For more than a decade, PSMJ’s Circle of Excellence has set the standard for high-performing A/E/C organizations
PSMJ’s exclusive Circle of Excellence is designed to recognize firms that are successfully managed, based on 13 key performance metrics that demonstrate outstanding achievements in profitability, staff growth, cash flow, productivity, business development, overhead management, and turnover. The Circle of Excellence represents the top 20% of participants (on these key metrics) in PSMJ’s annual A/E Financial Performance Benchmark Survey.
In today’s ever-competitive business climate, this is a distinction that can give your firm an edge in areas such M&A, recruiting, and more. Think about it. If you are considering selling your firm or courting prospective sellers, the Circle of Excellence badge is a recognized indicator of proven success and management. On the recruiting front, touting that your firm has made it into the Circle of Excellence is hard evidence that firm “walks the walk” when it comes to being a well-managed organization.
Firms of All types and Sizes Are Eligible — No Firms Are Excluded!
Since the award’s creation in 2006, Circle of Excellence members have consistently represented all facets of the industry. The key differentiator between PSMJ’s Circle of Excellence and other industry awards is that all firms in the A/E industry are eligible, and firms are not excluded based on firm type, size, gross revenue, net revenue, practice area or location. Here are the 13 key performance metrics that we use to determine Circle of Excellence members:
- Net Direct Labor Multiplier (Achieved)
- Operating Profit (As a % of Net Revenue)
- Operating Profit (Per Total Staff)
- Staff Size Change
- Return on Overhead
- Labor Utilization Rate (Payroll Dollars)
- Operating Overhead Rate (Before Bonus and/or Distributions)
- Accounts Receivable Collection Rate (Days of Gross Revenue)
- Net Revenue Backlog (As a % of Net Revenue)
- Return on Working Capital
- Gross Revenue Growth Rate
- Staff Turnover Rate
- Net Revenue (Per Total Staff)
This award recognizes those firms that are not only good at their practice but also at running their practice as a business.
How Can Your Firm Be Eligible for the Circle of Excellence?
Winning an award for rapid growth is easy. Just sell more work than you are able to deliver. Or make a big acquisition (successful or not). The PSMJ Circle of Excellence is different. We use a balanced scorecard of 13 different metrics that measure growth, profitability, the ability to attract and retain talent, cash flow management and efficiency of overhead investments. PSMJ Circle of Excellence winners are truly the best performing firms. Applying for the Circle of Excellence Award is easy and, unlike other awards, costs nothing to enter. Just participate in PSMJ’s Financial Performance Survey and you’re automatically entered. Participation is generally open from January through mid-April. You will be notified if your firm has made the cut after the survey is published (generally June/July).
Get Recognized for Your Success!
Every year, we recognize the Circle of Excellence members and other award winners at our annual THRIVE conference – a gathering of hundreds of A/E/C firm leaders from around the world. The awards party is an event that can’t be missed and where you get the chance to bask in your firm’s deserved glory! In addition to the award recognition at THRIVE, you get the VIP treatment with a breakfast session reserved exclusively for Circle of Excellence members and other award winners (a great community of like-minded and high-performing A/E/C firm leaders!) to share war stories, best practices, and more.
Of course, getting into the Circle of Excellence also gets you great exposure when we announce the inductees through press releases, social media posts, and more. We also provide you with a media kit (including award logos) to make sure that you don’t miss out on a chance to celebrate this great achievement.
As if this all weren’t enough reason to participate in our A/E Financial Performance Benchmark Survey, making it into the Circle of Excellence also gets you a complimentary copy of our Circle of Excellence: Best Practices Benchmark Summary Report (a $97 value). This 22-page report includes data comparisons from the 10th to 90th percentiles for each of the 13 metrics used to determine the Circle of Excellence members.