(O&T) Hub site to evaluate, manage, and determine intelligent risks. Once assessed during the BPP, decisions are made on appropriate actions to be taken. Figure 7.4-22 provides an overview of key results (additional details AOS). 7.4b Strategy Implementation Results Strategy implementation progress is shown in Figures 7.4-23, 2.1-3, and 2.2-3 (Figures 2.1-3 and 2.2-3 contain sensitive business data and have been redacted). Figure 7.4-23 2016–2017 Strategic Goal Results (FY) (Figure 7.4-23 contains business sensitive data and has been redacted.) 7.5 Financial and Market Results 7.5a Financial and Market Results 7.5a(1) Financial Performance IPM’s philosophy is Shoot for the stars, and if you land on the moon, celebrate . Our budget is therefore consistently optimistic and set as a stretch goal, knowing that failure to perform to budget does not impact the long-term sustainability of the Company. As illustrated in Figure 7.5-1 , we have had substantial growth year over year. Company revenue versus budget is used as a management accountability metric (Figure 7.5-1) . Days Sales Outstanding (DSO) is calculated as the 12-month average of Accounts receivable / (Monthly revenue / # of days in the month). Over the past five years, our DSO has been trending downward as we continue to negotiate better terms, approaching the SPI benchmark and exceeding that of a previous Baldrige Award recipient (Figure 7.5-2) . Cost per hour increased from FY2013 to FY2015 as we raised employee salaries following compensation benchmarking, continued to absorb the rising cost of medical benefits, and invested in company growth. Cost per hour has stabilized FY2015 through FY2017 as our volume of revenue hours has increased at the same pace as overall expenses (Figure 7.5-3) . While cost per hour has increased slightly, average annual revenue per consultant is increasing. Figure 7.5-4 shows annual revenue per consultant as compared to the SPI benchmark. As stated in our M&B , IPM's employees are our most important asset. We have invested heavily in our employees by increasing salaries and continuing to fund medical benefits despite dramatically rising premiums. In support of our long- term growth strategy, we opened three new offices between 2014 and 2015 and focused on executing our strategy of diversification by investing in growing our Healthcare and Consumer Products sectors. These investments have short- term impacts to profitability, as noted in Figure 7.5-5 , which depicts Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). We expect these investments to positively impact long-term growth and profitability.
Company Revenue vs Budget
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Actual Revenue
Budgeted Revenue
Figure 7.5-1 Revenue Variance vs. Budget
Average 12-Month DSO
20 40 60 80 100
64
64
45 51
50.8 50.8 52.8
49.6 48.8
44.7 44.1 43.4 43.8 44.6 48.2
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Avg 12 Mo DSO SPI Benchmark Previous Baldrige Award Recipient
Figure 7.5-2 Days Sales Outstanding
Cost Per Hour
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Figure 7.5-3 Cost Per Hour
Annual Revenue Per Consultant (FY)
2015
2016
2017
IPM SPI Mgmt Consultancies
Figure 7.5-4 Annual Revenue per Consultant
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