In previous blog posts, we laid out some of the operational changes and tactical changes professional services firms and project-based businesses can make to drive improved utilization. These are predicated on having an integrated system of people, processes, and technology that allows for data to be shared across the organization.
Unfortunately, most organizations are constrained by disconnected business systems. These disparate systems collect different data in different ways, resulting in different business functions managing to multiple versions of the truth. When your sales, marketing, project management, financial management, and management teams all have siloed processes and systems – each using different tracking and reporting tools – your business leaders don’t have the insights they need to take on the right projects, utilize their people most effectively, and maximize profitability.
On the other hand, by connecting systems, you can manage all aspects of client-facing activities across the organization, from sales through project staffing, project delivery, and invoicing. Ultimately, your business leaders have better insight into the state of the business, which leads to better forecasting, planning, and decision-making.
Once operational and tactical changes have been made, you are far more likely to execute successfully on strategic changes. In the case of improving utilization, this means aligning pipeline and resource capacity through better planning and decision making, measured by chargeable utilization and EBITDA.
3 crucial areas to focus on to drive strategic improvement
Focus on improved forecasting
Once operational and tactical changes have been made, it’s important to focus on collaborating forecasting across sales, project management, and financial management.
Optimize the project portfolio to fit forecasting
With a coordinated forecasting, you’ll be able to make investments in different areas of your business to capitalize on market demand and prepare for anticipated changes.
Align human capital management with forecasts and the portfolio
Given accurate forecasting, you can optimize your investment in your people, recruitment, and training.
These changes are simple in concept, but complex to execute, especially when you operate with disconnected systems. Read more about how Velosio can help connect your systems so you have a productive workforce, streamlined processes, and aligned pipeline and resource capacity driving utilization and profitability.