Deltek IDC: Insights to Grow Your Consulting Firm Profitability

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

2 CONFIDENTIAL ©2012 Deltek, Inc. All Rights Reserved

Insights to Grow A Profitable Consulting Business | Mike Fauscette, IDC

Addressing Key Business Challenges | Stefan Grahn, Deltek

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10-12 © 2012 IDC . Reproduction is forbidden unless authorized. All rights reserved

Copyright 2012 IDC

Insights to Grow a Profitable

Consulting Business

Michael Fauscette, Group Vice President, SBS IDC


Economic Realities

4

Global Volatility

Slow Growth

Gen C


Competing for Growth in Tough Economic Times?

Improve Business

Agility

Know Your Customer

Acquire and Retain Talent

Gain Competitive Advantage

Maximize Profits


The Right Business Processes and Systems that Support Them

Integrated System

Lifecycle Project

Management

Portfolio View Purpose Built for Services

Firms

Data Driven


THE SURVEY


The Survey

N = 280 Base = All Respondents Source: Consulting Survey, IDC, May 2012


The Survey

•  Almost 50% director / manager non-IT

•  Sweet spot for revenue: $11-$50M – 27.5%



Areas of “Friction” Over Past 12 Months

Revenue Utilization

Pipeline

DSO Win Rate

Project Size

# of Projects

Margin

Bill Rates


Top Business Challenges

11

 Increasing Revenue (49.3% ranked #1)

 Maximizing Profit (26.4% rated #2)

 More Efficient and Effective Project Execution (27.5% rated #3)


Top Business Challenges

12

But don’t forget…

 Gaining Better Customer Insight

 Increasing Visibility into Key Business Metrics


Lifecycle

Marketing Campaigns

Proposals Contracts Project Delivery

Resource Management

Portfolio Management

Time and Expense

Billing

Revenue Management /

Financials

Client Data

Analytics


Integrating Front to Back Office?

14

Is your firm’s CRM system integrated with its financial and project management systems or PSA/SRP system ?



Integration


What benefits has this integration delivered to your firm?


Top 3 Business Priorities for 2012

16

#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”


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


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



A Little History

19

Manufacturing Resource Planning (MRP)

Enterprise Resource Planning (ERP)

PRODUCT

Finance

etc.

Customer Employee

Supply Chain

MFG


A Little History

20

Enterprise Resource Planning (ERP)

Professional Services Automation (PSA)

PROJECT

Finance

etc.

Customer Resources

Sales

Delivery

Services Resource Planning (SRP)

Build or Buy?


But for “Home Grown” Priorities Are:

21

#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)


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


Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.

SRP

Analytics

Peo

ple-

cent

ric C

olla

bora

tion


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


25

 Growing Revenue and Increasing Margins

 Increased Visibility into Key Business Metrics

 More Effective and Efficient Project Execution

 Gaining Better Customer Insight

Respondents Goals


Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.

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


© 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


Deltek: SRP for Consulting Firms


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


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


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


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


Read More

Scan using a QR Code Reader App http://www.deltek.co.uk/customersuccesses.aspx

Additional Customer Case Stories…


Learn More

Find out where your firm stands…

Download the full whitepaper and webinar recording.

http://more.deltek.com/forms/Webinar-IDCMetricsFollowup


Stefan Grahn Managing Director Sweden Professional Services Deltek [email protected] @StefanGrahn

@maconomyus

deltekps.wordpress.com

Thank You!


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Deltek IDC: Insights to Grow Your Consulting Firm Profitability