Utilization. Every professional services firm I’ve ever worked with—whether they’re a management consultancy, a digital marketing organization, or a technology implementer—calculates and measures a billable utilization formula. Every professional services manager—from the executive leadership level to delivery managers to department heads—tries to improve utilization. Every billable consultant is, at least in part, evaluated and compensated on utilization. Billable utilization is … Read More
The Ultimate Guide: What is PSA Software?
This article answers the question, “What is PSA software?” and covers the critical aspects you need to know. Professional Services Automation software is sometimes referred to by several other names, some formal and some informal, such as: Whatever name you wish to use, Professional Services Automation software is the core operational system for professional services resource planning, project management, and … Read More
Everything You Need to Know: Fixed Price Contracts and Revenue Recognition for Professional Services Firms
Managing fixed price contracts is a source of struggle for many professional services firms. Both private organizations and public companies need to paint a picture of how complete a project is in order to run revenue recognition. In addition, companies need to do so in a manner that is justifiable to its board, shareholders, auditors, and the IRS, all while … Read More
The Best Way to Select Software for your Professional Services Firm and Get it Right
You have undertaken the selection process to find the right software solution for your professional services firm. You have a laundry list of functions the software needs to perform, you have Googled professional services software vendors, and you are quickly feeling overwhelmed with a handful of options, each promising to meet your every need. How do you sort through this … Read More
Change in an Industry with Opposing Trends – 2019 Professional Services Benchmark
Change is both a blessing and a curse for the global professional services industry. As this year’s 2019 Professional Services Benchmark puts it, “After all, without disruption and change, professional services would not exist, because clients would not need expert help to navigate new opportunities and landmines.” The past months have seen no dearth of “opportunities and landmines” in the … Read More
Invoicing for Professional Services: Best Practices and Scalable Processes
Invoicing for professional services work is one of those things that seems simple on the surface. Download an Excel invoicing template for consulting services, punch in your hours and rate, render a services invoice, and send it to the client. For professional services organizations with just a few consultants, this is often the approach. Of course, as service teams grow … Read More
Forecasting Revenue Using Predictive Analytics: An Interactive Case Study
Now, for those of you who want more detail… Much has been written about using fancy technologies like artificial intelligence, machine learning, and predictive analytics in the workplace to do everything from identifying the most effective project managers to making recommendations on Netflix. Too often, the reader is left with the impression that the technology is only available in high-end, … Read More
Can Artificial Intelligence Identify Your Most Effective Project Managers?
I harbor no illusion that the current state of artificial intelligence and machine learning is advanced enough to be an effective substitute for a talented, experienced, passionate project manager. For me, a more interesting question is whether these techniques can help improve success rates within the project management discipline. Could artificial intelligence and machine learning identify the most effective PMs … Read More
5 Myths of Measuring Professional Services Profitability, and How to do it Right
When it comes to measuring professional services profitability, many firms have a myopic focus on revenue generation and resource utilization with the hopes that profitability will be there in the end. While revenue growth and healthy utilization are essential, forgetting to manage your profit margins can have a dramatic impact on the business’s performance. The most successful professional services firms … Read More
Growing a Professional Services Firm: What it Takes to Make $10 Million in Profit [Infographic]
Growing a professional services firm to $10 million in profit depends quite a bit on the systems, structures, and strategies deployed by the firm. See what the latest Professional Services Benchmark reveals about the impact these choices can have.