high performance project service · 2019-01-09 · practice director, project service automation...

High Performance Project Service

PowerObjects: Agenda

Introductions PowerObjects Service Innovation

State of the Industries Trends, Business Benefits

Microsoft Vision Alignment to Project Services Workloads

Digital Transformations by PowerObjects PowerObjects Education and Change Management

PowerObjects: Why PowerObjects

Satya NadellaCEO Microsoft

1,175 Active Microsoft Dynamics CRM Customers

Onshore, Nearshore, Offshore Delivery Models

Waterfall, Agile, Iterative Delivery Methodologies

Largest Dedicated Microsoft Dynamics CRM Support Desk

250,000 PowerPack Users Worldwide

PowerObjects: CRM Global Delivery Model

United StatesLocations:Minneapolis, MNDallas, TX CRM Onshore Resources: 150 +

CanadaLocation:Toronto, ONCRM Onshore Resources: 20 +

Microsoft Dynamic CRM Delivery

Minneapolis, MN Dallas, TX

US Delivery Centers Hyderabad, India Madurai, India

India Delivery Centers

Toronto, ON

Canada Delivery Centers Manchester, UK

UK Delivery Centers

United Kingdom Location:Manchester, UK CRM Onshore Resources: 35 +

India Locations:Hyderabad, IndiaMadurai, India CRM Onshore Resources: 35 +

Largest Dedicated Global Delivery Model for Microsoft Dynamics CRM

Global Delivery Centers

HCL: Microsoft Practices

Customer

ServiceField

Service

Project

Service

Engineered Assets & Accelerators

Educational & Training Curriculum

Microsoft Product Team Alignment

Webinars & Events

Delivery Onboarding

OperationsIoT

WoRKS

• Agreements• WO Mgt• Planned Maint• Parts & Logistics• Asset Mgt• Portals• Knowledge• Scheduling• Connected

Service

• Case Mgt• Omni Channel• Agent Desktop• Agent Scripting• Social• Chat• Knowledge• Portals • Analytics

• Project Mgt• T&E • Utilization• Project Billing• Project Profit• Analytics• Collaboration• Portals • Analytics

• General Ledger• Receivables • Payables• Fixed Assets• Inventory• Procurement• Reporting• Credit/Collections• Analytics

• M2M• Machine

Learning • Process

Optimization • Predictive

Learning• Remote Svcs• Device Design

• IoT Solution Platform

• Data Consolidation

• Reporting Svcs• Analysis Svcs• MSFT COE• SSIS Mgt• Consolidations

Business Analysis

Services

PowerObjects: Panelists

Robert Justen

Practice Director, Project Service Automation

Dave Hofferberth

Founder and Managing Director

[email protected]

[email protected]

Christine Zmuda

Senior Director New Markets - [email protected]

Debra Enloe

Senior CRM Training [email protected]

mailto:[email protected]




www.spiresearch.com

Copyright © 2016 Service Performance Insight

All rights reserved. Not for distribution.

Introduction

7

Service Performance Insight (SPI Research) is a global research, consulting and training organization dedicated to help professional

service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a

strategic planning and management framework. It is now the industry-leading performance improvement tool used by over 15,000 service

and project-oriented organizations to chart their course to service excellence.

The core tenet of the PS Maturity Model™ is PSOs achieve success

through the optimization of five Service Performance Pillars™:

1. Leadership – Vision, Strategy and Culture

2. Client Relationships

3. Human Capital Alignment

4. Service Execution

5. Finance and Operations

SPI provides a unique depth of operating experience combined with unsurpassed analytic capability. We not only diagnose areas for

improvement but also provide the business value of change. We then work collaboratively with our clients to create new management

processes to transform and ignite performance.

www.spiresearch.com



2014-2016 Professional Services Maturity™ Benchmark278 Embedded PSOs

8

0

10

20

30

40

50

60

70

80

90

100

Mat

uri

ty S

core

Observation

Distribution of Responses – Service Execution

• No firm scores under 10

• No firm scores over 65

• Every firm can improve!

www.spiresearch.com



Sales & Delivery Alignment Matters!278 Embedded PSOs

Level 1Initiated

Level 2Piloted

Level 3Deployed

Level 4Institutionalized

Level 5Optimized

Percentage of referenceable clients 60.4% 67.6% 65.9% 69.3% 70.0%

Quarterly revenue target in backlog 33.0% 45.4% 50.1% 57.8% 70.0%

Ramp time (days) 152 145 138 133 119

Concurrent projects managed by PM 5.85 6.13 5.33 8.18 8.13

Employee billable utilization 58.8% 64.3% 70.7% 74.8% 77.7%

Projects delivered on-time 63.7% 71.5% 75.5% 81.1% 84.3%

Average project overrun 12.9% 11.1% 10.2% 8.6% 9.0%

Project margin 27.5% 36.5% 37.0% 36.6% 45.0%

Annual revenue per billable consultant (k) $149 $203 $228 $230 $283

Profit (EBITDA) -2.1% 4.9% 13.7% 33.2% 36.9%

9

www.spiresearch.com



Professional Services MaturityService Execution

10

Lack of scheduling, no

consistent processes, heroic

people, manual systems

Leverage information across the

entire PSO on a real-time basis

to continually improve

Introduce consistent business

processes, begin to specialize,

collect delivery data, use point

solutions to improve

productivity

Standardize and refine

business processes,

Create PMO, Implement

PSA

Business processes in

alignment across PSO, all major

systems are integrated

www.spiresearch.com



Troubling trends!278 Embedded PSOs

11

7.7%8.3%

12.6%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

2013 2014 2015

Year

Attrition

227%

215%

200%

180%

185%

190%

195%

200%

205%

210%

215%

220%

225%

230%

2013 2014 2015

Year

Sales Pipeline

33%

34%

34%

35%

35%

36%

36%

37%

2013 2014 2015

36.2%

34.7%34.3%

Project Margin

70%

71%

72%

73%

74%

75%

2013 2014 2015

74.7%

73.5%

71.7%

On-time Project Delivery

www.spiresearch.com



Customer-facing organizations must work together

12

• Resource Management

• Time & expense mgmt.

• Project margin

• Customer satisfaction

• New opportunities

• Invoicing

Service

DeliveryMarketing

& Sales

• Mktg. & Sales programs

• Mktg. & Sales cost

• Pipeline

• Bid price

• Revenue

• Cost

• Customer profitability

Success begins when they operate as one!

Everything begins with the customer!

www.spiresearch.com



Align Sales & Service

13

Use Information to gain customer and client insight

Get the red out!

CRM & PSA Integration Works!

Client Relationships Performance Indicator Crus Software

PS within

Software

company

Survey

AverageLevel 1 Level 2 Level 3 Level 4 Level 5

Bid-to-win ratio (per 10 bids) 3 - 4 wins 5.04 4.95

Deal pipeline relative to qtr. bookings forecast Less than forecast 212% 172%

Sales cycle (days: qualified lead to contract signing) 60 - 90 days 104 88

Average service discount given 5% - 10% 11.8% 7.7%

Solution development effectiveness 4 3.63 3.59

Service sales effectiveness 4 3.49 3.57

Service marketing effectiveness 5 2.98 3.29

Percentage of referenceable clients Under 50% 64.1% 70.4%

Average project staffing time (days) 5 - 10 days 11.9 10.4

Concurrent projects managed by PM 1 - 2 6.89 5.77

Average project staff (people) 6 - 8 4.54 4.70

Average project duration (months) 1 - 3 5.84 6.21

Projects delivered on-time 60% - 70% 71.4% 76.1%

Projects canceled 5% - 7% 2.7% 2.6%

Average project overrun 20% - 30% 12.3% 10.0%

A standardized delivery methodology is used Under 20% 63.4% 64.6%

www.spiresearch.com



Use Information to Drive Visibility, Efficiency and Control

14

• Map client needs

• Look for up-sell / cross-sell potential

• Optimize selling price

• Build pipeline

• Improve client satisfaction

• Optimize resource pool

• Manage employee cost

• Develop compensation structure

• Improve employee development

• Reduce staffing cost

• Improve resource management

• Collect project costs

• Utilize PMO

• Increase services delivery quality

• Reduce service delivery cost

• Reduce delivery time

• Manage cash flow

• Improve DSO

• Improve margins

• Manage all practices

• Prepare for audits

• Optimize profit!

• Exploit strategic advantage

• Focus on organizational improvement

• Analyze business processes

Refine strategy based on analysis

• Determine “optimal” services, clients, etc.

www.spiresearch.com



Leading organizations perform!148 Embedded Services Organizations in 2016

Key Performance Indicator (KPI) Best Others ▲

Year-over-year change in PS revenue 16.1% 10.5% 53%

% of employees billable or chargeable 79.0% 68.7% 15%

Bid-to-win ratio (per 10 bids) 5.76 4.88 18%

Deal pipeline / quarterly bookings forecast 250% 186% 35%

Employee annual attrition 12.6% 12.5% -1%

Days for a new hire to become productive 65.2 72.0 9%

Employee billable utilization 74.3% 66.5% 12%

Projects delivered on-time 81.6% 69.0% 18%

Annual revenue per billable consultant (k) $271 $201 34%

EBITDA % 25.6% 18.5% 39%

Client Relationships Best Practices

• Focus on pipeline – set bar at 200% (2X)

• High levels of customer satisfaction, referrals and

repeat purchases

15

Human Capital Alignment Best Practices

• On-going training to support career plan

Service Execution Best Practices

• High levels of billable utilization – over 1,600 billable

hours/consultant

• Supporting methodology, tools, templates, guides

Finance & Operations Best Practices

• Larger projects due to positioning, service productizing

• Lean overhead – virtual facilities and workforce

www.spiresearch.com



PSA Improves Visibility, Performance & Profit148 Embedded Services Organizations in 2016

Key Performance Indicator (KPI) Post-PSA Pre-PSA Improve.

Year-over-year change in PS revenue 11.8% 11.2% 5%

% of employees billable or chargeable 71.5% 66.8% 7%

Projects delivered on-time 72.4% 65.3% 11%

Average project overrun 11.0% 15.3% 28%

A standardized delivery methodology is used 65.1% 62.9% 3%

Project duration (man-months) 28.1 26.4 7%

Annual revenue per billable consultant (k) $220 $202 9%

Annual revenue per employee (k) $180 $165 9%

Profit (EBITDA) 21.8% 15.1% 45%

16

Standardize service delivery

methodology

Limit scope creep

Focus on on-time delivery

Limit non-billable project hours

Collect all hours and costs!

Watch the budget!

www.spiresearch.com



The Benefits of Integrated CRM and PSA

Key Performance

Indicator (KPI)

Without

Integrated

CRM & PSA Improvement

With

Integrated

CRM & PSA

Employee attrition 12.0% 14.2% 16%

Sales Cycle (lead to contract) 82 days 97 days 15%

11.5%YoY change in PS revenue 10.4% 11%

New clients 29.4% 27.4% 5%

YoY change in PS headcount 10.0% 6.5% 54%

17

www.spiresearch.com



Conclusions & Recommendations

18

Customer/client insight helps drive Sales and Delivery insight!

o Easy to sell to current clients but focus on new clients

Work to develop high margin / high growth services

o Package services

Try to prioritize around available resources

o If it meets growth and margin requirements

o Don’t promise immediate starts if resources are not available

Integrate CRM and PSA for optimal results

o To optimize sales and service delivery

State of the Market

Customer Experience

2020 By 2020, customer experience will overtake price and product as the key brand differentiator.

Productivity40% of a worker’s productive time is lost when switching tasks. This costs the global economy $450B per year.

40%

Speed of BusinessOrganizations embracing digital transformation generate an average of $100M more income each year.

$100M

customers

products operations

employees

CRM ERP

CRM ERPMicrosoftDynamics 365

Dynamics 365 for Project Service Automation

$ €

Create project contracts, track labor rates and generate SOWs

using an enhanced and integrated sales force automation

experience

Engage and collaborate real-time with customers on the quotes,

project scope and resource requirements through customer

portals.

.

increase in services

revenue by decreasing

the sales cycle by 30%70%Digital Transformation of Sales, Microsoft Survey Report by TOPO, July 2016

Account Manager

Account Manager

End Customer

122%improvement in on-time project

delivery with an Enterprise

collaboration strategy in place

Aberdeen Group, Sept. 2014

ProjectManager

ResourceManager

Partner

End Customer

ProjectManager

ProjectManager

Team Member

$

Practice Director

Staffing: Resourcing tools improve utilization and provide smart forecasting across teams, departments, roles and skillsets.

Effort to Invoice: The effort required to generate, reconcile, and distribute invoices will be kept to a minimum

Modern approach to Project Service Automation instills confidence with your customer.

Top PSA Principles to Drive Business Outcomes for Customers

Transform Your ProductsEngage Your Customers Optimize Your Operations

Mobility: Allowing consultants to submit time and expense anywhere from any device is convenient and prevents revenue leakage

Templates: When applicable, Excel or Project Templates can streamline current CRM data to Excel for custom project analysis

Personal Performance: Consultants should be given access to select personal metrics to monitor their performance and growth

Encouragement of Project Finder:Project Finder can help consultants manage their skills and certifications and foster participation in new projects and company initiatives

Document Management: MS Office online will be used to provide a single, shared location for project documents and built-in version control will eliminate need to constantly email updates

Automatic updates: Automatic and predictable project updates build customer confidence and develop credibility.

Customer Portal: Giving customers access to a portal to view completed tasks and upcoming milestones promotes transparency and credibility.

Leveraging CRM for Projects: Coordinating projects with sales and marketing efforts helps service organizations adapt to industry trends, customer needs, and a changing technology landscape while also enabling unified reporting across entire sales and project effort

Adaptive Intelligence – Gather learnings on why you win and why you lose bids through end to end business process integration.

Practice Directors have insights to introduce new solution offerings to meet emerging trends based on past performance and learnings.

Empower Your Employees

Quick Wins

1. Set up time and expense entry to be done easily from any device.

2. Provide single, shared location of project files for team collaboration with

office 365 groups integration.

3. Convert and tidy up project templates for top company project services.

4. Simplify project progress and status indicators.

5. Configure automatic notifications to customers for weekly progress updates

and milestone and task completion.

Short Term

6. Set up process to deviate resource bill rate for single project or milestone

7. Interactive project dashboards by org unit, role, timeline, and milestone

allow for proactive insights and actions before billing cycle.

8. Integrate professional service invoices to accounting system.

9. Use resource availability, skills, roles, and organizational units to book most

appropriate resources to projects.

Second Phase

10. Connect sales opportunity management to project creation and tracking

11. Implement process to propose, review, and approve project staffing changes

12. Utilize CRM portals to post important notifications, deliverables, and invoices

for customers

13. Trial using Project Finder mobile app to help internal consultants manage

skills and certifications and apply for upcoming projects

Implementation Timeline and Success Path

Siz

e o

f B

enefit

Easy to Implement, large benefit

Difficult to implement, good benefits

Difficult to Implement, but large benefit

Easy to implement with good benefit

10

12

7

6

5

4

32

8

9

1

11

13

Difficulty/Cost to Implement

Essentials of SuccessDebra Enloe

Sr. CRM Training Consultant

Success and failure

50% of CRM deployments

fail to meet an

organization’s objectives

What

makes

the

difference?

Strategy Design Ownership Managing Change Communication Training Reinforcement

• Business

Leadership

• Why we do

business

• What we need to

grow

• Success factors

• KPIs

• Simple

• Reliable

• Accessible

• Valuable

• Distributed process

ownership

• System and data

governance

• Support

• Understanding

motivations

• Sponsorship

• Change Agents

• ADKAR

• Awareness

• Desire

• Knowledge

• Ability

• Reinforcement

• Ownership

• Audience

• Channels

• Planning

• Trainers

• Timing

• Formats

• Materials

• Measurement

• Learning and

proficiency

• Change and

accountability

Essentials of Success

38

39

Vision & Strategy

Start with

Start with Vision

40

behaviors

individual targets

software

hardware

business objectives

steps to get thereStrategy

Process

Technology

Scope with vision

Start with one team or a small

set of requirements, if possible.

Phased Approach

Get to done once.

Know the timeframe in which

you can expect results.

Results Focused

Measure success.

Balance results and

quality with simplicity.

Simplify

Streamline.

42

Manage Change(the people side)

43

• What behaviors are

you expecting from

employees after

deployment?

Expectations

• How will the

behaviors be

measured?

• How can I know how

I am doing?

Measurements• What are the

consequences of

meeting or not

meeting

expectations?

Accountability

Behaviors and Expectations

Use a Structured Approach

Customize the Strategy

Integrate with the Project Plan

Working with your project sponsors, project management, change

management, and training teams.

Assess the sponsorship, ownership, risk, and change impact.

Change Management

44

Customize and scale change management from perspectives of the

program, the enterprise, and individual business unit.

Build your change management capability internally.

Building organizational awareness of change (why, why now, what,

and what’s in it for me) before adding the “how” introduced in training.

Milestones of the communication, training, and reinforcement plan.

45

Knowledge Acquisition

Use a repeatable learning path

46

Role-based

Process-focused

Measurable

Consistent

47

Reinforcement

Motivate teams

48

Help individuals

continuously build

knowledge and skills.

Learning should not

be a one-time event.

Celebrate and reward

technology adoption

and behavior changes

that drive business

objectives.

Provide opportunities

to demonstrate

proficiency and be a

support for their peers.

Achievement

Become a master.

Enablement

.Growth Opportunities

Celebrate

Recognize efforts.

Ask – Listen – Learn

Diagnose & document

Solution demonstration

Proposal presentation

Reach agreement

Project kickoff meeting

Business requirements &

documentation

Define the team & roles

Create project plan & schedule

Communicate project to team

Deploy the base system

Create organization structure

Define users, roles, & security

Model the organization & processes

Design & build workflows & reports

Data migration

Validate & test the system

System administrator training

Small change management

Additional training

Additional phases and projects

Technical support

Small change

management

Additional training/

reinforcement

Additional phases and

projects

Using a Proven Methodology

49

WHAT WHY WHERE WHEN WHO HOW

Project Service Automation Practice Director

PowerObjects

Robert Justen

[email protected]

612.339.3355

Any Questions ???

high performance project service · 2019-01-09 · practice director, project service automation...

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