Future-Proofing Your Professional Services Profit Margins

Author: Categories: Control, Efficiency, Profitability, Project Management, Resource Management, Results

Professional services automation software is most commonly portrayed as a tool that catalyzes intelligent growth and extends the life of essential systems as organizations expand and take on more complexity. However, PSA software is equally important when project volume is lean, and the viability of an organization depends on ensuring profitability is maximized for every project. The institutional knowledge held … Read More

Build a Dynamic Growth Strategy with Rich Project Data

Author: Categories: Growth, Profitability

The software that professional services firms use every day can easily be taken for granted and profiled as purely tactical tools. These applications are used to manage operational processes and make day-to-day life simpler while driving incremental growth, such as by managing resource allocation, project status, budget projections, and revenue forecasting. However, professional services automation (PSA) software is more than … Read More

Everything You Need to Know: Fixed Price Contracts and Revenue Recognition for Professional Services Firms

Author: Categories: Professional Services, Profitability, Project Management, Visibility

Everything you need to know about managing 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

5 Myths of Measuring Professional Services Profitability, and How to do it Right

Author: Categories: Metrics and Reporting, Professional Services, Profitability

*This article was updated June 2020* Professional services firms seeking to improve project profitability often have a myopic focus on revenue generation and resource utilization with the hopes that these tactics are sufficient to optimize their KPIs. While revenue growth and healthy utilization are essential, forgetting to manage your profit margins can have a dramatic impact on the business’s long-term … Read More

Professional Service Contract Structures – Comparing 6 Different Models

Author: Categories: Professional Services, Profitability, Project Accounting, Scalability

Professional Service Contract Structures

At the core of every professional services engagement there is a contract structure that dictates the expectations of each party. While strong results are ultimately what every client wants, the contract structure that surround consulting a project plays a significant role. It dictates who bears risk, when money changes hands, and the how final product is to be delivered. As … Read More

How a Focus on Incrementalism Drives Professional Services Results

Author: Categories: Professional Services, Profitability, Scalability

The following article is a guest post authored by Phil Pedlikin. Phil is a professional services executive with a proven track record of growth and profitability–increasing revenues and profits wherever he has been a leader. In this guest post Phil outlines how he has leveraged incrementalism to drive significant improvements in professional services profitability. As services companies strive to improve … Read More

Driving Professional Services Success: How Marginal Improvements Payoff Big

Author: Categories: Professional Services, Profitability, Project Management, PSA Software, Results

Performance Dashboards for Professional Services Firms

Over the years we’ve noticed that the top performing professional services firms are always tinkering with their processes. Their growth strategy is a combination of selling more on the front end, and adjusting delivery operations on the back end. Seasoned managers are constantly evaluating incremental costs and benefits, and making a chorus of small changes that effect dramatic improvements in … Read More

4 Ways a PSA Solution Makes you More Profitable – PSA Infographic Deconstructed: Part Two

Author: Categories: Professional Services, Profitability, PSA Software, Results

In our last blog post, we talked about how utilization and profitability were two sides of the same coin and dove a little deeper into the first side: improving utilization. Today, we’ll talk about profitability, the flip side. For professional service firms, where knowledge is the product, maintaining healthy profit margins is nothing short of an art. It takes a … Read More

3 Essential Tools to Improve Resource Utilization – PSA Infographic Deconstructed: Part One

Author: Categories: Efficiency, Professional Services, Profitability

Resource Scheduling Software helps professional services firms match the right person with the right project. In the professional services business, utilization and profitability are two sides of the same coin. It’s quite simple to optimize one at the expense of the other, at least in the short run. Discount your rates heavily, and your utilization will soar, but to the … Read More