Last week I talked about how SPI Research has seen a strong trend toward making virtually all work, project-based work. This is especially true for Enterprise companies (larger companies that need expended capabilities).
To recap, companies in every industry have turned their focus toward projects. A project focus makes sense as organizations plan work with a beginning, an end, and all steps in between. The key with projects are that there is a cost and time associated with every phase or task, and there should also be value delivered. Every dollar spent on an initiative must be tracked to determine whether it was worth the investment.
Projects are easier to qualify and quantify
A project-based business environment makes perfect sense to executives. Projects begin neat and orderly, with specific start and stop dates, projected cost and expected value. Leading organizations have also incorporated a structured delivery methodology into the project-based work to track everything related to it more closely. This environment helps companies better project a return-on-investment (ROI), which in today’s economy has become increasingly important to customers and clients purchasing products and services.
But very few projects go exactly according to plan, as unforeseen conditions, or changes by the customer impact the project or service to be delivered. Those organizations that have taken a project-based approach to work can more easily change the scope of what is to be delivered, as well as its cost and expected change in duration. Again, this gives executives greater comfort in the work being delivered and its value to both the organization delivering it and its customer.
Better tools are now available for customer and client facing organizations
Tools for enterprise businesses can increase billable utilization, increase profitability per consultant, and increase customer satisfaction as projects are completed more frequently on-time and on-budget. Additionally, PSA software increases employee satisfaction, as they better understand what is required of them and the value they must deliver. Companies also have greater financial governance, tracking all costs associated with project delivery and comparing them to the revenue generated.
PSA’s benefits have been demonstrated for some time, especially in larger project-based organizations. SPI Research found that enterprise organizations increased billable utilization from 71% to over 75% with PSA, meaning roughly 80 additional billable hours annually per consultant. Even more important, PSA helped increase profitability per consultant by over 200%, from $7,575 to $24,018!
AXIO for Professional Services from SBS Group is a global ERP solution designed specifically for organizations that deliver customer-facing, project-based services. Built on the Microsoft Dynamics 365 platform, AXIO combines SBS Group’s award-winning implementation methodology, industry expertise, and a rapid deployment model to bring you the best in ERP, CRM and Cloud.
AXIO for Professional Services spans all the important processes in your firm, including resource management, project management, marketing, human capital management, and financial management. Optimized for cloud, AXIO can also be deployed on premise and is compliant with all GAAP, IFRS, Sarbanes-Oxley, and DCAA requirements.
If you aren’t already using Projects to manage your business, consider shifting today. Let us know how we can help. Check out our upcoming webcast, 5 Reasons Project-Driven Firms Switch to Dynamics 365.
EVP of Professional Services, SBS Group
About David Drouin
David is a graduate of Wharton School of Business with a B.S. in Accounting and Economics. After graduation, he began a twenty year career in public accounting, including five years as a partner where he built a successful systems advisory practice and managed it as partner-in-charge.
David joined SBS Group in 2006 as the Executive VP of Finance before taking on his current role as Executive VP of Professional Services.
In addition to his business and accounting background, David has strong technical skills which he has leveraged in helping hundreds of small businesses and large enterprises evaluate and implement ERP systems in his nearly thirty years in technology services sector.