OnTarget
Helping you make your practice more valuable
- Scenario:
- –
- Date:
- –
Profit Drivers
| Driver | Base Value | Targeted Value | Profit Impact | % Impact |
|---|
Outcomes
| Item | Base | Target | Difference |
|---|
This scenario's base values are incomplete, so targets can't be worked out yet.
People Power
Are you getting the best you can from your people?
Impact of this tab –
What these targets mean
| Item | Base | Target | Difference |
|---|
This scenario's base values are incomplete, so targets can't be worked out yet.
Fees & Rates
Are you earning enough for the work you do?
Impact of this tab –
What these targets mean
| Item | Base | Target | Difference |
|---|
This tab was on the original OnTarget screen, but the program never connected it to any calculation. Its fields have no effect on profit. It is kept here so the layout matches the original.
Client Statistics
Clients won, lost and delighted
This scenario's base values are incomplete, so targets can't be worked out yet.
Costs
Are you keeping your costs under control?
Impact of this tab –
What these targets mean
| Item | Base | Target | Difference |
|---|
Base Values
Last year's actual results
Every target is measured against these figures. Changes take effect as soon as the figures are complete.
Turn this scenario into ACTION
What you can do to achieve your targets
Ideas from the original Action guide, grouped by tab. Areas linked to the targets you have changed are marked.
Help
What all the terms mean
How to perform a sensitivity analysis
- Pick a scenario from the Scenario list, or click New… to create one.
- On the Base Values tab, enter last year's results. The results show net profit, profit per partner, margin and gross hourly rate.
- On the People Power, Fees & Rates and Costs tabs, set targets. Type a value, drag the slider, or use the − and + buttons.
- Watch the Profit Impact column and the totals at the bottom. Targeted Profit updates with every change.
- Click Save to keep the scenario, Reset to put the targets back to base, or Print for the report.
- Open the Action tab for ideas on reaching the targets.
How the numbers are worked out
Total people = partners × (1 + leverage)
Hours charged = total people × time available × productivity
Net fees = hours charged × hourly rate × disbursement factor × value index × billing index
Total costs = average cost × team members + variable cost × hours charged + fixed costs
Net profit = net fees − total costs
Hours charged = total people × time available × productivity
Net fees = hours charged × hourly rate × disbursement factor × value index × billing index
Total costs = average cost × team members + variable cost × hours charged + fixed costs
Net profit = net fees − total costs
Profit impact: the targets are applied one at a time in this order: partners, leverage, time, productivity, rate, value index, billing index, average cost, variable cost, fixed costs. Each impact is the change in profit at that step, so the impacts add up to the additional profit. If you change partners and leave leverage at its base value, the number of team members stays the same, as in the original program. A target within 0.005 of its base value is treated as unchanged.