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28 Cards in this Set
- Front
- Back
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New office - Considerations |
Incremental operating profit calc (Financial) - fundamentally why not just WFH? Improved profitability from new business/clients in new area
Operational and strategic issues - Will need to incentivise staff to relocate
Difficulty recruiting in a new area - may have to poach from competitors (more expensive) Will the new office be big enough? FDM have a reputation in London, if they leave then they may lose clients.
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Jetstream / CRM efficiencies |
1) Financial consideration - significant cost to implement 2) Strategic and Operational - How and when to implement? Could boost efficiencies leading to more revenue Staff will require training - another cost Less staff required - cost savings? |
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Performance based consideration |
1) Calculate Revenue mix if required 2) Application of the Marketing funnel |
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Billable hours considerations |
Charge out rates increased or stayed the same? How to calculate the GP bit anticipated based on client size, SEO average 30%? |
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New Office - Recommendations |
1) Consider impact on future growth 2) Negotiate lease terms 3) Incentivise staff to relocate |
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CRM Efficiencies - Recommendations |
1) Board meeting to clarify strategy 2) Prepare operation/strategy business case for further investment. 3) Prepare budget and HR plan 4) Seek tenders from other CRM suppliers |
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New client proposal |
LTV Billable hours Performance based Commercial and wider issues i.e Sustainability |
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Financial Analysis - Recommendations |
1) Consult managers to identify areas for their development 2) Review client mix 3) Prepare cashflow forecast for 2024 4) Conduct review of implementation CRM system 5) Review KPIs - i.e Churn rate, attrition, and AMFIH |
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Evaluation cost saving strategy - Recommendations |
1) Seek HR guidance on impact on staff 2) Review FDM's ability to recruit 3) Keep training in-house to enforce culture 4) Reconsider on-site requirements or WFH |
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New Client Proposal - Recommendations |
1) Due diligence on the client of previous unethical activity 2) Seek other ESG / more profitable clients 3) Prepare costings and control processes 4) Critically evaluate LTV calculations 5) Other commercial recommendations |
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AJ - Major accounts Vs Small accounts |
Major clients have larger LTVs but worse GP%
But Major clients are better for reputation and lower churn rate |
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AJ - Sales mix |
Revenue mix change - favours smaller clients due to higher GP% but does not mitigate risk.
Larger clients are better for reputation and lower churn rate. |
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AJ - Revenue targets |
Did they hit targets?
Are targets realistic? |
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AJ - Martech |
Could reduce costs through reduced staffing needs.
But it will cost significant amounts to implement. FDM has not used Martech / AI before. |
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AJ - Discounts |
Discounts offered impact on gross profit but discounts are required to keep clients - especially larger ones. |
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AJ - Support staff |
Support work is not billable and they distort the AMFIH figure |
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AJ - Staffing Issues |
Pressure from workloads / Lack of motivation. Poor welfare for staff may lead to increased sickness and difficulty recruiting and leavers. Effects on Staff attrition rate, and headcount is linked to revenue growth. Effect of paying a dividend and then no pay rises. |
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AJ - Operating profit |
May be reduced due to increased depreciation charge as a result of Increased PPE. Will affect valuation of business (Big Bison) and incentive to inflate. |
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AJ - Performance |
Poor salary is not the reason for people leaving. Ethics - abuse of position, may need new controls. |
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AJ - Dividend paid |
Do they have the profit after tax to do so? |
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AJ - Working Capital |
No changes despite an increase in revenue shows good controls. If there is a significant change = poor controls |
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AJ - Attrition Rate |
Does not measure the lost experience or impact on clients leaving to follow key staff members. |
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AJ - Client types |
SEO Income - larger customers tend to have lower GP% margins. |
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AJ - New opportunities |
Could lead to future business - i.e Paid search management |
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AJ - New office |
May be exit costs associated with leaving London office lease. Would the new office have enough space or would WFH be required? Might have to recruit staff from competitors which is more expensive. Harder to acquire new clients in a competitive area. Additional location could improve profitability and attract local business i.e New clients. |
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AJ - Set up staffing committee |
Creates two entities which may conflict with each other. Easier to establish cultures within FDM |
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AJ - Pump and Dump Performance plan |
Pay freezes - if this doesn't affect everyone it will cause conflict.
Excessive workload / pressure when they are already overworked?
Overworked will affect service for clients, and may lose clients.
Responsibility - staff will not see the benefits of the sale. Dividend justified? If pay freezes etc. Consider knock-on effect on staff attrition rates (leavers) when headcount is linked to revenue growth.
Consider impacts on KPIs - AMFIH might increase with leavers but staff attrition and churn rates (if key staff) will increase
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SEO Work |
Slow burn work but can lead to additional work |
