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4 Dashboards Vital to Profitability for Tech Services Companies

Published By Steve Beaumont

In the first section of this two part series, 13 Key SRP Metrics Vital to Profitability for Tech Services Companies, I outline specific metrics necessary to measure performance across multiple business units for successful resource planning in Technology Services organizations. This blog will discuss the top dashboards required to provide visibility of those key metrics, giving the current status and historic trends needed to support effective decision making.

For a comprehensive view into business performance, technology services companies should use the dashboards to look at information from four perspectives.

  1. A top-level business perspective dashboard will typically focus on the financial performance of the business. It should monitor revenue and margins, as well as unbilled work in progress and future revenue forecasts. Controls should be in place to avoid revenue leakage. Monitoring on-time submission, review, and approval of timesheets is critical.
  2. A client perspective illustrates the revenue and margin achieved from projects delivered to them, their satisfaction levels, and their current demand for additional services.
  3. A service perspective summarizes all projects being delivered for each service line. The demand for and profitability of each service can then be determined, as well as any changes needed to be made to increase the margins achieved. The actual daily rates achieved by each role should be monitored against targets. Non-billable effort such as rework should also be tracked.
  4. A resources perspective is critical. As a global services company, increasing the utilization of resources across each region is the key to driving revenue and profit. Creating global resource pools that can be utilized on projects across the world can reduce local headcount and increase productivity. Each day a resource is on the bench equals lost revenue that can never be regained. Ultimately, every Technology Services organization should attempt to drive up their resources billable utilization, as every 1 percentage increase you can get from resources goes directly to the bottom line in terms of profitability. Getting good visibility of future demand and the knowledge and experience required to deliver it successfully will allow the most effective planning of resources.

The dashboards outlined provide access to the 13 key metrics critical to the profitability of Tech Services organizations. When considering a software solution for services resource planning (SRP), I recommend Tech Services organizations include these 13 metrics and dashboards on their list of requirements. Look for a solution with in-depth reporting and analytics capabilities that provide visibility into information that helps drive decisions that are most important within the organization.

What’s on your dashboard software? Is information readily available? Share by leaving a comment below.

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Written by Steve Beaumont

Steve Beaumont is the SRP Solutions Market Manager at Planview and has worked in the Professional Services area for almost 25 years. He spent 12 years working as a Management Consultant for Deloitte, Coopers & Lybrand, and Ernst & Young, where team managed a team of consultants and had responsibility for managing the work pipeline, making resourcing decisions and ensuring that projects were delivered to a high quality whilst also managing the P&L. He also has spent a number of years working in the software industry helping to sell, implement and drive the enhancement of software solutions designed to help both PSOs and IT organizations to manage their businesses and delivery successful projects. Steve’s career started as a Management Accountant, from which he progressed into designing accounting software for use within the telecom company that he worked for.