The Contribution per Hour (contr/hr) by Month report shows you monthly contribution per client over time.  The contribution looks at your complete relationship with the client (agreement, projects, product sales, T&M, BT). It is calculated by taking the monthly revenue and subtracting the monthly costs. Looking at it on an hourly basis, it allows you to compare the profit level of all clients whatever the size.

The report is used to show when there is a change in the profitability over time. It will also point out clients where there is a persistently bad contr/hr.

The report can be accessed under the P&L tab on the sidebar on the Dashboard.

The report has two different views based on shading:

1. Shading based on trends  - shading shows the current month as compared to the average of the previous six months.  If  the current month is n% above the average, the month is shaded green; n% below the average, the month is shaded red; within the n% range, there is no shading. (The shading threshold is preset to 15% but can be altered in the filters.) Note: if the value is blank, there is no shading.

2. Shading based on values - the shading is based on the absolute value of the cont/hr for the month. If the contribution is very low or very high, the month is shaded red; if the Cont/Hr is in the range desired, the shading for the month is green; Between the ranges of red and green, the shading is yellow. In the filters, the values of these ranges can be set.

Using the Trend shading, you can see how a client is trending over time.  For example new clients are ones that should be trending from red to green. You usually invest time and month into a new client with the hopes that over the longer term, with your equipment set , tools and support they will become more profitable. So you would see their contribution going from red to green.

The following are the filters for Trend Shading:

1. Pick one client, a group of clients (lists start after the active client list) or all clients. For each client selected, there is a monthly contr/hr. data line.

2. Pick a date range. Each month will be reported on separately and then a column will contain the average. You can also pick a pre-selected range in Quick Select.

3. For this view, Trending is selected

4. The Shading Threshold shows downward trends - red -  (x% less than an average of the six previous months), upward trends  - green - (x% above the average of the six previous months),  or no shading if within the range of -x% and +x%. The default % is .15 or 15%, but can be altered in this setting.

5. Filter on Account Manager

6. Filter on Client Statuses

7. Filter on Client Types

8 Filter on a Location

9. filter on a Market

10. Only show clients with recurring labor agreements.

For 5 - 9, if not used as a filter, ALL is assumed.

Using the Value shading, you can view which clients are in the range of an acceptable profitability for your company KPIs.  You do not want a client to have under a certain profitability per hour, but you also do not want the client to be too profitable ---- they might be a flight risk. Therefore the danger areas (red) are both ends of the scale. You also want to know when the client is changing from the extremes to an acceptable range. This is your yellow zone. And the green zone is where you want them to be.

The following are the filters for Value Shading:

1. Pick one client, a group of clients (lists start after the active client list) or all clients. For each client selected, there is a monthly contr/hr. data line.

2. Pick a date range. Each month will be reported on separately and then a column will contain the average. You can also pick a pre-selected range in Quick Select.

3. For this view, Value is selected

4.-7. The Value Threshold  - the first setting (4) is the value cutoff where the Contr/hr.is too low (red); the second value (5) is where the contr/hour is starting in  good range (green), the range between 4 and 5 is the yellow or mid-low range.  The third value (6) is where the cont/hour is starting to get too high ---- you may not be giving enough value for what the client is receiving. The fourth value (7) is where the contr/hr .is too high (red) and between 6 and 7 is mid-high.

8. Filter on Account Manager

9. Filter on Client Statuses

10. Filter on Client Types

11 Filter on a Location

12. Filter on a Market

13. Only show clients with recurring labor agreements.

For 8- 12, if not used as a filter, ALL is assumed.

Layout

In the report below, the rows are filtered on two markets. Each row is a client and each cell is a monthly cont/hr. The last column is the average contribution (calculated by adding all of the monthly contributions and dividing by the total hours for the months). The bottom row does the same for a given month for all companies contained in the report.

Example

The report shows a row for each client if "All Clients" is selected, or you can look at just one client over a period of time. For example, looking at Client 19360 for the beginning of the year, the client's Cont/Hr has gone down dramatically.

For this client, I can filter on only Client 19360 and look back for another two years to see how contribution has been trending for a longer period of time. The client is very volatile in profitability month by month. Overall on both ranges, the client is under the average profit margin for the time period and is trending down --- an underperforming client.

Layout

In the report below, the rows are filtered on two markets as in the Trends layout. The Averages (last column for a client, last row for a month) are calculated exactly the same way as in the Trends. The only difference is the shading.  Each row is a client and each cell is a monthly cont/hr. In the chart below, the values for the shading are set as follows: the ideal  Contr/Hr  is between $80 and $150 (green); under $50 or over $200 is out of range (red). Anything between these values is a 'caution (yellow)' area.

Example

Look at client 22692 below. Their Contr/Hr over the past four months has been improving, but the average for the last 13-month period is still half ($54.80) of the average ($102.27) for the two markets in this selection of clients. Make sure this profitability continues to improve.