POP Architecture Business Benchmarks Report cd SdIM Monograph It's time for radical transparency. Wie started Monograph with a simple mission of making project management simole and {seamless for architecture firms. Thanks tothe 1000+ ABE firms using Monograph today, i's ‘become clear to uss that radical transformation requires radical transparency. + Architects dont want to waste time and money. + Architects dont want tobe overworked and underpaid + Architects dont want to feel overwhelmed by admin stative tasks, Architects want to know, with confidence and accuracy, where thelr business stands. ‘The Architecture Business Benchmarks Report (ABBR) isthe frst ofits kind in the architecture industry. ’s not based on a survey of self-reported results. Instead, ituses real data that would not exist without our amazing customers -thank you, Monograph-es, for helping to improve the industry! The data isaltect from the souree, anonymized, and aggregated for your use ‘The ABBR shares: + Skey business metrics wth averages ana quartiles (bottom, median, and top), so you know where your business stands. + Data focused on firms between 8 and 80 employees with graphs and scatter plots for ‘each metre so you can quickly compare. + Actionable steps that you can take to improve each metric. ‘hope that you use ths report te evaluate your own business and proactively make adjustments forthe benefit of you, your employees, andthe Industry as a whole, Onward, Robert Yuen, (CEO & Co-founder of MonogranhIM Monograph Table of Contents 04 08 12 7 21 25 26 Net Revenue per FTE Benchmarks for average revenue generated by each ful time equivalent employee. Net Cost per FTE Benchmarks for average cost incurred by each fulltime ‘equivalent employee. Utilization Rate Benchmarks for efficiency and productivity in your workforce land across diferent roes. Realization Rate Benchmarks for biling effectiveness across your fms Time to Payment Benchmarks forthe amount of ime between sending an invoice and receiving a payment Methodology Read detals related tothe objectives and data analysis, involved in ereating this repo Snapshot Review collections of charts ana tables from the § metrics ‘explored inthis report along with a glossary of key terms.Porc) De eee ee Net Revenue per Full-Time Equivalent Oe Ce Ors Arve aes Why is it important? Net Revenue per Full-Time Equivalent (FTE) La a ee ee ad Be Bee aa ue a) Cee EU Ue esc UaLy Preto aearcenee eee generating income. It helps in understanding ee Ee ale Pa UU Cm Ue ec pores enters ogc acer Cras based work is common, this metric offers insight also aids in strategic planning, resource into how effectively the human resources are Bisa Mace rte rot Neca Ee aC eee eeIM Monograph Net Revenue per Full-Time Employee Bottom Quartile (25%) Median (50%) Top Quartile (75%) $112,497 Byler) $201,350 Nerd Cavan [sx] Net Revenue per FTE 5 3 szcao © FimNetRevenue/FTE erage (uartlesMM Monograph 200k Archer Buses Barca Roper OF Net Revenue per FTE vs Number of FTEs eo : i oy Foam fb ta ls i om =IM Monograph 5 ways to improve Net Revenue per FTE o1 Enhance employee skills and efficiency through training and development programs. 02 Optimize staffing by balancing staff roles and responsibilities based on project demands. 03 Increase net revenue by diversifying services, improving project management to reduce costs, and focusing on higher-margin projects. 04 Implement technology solutions like advanced project management tools for more efficient operations. 05 Regularly review and adjust billable rates based on Net Revenue per FTE trends, market conditions, and service value.Vero Net Cost per Full-Time Equivalent Ueto Cor What is it? Net Cost per Full-Time Equivalent (FTE) measures the average cost incurred by affirm for eI uC ccs all costs (operational, administrative, etc.) Pee ca ee) MET RUE uCr as ta Re Rae eee Why is it important? Lee a aR eae eel Ree ee meek) FEO LCR Au eee tulle Bo ee LRAT ue Le coerce ea budgeting and financial planning, allowing firms aoe rete resource allocation, and cost management.IM Monograph Net Cost per Full-Time Employee Nerd $123,625 Lene Ce CUCL) Top Quartile (75%) Pay -1x] ES Crce1 cd $76,490 Net Cost per FTE © FrmNetCostFTE erage (uartlesIM Monograph Net Cost per Full-Time Employee Bottom Quartile (25%) Mediian (50%) Top Quartile (75%) $155,663 $108,873 $76,490 Net Cost per FTE vs Number of FTEs enone & szonace Average $123,625 © FimNetcostFTE erageIM Monograph 5 ways to improve Net Cost per FTE o1 ‘Streamline operations and processes to reduce operational costs. 02 Implement cost-effective strategies in human resource management, like flexible staffing models that align workforce size with project demands. 03 Invest in technology and tools that enhance ‘employee productivity and reduce time spent on non-billable tasks. 04 Conduct regular financial audits to identify and eliminate unnecessary expenses. 05 Provide training and development to employees, enabling them to work efficiently and contribute more value.Vero Utilization Rate Total billable hours Beene) What is it? Ce ee Ree hee aeRO Lay Reena esa e net rer eeu oar nace cet an ere) ree ec an Serene eae Peer aor eae Sie ieee iirc Why is it important? aCe oe Uae Fahl) cence aces planning and resource allocation, Role-based Utilization Rate provides insights into specific Oma ls Raa Area Perce career? arnt ets Per Rare eneee)IM Monograph Utilization Rate Eaten Cs TIA% Median (50%) cy Firm-wide Utilization Rate Top Quartile (75%) ENCE 95.2% cscs (© Fem Utitzation Rate erage (uartlesIM Monograph Utilization Rate Bottom Quartile (25%) Median (50%) ‘Top Quartile (75%) 711% 82.4% 95.2% Firm-wide Utilization Rate vs Number of FTEs 28 Average 82.3% (© Fem Utiization Rate erageM Monograph Average Utilization Rate by Job Title NINN AAP OOP Af Off OIM Monograph 5 ways to improve Utilization Rate 01 Implement efficient project management to maximize billable work and minimize downtime on administrative activities. 02 Use accurate time-tracking tools to properly capture all hours, both billable and non-billable. 03 Hire an operations manager to reduce and delegate non-billable hours across firm leadership. 04 Proactively balance workloads to prevent burnout and ensure staff are engaged in billable and non-billable tasks, when appropriate. 05 Regularly review and adjust staffing levels and role responsibilities to align with current and, projected workloads,Vero Realization Rate See Regia Total billable service fees Arve aes Why is it important? eee ca Realization Rate isan indicator of financial Dc ee eau GO ues kr auld Pee ner rca firm is successful in converting its billable hours Co US Run ar RA) Neue er Reale Cu EU) converts its billable hours into revenue. This billing practices and effective client De Re a A eee LS oR CO eae ae staff but also the firm's abilty to effectively issues ike excessive write-offs, underblling, or erect inefficiency in the billing process.IM Monograph CE UPE Ne Cy Eaten Cs Median (50%) Top Quartile (75%) wR aE /4 103.9% Nerd EUS Realization Rate © FimReatzaton Rate erage (uartlesIM Monograph Re ation Rate Bottom Quartile (25%) Median (50%) ‘Top Quartile (75%) 76.5% 91.5% 103.9% Realization Rate vs Number of FTEs Average 91.3% © FirmReatzaton Rate erageIM Monograph 5 ways to improve Realization Rate o1 Ensure accurate time tracking and billing practices to capture al billable work. 02 Regularly review contracts and scope of work agreements to minimize discrepancies between billed and billable hours. 03 Improve client communication to ensure clarity in billing and to reduce the likelihood of disputes and write-offs, 04 ‘Streamline the invoicing process to ensure timely and efficient billing. 05 ‘Track pace against fees to avoid going over budget on projects that don't allow for additional fees.Vero Time to Payment Ear) POs) Arve aes Why is it important? Oa uu Re) Ree Rael eal Daa Uo ue Mee) flow, and ability to manage day-to-day feu le ae ole eee uo CA ua rd of the firm's billing and collection processes and Dee ee EAS SE Ulu RUL aad one cin ae cas firm has quicker access to cash, which is essential for covering operational costs and eu tarantino CI ogo ay ee eae US eae rtIM Monograph Bede WT g Eaten Cs Median (50%) Top Quartile (75%) 44 days 30 days 21 days Nerd 34 days Time to Payment (in days) © FimTimeto Payment erage (uartlesMM Monograph 2004 Archtectre Buses Barca Roper 22 © FimTimeto Payment Time to Payment vs Number of FTEs — ie :IM Monograph 5 ways to improve Time to Payment o1 ‘Streamline the invoicing process, ensuring that invoices are sent promptly and are easy for clients to understand and process. 02 Implement clear payment terms and communicate these effectively to clients at the start of a project. 03 Offer multiple payment options, like online payments, to make it easier and more convenient for clients to pay. 04 Implement a follow-up process for overdue payments, including polite reminders and possibly late payment fees. 05 Build strong relationships with clients to foster ‘trust and prompt payment.Vero Methodology ‘Objective: The 2024 Architecture Business Benchmarks Seem aero enn Sie eC ert eset Reese een pee renee re management platform tallored for architects, This report ‘enables firms to compare thelr performance againstindustry Peco Cerne aE Se Pree ans Data Source: The primary data source for this reports ec eee ener Poems tnt iasn eter Ly Fre Cr ac ‘The process for collecting and analyzing the datas as a 4. Anonymization:Datais anonymized to ensure indviaual roel enpeeronr ar ratineiarenn Pree tac 2, Data Aggregation: Datais aggregated across several key Prapecavareet emer en nutty CUE oma ee ey tore et ea) Exe eee ee aureery Pre eee Once eared Perens anche rue erg Perec eer accor r ees cies cet ‘4, Benchmarking Metres: Key performance indicators Compe bere an nir eae ty Peper iar Oren eee ne een analysis techniques are employed to Identity benchmarks Sine a eae rT EoPe mre ete perenne fare bath statistically signifcant and relevant to erercnre as Pe ere ae ent ere ey Moncgraph users andthe broader architecture community Peer rarer EnteMM Monograph 2004 Arcee uses Barca Raper 38 Net Revenue per FTE [Net Cost per FTEMi Monograph feet etter Pune Pacha taper £7 Net Revenue per FTE vs Number of FTES Net Cost per FTE vs Number of FTES jm iIM Monograph Net Revenue per FTE Net Cost per FTE Utilization Rate Realization Rate Time to Payment $112,497 $155,663 TA% 76.5% 44 days ea, $152,264 $108,873 82.4% 91.5% 30 days Beton ext $201,350 $76,490 95.2% 103.9% 21 days rT $171,163 $123,625 82.3% 91.3% 34 daysIM Monograph Average ‘The sum of a set of numbers divided by the count of numbers in the set. lable Service Fees Total fee value of billable hours logged to projects and/or the agreed-upon rates with clients. These fees. Tepresent the potential revenue before any work is billed Billed Service Fees Fees that have been invoiced to clients for services provided excluding retainers, consultants, and ‘expenses, Bottom Quartile (25%) Refers to the lowest performing 25% of values in a dataset. Full-time Equivalent (FTE) ‘Ameasure indicating the workload of an employee, Interpreted as the equivalent of one full-time worker. Median (50%) ‘The middle value in a dataset when arranged in order. Net Cost The total cost of operations minus any indirect costs This includes direct expenses related to projects, ike materials and labor. Net Revenue The total fees from services and projects minus discounts, refunds, and allowances, Non-billable Hours Hours worked by architects or staff that cannot be directly charged to clients ike administrative or ‘operational tasks related to the business. ‘Top Quartile (75%) Refers to the highest performing 25% of values ina dataset. ‘Total Billable Hours Allhours logged toward bilable activities. Total Hours Worked Allhours logged and available overhead hours. This includes all billable hours, non-billable hours logged in Monograph.IM Monograph About Monograph $17 Siaim—$159M ee Monograph is an easy, simple, and intuitive project management platform built exclusively for A&E firms. Architects use Monograph to get a clear picture of project and firm performance so they can quickly improve business metrics. Here are some case studies for you to review that share successful strategies of Monograph users: + Click here to learn how a 13-person firm in Washington decreased time spent on admin tasks by 50%, + Click here to see how a design-build firm with 25 architectural staff increased the speed of their invoice generation by 53%. + Click hete to read about a 12-person frm in ‘Arkansas that reduced time spent on project planning by 80%. + Click here to study a 30-person firmin Quebec that ‘xed revenue over a 9 month period, Get started today and join1,000+ ABE firms that use Monograph to improve performance every week.Yorn Se eae ee Thanks to our amazing customers for making this report possible and thank you for reading the 2024 Architecture Business Benchmarks Report! Sea tay eyes Coo aaTE Nu