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New Year’s Resolutions and Mid-Year Resolutions for Services Excellence

New Year’s Resolutions are famous – or infamous – for being easily forgotten.  We move on with our lives and deal with the stresses of today, making it difficult to live up to the commitments we made to ourselves on January 1.

Many professional services executives start the year by saying – “I will panic less about staffing, I will remain calm when conflicts arise,  I will plan for the future to avoid future bottlenecks, and I will manage my business with proper planning.”  Then they go back to work on January 2 and face reality.  Their team just closed a ton of new business at the end of the year (Hooray!) and now their backlog has doubled (Yikes!).  So they start fighting fires and trying to survive, and planning takes a back seat to immediate execution.

So let’s think about some Mid-Year resolutions NOW. We need to put the plans in place now for you to hit your second half goals.  And unlike New Year’s Resolutions –for which I have no good advice - I do have some advice for Mid Year goals and you need to get started now.  Specifically:

1. Understand your team, and what they will look like in 9 months
2. Plan for growth – match your sales team in overall capacity
3. Build a hiring plan

Understanding your team:

“My team is very happy, we have low attrition”

Stability is important to a professional services organization. You want to keep your talented and experienced people because you can rely on them to deliver quality work on-time and on-budget.  But now is a good time to think about who’s on your team will be there in nine months. For example, if you have a historic attrition rate of 10% per year and you have a 100-person team, you can expect to lose 10 people this year.  Have you considered that in your analysis? 

Now take it one step further – work with your managers and start identifying flight risks (those who you think will leave voluntarily) and under-performers (those who are a bad fit for your organization), and develop contingency plans for if/when they leave.  This is your baseline.

Plan for growth:

“I know our growth targets, we did that as part of 2013 budgeting”

Entering 2013 you have performed your strategic planning. The business has its overall goals and you have your strategic objectives and revenue targets.  Now might be a good time to re-visit those growth plans and confirm a few questions:

First, is your plan realistic – can you hire in the quantities and timelines outlined without outside recruiting help?  If not you should start to determine how you will hit those goals and ramping up recruiting.

Second, is your plan tracking with sales?  You probably performed the initial analysis of hiring enough bodies to match sales goals (you did, didn’t you??), but now is a good time to sit with your sales team and consider if they are on track with their targets both in terms of overall dollars (obviously affecting your bench/capacity) and in project mix (even if you have the right bodies, do you have the right skills).  After this initial meeting, set a regular weekly meeting to review sales pipeline in both capacity and mix to ensure that you have the right hiring targets as the year evolves.

Build a Hiring Plan

“Of course I have a hiring plan, we did that as part of 2013 Budgeting”.

If you know the number of bodies you need, you know the skills mix, and you have your recruiters lined up, you are in great shape. But organizations that are successful for many consecutive years (and not just this year) invest in hiring to meet a pyramid of junior resources on the bottom and fewer more senior resources at the top. Now is the perfect time to build a plan to hire recent college graduates and build your pyramid from the bottom, the hardest place to build.  Most business-oriented college seniors are looking for full-time employment now, even though they won’t start working for the summer. Have you identified the schools from which you have been recruiting?  Do you have the right job descriptions? Do you have the right compensation package?  Of course you can go ahead and keep hiring only experienced consultants, and delay fixing your period until future years, but now is the time to build a pyramid that will work in 2014 (yes, we are doing 2014 planning NOW).  And this is one project that can’t wait until the fall, unless you want to lose another year.

As an alternative to college hiring, maybe you are looking at off-shoring for low-cost resources. Now is also the time to start that project. Once summer hits and vacations become more frequent, long term initiatives like off-shoring become difficult to implement. Plus, you can see results THIS YEAR if you start now. It’s challenging to fund projects in the second half of the year that won’t benefit you until the following year –that’s not helping anyone’s metrics.

Conclusions:

The classic corporate budgeting cycle leaves us with the impression that we don’t need to revisit our plans and assumptions very often. But now is the right time to do that if you want to better understand the composition of your team, the degree to which your plans are turning into reality, and the options you have at shaping your team for the future.  NetSuite’s Resource Management capabilities equip you to meet this challenge head on – with detailed resource forecasting by capacity and skill set, integrated Sales Force Automation to understand pipeline and backlog, and financial modeling to determine how to maximize profitability in your resource pool. 

All you need to do is make some Mid-Year Resolutions.

- Ed Marshall, SVP, General Manager Services Vertical at NetSuite

Seven Surprises of Technical SuiteTraining

SuiteTraining offers technical training courses on some of the most powerful capabilities of the NetSuite SuiteCloud platform, including SuiteScript Application Development, SuiteTalk Web Services, and SuiteFlow Workflow Engine. If you don't think your organization can benefit from technical training, here are seven facts about our programs which might surprise you:

1. We understand that there isn't much value in technical training unless developers have an opportunity to get their feet wet and work in the system. Our technical courses are not bland lectures about APIs and function calls. In fact, about half of the course time is set aside for hands-on exercises so you can learn by doing.

2. You don't have to be a programmer to understand SuiteFlow. All you need is a good grasp of the rules and logic of your own business processes. That's why our SuiteFlow: Workflow Fundamentals course has such a diverse audience and typically includes a number of business and operational professionals, not just programmers. Mapping the rules and requirements of your business processes is what SuiteFlow is all about. If you understand the approval process that your purchase orders need to follow, then you can learn how to use SuiteFlow's visual interface to create the NetSuite logic to automate your business processes.

3. Many of our best SuiteFlow developers got their start with Excel macros. That kind of power user is the perfect candidate for the SuiteFlow: Workflow Fundamentals course.

4. Our technical courses offer insight to help you refine your understanding outside of the classroom. Optional, "take- home" exercises give you step-by-step instructions so you can practice what you learned while providing solutions that you can apply in your production accounts.

5. Some developers have turned their nose up at SuiteFlow because it's a visual interface and isn't pure code. However, while SuiteScript looks more powerful, it's not always the best tool for the job. Approval processing is a lot more complicated in SuiteScript than it is in SuiteFlow. That's why we recommend that even veteran developers take the SuiteFlow: Advanced Workflows course before racing off to write scripts for everything they want to accomplish.

6. Although SuiteScript is based on JavaScript, you don't need to be a JavaScript whiz or a seasoned Web developer to start taking advantage of SuiteScript. Just about any programming background helps set the table for SuiteScript concepts, and many of our graduates have no Web programming experience before they take the SuiteScript: Enhance Productivity through Automation course.

7. We're serious about ensuring that our graduates are prepared to be productive as soon as they finish a technical course. That's why our SuiteScript and SuiteTalk courses are five days long. That may seem like a big commitment, but we structure the classes so that by the time they wrap up on Friday, you're ready to come in to work the following Monday and make exciting things happen on the SuiteCloud platform.

To learn more about our technical courses, please visit the SuiteTraining course catalog. You can also work with our Education Advisor to create a comprehensive, custom learning plan. Sign up for a free Training Needs Assessment to help you achieve your education goals.

-Bruce Tanenholtz, Program Manager: Technical Curriculum

10 Tips for Getting the Most Out of SuiteWorld 2013

With a new location, a new slate of sessions and a wealth of new NetSuite partners and customers, SuiteWorld 2013 promises to be the best one yet.

The NetSuite conference is moving from San Francisco to the San Jose Convention Center this year to accommodate the roughly 5,000 attendees expected to be at the show May 13-16. And a show with that kind of turnout with more than 180 breakout sessions requires a little preparation. Here are 10 ways SuiteWorld attendees can ensure they get the most out of the conference.

1. Research.  SuiteWorld offers a wealth of information for getting the most out of your NetSuite deployment with sessions that cover every facet of the suite. Factor in some free time, but be sure to spend the time up front figuring out your business needs and the schedule that makes the most sense for you. Then you’ll be better positioned to come home with actionable information.
2. Go Early. SuiteWorld’s preconference in-depth training workshops offer a deep dive into all areas of the solution for intermediate to advanced NetSuite users, spanning reporting, OneWorld, workflows and more.
3. Take Note of the Keynotes. NetSuite leadership (CEO Zach Nelson, CTO and founder Evan Goldberg, and COO Jim McGeever) will open each day with a keynote session providing entertaining, informative insight into NetSuite’s progress, product roadmap and vision for the future of the cloud.
4. Learn at Lunch. SuiteWorld has three ways to make your lunch more than just a break from the show to scarf down some food.  Tuesday offers a chance to sit down with show sponsors to get answers to your questions about the cloud, integration or simply network. Wednesday offers the chance to meet with the user group community and share best practices across multiple roles. Wednesday also presents the chance to have lunch with SuiteWorld bloggers and NetSuite product experts. Just sit down at the table with the topic you’re interested in.
5. Brainstorm. If the excitement of the show and the energy of progressive companies executing on their vision has you inspired, wander over to the SUITEideas area to whiteboard your ideas and get insight from NetSuite product experts on how to execute on your own vision.
6. Network. There’s perhaps no better way to learn and grow at SuiteWorld than by talking and sharing with fellow customers and partners. In the session rooms, the hallways, the coffee area, it’s a chance not only to learn how to get the most out of your NetSuite implementation, but potentially find the right partner or business opportunity. Better yet, chill out in the SuiteLife lounge where you can rest, recharge and network in comfort.
7. Meet the SuiteGuru. Sit down with our technical experts and get your specific questions about CRM, Ecommerce, ERP, OneWorld, OpenAir, the SuiteCloud platform or Web design answered in 30-minute meetings. But be sure to schedule them, pre-registration is required and seating is limited.
8. Tour the Floor. Wander the show floor, pick up some schwag and find the solution your business needs to accomplish its vision. It’s all on display. When you’re done, wander over to the SuiteStore to pick up your official SuiteWorld gift from customers such as Incipio (iPhone 4 or 5 case), Nakajima (Hello Kitty swag), Philz Coffee (lb of coffee), Liberty Water Bottle (official SW water bottle) or School of Rock (t-shirt). 
9. Get Out. You’ve traveled to San Jose, now take some time to get outside. Take a walk, go out to eat at one of the area’s signature restaurants, soak up Silicon Valley.
10. Get Down.  After all the contacts are made, the questions answered and your mission accomplished, be sure to grab a cold drink and have a suite time at Wednesday night’s SuiteCelebration Gala.

We look forward to seeing you. Be sure to follow @NetSuite and #NSW13 on Twitter to keep up to date on the show. If you’re looking for more inspiration, check out the scene
from last year:

 

For more information on SuiteWorld 2013, please visit: http://www.netsuite.com/portal/press/events/nsw2013/main.shtml

Five New NetSuite Training Courses to Debut at SuiteWorld 2013

SuiteTraining has been a popular pre-conference option for SuiteWorld attendees since we first hosted the conference. This year, the spotlight on SuiteTraining at SuiteWorld is brighter than ever. We've more than doubled the usual number of courses, and five brand-new courses will make their world debut at SuiteWorld 2013!

• Migrating to NetSuite OneWorld
• Marketing Automation: Managing Demand Generation for Hyper-Growth
• SuiteAnalytics: Advanced Saved Searches
• SuiteCloud: Exploring the NetSuite Platform
• SuiteCommerce: Building and Customizing Webstores

This is the first time we have unveiled so many new courses at a single event, and the first time nine different study tracks are available to NetSuite users, administrators and developers. If you want to learn to do more with NetSuite, chances are we have a course that will meet your needs.

Right now, each of the following new courses is a SuiteWorld exclusive—we don't yet know if we will offer these courses outside the on-site, pre-conference setting.

Growth and expansion are the themes of the first new course, Migrating to NetSuite OneWorld, which explains how to effectively manage multiple legal entities, including those in different countries, currencies, and tax jurisdictions, in a single NetSuite account. If you’re thinking of upgrading your standard NetSuite account to NetSuite OneWorld, then this course is for you!

Next, we’re offering an expanded, two-day version of Marketing Automation: Managing Demand Generation for Hyper-Growth. Marketing users will get a complete tour of NetSuite's ROI-enhancing campaign tools. Our expert instructor will walk you through the day-to-day tasks for creating and managing a multi-channel campaign while Rob Israch, NetSuite Senior Director of Global Demand Generation, will take you beyond the fundamentals by showing you how to maximize your marketing investments.

If you are familiar with the basics of creating Saved Searches and want to take your abilities to the next level, then SuiteAnalytics: Advanced Saved Searches is for you. This course will teach you the final set of skills you need to effectively mine your NetSuite data. You will learn to apply advanced Saved Search functionality to calculate and transform your search results.

Anyone who wants a better understanding of the capabilities of the NetSuite platform will benefit from SuiteCloud: Exploring the NetSuite Platform. This new course provides a hands-on overview of the SuiteCloud platform tools and how they can be used to develop custom business capabilities. You’ll learn when and why to use each of the SuiteCloud Platform tools to customize and extend NetSuite to meet your business needs.

Coinciding with the official release of NetSuite SuiteCommerce, we are also offering SuiteCommerce: Building and Customizing Webstores which is designed to help our cutting-edge eCommerce users create and maintain unique, highly customized and constantly-evolving stores. This is the first course for NetSuite's high-end SuiteCommerce platform, which makes it a real first-mover opportunity.

In addition to these new courses, we are also offering some of our most popular courses from SuiteWorld 2012, including SuiteAnalytics: Reports and Searches, SuiteAnalytics: Financial Reports and Searches, SuiteFlow: Workflow Fundamentals and SuiteFlow: Advanced Workflows. The full training lineup is on the SuiteWorld Pre-Con Training site  so you can learn more about all of these courses.

Because the courses are held in a two-day pre-conference window, you can capitalize on the expertise of our instructors and the networking opportunities in our classrooms before the main SuiteWorld festivities even begin. All of the SuiteWorld pre-conference courses will be held on May 12-13 from 9 am – 5 pm, with breakfast and lunch included.

Classes are filling fast, so click here to register now! If you need help choosing the right course, email Kerman Camacho, NetSuite Education Advisor, at kcamacho@netsuite.com.
Kerman can help you pick the right class and can help you enroll.

We’re looking forward to seeing you in May at SuiteWorld 2013!

-Dean Sprankling, VP Worldwide Education Services at NetSuite

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This post was updated 5/1/13

 

Training RoadShow 2013 is Underway, Next Stop Dallas!

Following on the heels of our successful RoadShow last autumn, we're sending our top instructors to the world's business centers to offer face-to-face NetSuite training on reporting, searches and more. NetSuite Training RoadShow 2013 kicked off in our backyard of San Mateo, CA in January, but we have several major destinations coming on the tour! SuiteAnalytics is such a hot topic that the RoadShow 2013 focuses on SuiteAnalytics training, with both the Reports and Searches and Financial Reports courses on offer.

The next stops for the Training RoadShow are:

• Dallas: February 19-22
• Singapore: February 25-28

The full 2013 RoadShow schedule includes:

• Chicago (March)
• London (March)
• New York (April)
• Sydney (April)
• Boston (June)
• Singapore (July)
• Chicago (August)
• Atlanta (September)
• London (October)
• Sydney (November)
• Miami (November)

RoadShow courses are a two-day, 9-to-5 commitment, with breakfast, beverages and snacks included in the tuition price. Like many of our courses, the SuiteAnalytics courses offered during the RoadShow are NASBA accredited, meaning you can earn CPE credit while enhancing your NetSuite skills and connecting with peers.

We're particularly proud to take these courses on the road because of the strong support our students have given us. Here are some comments from actual RoadShow students.

On SuiteAnalytics: Financial Reports... 

• "This was one of the best hands-on interactive learning experiences I've ever engaged in, in my 19-year professional accounting career."
• "On the first day I was able to determine what had been holding my report back for over a year. I also found the solution for my next project."
• "The ability to work the exercises along with the instructor was invaluable."
• "It was so informative, and I'm very excited to implement what I learned in our production environment."

On SuiteAnalytics: Reports and Searches...

• "The format was engaging, and I never wanted to stray from the class."
• "The small class size, allowing lots of questions, was awesome."
• "The new skills and tools I learned will make our NetSuite searches and reports more useful."
• "This course fleshed out many features of NetSuite and aided my overall understanding."
• "As a fairly advanced user, I was still able to learn new features and tricks."

Go to the NetSuite Training RoadShow site to view the complete schedule and to register for an event near you!

Also be sure to follow @SuiteTraining on Twitter for real-time updates on promotions, courses, events and webinars related to NetSuite education.

-Dean Sprankling, VP Worldwide Education Services at NetSuite

Get More from NetSuite With a Training Needs Assessment

Contrary to popular assumptions, software training is not a one-time event. This is particularly true for a dynamic solution like NetSuite. With two automatic, free upgrades every year and a modular, scalable design which grows as your company's needs grow, the NetSuite solution your employees are familiar with today will evolve and change over time. To ensure that users are getting the most out of NetSuite, training needs to be ongoing. A training needs assessment—which we provide to our customers free of charge—will help identify where your organization can get more use of NetSuite by improving your users’ skills.

The training needs assessment starts with a survey of the individual roles and responsibilities of your users, evaluating how they relate to NetSuite features and functionality. This process helps us understand the different NetSuite usage patterns, from workers who may touch a NetSuite screen only a few times per month to those who spend all day, every day working in the NetSuite cloud. Next we examine your business objectives and processes to help develop a customized training plan that matches your overall corporate goals. Depending on the size and structure of your organization, these discussions may take place with a project manager or NetSuite administrator, or even senior executives. We take understanding your business needs very seriously.

Once we have an understanding of the roles, responsibilities and needs of your organization, we develop the training plan. The plan seeks to make the most of the time spent on training various user groups. For example, we won't schedule accounts payable training for salespeople who simply need to understand the CRM capabilities of NetSuite. Our training is also geared towards objectives, not screens and buttons. We always incorporate real-life scenarios to provide the “day-in-the-life” context users need to be able to apply what they learn on the job.

Companies come to us for needs assessments for a variety of reasons—employee turnover, growth, acquisition and new software modules are just some of the triggers that we've seen. Others simply come to us because they realize they are celebrating an anniversary on NetSuite and want to refresh their understanding of the solution so they can get more use from the system.

Our needs assessment professionals are not commissioned salespeople—we want to see our customers succeed and take the greatest possible advantage of NetSuite. We have more than just an academic interest in seeing our customers commit to comprehensive and ongoing training. Our studies consistently show that our longest-tenured and most satisfied customers are the ones who have embraced user training. In most cases, our training needs assessments can put a comprehensive plan on your desk within five business days. We would love the opportunity to help your organization do more with
NetSuite.

To create a comprehensive, custom learning plan, sign up for a Training Needs Assessment today.

-Kerman Camacho, Global Education Services Advisor at NetSuite

Three Keys to Software Training Success

We build three keys to success into every SuiteTraining course. That's because we know companies don't under-invest in training because they don't believe in educating their users, but because they fear throwing away good money on poor instruction. Fortunately, it's easy to identify the major blunders that prevent people from connecting with material that can make their lives easier.

The first key to training success is to take a role-based approach. Even the most enthusiastic and technically-oriented mind will get overwhelmed by training focused on features and screens rather than concrete, role-based tasks. By focusing on the individual's tasks, training stays relevant and students are more engaged with the material. Most business applications have far more features and functions than a typical user will need to complete typical daily and monthly tasks, and the role-based approach helps sort out the vital components from the niche capabilities few users will ever touch.

Focusing on business processes is the second key. Although many users have roles where they spend almost all of their time on a few basic screens, such as inventory or customer records, some need guidance that spans a much greater range of capabilities. Again, there is a real risk of becoming lost in rabbit holes of hundreds of fields and dozens of screens, and quickly losing sight of the objectives which matter most to the user. Designing training around business processes, such as the quote-to-cash cycle, provides structure and gives greater meaning to the lessons. People connect best to information when they understand how it contributes to the organization's operations and goals, and business processes provide an easily-recognizable framework.

Finally, training should be given on the final, fully-configured application. Too many organizations are tempted to rush out and train users on an unfinished product so that the project can be launched sooner. This is a mistake, because during the configuration process, business processes are often being redefined and the exact steps required to perform basic business tasks may change before the project is completed. In many cases we recommend holding off on all training until the go-live date. Spending time on coursework to master a skill only to find out that the process and the buttons have changed is extremely frustrating and can undermine productivity and success.

These three keys help produce users who are focused, capable and confident in their abilities with a new solution. Unsure how these principles can apply to your business? Check out one of our SuiteTraining courses and see for yourself!

-Dean Sprankling, VP Worldwide Education Services at NetSuite

NetSuite for Dummies, SuiteTraining: Opportunities to Expand

Why did we collaborate with Wiley to publish NetSuite For Dummies, when ease of use and minimal training time are two of NetSuite's most valuable characteristics? We know that a number of our customers buy a copy for all of their front-line employees who live and breathe NetSuite every day: the bookkeepers, AP/AR clerks and sales representatives at the heart of thousands of NetSuite-powered businesses.

Adapting to any new business solution can be overwhelming at first. Using the time-tested Dummies approach, our book offers a guided tour of NetSuite for business users. Several common business tasks are explained in a clear and concise manner. We wrote the book knowing that many users come to NetSuite with a long history working in systems such a QuickBooks and Great Plains, and our tutorials respect the experience readers bring to the table. After all, you understand how your business works – you just want to know how to run it more effectively with NetSuite.

The publication of NetSuite For Dummies coincided with an overhaul of the NetSuite user interface. Although we do make improvements to many screens and tabs with each release of NetSuite, all of the illustrations in the book are still relevant and applicable to users today.

But there’s more than one way to become a NetSuite expert. For a more comprehensive learning experience, sign up for NetSuite Training. NetSuite Training offers several courses that compliment many of the topics covered in NetSuite For Dummies. With training you have the added benefit of working with our experts and through hands-on exercises, you can practice what you learn before you apply your new knowledge to your own NetSuite account.

Additionally, our documentation professionals ensure that NetSuite's online help is extensive and exhaustive—and that's a good thing when you are working through a complex workflow, or need to get a customer issue resolved correctly the first time.

NetSuite For Dummies takes a task-oriented approach to learning NetSuite. The book doesn't always define every single field and button on every NetSuite screen as our on-line help does, but in just a few pages you can quickly learn how to process payments, cut checks, record sales activity and manage inventory.

That doesn't mean the book spends all its time in the shallow end of the pool. NetSuite For Dummies includes tips on advanced business operations such as recurring revenue and billing recognition, as well as reporting, dashboards, and even eCommerce setup.

Many NetSuite customers are committed to truly paperless offices. Not to worry. NetSuite For Dummies is also available from the publisher as an e-book.

NetSuite For Dummies won't tell you absolutely everything there is to know about NetSuite's extensive capabilities. But chances are good that it will tell you what you need to know right now. For the rest there’s SuiteTraining.

- Malin Huffman, Principal Product Manager at NetSuite & Dave Schock, Curriculum Development Manager at Netsuite

 

SuiteTraining: Take the Grunt Work Out of Closing the Books

While others get ready to rock in the New Year, the accounting department is typically gearing up to lock in the old year by closing the books for the quarter or the year. NetSuite customers consistently tell us that saving time closing the books on a monthly, quarterly and yearly basis is one of the most significant advantages of using our cloud ERP solution. But if you're new to NetSuite, or simply have never been trained on the ins and outs of the period close system, you may not know the fastest way through the process.

We created a SuiteTraining course to ensure that everyone can streamline the process and take more of the grunt work out of closing the books. The course, "NetSuite ERP: Period and Year-End Close" is offered several times per month. Beginning in 2013, the course will be offered at times more convenient for our European and Asia/Pacific customers.

Taught using a demonstration NetSuite OneWorld account, the period close techniques are equally applicable for companies operating in any country or business model. Our instructors take you through a guided tour of the Period Close Checklist, including techniques to incorporate our checklist with your own internal processes. NetSuite OneWorld users will see how to manage multiple fiscal calendars cleanly, and all users will gain a better understanding of how to rapidly close the fiscal period and prevent further changes.

The course is provided as a live, online demonstration, with time allocated for questions and discussion during and after the course. Attendees will also receive a student manual summarizing the key takeaways and best practices from the course.

The Period and Year-End Close course is valued at 2 Accounting credits for Continuing Professional Education (CPE) purposes. At just $200 for the two-hour course, it is one of the best values around for CPE credit, to say nothing of the time and effort your accounting
department can save by closing the books more rapidly. Find a time that works for your organization (there are dozens coming up!) by visiting the course schedule.

You can find our full training schedule at NetSuite SuiteTraining.

-Dave Schock, Manager, Curriculum Development at Netsuite

TSW Review: Risk and Opportunity for Services Organizations in 2013

NetSuite has returned from the Technology Services World (TSW) 2012 show in Las Vegas,
where the Technology Services Industry Association (TSIA) pulls together leaders from the services industry to discuss trends and best practices. NetSuite is proud to sponsor this event, and it was great to see so many of our customers learning more about services and discussing how NetSuite helps them run their services business more efficiently and more effectively. Our customers are our best marketing, and we thank you for your support!

TSIA Executive Director Thomas Lah continues to impress us with his insights on industry trends and outstanding research into professional services. One theme of the TSW show, reflecting what seems to be occurring in our US economy overall, is that firms aren’t necessarily staffing up in great numbers, but work is increasing and target consultant utilization will be increasing in 2013. Doing more with less is always challenging, but for an industry that still predominantly bills by the hour, there is no way to avoid the increased burden on the consultants who deliver results.

Higher Target Utilization

Most services organizations set realistic utilization targets for employees, and these utilization numbers help drive organizational profitability, as well as employee bonus calculations. By increasing the target utilization, an organization is obviously looking to perform an increased amount of work without hiring any more consultants. The motivation for this is not increased profitability, but a fear of onboarding new consultants based on uncertainty over the economic future.

So for consultants, the bad news is more worked hours, but the good news might be increased compensation as firms realize that they need to keep their productive consultants. But along with these financial gains comes a big risk—consultant burnout.

Higher Risk of Consultant Burnout

A fear of every consulting manager is the burnout conversation. Productive consultants bill many hours and most do significant travel. Furthermore, given the typical bonus structure for consultants, too many consultants take too little vacation, as they strive for high numbers of billable hours. Factor in higher utilization targets, and the risk of burnout is even higher. Proactive organizations will monitor this risk, balancing high-travel projects with low-travel projects and enforcing mandatory vacation policies.  Unfortunately for consultants who strive for more work-life balance, the industry is moving in a direction that will ask more of you, at least in the short term.

Larger Backlog

Doing more work with the same number of consultants will have a customer-facing impact—larger backlog. Successful services organizations will continue to sell more projects, and the lag time from closing a sale to beginning the engagement will likely be increasing. Managing backlog is nothing new for a successful services organization— balancing customers who demand immediate response with those customers who are “next in line” is never easy.  

The good news for customers is that the consultants who work on their engagements are likely to be seasoned delivery experts, but the bad news is those expert consultants might start the project a week or two later than the customer would wish.

The New Dynamics of 2013

The workload for successful services firms will increase in 2013. This means that keeping consultants happy and customers enthusiastic will be challenging. But these challenges present opportunities for those firms able to take advantage of the new dynamics.

Perhaps 2013 is the year to introduce more packaged offerings and fixed price offerings, with a higher margin. Perhaps this is the year to invest in partner support, broadening your ability to service customers beyond your employee base. Now is the time to think about your own challenges in 2013, and your keys to making these challenges a benefit
to your organization.

Implementing a PSA tool can help you track KPIs to monitor these challenges. It will be even more important to track utilization in real time, to know which projects require travel and which ones don’t, to manage customer expectations around engagement timing, and to measure your profitability. NetSuite can help you overcome these challenges, as our customers at TSW proclaimed.

-Ed Marshall - General Manager, Professional Vertical