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A contracting company earns much more than usual. They attribute it to the principle.
The company’s management attributes this success largely to their use of risk management or budget quality assurance using the Successive Principle. Unlike other contracting firms they have avoided ending up with contracts regularly going into the red, often to a serious extent.
The AF Group, having achieved success for several years using the Successive Principle, upgraded it in 2006 to the status of one of the company’s strategic tools and subsequently used it systematically from tender to completion. In addition, it applied the principle to portfolio management.
Evidence of the accuracy of the tool as applied to tender estimates is clear from the fact that of the hundred-plus projects since 2006, only one has gone into the red. The proficiency of the tool in optimising performance has also played its part in the exceptionally high earnings of the AF Group. Moreover, AF is the fastest-growing Scandinavian company in the sector and the only one to achieved growth in 2010.
Ref 1. Annual report 2010 - AF Group, pages 14-15. Ref 2. New record result for AF Gruppen (Published: 2/14/2014).
About Dr. Steen Lichtenberg