To Whom It May Concern:
Prior to engaging Cogent, we were using an overhead rate for project estimating that was too low. Although, we knew it was incorrect, we were having a difficult time honing in on what the rate should be. We calculated it in-house and asked our CPA to help us out. However, things were still not right. Kevin reviewed our numbers, assessed how things were working in our business and developed a spreadsheet that will help us calculate the overhead rate and stay on top of it as it changes. He emphasized that it is crucial that we are aware of the Company’s overhead factor and recommended that we calculate breakeven by projects.
Cogent helped us see the value in revising our organizational structure and putting more accountability measures in place. By the end of our time with Kevin, we had a new organizational structure as well as thorough job descriptions which included measures of performance. Cogent also advised us against using annual Christmas bonuses as a motivational tool. Instead, Kevin recommended that any additional compensation be based on annual performance reviews.
Cogent has recommended that we run our business using a management accounting approach. He helped us make changes to our chart of accounts that will provide better information for us when we do our monthly financial review. This approach will allow us to make better business decisions.
Cogent’ s approach has worked well for us. Management was permitted to focus on its daily duties as Kevin assessed our issues and worked on solving them. He, then, helped us implement the solutions, providing training to our staff which will enable us to maintain positive results. Finally, Cogent developed key metrics with us. Therefore, the data will inform us if things begin to go off track and we can take steps to right the ship again. Clyde McHenry, Inc. will be moving forward with Cogent’s Lifecycle Management Program to help us maintain the process and progress made to date.
Gina M. Williams
President
