Service Leaders: Don’t Invest in Digital Transformation…. Unless You Do This First

Author: Categories: Benchmarks, Metrics and Reporting, Professional Services, Scalability

Professional services leaders role in digital transformations

In an age of big-data and data science, it’s more important than ever to engage in data-driven decision making. Yet surprisingly, there is often a leadership disconnect between where and how analytics can create value for an organization. You can have all of the data in the world but if you don’t know how and where to apply it, you … Read More

How to Measure and Calculate Billable Utilization: Formula for Professional Services

Author: Categories: Benefits, Efficiency, Professional Services, PSA Software, Resource Management

What is billable utilization in professional services

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

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

Change in an Industry with Opposing Trends – 2019 Professional Services Benchmark

Author: Categories: Benchmarks, Professional Services

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

Author: Categories: Efficiency, Professional Services, Project Accounting

Invoicing for Professional Services

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

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

Forecasting Revenue Using Predictive Analytics

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

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

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

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

The State of the Industry – 2018 Professional Services Benchmark

Author: Categories: Benchmarks, Professional Services

2018 Professional Services Benchmark

Few industries change as rapidly or evolve as continuously as the professional services industry. As the economies of developed nations continue to shift to be predominantly service-based, the firms that produce that output are continually reinventing themselves to overcome obstacles, satisfy market needs, and seize opportunities. Every year SPI Research surveys those firms and develops their annual Professional Services Maturity Benchmark. The 2018 Professional Services Benchmark shines light on the state of the professional services industry.

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