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Which of the proposed solutions do you favour and why?
Of the 3 options provided, I would choose to implement Anderson’s key account program for several reasons: 1. It will help align employee compensation with overall corporate profit objectives. CSC managers are currently compensated based on their CSCs profit performance. This gives managers the incentives to employ their own CSC consultants on projects from the region, regardless if there are better-suited ENSR consultants working under different CSCs. Depending on the specific needs of a prospective client in the manager’s region, the CSC may or may not contain the necessary expertise to win a project. Implementing a key account program will allow the…show more content…
These are the service lines that produce the most profit for ENSR. It can therefore be assumed that these service lines have strong client demand, and thus it would be to ENSR’s advantage to gain experience, or even additional service offerings, in these services.
Are they getting “enough” of their ideal clients?
Total gross sales were $1M less than estimates (exhibit 1). Because the average value of a project is $30,000 [p.2], ENSR needed approximately 34 additional clients to meet their estimations.
Roughly 85% of the jobs performed in a given year came from a client that had hired ENSR within the previous several years [p.10]. It is clear how important maintaining strong relationships with a client can be for gaining contracts. 100 consultants (of the senior level) are spending half their time building relationships and finding new prospects, and yet ENSR is currently only winning 50% of its RFP bids [p.7]. ENSR is spending a great deal of resources obtaining clients, without enough return to support these expenditures.
What is the ideal client for a CSC Manager?
The ideal client for a CSC manager is a client with whom the CSC Manager has a strong relationship. When the client has had a very long relationship with its consultant, it is more likely to hire that consultant on for a sole source contract. These contracts require
Max Haubold ENSR Assignment 1. Exhibit 7- This first exhibit shows the utilization rates of the company. Based on this chart, several conclusions can be made. To begin, it is obvious that the company is not working to its fullest potential, outlined by the meager ~55% total utilization. From the base of 800 or so associates, this leaves about 360 not benefitting the company. The chart also shows that some CSC’s utilize the personal at a better level than others. From this I would conclude that some interaction needs to take place to help the lower utilizing CSC’s such as Camarillo apply more effective strategy, as displayed by Southwest CSC. Exhibit 8- This shows the revenue generated. By examining this exhibit in conjuction with exhibit 7, we can conclude that higher percentages of utilization usually produce greater generated revenue. Especially seen in the New England Region, it seems that the utilization efforts are the bottleneck in earnings. The CSC’s with the higher utilization show relatively greater success in revenue. As a side note, the top revenue generating customers seem to be (geographically) higher populated areas, and also where the ENSR involvement is greater (example- NY, NY, NJ, CT, all in top 10 customers, and the New England CSC has one of the greater utilization rates). Exhibit 9- This shows the proportion of gross revenue. From this chart, several conclusions can be made. To begin, this chart further strengthens the claim that higher percentage of utilization leads to better revenue. From this chart, it seems that those CSC’s who command greater utilization rates also have gained exclusivity in the customers who they serve. For example, the New England Region, who boasts a 60