What are the metrics that should matter to AEC firms? Taking a closer look at the KPIs that top AEC executives value most
Discover the essential metrics for AEC firms. Understand their significance, learn about commonly overlooked ones, and realize how tracking these can enhance your business success.
by Lucas Hayden
Legendary business expert Peter Drucker once famously said, “What gets measured gets managed.” For an architecture, engineering, and construction (AEC) firm, measuring success comes down to identifying the right metrics to follow and then tracking them.
Unanet's 2022-2023 Inspire Report spoke with AEC decision makers at top firms, receiving feedback on the metrics these firms were tracking – and also the ones they wish they were.
In the latest in our series of blogs detailing the findings of the Inspire Report, we’ll look at some of these top metrics, the metrics many AEC firms want to track but don’t, and how your firm can define and track the right metrics to strengthen your business.
The metrics AEC firms are tracking
The graphic below shows the common sales and pipeline metrics many AEC firms continue to track. Many of these won’t come as surprises and may even be metrics your firm is already aware of.
According to the research results, two categories jumped significantly in importance, moving into the top five – employee certifications and source of business (i.e., new versus existing clients).
The metrics some AEC firms aren’t tracking – but want to track
The Inspire Report also asked AEC executives to identify metrics they aren’t currently tracking but would like to track. Three of the top responses included:
30% of respondents said they would like to track skill-set utilization, which lets firms understand whether they have the right people on the right projects based on their skills and experience. It also helps firms determine the ability of a firm’s bench to provide support for its pipeline.
Length of the sales cycle
Do you know how long it takes your firm to win new business? 28% of respondents said they want to track the amount of time it takes to identify and win an opportunity.
There’s no better determinant for a firm’s strengths and weaknesses than evaluating client satisfaction. 27% of respondents noted they wanted to track this invaluable metric that allows firms to understand where they are in terms of creating positive (and in some cases, negative) experiences for clients.
Why many firms aren’t tracking the metrics they need to succeed
These untracked undoubtedly hold immense potential for improving business performance. But why aren't they being tracked by some AEC firms?
The answer lies in the lack of the needed tools and systems. Many firms still rely on disconnected software solutions or data stored across disparate spreadsheets, making it difficult to efficiently track complex metrics.
The question for firms looking to get more value from their data then becomes: how do you gain quick, efficient access to these valuable insights and convert that information into better business outcomes?
Empowering AEC firms with the right solutions
To unlock the full potential of these overlooked metrics, firms need to empower themselves with comprehensive, integrated software solutions.
Having a single, unified platform to manage and view key performance indicators can transform the way AEC firms operate. It eliminates the barriers to tracking performance across multiple dimensions, enabling firms to make more informed strategic decisions.
In the world of AEC, knowledge really is power. With the right software solutions, firms can access the actionable insight they need to thrive in a competitive landscape.
The time to embrace these untracked metrics is now. Harness their potential and let them be your guide to sustained growth and success.
For more on what top AEC executives are thinking, download a free copy of the AEC Inspire Report today. The next part in our series will discuss how effective AEC firms are at managing projects and resources—and how can they get better at it.