The key to any successful professional services organization meeting their financial objectives is the management of all revenue and cost information. The core financial management solution is the hub of all of this information. It must provide an infrastructure where costs and revenues can be easily be analyzed and where key members of the executive team can drill down to better understand areas of success in areas of improvement.
There are Five Key Performance Indicators that offer that infrastructure for greater financial success for professional services organizations:
- Annual Revenue per Billable Consultant
- Annual Revenue per Employee
- Billable Utilization
- Project Margin
- Project Overrun
Professional services organizations must continue to focus delivering high-value and high-margin services in order to meet profit objectives. These five KPIs give organizations the ability to do that. It can be overwhelming to stare at your profit objectives and fear you may not meet them, but tracking these core financial metrics will make meeting profit objectives seem easy and exciting.