pdf version - David Maister
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pdf version - David Maister
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B=B<br />
BXB<br />
U BXB<br />
Results and Rewards in The Multi-Group Firm<br />
Figure 1<br />
UPROFITS U<br />
OFFICERS<br />
UPROFITSU<br />
FEES<br />
UFEES<br />
HOURS<br />
UHOURS UB<br />
PEOPLE XB<br />
UPEOPLE<br />
OFFICERS<br />
= MARGIN X RATE X UTILIZATION X LEVERAGE<br />
Figure 2<br />
Last Year<br />
This Year<br />
Margin Rate Utilization Leverage PPO* Margin Rate Utilization Leverage PPO*<br />
0.318 $190.8 1425 4.3 $371.8K Group 1 0.299 $186.6 1503 4.6 $385.7K<br />
0.390 $115.2 1710 4.6 $353.4K Group 2 0.387 $117.1 1720 4.9 $381.9K<br />
0.413 $127.2 1500 4.5 $354.6K Group 3 0.414 $128.1 1612 4.2 $359.1K<br />
0.398 $ 91.2 1725 4.7 $294.3K Group 4 0.425 $103.7 1472 4.8 $311.4K<br />
0.356 $121.2 1335 4.8 $276.5K Group 5 0.368 $117.1 1612 4.4 $305.6K<br />
0.375 $112.8 1740 3.2 $235.5K Group 6 0.341 $115.3 1658 3.9 $254.2K<br />
0.377 $122.7 1560 4.5 $314.3K FIRM AVG0.379 $124.3 1599 4.5 $334.5K<br />
* PPO= profit per officer<br />
Figure 3: Results Expressed as an Index of Firm Averages<br />
Last Year<br />
This Year<br />
Margin Rate Utilization Leverage PPO<br />
Margin Rate Utilization Leverage PPO<br />
84 155 91 96 118 Group 1 79 150 94 102 115<br />
104 94 110 103 112 Group 2 102 94 108 108 114<br />
110 104 96 101 113 Group 3 109 103 101 93 107<br />
106 74 111 105 94 Group 4 112 83 92 106 93<br />
95 99 86 107 88 Group 5 97 94 101 97 91<br />
100 92 112 71 75 Group 6 90 93 104 86 76<br />
Copyright 2005 <strong>David</strong> H. <strong>Maister</strong> Page 6 of 6 www.davidmaister.com
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