• Status/action firm is taking to obtain work extension, more business, or prepare to disengage
• The name of the person handling the client relationship
(Note: Some professional services firms may have engagements that are per diem and therefore do not have a stated end of contract date. While these projects do not have a specific end-date, clearly they should be carefully managed as well.)
Exhibit 13.9 is an example of a current business portfolio management tool.
REVENUE
ENGAGEMENT
PROSPECT
ASSIGNMENT
($K)
START
STATUS
LEAD
Akron Alum
Network
250
Jan XX
Staffed/ready
L. Doe
Beta Biz
Supply Chain
750
Jan XX
Staffed/ready
J. Smith
Capricorn LLC
Web Services
500
Mar XX
Recruiting/sourcing
M. Cooper
Delta LLC
Security
800
May XX
Planning
J. Smith
Europa Ltd
Supply Chain
750
May XX
Planning
J. Smith
Gregorian Inc
Web Services
500
Jun XX
Planning
L. Doe
Note: Future start date of December of the year before the dates listed.
Exhibit 13.8
Work Backlog Management Chart
Resource Management
303
REVENUE
RELATIONSHIP
CLIENT
ENGAGEMENT
($K)
END DATE
STATUS
LEAD
Akron Alum
Network
250
Jan XX
Disengaging in
L. Doe
90 days
Beta Biz
Supply Chain
750
Jan XX
Renewal with a
J. Smith
few changes to
the contract
Capricorn LLC
Web Services
500
Mar XX
Discussing
M. Cooper
renewal
Delta LLC
Security
800
May XX
Discussing
J. Smith
renewal
Europa Ltd
Supply Chain
750
May XX
Discussing
J. Smith
renewal
Gregorian Inc
Web Services
500
Jun XX
Planning
L. Doe
renewal
discussion
Exhibit 13.9
Current Business Portfolio Chart
BENCH STRENGTH REQUIREMENTS. Some firms have a fairly predictable
progression of business through their pipelines as mentioned earlier, which makes it possible for them to operate with anything between a small- and zero-size bench, achieving high utilization rates. Others operate on a virtual
“skeet-shooting” range where business appears quickly and goes to the competitor who can respond the fastest with the right resources. These companies must continuously invest in a bench and in processes for identifying and recruiting appropriate talent to be able to seize the moment.
In organizations where there is a need to respond quickly to f leeting customer demands, use an enterprise scorecard to track performance indicators on how staff resources are being consumed and what the firm need is for various skill sets. (More information on the automation tools that enable you to effectively track this are covered in the next section of this chapter.) “By setting up a dashboard of key indicators, you will be able to effectively use historical activity to project your future skill needs and determine how much of a bench you should be financing,” states Averbook.9
It is tempting for the firm to load benched staff up with work. In many organizations, it is not unusual to find bench resources buzzing about busily as if they were on a client engagement. Gunn warns against this because it creates a false sense of productivity. He advises that organizations avoid using benched billable resources for nonbillable work. “Hire them for a specific piece of business with a specific time-table in mind. Let them work on other
304
Services Delivery: Taking Care of Business
things that will provide some value to the firm while they are waiting for the billable assignment, but don’t load them up on this stuff or let them stay beyond the time-table in these non-billable roles,” states Gunn.10
One way to get value out of billable resources while they are on the bench is to have them work on unsolicited business proposals and responses to request for proposals (RFPs). This is especially valuable if the proposal they are working on is for the client where they will be assigned to work, since this also provides them with information that can serve as an orientation to the client and the details of the engagement. Furthermore, such an approach begins to train junior staff in sales, a skill that becomes more valuable to them as they progress in their career with the firm.
Another useful way to employ bench time is to use it to train and develop resources. If possible, use bench time to either provide formal training or give the benched resource an opportunity to shadow (follow and observe) others as a means of learning new skills and techniques. (Chapter 10 covers the topic of training and professional development in detail.) Sustaining overall firm utilization rates should always be the primary consideration, and resources should not be allowed to “hide” on the bench for lengthy periods. Benched staff should be assigned to their intended billable engagement as soon as possible.
In summary, the bench size must be established based on the needs of your business. The firm must then manage using activity indicators, and adjust as needed. Engage billable resources in productive work or development opportunities when they are on the bench, but don’t lose sight of the original reason for which you hired them.
Having gone through the effort of a staff need assessment, resource inventory determination, productivity goal setting, and bench sizing, firm management should now turn their attention to planning how they will maintain and improve this resource pool. An important factor here is installing an effective resource pool performance ranking and management system. Chapter 10 covers the topic of employee appraisals and performance management in detail; an abbreviated example of this topic is offered here.
Implement Employee Pool Performance
Ranking and Management System
Installing an employee pool ranking system is one of the most critical things that must be accomplished to effectively grow the quality of your resource pool. One possible process for establishing a resource pool ranking system is as follows:
1. Develop an individual performance appraisal system that provides
each individual employee and you at a minimum with the following:
Resource Management
305
—Performance feedback against indicators/metrics that are relevant
to the quality and timeliness of work performance in the industry
and for the level of professional staff.
—Identification of performance inhibitors.
—Clarification of job result expectations for the coming period before the next review.
—Training and development needs.
Make assessment of performance and needs as objective as possible.
2. Develop a ranking system that enables comparison of the perfor-
mance and potential of all the resources in each pool. For example,
the firm might use a spreadsheet, listing each employee with columns that enable you to display how they are evaluated across a number of dimensions.
3. Once individual performance appraisals are completed for each member of a resource pool, performance relative to other members of their pool should be compared across several key dimensions using the resource pool-ranking tool.
4. Reward and further invest in the development of the top 20 percent performers.
5. Take action to drive the 70 percent in the middle toward a higher level of performance.
6. Take corrective action on the bottom 10 percent. Place them on a
time-limited performance plan if appropriate and /or dismiss them and replace them with higher caliber people with the potential to be in the top 10 percent.
7. Based on the organization and the state of the resource pool, go
through this individual performance appraisal and ranking process no more than quarterly and no less than annually.
Exhibit 13.10 is an example of a possible resource pool ranking chart. Successful resource management is a key to firm profitability. However, to do so requires immense amounts of data and (nonbillable) time. As firms grow, the level of effort and complexity required to accomplish these tasks increases exponentially. To handle the increased demand on time, firms must at some point in their growth automate portions of the administrative effort.
Resource Administration Automation
As a professional services firm grows in size and complexity, executives and managers face the daunting task of managing to the optimal levels of utilization across multiple projects and multiple skill sets. The complexity of a
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