Insights to Grow Your Consulting Firm Profitably
Mike Fauscette Group Vice President Software Business Solutions IDC
Stefan Grahn Managing Director Sweden Professional Services Deltek
Discussion Topics
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Insights to Grow A Profitable Consulting Business | Mike Fauscette, IDC
Addressing Key Business Challenges | Stefan Grahn, Deltek
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Copyright 2012 IDC
Insights to Grow a Profitable
Consulting Business
Michael Fauscette, Group Vice President, SBS IDC
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Economic Realities
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Global Volatility
Slow Growth
Gen C
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Competing for Growth in Tough Economic Times?
Improve Business
Agility
Know Your Customer
Acquire and Retain Talent
Gain Competitive Advantage
Maximize Profits
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The Right Business Processes and Systems that Support Them
Integrated System
Lifecycle Project
Management
Portfolio View Purpose Built for Services
Firms
Data Driven
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The Survey
N = 280 Base = All Respondents Source: Consulting Survey, IDC, May 2012
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The Survey
• Almost 50% director / manager non-IT
• Sweet spot for revenue: $11-$50M – 27.5%
N = 280 Base = All Respondents Source: Consulting Survey, IDC, May 2012
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Areas of “Friction” Over Past 12 Months
Revenue Utilization
Pipeline
DSO Win Rate
Project Size
# of Projects
Margin
Bill Rates
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Top Business Challenges
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Increasing Revenue (49.3% ranked #1)
Maximizing Profit (26.4% rated #2)
More Efficient and Effective Project Execution (27.5% rated #3)
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Top Business Challenges
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But don’t forget…
Gaining Better Customer Insight
Increasing Visibility into Key Business Metrics
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Lifecycle
Marketing Campaigns
Proposals Contracts Project Delivery
Resource Management
Portfolio Management
Time and Expense
Billing
Revenue Management /
Financials
Client Data
Analytics
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Integrating Front to Back Office?
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Is your firm’s CRM system integrated with its financial and project management systems or PSA/SRP system ?
N = 211 Base = All Respondents Source: Consulting Survey, IDC, May 2012
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Integration
N = 87 Base = All Respondents Source: Consulting Survey, IDC, May 2012
What benefits has this integration delivered to your firm?
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Top 3 Business Priorities for 2012
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#1: Increasing revenue (45.4% rated #1)
#2: Maximizing profit (24.6% rated #2)
#3: More effective and efficient project management (33.2% rated #3)
For #2 fairly even distribution “Gaining better customer insight”, “more effective/efficient PM” and “increasing visibility into metrics”
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Systems
CRM
Project Management
SRP/PSA
Financial Management
BI/Analytics
HCM
Project Collaboration
Talent
75.4%
64.3%
54.3%
52.9%
44.3%
36.8%
28.9%
28.6%
7.1% Other Business Solutions
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Systems
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
PSA/SRP
CRM
Project Mgt
Project Collab
HCM
Talent Mgt
BI/Analytics
Home GrownPurchased
N = 280 Base = All Respondents Source: Consulting Survey, IDC, May 2012
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A Little History
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Manufacturing Resource Planning (MRP)
Enterprise Resource Planning (ERP)
PRODUCT
Finance
etc.
Customer Employee
Supply Chain
MFG
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A Little History
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Enterprise Resource Planning (ERP)
Professional Services Automation (PSA)
PROJECT
Finance
etc.
Customer Resources
Sales
Delivery
Services Resource Planning (SRP)
Build or Buy?
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But for “Home Grown” Priorities Are:
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#1: increasing visibility into business metrics (80% more likely to list as #1)
#2: more effective and efficient project execution (27% more likely to list in top 3)
#3: better financial management (18% more likely to list in top 3)
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Observations on “Home Grown”
Dragging Down Performance
• Tie to decreasing metrics
Not as Efficient
• Tend to be associated with higher admin time
More Challenges
• Metrics visibility (52% more likely to rank #1)
• Effective project execution (56% more likely to rank #2)
More Costly
• Higher incidence of increasing IT budgets
• Fewest number indicating decreasing budgets
Inhibiting Business Development
• Longer deal cycle times.
• 30% more likely to be 6 x as long, or 3-6 months
Less Insight
• In-house CRM: Top 1 & 2 Firms rate “better customer insight” higher than average
• 21% more likely to rank in top 3
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SRP
Analytics
Peo
ple-
cent
ric C
olla
bora
tion
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Best Practices
Maximize Lifetime Relationship
“Right” Resource
“Right” Project
Pipeline Visibility
Optimize Book of Business
Maximize Value of Resources – True Capacity
Meet Expectations
Minimize Risks
Single Source of the Truth
Realization / Utilization
Resource Planning
Business Planning
Take Action Early and Based on Facts
Know Your Customer Manage Your Portfolio Manage to Metrics
Profitably Grow Your Business
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Growing Revenue and Increasing Margins
Increased Visibility into Key Business Metrics
More Effective and Efficient Project Execution
Gaining Better Customer Insight
Respondents Goals
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With SRP P
eopl
e-ce
ntric
Col
labo
ratio
n
Profitably Grow Your Business
Know Your Customer Manage Your Portfolio Manage to Metrics
Deeper Visibility
Project Centric
One Source of Truth
Complete Lifecycle
Flexible Financial Management
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© 2011 IDC
Contact
Michael Fauscette Twitter: @mfauscette Blog: www.mfauscette.com Google+ - gplus.to/mfauscette
Addressing Key Business Challenges
Stefan Grahn Managing Director Sweden Professional Services Deltek
[email protected] @StefanGrahn
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Key Challenge Framework Past Present Future
Client Profitability Clients
Projects
Resources
Finance
Cash Flow
Talent
Contracts
Business Performance Management
Opportunity Mgmt Pipeline Management
Contract Profitability Engagement Mgmt Revenue Forecasting
Project Profitability Project Execution Project Planning
Utilization Resource Planning Capacity Planning
CV Management Performance Appraisals Talent Management
Financial Performance Business Insight Business Planning
Cash Flow Statements Credit Collection Cash Flow Forecasting
Business Challenge: Global Business Insight
Large Consulting Group with Offices in Europe & Asia Heavily Customized Enterprise ERP in Home Market Smaller ERP Solutions in European Subsidiaries Homegrown Solution in Asia
Key Challenges Lack of Global Business Insight – Projects, Resources, Clients… Lack of Capacity and Resource Planning Capabilities No Multi-Company/Multi-Currency Capabilities Process Inefficiencies – Time & Expenses, Billing, Cash Collection
Solution Global Implementation of Deltek Maconomy & People Planner Enterprise On-Premise
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Business Challenge: Customer Insight & Opportunity Mgmt Audit, Tax and Advisory Firm with 1,100+ Employees in 25+ Offices Deltek Maconomy ERP Homegrown CRM Tools
Key Challenges Bad Data Quality (Client-facing Staff Not Involved in CRM) Limited Marketing Automation and Opportunity Management Capabilities
Pure Play CRM Vendors Could Not Offer a License Model that Suits Consulting Organizations Limited Support for Opportunity Management Tailored for Consulting Opps
Solution Implementation of Deltek Maconomy CRM Existing Deltek Maconomy Analytics Solution Real-time Integration to External Data Sources Enterprise On-Premise
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Business Challenge: Revenue Forecasting Enterprise Software Group operating in 15 Countries (US, EMEA, APAC) Heavily Customized Enterprise ERP Smaller ERP Solutions & Homegrown Solutions in many Subsidiaries
Key Challenges Limited Revenue Forecast Capabilities (Licenses, Maintenance,
Subscriptions, Services) Need Global SRP Capabilities for Continued Global Expansion Lack of Global Business Insight – Projects, Resources, Clients… Process Inefficiencies – Time & Expenses, Billing, Cash Collection
Solution Global Implementation of Deltek Maconomy Enterprise On-Premise
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Business Challenge: Project Execution & Project Insight Enterprise Software Group Operating in 4 European Countries Local Finance Solutions Complemented with Homegrown Solutions
Key Challenges Limited Project Execution and Project Insight Capabilities No Multi-Company/Multi-Currency Capabilities Limited Revenue Forecast Capabilities (Licenses, Maintenance,
Services) Lack of Business Insight – Projects, Resources, Clients…
Capex Challenge Needed SRP Capabilities for Continued Expansion, but Reluctant to
Make the Necessary Initial Investment Solution Group Implementation of Deltek Maconomy SaaS / Rapid Deployment
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Read More
Scan using a QR Code Reader App http://www.deltek.co.uk/customersuccesses.aspx
Additional Customer Case Stories…
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Learn More
Find out where your firm stands…
Download the full whitepaper and webinar recording.
http://more.deltek.com/forms/Webinar-IDCMetricsFollowup
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Stefan Grahn Managing Director Sweden Professional Services Deltek [email protected] @StefanGrahn
@maconomyus
deltekps.wordpress.com
Thank You!
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