The company operates in IT&C domain, electronic archiving, document management, digitalization, data capture from documents, working flows with documents, conversion services for physical archives, data processing services, GIS services.
The company is organized as a group of companies having a mother company and other two satellite, one specialized in GIS services and the other for conversion of physical archives.
The mother company is organized in productive departments (Business Development, Archives Processing and Digitalization, Software Development, Project Management) and support departments (Accountability, HR, IT, Legal, Facility Management). Each department has a manager and specialized teams.
Both satellite companies have their own specialized teams and administrative teams but no support departments, this role being taken by the mother company.
Ways of working
All the companies from the group are revenues and expenses centers.
All the contracts are monitored as projects (revenues and expenses centers).
There are sales targets and objectives for each company.
The opportunities become signed contracts that are implemented as projects.
The profit margin of each project is subject to mother company policy. Mother company decides the sales policies for the two satellite companies.
The projects are closely monitored so that the estimated profit to be delivered. The profit is monitored at project (contract) level and at company level so that self-sustainment to be achieved and the annual profit of the company and of the group of companies to be ensured.
Changes implemented by Discern
The timesheets were prepared on weekly basis as number of worked hours on each project. There was no direct connection between the type of resource allocated and the registered hours. There was no connection between the total number of resources and the resources that were mention in the timesheets and resources that were skipped as being support.
Discern solve these issues by ensuring that the timesheet is completed individually by each employee so that a direct connection is created between the actual work and the respective revenues and expenses center. More of that, there is a direct connection between the type of resource and the cost center, this being true even for support structures that are only cost centers. A secondary effect is the fact that the employees became more responsible and aware on their own work and the fact that the delays and the poor quality have a direct effect on the project profit indicators and implicitly on the entire company.
There was no clear visibility on the revenues vs expenses. Revenues and expenses were kept under control by the financier department with no automatic mechanism to corelate them. More than that, the teams have no visibility on the financial indicators of the projects.
Discern solve this by keeping both indicators, revenues and expenses,
in the same application providing visibility on them to project management team, operational team and business development team. Discern provides a real time comparison between the revenues and expenses at any moment and offers an image of these indicators on the entire project life cycle. More than that the application allows at any time a visual comparison between the business plan (initial plan according to the contract) and actual level of project revenues and expenses.
Data aggregation for all projects was done manually because the used informatic system allowed counting the invoices but no the manpower expenses. More than that, the revenues and expenses were kept in different informatic systems that were no interconnected. There was no correlation between the manpower expenses and projects, these being kept under control by estimations that were made with a high level of approximation and with to respect of type of resources.
Discern solved this issue by keeping all the data in the same application and reporting being made in real time. Application monitors all revenues and expenses at project, company and group of companies level.
Forecasting of revenues and expenses was made offline by using Microsoft Excel. This activity was coordinated by the financial department, operational and project management structures being just consulted. The data processing was difficult because data of each project were corroborated with data of other projects from the company and then at group of companies level. The work load was high, and the results had a significand degree of uncertainty because of the manual data collecting and processing methods.
Discern solved this issue by keeping in the same application the revenues and expenses up to date and revenues and expenses forecasted to happen in the future until the end of the project. The easy to use interface and real time comparison features with business case significantly reduced human error probability and reporting to company or group of companies level is made in real time not being necessary that someone to aggregate data and prepare specific reports. More than that, the application is used also by Business Development Department (Sales, Pre-Sales, BID) for forecasting the sales providing a real time image at company and group of companies level on the probability to touch the sales quotas targeted by committed business objectives.
Counting the workload between the companies was difficult to track. Because both satellite companies no not have support structures, their role being taken by the mother company, became difficult to determine the real spent done by these companies during the projects implementation. More of that, there are situations when operational resources belonging of one company to work on projects (contracts) implemented by other company of the group. This particularity has a direct impact on the evaluation of each project, accurate determination of profitability and prevents collecting of real data necessary for developing the price strategies and prices policies.
Discern solved these issues by allowing the counting of worked hours on each project from any company creating the premises for correct tracking the real work on a specific company done by resources belonging of a different company. Having these data, the companies form the group made contracts between them for compensating these spending and the expenses evaluation was made with rigor on each project.
Discern added value
Employees responsibility. Because the employee has a clear image on his own work and especially on unallocated hours that could be used constructively, the work efficiency raised with 40%.
Managers responsibility. Because the managers have total visibility on revenues and expenses, they became more responsible on respecting the terms, efficiently allocate the resources and finding ways to optimize the expenses. This increased the project success rate with 35%.
Clarity at company level. At company level there are dashboards available allowing to keep under control the revenues and expenses so that the numbers committed in the business objectives are analyzed by the management and decisions can be taken in real time. This feature increased the profitability at company level with 32%.
Clarity at group of companies level. At group of companies level there are dashboards available allowing to keep under control the revenues and expenses in real time so that the slippery to be identified in time for measures to be taken. This feature raised the profitability of the group of companies with 26%.
Clarity at business strategy level. There are dashboards to analyze revenues and expenses on clients and suppliers so that the top management to be able to identify in real time some dangerous dependencies on specific clients and suppliers that if deteriorated can jeopardize the entire business. This feature increased the market share of the group of companies and reduced the dependencies on strategic suppliers.
Positive cashflow. There are dashboards to track in real time the cashflow at project, company or group of companies level. A positive cashflow ensures good function of the company and is an indicator of wealth. This feature increased the solvability of the companies and raised with 63% the degree of supplier satisfaction and implicit reduced the supplying costs by eliminating the financier risks. The financing banks dropped the interest rates with 2-4%.