Professional service providers have to measure things differently than product-based companies. Because service professionals are usually providing “brain work” instead of a physical, tangible product, production values and operating costs look and function differently.
Still, they share one major characteristic: efficiency is the key to protecting profit margins.
Your agility when delivering services can help to build client trust and satisfaction while allowing you to maintain an edge on your competitors.
The right ERP can empower service professionals to measure critical key performance indicators (KPIs) that will keep you on track to a productive, profitable business. Here are some of the top considerations when vetting ERP systems:
1. Define the right KPIs
KPIs are the driving factors behind business growth, and service professionals should identify and understand exactly how they impact your company. Suggested by Service Professional Indicator’s 2016 Professional Services Maturity Benchmark report, these KPIs include, but are not limited to:
- Year Over Year revenue growth
- Employee retention and attrition
- Project profitability
- Employee utilization rate (an employee’s available time for productive, billable work)
- Employee satisfaction
There may be other important metrics that are significant to your growth, but the bottom line is that service providers need a fluid, reliable way to track these figures.
2. Gain greater visibility into operations
By establishing and monitoring the right KPIs, service providers can use their data to understand more about how their busines
s operates and identify efficiency issues.
For example, are you consistently delivering your services on-time and on budget? Are there steps between project onset and delivery that could be eliminated? Lag can not only kill your profits but also your client’s satisfaction and trust.
3. Identify opportunities for improvement
As service providers gain a better understanding of the business’s operations, they can use their data to identify bottlenecks in processes that could derail their profits.
For example, you may discover that you aren’t utilizing your team to their fullest potential, which is contributing to project delays or slimmer profit margins. By optimizing your existing human resources, you may be able to avoid hiring additional employees or outsourcing tasks to freelancers.
As a result, service professionals can better manage resources, improve the customer experience, and help each employee thrive.
How Acumatica and NexTec empower service professionals
Acumatica, a leading ERP for the service industry, was designed to help professionals better leverage their data to monitor KPIs, understand their business and customers, and improve efficiency to maintain profitability and competitiveness.
Service providers can gain a 360-degree view of their clients’ activities and requests, along with other critical details like revenue per billable person, profit margin, project overrun, and resource management. As a result, professionals can focus more of their efforts on core business processes and make decisions driven by data versus assumptions.
As an Acumatica partner, NexTec works closely with service providers, including lawyers, accounting firms, architectural and design services, and consultants, to identify the right ERP and automation tools that can help you maintain profitability and provide a higher level of service to your clients.
Take the Acumatica Product Tour and discover how it can benefit your professional services organization.