I recently read an article in Consulting Magazine that discussed Project Management and Resource Management in a meaningful and helpful way. As an organization that focuses on how to help Professional Services Organizations become more efficient and more profitable, this article certainly captured my attention. You can download this “Why PSO’s Need Improved Financial and Resource Management” white paper for free from our website using the hyperlink.
The article is interesting to me both as a person running a Professional Services Organization, based on Microsoft ERP products-Dynamics AX, Dynamics GP, and Dynamics SL, and also as a student of how we help our clients become more competitive.
Some of the strong ideas in outline form are the following:
1. How to manage costs better, see hidden costs and deal with clients that are not ok with having additional costs passed on to them
2. How to profitably deal with the increasingly dispersed virtual engagement teams
3. Employing contractors-pain point-or relief point?
4. How to better align skills and people with client engagements
Larger firms export more Business Intelligence functionality. We can see this quickly when we talk to a firm looking at an enterprise level product such as Dynamics AX versus a client looking at a more mid-sized product such as Dynamics GP. The larger clients not only want more and better metrics-they want to track them in a way that is simple to consume. The article discusses these metrics as key items to track:
1. Utilization ratios (who didn’t guess that one?) Take a look at this table from the article if you are rolling your eyes and saying “please don’t talk to me again about utilization!”
2. Cost per professional-these numbers are higher than you are expecting.
3. Average project size-they differ greatly by the type of Professional Services Organization
4. On-time and on-budget rates
5. Extension rates and client renewal rates
If you are most interested in how Business Applications such as Microsoft Offerings Dynamics AX, GP and SL can improve your business. This is an article you definitely should read. To learn more about all of Microsoft Dynamics ERP products you can click on the link.