When meeting with Consultancy Service companies they often reveal a common dilemma – how to allocate resources and skillsets more effectively and increase client billing rates, thereby generating greater profit margins. Their inability to effectively track and increase billing hours negatively impacts profitability and inefficient management of projects creates a drain on internal resources and overhead.
As competitive pressures increase project complexities, maximising profitability becomes equally as complex. Poorly managed resources can hurt customer relationships, margins and future revenues. Consultancy Services have to work smarter and consequently utilise smarter business systems.
So, what’s the solution?
Consider a fully integrated business solution that can provide financial, project, resource, and time and expense management. Consultancy businesses can benefit from introducing smarter solutions like Enterprise Resource Planning (ERP) software. According to research* by the Aberdeen Group:
Projects overruns reduce by 12%
Margins increase by 4%
Billable rates increase by 5%
Revenues increase by 6%
Collaboration and performance data increases by 60%
ERP software like Microsoft Dynamics NAV, can make it easier for consultancy organisations to complete projects on time and within budget, significantly reducing inefficiencies and overhead costs. The software is a key component of the Microsoft operations platform, which helps organisations track project status, including expenses and profitability, and monitor all related activities.
It gives you the tools to more effectively collaborate and manage dispersed teams, sharing the data needed to quickly make strategic decisions and respond to change. With ERP, you can eliminate the time spent tracking and tracing billable hours, and instead accurately bill your clients for projects with a business management system that provides:
Accurate project accounting
Time and expense management
Fully integrated financials
Business intelligence and reporting
*Source: “The 2012 Professional Services Maturity™ Model from SPI Research”, Aberdeen Group.