Company description
This solution shows how can Koabo be used in a law office working on a large number of projects. Personnel costs are by far their most significant cost category.
They have 25 employees and three partners. The company is operating from three locations.
Company needs
The company is struggling to understand the profitability of their projects and is looking for a way to fairly determine what projects are bringing money to the company. The company is also concerned that some projects are just wasting resources.
Management feels that staff is unhappy about their working hours and the number of overtime hours, and they want to understand whether the complaints of the team are reasonable or not.
The main needs of the company are:
- Improve understanding of the profitability of clients
- Fairly assess the performance of managers
- Properly utilize staff of the company
Solution with Koabo
Monthly reporting
Koabo has a direct connection to the timesheet software used by the company, so it can automatically import data. Reports are updated daily with the data from timesheets. Regular filling of timesheets is mandatory for everybody in the company.
The company is using two main reports. The first report shows the profitability of projects, and the second one analyzes timesheets and working hours of staff.
The report showing the profitability of the projects is available at this link. It follows the principle of going from an overview to more in-depth details. Besides overview data, the most interesting parts of the report are the pages showing details about the clients. Page 4 is showing an overview of the profitability of the client; page 5 visualizes the timesheets of work for each client, and page 6 gives you a better understanding of personnel costs related to each client.
Timesheet analysis
- Understand work patterns of employees
- Make sure that company is not demanding exceeding amount of overtimes
While the first report is analyzing the company through the profitability of clients, the second report is looking at statistics related to employees.
The report focuses on showing personnel costs and working hours. It also works with an indicator called utilization, which is showing the ratio between chargeable working hours and nonchargeable working hours.
In order to analyze overtimes, the report contains pages showing deviations from contractual workload hours. Koabo records contractual workload for each employee and compares it with the actual workload reported in timesheets.
Performance of managers
Each project has a manager responsible for its profitability. Margin from each project is a contributing factor in deciding remuneration for each manager, so it is essential to have a strong understanding of the fair contribution of each manager to the profitability of the project.
Projects have two types of margin – actual margin and managerial margin. The actual margin uses real personnel costs; managerial margin is using hourly rates of the position to which each worker is assigned. Using two types of margins assures a fair assessment of the contribution of each manager.
- Follows actual and managerial margin
- Fairly assesses performance of each manager
