After assessing and training thousands of project managers and working with hundreds of firms to improve financial outcomes, one truth stands out. Firms that invest intentionally in developing strong project managers consistently outperform those that do not. 

Below are five high-impact strategies that can radically improve project manager success and strengthen your firm’s financial performance. 

Assess Competencies

Not all project managers are operating at the same level of competency. If you look at the standard PM job description, they often fail to identify specific competencies that are required to be a successful PM. And even in those firms that do have standard competencies identified, PMs are rarely assessed in these areas. Many PMs are promoted based on technical expertise or longevity rather than their ability to manage clients, teams, budgets, and risk. 

A structured competency assessment helps you: 

• Identify strengths and gaps in technical, financial, project management, leadership, and client management skills 

• Benchmark your project managers against industry expectations 

• Build targeted development plans 

• Improve hiring and promotion decisions 

• Pinpoint the areas where competency gaps are directly contributing to profit erosion 

A clear view of PM capability gives leadership the foundation needed to develop a consistent, high-performing project delivery team. Assessment is not optional. It is the starting point for every improvement initiative. 

Create Structured PM Processes and Systems

One of the biggest obstacles to profitability is the lack of standardization. When project managers each use their own approach to budgeting, scheduling, communication, and financial management, inconsistency becomes the default, and inconsistency is expensive. 

Without firm-wide project management processes, you can expect: 

• Quality control problems 

• Scope creep and unmanaged risk 

• Budget variances that appear too late to correct 

• Difficulty evaluating PM performance 

• Wasted effort and duplicated work 

• Frustrated clients and team members 

By contrast, firms that implement standardized, repeatable processes and systems see measurable improvement in quality control, predictability, client satisfaction, and profit margins. Processes and systems create structure, and structure enables faster PM onboarding, aligned expectations across departments, and smoother communication with accounting and technical staff. 

Most importantly, standardization creates the conditions required for meaningful accountability, which is addressed in strategy number five. 

Train Project Managers on Financial Acumen and Best Practices

Many project managers do not fully understand the financial consequences of their decisions. In my book, Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering and Environmental Firms, we outline the specific points in the project lifecycle where money leaks out of the business and how project managers can prevent those losses. 

Training PMs in financial literacy and project management best-practices equips them to: 

• Build accurate and defensible budgets 

• Understand contractual obligations and risk 

• Manage scope proactively 

• Reduce write-offs and missed billing 

• Improve communication with clients 

• Plan resources more effectively 

• Make informed decisions that protect margins 

When PMs know how the firm makes money, as well as how projects lose it, they become stronger leaders, better decision-makers, and far more effective stewards of profitability. Financial training is not a luxury. It is a requirement for any firm that expects reliable project performance. 

Hire a Project Accountant to Support Your PMs

Even the strongest project managers struggle when they are overloaded with administrative and financial tasks that distract from managing clients, teams, and project outcomes. A project accountant is one of the most powerful productivity and profitability boosters available to A&E firms. 

A project accountant can: 

• Oversee billing and invoicing 

• Track budgets, forecasts, and financial performance 

• Monitor work in progress and cash flow 

• Support collections and documentation 

• Ensure timely execution of change orders 

• Coordinate schedules and deliverables 

• Maintain financial data in Deltek Vantagepoint, Ajera, or other industry systems 

• Help keep PMs focused on project financial outcomes  

This role delivers an exceptional return on investment by improving billing accuracy, accelerating cash flow, and freeing project managers to focus on high-value responsibilities. In most firms we work with, Project Accountants are often billable roles that pay for themselves. 

Strengthen Accountability with Clear Goals, Performance Monitoring, and Incentives

Processes and training are essential, but they only produce lasting change when accountability exists. Without clear expectations, visible metrics, and consistent follow-through, project manager performance becomes subjective rather than measurable. 

To build a culture of accountability, firms must: 

• Set clear, measurable goals for financial, operational, and client performance 

• Track performance through dashboards, KPIs, and regular, frequent check-ins 

• Provide coaching and feedback early and consistently 

• Apply consequences and rewards that reflect real performance 

• Ensure every PM understands how their actions impact firm profitability 

Accountability is not punitive. It creates clarity, alignment, and motivation. When expectations and incentives are aligned, project managers become more engaged, more responsible, and significantly more effective. 

Final Thoughts 

Project managers have more influence on firm profitability than any other role. When you assess their competencies, create structured processes, provide financial and project management training, support them with project accountants, and strengthen accountability, you are not simply improving project outcomes, you are transforming the way your firm operates. 

These five strategies create a foundation for consistent performance, stronger client relationships, and dramatically improved profitability. 

If your firm is ready to elevate project management performance and increase profits, visit AECBusiness.com to explore our Business and PM Assessments, Find the Lost Dollars training program, and tools designed specifically for architecture and engineering professionals.