The client liked a collaborative approach which matched with my values.

I knew that the staff, and even the City Manager and some City Councilors would want to be informed too. My budget included meeting time with all of the stakeholders. The budget was developed with a budget for me of 20% to make sure I had enough time to spend with the stakeholders as well as manage the project.

It was a rehabilitation project with many complexities due to working with an older facility. I made sure my client understood the design budget had to be robust to allow for surprises. Since surprises along the way were certain, I knew there would be more exploration and more re-do.

To account for large unknowns, the contingency budget was set at 20%. I set up the contract as a fixed price, which provided for monthly invoices based on percent complete.

The City Manager looked it over and wanted to know the basis of the contract fee. He asked that we set it for payment using hourly rates. I explained we were comfortable taking on the risk of a fixed price and that would give him assurance over the budget. He said he was okay with that, but he wanted to make sure the basis of the budget was documented.

To address his concerns, I showed him my budget back-up, a very large spreadsheet with hours and disciplines for each sub-task.  He then asked if I could attach it to the contract.  After giving this some thought I labeled a printout of the budget “for information purposes only”.  Then, I included it as an enclosure with the transmittal letter for the contract.

The budget was then not a formal part of the contract. But the City Manager had a copy for his file.  You see, what he really wanted is a document that showed how the budget was derived, should someone ask.  I thought it was smart of him to know this might become important.

Since I was successful at securing a fixed price, the project was invoiced as a percent complete, with no hourly rate back-up.  I was motivated to manage every hour and minimize our cost while delivering a good product. An hourly contract would have limited my profit to profit in each hour. There would be no motivation to finish under budget.

The Art and Business Science of a Solution

This is an example of understanding how to listen to the client’s true concerns and to apply best business practices to negotiate a contract that was a win-win for everyone. The client knew their costs and I addressed their key concern about the basis of the budget. The project was finished with a 30% profit (that is over $300,000 to the bottom line), the largest project profit for the company to date.

This, and hundreds of other approaches are best practices that are not offered in standard project management training programs.  It requires a business educated mind, and years of practical experience.

The Superstar Program

Learn more by viewing my on-demand ACEC webinar— Superstar Project Managers Make Money: Set Yourself Up On Day One.  If  achieving Superstar status excites, my profitability program for managers and executives is the surest solution. Email me at dreed@fostergrowth.biz for further details.

Doug Reed, Business Consultant, FosterGrowth

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Most of all, you want something of value out of your learning investment. Yet, time and again, you experience little or no change. Don’t you find this discouraging?

The problem is that you learned the theory with almost no application of the skills. Workshop role playing is not the same environment as the real world.  So, what you need is an environment where you can learn in the real world. And, I am going to tell you how you can do this.

First, I ask you to consider this true story.

My Brain was Infused with Knowledge

A decade into my very technical engineer career I took a job with a firm led by an entrepreneur who was also a professor. That was not the reason I took the job, but fate was in the making.

I discovered that the entire environment was supportive of learning and trying new ideas. I recall at least six outside consultants who were brought in by those owners. These persons coached me on sales, on employee engagement, on project management, presentation skills, motivating employees, influencing employees, writing, negotiating, contracts, and financial management.

The point is, it was constant. And, I was nurtured and supported to apply those skills in the real world. In only 18 months after joining the firm, I had blasted through the bookings, profit and customer satisfaction requirements to be elected shareholder. And, I was.

Was this expensive for the firm? You bet it was. But how did that compare to stock that doubled in value every three years? It was chump change.

Why Throw Away Time, Money and Potential Gains?

Think about a professional athlete. To perform at a high level, they make use of one or more personal trainers. Imagine if they tried to design their own work-out program?

Why should you? Why not make it easy on yourself and make sure you’re not only learning, but applying the learning as it was intended– for you to be more successful at whatever you seek.

Comprehensive Programs Encourage Long-term, Sustainable Change

A Harvard Business Review Discussion Group member asked, “Is training worth-while?” The comments posted were from 40 persons across the globe and range from academics, business managers, and management consultants. I have two takeaways.

First, for any learning program to be effective you must have a desire to participate and learn. You do that by placing yourself in an environmental where learning is actively encouraged. By doing this, you will begin to see that you CAN improve yourself as a result of learning.  This perspective of yourself in the world is the real impact; the real value.

Second, set your ego aside and seek lessons from those who have proven their talent on the topic. Don’t just learn the material, practice the material. Find someone you can learn from and who will be available to you as you apply the new skills. Rarely will it be as easy as during the lesson. Real-time support is essential to your adaptation of your new skills.

What is it You Seek More of?

Seek out a trainer and coach who knows the business and will make sure you get there. Here is what a project manager, now an owner and Senior Vice President, had to say:

“(Doug’s) largest asset is his ability to blend his knowledge of technical issues with the ‘soft side’ of human interaction and understanding– a skill that eludes many engineers. Doug has been of great assistance to my personal and professional success.“ 

It is All in Your Control

What is it you are not achieving that you seek? What is getting in the way?

Do you and your firm support my hypothesis? You can be your own wings or be a leader who provides the wings. Don’t be the drag.

Click here for the many solution opportunities FosterGrowth provides.

Doug

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“Stop-ins” lead to increased revenue

Several of my staff scientists and engineers frequented project sites. I sat with each one and mapped out their client organizations and even organizations of potential clients that were near their driving route. I encouraged them to stop in and meet new people on their way to the client site. They did. And, after six months, and many more “stop-ins”, their new contacts were giving us work. The incremental time for them to do this was so small that their utilization was not impacted. Yes, they did receive some training on how to conduct themselves in such a call. Yes, they did get coaching between meetings. And yes, at some point they did involve a principal to work through the scope, budget and to close the deals. And, most of this booked work was sole source. The cost of sales were measured at less than 1% of revenue, compared to an industry standard of 4-5%. Has this or a similar approach worked for your firm?

I would love to hear your thoughts. Leave a comment or connect with me on Twitter or LinkedIn.

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Perhaps you seek this to benefit your personal life, not just your professional life. But, often there is a disconnect between wanting to learn and putting it into practice. Just because the boss says, “go,” does not make a motivated participant.

If your role is managing the business or projects, marketing, or selling services, how will you achieve the desired outcomes and benefits? It has to do with the design of the learning programs you provide to your staff.  Click here to shortcut to what I mean.

I came across a Harvard Business Review Discussion Group topic asked, “Is training worth-while?” The Discussion Group comments are from 40 persons across the globe, from academics, business managers, and management consultants. I have two takeaways.

For any learning program to be effective for an individual, that person must have a desire to participate and learn. This means that the staff member must be in an environment where learning is encouraged, and recognized ALL THE TIME. Does this exist for you?

Why Throw Away Time, Money and Possible Gains?

Learning program opportunities are lost– time and dollars wasted– without focused and frequent post-classroom, instructor-lead applications. Applying learned skills requires a behavior change which comes with practice and leads to confidence. Thus, regular learning support is crucial, until the new behavior becomes permanent.

Comprehensive Programs Encourage Long-Term, Sustainable Changes

Learning is not a one-time event. If there is not a program to support and encourage practice, practice and more practice, behavior will not change. Most individuals go back to life as it was.

So, this leads back to the first observation. The environment must include ongoing support, encouragement, and recognition, to take hold.

Outcomes of the learning program are realized like:

• Higher Revenue
• Higher Profits
• Higher Reputation
• Greater Career Satisfaction

FosterGrowth provides workshop style education programs such as strategy execution, sales process and implementation, and project manager proficiency.  The structure of FosterGrowth’s workshop and coaching are an efficient way to transfer a lot of knowledge and instill common tools across the company’s staff.

Where we really deliver results for you and your employer, is ongoing support and coaching.  This is not the same as career coaching.  This is working with one person or multiple-groups/offices, on a regular basis, until proficiency is achieved and the outcomes of the learning program are realized like:  Higher Revenue, Higher Profits, Higher Reputation, and Greater Career Satisfaction.

Your comments and experiences are invited. Connect with me on Twitter and LinkedIn.

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