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About Project Management For Profit

The Birth of Project Management For Profit


Setpoint founders Joe Cornwell and Joe Van Den Berghe

In 1992, two young engineers started a small business to design and build automated manufacturing equipment. These two young men were named Joe Cornwell and Joe Van Den Berghe (we like to call them "The Joes"), and they christened their new business "Setpoint". The Joes had just finished a frustrating stint working for an amusement ride manufacturer that embodied every notion of how NOT to run a project-based business.

The lessons learned at the coaster company weren't lost on The Joes. As they worked diligently to get their fledgling project-based business off the ground, they knew they would need to do things differently at Setpoint in order to survive, better yet, to thrive.

As Setpoint started to grow, The Joes brought another member onboard to augment the team. Joe Knight (That's right....a third Joe!) had worked with The Joes at the coaster company, and brought a comprehensive financial background to the team.

Joe C. and Joe V. are prototypical engineers. They both look at any problem as a challenge that can be solved with a system and/or process. The challenge of establishing a real-time project financial tracking Setpoint was no exception. Combining that perspective with Joe Knight's financial knowledge, the team set off to carve out a project finance management system that would keep Setpoint running in the black, and keep the team appraised of their financial progress every step of the way.

 


 

Sharing Our Secrets With the World

As the Setpoint business continued to grow and prosper over the years, word of the unique system of financial tracking that we were developing trickled out into the local business community. Numerous strategic partners, vendors, and even customers would bring their teams to Setpoint to learn how to use our system to monitor their own project business ventures. The system was simple, easy to share with every member of the team, and its success stories were really starting to pile up. Nearly every group that implemented some form of the system would come back to us with tales of financial tragedies averted, or profitable ventures fully exploited, all directly attributable to the system.

Eventually we started to realize how helpful this system could be to many businesses, particularly small, project-based ventures like Setpoint. And that's when the first ideas for the book Profit Management For Profit were thrown around. As we started to map out the message for the printed version, it quickly became apparent that there would also be a great opportunity to help people learn and implement the PM4Profit system via the internet, and this website was born.

Our goal for the Project Management For Profit book and this website is help you fully understand your project's financial picture at any given time, and to help you use that understanding to better manage the profits of your efforts.

 


 

How PM4Profit is Turning Mediocre Businesses into Cash Cows

Every business, and consequently every project, operates at some level of financial inefficiency. Even the best businesses have dozens (or perhaps hundreds) of small "cash leaks" throughout their systems. These cash leaks come in many shapes and forms, and they often camouflage themselves so completely that you never even know they exist they exist. But you DO KNOW that the leaking cash is gone! For whatever reason, your pile of cash at the end of the project is smaller than it should be. Wouldn't it be nice to know the reason for the cash leak? Better yet, wouldn't it be nice to see the cash leak BEFORE it costs you tons of money? And wouldn't it be advantageous to know which phase of the project is making great profits, and which phase is struggling to break even? I'll bet you could think of some ways to utilize that information profitably, couldn't you?!?

In any scenario, making a big decision with only vague or incomplete information in hand is a dicey proposition, at best. When you're talking about project finances and profitability, it quickly goes from dicey to dangerous. How can we possibly make good decisions if we don't have solid facts to draw upon and plan around?

And yet, we expect PMs to do just that every day. We send our project managers off into battle with just a fraction of the financial data that he really needs to do his job correctly.

The PM4Profit project manager is armed with all the financial metrics that measure the impact of every action on the project. He can tell you exactly how much profit his project earned last month, last week, or yesterday! And if he starts to see his profits slip, he can implement mitigation strategies quickly to get things back on course.

The old saying goes: "Knowledge is power", and it is oh so true. A good project manager who is regularly empowered with fresh and accurate project financial data can conquer nearly any project challenge that comes along. And most importantly, he can consistently manage his project's profits.

See how PM4Profit measures up against other project management systems >