[Client Name]
Reporting Period: January 1 - February 28, 2026 | Month 1 of Engagement
Key Performance Indicators
Cash Position
$186,188
Target: $300,000 | Range: $86K–$186K
At Risk
Period low: $86K (Jan 5-11) • Period high: $186K (Feb 23-28)
$100K weekly swing range • $114K below target
$100K weekly swing range • $114K below target
OpEx Run Rate (Annual)
$1.97M
Target: $1.45M
Off Track
Days Sales Outstanding
36 days
Target: < 45 days
On Track
AR Total: $209,083
Operating Margin (YTD)
1.3%
Target: 15.0% (Q1)
Off Track
Revenue (YTD)
$279,471
Target: $2.2M | Accrual Projected: $1.68M
Cash basis collections: $173K/mo → $2.08M projected
Accrual revenue: $140K/mo → $1.68M projected
Gap to $2.2M: -$520K (accrual) vs -$123K (cash)
Backlog: $742K contracted • Needed: $183K/mo avg
Accrual revenue: $140K/mo → $1.68M projected
Gap to $2.2M: -$520K (accrual) vs -$123K (cash)
Backlog: $742K contracted • Needed: $183K/mo avg
Off Track — Accrual Run Rate 24% Below Target
Gross Labor Margin
75.1%
Target: 70% | Breakeven Rate: $117/hr
On Track
Revenue: $277.6K • Loaded labor: $69.2K • Blended rate: $67/hr
2 clients below breakeven (Oakridge, Crestview)
Overhead: 39% of hours • Target: <30%
2 clients below breakeven (Oakridge, Crestview)
Overhead: 39% of hours • Target: <30%
Time Tracking & Labor Efficiency
Hours Breakdown (Jan-Feb)
Client Project Hours
496 hrs (48%)
Client Admin Hours
136 hrs (13%)
Overhead / Non-Billable
396 hrs (39%)
Total: 1,027 hrs • 7 team members • Target overhead: <30%
Top Overhead Categories
| Office / Admin Work | 244 hrs | 62% |
| Meridian Health Client Admin | 76 hrs | 19% |
| TimeTracker Training (Sarah) | 73 hrs | one-time |
| PTO | 52 hrs | normal |
| Business Development | 46 hrs | investment |
| Summit Properties Client Admin | 42 hrs | 23% of HP |
Overhead labor cost: $26,641/period • Compliance: In Progress
SCALE Roadmap Progress - Q1 2026
Deploy Time Tracking
Weeks 1-2
Complete
TimeTracker in place
Implement KPI Reporting
Weeks 1-4
In Progress
This report initiates 5-metric dashboard
Office Manager Restructure
Weeks 2-3
Complete
Payroll down 25% YoY
Subscriptions/Dues Audit
Weeks 3-4
Not Started
D&S up 687%; immediate audit needed
Client Value Framework
Week 4
In Discussion
Two-tier model: individual projects ($50K/$15K) vs. relationship value
Resolve Beacon AR ($157.8K)
Weeks 1-12
Complete
No longer on aging
P&L Summary
| Client | GL Revenue | Total Hours | Eff $/Hr | Direct Labor | OH Alloc | Loaded Cost | Loaded Margin | Margin % | Status |
|---|---|---|---|---|---|---|---|---|---|
| Meridian Health | $80,388 | 168.4 | $477 | $11,342 | $7,340 | $18,682 | $61,706 | 76.8% | Strong |
| Summit Properties | $60,679 | 181.7 | $334 | $12,237 | $7,920 | $20,157 | $40,522 | 66.8% | Strong |
| Pinnacle HC | $56,060 | 57.0 | $984 | $3,839 | $2,485 | $6,324 | $49,736 | 88.7% | Strong |
| Metro Capital | $31,765 | 75.6 | $420 | $5,092 | $3,295 | $8,387 | $23,378 | 73.6% | Strong |
| Vanguard | $20,279 | 42.0 | $483 | $2,829 | $1,831 | $4,660 | $15,619 | 77.0% | Strong |
| Westfield | $5,250 | 9.8 | $536 | $660 | $427 | $1,087 | $4,163 | 79.3% | Strong |
| Sterling | $6,865 | 3.6 | $1,907 | $242 | $157 | $399 | $6,466 | 94.2% | Strong |
| Horizon CC | $2,000 | 11.5 | $174 | $775 | $501 | $1,276 | $724 | 36.2% | Healthy |
| Titan | $11,000 | 29.7 | $370 | $2,000 | $1,294 | $3,294 | $7,706 | 70.1% | Strong |
| Crestview | $1,250 | 11.8 | $106 | $795 | $498 | $1,293 | ($43) | -3% | LOSS |
| Oakridge | $565 | 19.5 | $29 | $1,313 | $850 | $2,163 | ($1,598) | -283% | LOSS |
| TOTAL | $277,601 | 611 | $454 | $41,164 | $26,641 | $67,805 | $209,796 | 75.6% |
Effective Hourly Rate by Client
Revenue ÷ Total Hours • Red line = $117/hr breakeven (loaded rate + overhead)
$117 breakeven
Sterling
$1,907
Westfield
$1,505
Pinnacle HC
$984
Vanguard
$483
Meridian Health
$477
Metro Capital
$420
Summit Properties
$334
Horizon CC
$174
Crestview
$106
Titan
$370
Oakridge
$29
Portfolio Snapshot
Active Projects
160
Remaining to Bill
$742K
Contracted backlog
GL Revenue (Jan-Feb)
$278K
PM fees earned (accrual)
Revenue Concentration
Top 3 = 72%
MH, Summit Properties, Pinnacle
Client Revenue & Backlog
| Client | # Active Projects | Total Contracted | Billed to Date | Remaining to Bill | GL Rev (Jan-Feb) | Fee Type |
|---|---|---|---|---|---|---|
| Meridian Health | 171 | $1,514,878 | $1,065,728 | $507,819 | $80,388 | % Fee, Fixed Fee |
| Summit Properties | 196 | $1,382,950 | $1,010,151 | $434,793 | $60,679 | % Fee, Fixed Fee |
| Pinnacle HC | 5 | $359,271 | $185,424 | $173,847 | $56,060 | Fixed Fee |
| Metro Capital | 93 | $393,516 | $310,494 | $90,088 | $31,765 | % Fee, Fixed Fee |
| Crestview | 10 | $275,312 | $252,693 | $22,719 | $1,250 | Fixed, % Fee |
| Oakridge | 47 | $189,251 | $127,535 | $72,604 | $565 | % Fee |
| Vanguard | 5 | $60,556 | $43,033 | $17,523 | $20,279 | % Fee, Fixed Fee |
| Westfield | 15 | $548,369 | $556,078 | $27,585 | $14,750 | % Fee, Fixed Fee |
| Sterling | 1 | $24,396 | $18,276 | $6,120 | $6,865 | % Fee |
Note: Revenue Attribution
GL revenue reflects PM fees recognized in GL System during Jan-Feb (accrual basis) and may not align with labor effort in the same period. Some clients (e.g., Titan) have fees billed through a landlord entity (Westfield) rather than directly — review billing attribution with the team. Oakridge and Crestview have significant contracted backlogs but minimal current-period revenue, suggesting projects are in closeout or on hold.
Fee Distribution Analysis
| Fee Band | 2025 # | 2025 % Revenue | 2026 # | 2026 % Revenue | Target | Trend |
|---|---|---|---|---|---|---|
| < $5K | 31 (45%) | 5.1% | 3 (15%) | 6.4% | Exit | ↑ Worsening |
| $5K-$15K | 15 (22%) | 9.5% | 17 (85%) | 93.6% | Reduce | ↓ Worsening |
| $15K-$25K | 8 (12%) | 10.2% | 0 | — | Maintain | — |
| $25K-$50K | 10 (14%) | 22.7% | 0 | — | Grow | — |
| $50K+ | 5 (7%) | 52.5% | 0 | — | Primary | — |
Client Relationship Value Framework
Two-Tier Fee Policy Framework
Tier 1 — New/One-Off Clients
• Minimum project fee: $50,000
• No exceptions without owner approval
• Rationale: $50K covers 3.4x overhead ($14,600/project)
• No exceptions without owner approval
• Rationale: $50K covers 3.4x overhead ($14,600/project)
Tier 2 — Existing Relationships (3+ projects)
• Minimum annual client value: $50,000
• Minimum individual project fee: $15,000
• Programmatic/multi-site as package
• Rationale: Repeat work has lower acquisition cost, higher efficiency
• Minimum individual project fee: $15,000
• Programmatic/multi-site as package
• Rationale: Repeat work has lower acquisition cost, higher efficiency
Active Client Portfolio Analysis
| Client | # Projects | Total Fees | Avg Fee | Annual Value | Policy Status | Multiplier |
|---|---|---|---|---|---|---|
| Pinnacle HC | 2 | $399,008 | $199,504 | $399K | ✅ Tier 1 | 1.0x |
| Meridian Health | 38 | $401,446 | $10,564 | $401K | ✅ Tier 2 | 1.3x (prog) |
| Summit Properties | ~30 | $274,173 | ~$9,139 | $274K | ✅ Tier 2 | 1.2x (rep) |
| Metro Capital | ~15 | $89,200 | ~$5,947 | $89K | ✅ Tier 2 | 1.1x (rep) |
| Beacon Wellness | 3 | $391,250 | $130,417 | $391K | ✅ Tier 1 | 1.0x |
| Crestview | 3 | $60,000 | $20,000 | $60K | ✅ Tier 2 | 1.0x |
| Vanguard/DVDerm | 3 | ~$45,000 | ~$15,000 | $45K | ⚠️ Below | 1.0x |
| Titan | 2 | $41,482 | $41,482 | $41K | ❌ Below T1 | — |
| Rossi Foods | 1 | ~$10,000 | $10,000 | $10K | ❌ Below T1 | — |
| Qualified for Tier 1+2 | 6 of 8 clients ($1.6M+ in total fees) | |||||
About the Efficiency Multiplier
Programmatic (1.3x): Identical scope repeated across multiple sites (e.g., Evernorth 11-site clinic rollout). PM learns scope on project #1, executes #2-#11 faster with same deliverables. Effective hourly rate improves with each repeat.
Repeat (1.2x): Similar but not identical scope. Client-specific variations remain, but PM has domain knowledge. Lower acquisition cost than one-offs.
One-Off (1.0x): New client or truly unique scope. Full discovery and customization required.
Repeat (1.2x): Similar but not identical scope. Client-specific variations remain, but PM has domain knowledge. Lower acquisition cost than one-offs.
One-Off (1.0x): New client or truly unique scope. Full discovery and customization required.
📊 Key Insight: The Real Gap
Under the original $50K per-project threshold: 0% of 2026 projects qualify. This misses the full economic picture and penalizes relationship-based work.
Under the client relationship value framework: 6 of 8 active client relationships ($1.6M+ in total fees) meet or exceed the minimum threshold. The real gap isn't project size — it's that 2 small one-off clients (Titan $41K, Rossi Foods ~$10K) fall below the Tier 1 minimum and should be evaluated for fee increases, scope increases, or phase-out. Note: Titan fees are split across two billing entities (Titan Corp + Westfield landlord billing) — total contracted value is higher than it appears in GL System.
Under the client relationship value framework: 6 of 8 active client relationships ($1.6M+ in total fees) meet or exceed the minimum threshold. The real gap isn't project size — it's that 2 small one-off clients (Titan $41K, Rossi Foods ~$10K) fall below the Tier 1 minimum and should be evaluated for fee increases, scope increases, or phase-out. Note: Titan fees are split across two billing entities (Titan Corp + Westfield landlord billing) — total contracted value is higher than it appears in GL System.
Risk Assessment & Recommended Actions
● High
Cash Position & Volatility
Cash at $186K (Feb 28) but $114K below $300K target. Weekly swings of $100K driven by WF 5181 collections timing (ranged from -$6K to +$93K). Mid-month overdraft resolved by period end, but volatility exposes liquidity risk. Cash management framework needed.
● High
Client Margin Leak — 2 Loss-Making Clients
Two clients are below the $117/hr loaded breakeven rate: Oakridge ($29/hr eff rate, -$1,598 loss) and Crestview ($106/hr, -$43 loss). Combined annualized impact: -$9,846. Oakridge has $72K in contracted backlog but many projects marked “Dead” — review which are recoverable. Crestview is winding down with major projects complete. Note: Titan was previously flagged but $9.5K of its revenue is billed through Westfield, making it profitable at $370/hr effective rate.
● Medium
Overhead Ratio at 39% — Target 30%
Non-billable hours (396 of 1,027) consume $27K/period in labor cost. Office/admin alone is 244 hrs. Meridian Health client admin (76 hrs) nearly matches their direct project hours (87 hrs). Reducing overhead to 30% would free 87 hrs/period for revenue-generating work worth ~$5,900/month.
● High
Fee Trajectory
Average 2026 fee of $9,121 is moving away from the $50K target. 85% of projects are in the $5K-$15K band. Zero projects ≥ $50K in Jan-Feb. Requires immediate pricing and qualification strategy adjustments.
● High
Dues & Subscriptions
Dues & subscriptions costs up 687% YoY ($10,783 YTD). Immediate line-item audit required to identify all subscriptions, overlaps, and unused tools. Target: reduce to baseline + strategic tools only.
● Medium
Project Losses
Project losses totaling $89,712 (4.5% of revenue). BioLab project alone accounts for $60K loss. Review project profitability model, engagement terms, and change order process to prevent future losses.
● Medium
Credit & LOC Exposure
$230K in revolving debt ($128K credit cards + $102K LOC). As cash position improves from February collections, allocate excess cash to reduce high-interest revolving debt and improve debt service ratios.
Recommended Actions by Priority
| Priority | Action Item | Owner | Target Date | Expected Impact |
|---|---|---|---|---|
| URGENT | Review Oakridge & Crestview engagements — assess dead projects, recoverable backlog ($72K Oakridge, $23K Crestview), and wind-down plan | Sarah / CFO | By April 4 | Resolve $9.8K annualized margin leak + recover billable backlog |
| HIGH | Deep-dive 244 hrs of office/admin overhead — identify tasks for automation or elimination | Operations / CFO | By April 11 | Target: reduce overhead ratio from 39% to 30% |
| HIGH | Investigate Meridian Health 81-hr admin burden — streamline billing/reporting workflows | Rebecca / Finance | By April 15 | Reduce HH admin ratio from 48% to <25% |
| URGENT | Monitor cash daily; plan for April collections timing | CFO / Finance | By April 4 | De-risk liquidity crisis |
| HIGH | Audit all D&S subscriptions; identify and cancel unused tools | Operations | By April 11 | $5-8K monthly savings |
| HIGH | Finalize Client Value Framework; coach sales on Tier 1/Tier 2 qualification | Sales / Leadership | By April 15 | Higher-value project mix aligned with relationship economics |
| MEDIUM | Confirm office restructure savings and payroll impact | HR / Finance | By April 8 | Validate 25% YoY reduction |
| MEDIUM | Review BioLab and project loss drivers; adjust pricing model | Project Mgmt / Finance | By April 18 | Prevent future losses |
| MEDIUM | Allocate Feb collections to reduce revolving debt | CFO / Finance | By April 30 | Improve debt ratios |