Video & Presentation: http://www.proformative.com/events/keys-success-financial-leadership-driving-revenue-growth Learn why CFOs are now at the epicenter of decision making when it comes to evaluating and purchasing software which is critical to driving revenue growth. Why the change? Shortening the order-to-cash cycle, tight financial management of projects and portfolios and real time financial visibility are critical to driving a healthy business. Too often this information is available too little, too late and does not contribute to meeting targets and making sound business decisions. Because of this CFOs are now demanding more rigor around investment analysis and decisions to ensure that the investment supports an organization's financial objectives. Keste CFO Ken Judd discusses the business drivers of why Keste needed to move away from spreadsheets to professional services automation software and how that change has already resulted in a 3x revenue increase and future growth. Speakers: Ken Judd, CFO, Keste Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com Track: Governance, Risk, Compliance | Session: 3

1. 1© 2013
Keys to Success of Financial Leadership
in Driving Revenue Growth
Ken Judd
Chief Financial Officer, Keste

2. 2© 2013
Agenda
Introduction – Keste
Our Key Performance Indicators
Changepoint PSA
KPI’s – What’s Important to Capture & Analyze
Individual Professionals
Customers and Engagements
Business Units and Practices
Conclusions & Take-Aways
Q&A
Important
Part

3. 3© 2013
Consultants – 1 hour at a time
200+ Dedicated Oracle Professionals
Solution Centers in Dallas, TX and Hyderabad, India
Applications Business:
Oracle EBS, CRM
Product Configurator (Complex Selling and Ordering Process)
Technology BU: FMW / Collaboration Specialists
WebCenter (Portal, Content and Collaboration)
Security
SOA / BPM
Oracle ADF Development
Cloud
Platforms Business Unit:
Exalogic
Exadata
Exalytics
SPARC Servers and Storage
Who is Keste?

4. 4© 2013
Growing – Stats and Vision
• 2008
• $8.7M
• 65 people/4 in India
• 2009
• $9.5M
• 75 people/6 in India
• 2013
• $30M
• 250+ people/100 in India
• $50M – 300 people
• $100M – 500+ people

5. 5© 2013
A Typical Keste Engagement?
• $200 to $500K SOW
• 4 to 12 weeks in Duration
• Phases
• Multi-year
• 3 to 10 delivery consultants
• Up to 50+
• Some single staff
augmentation

6. 6© 2013
KPI’s -- Actionable Information
• Revenues
• Hours Billed
• Realized Bill Rates
• Utilization Stats
• Costs and Margins
• Engagement Milestones
• Initial Budgets / Spend to Date / Estimates to Complete
Multiple Dimensions
• Individual Employee/Consultant
• Customer
• Business Units or Practice Areas

7. 7© 2013
Professional Services Automation
(PSA) Software
• Changepoint
Solution
• Mature, fully-baked
• Synthetic Cloud
 Accessible anywhere. Browser based
• Knowledge
Repository
• Single Source of
Truth

8. 8© 2013
Basic Resource View

9. 9© 2013
Complete Work History by Engagement

10. 10© 2013
Investment Returns by Individual
• For any time period (screen shot above is calendar year 2012)
• Utilization statistics
• Revenues generated
• Cost and contribution margins

11. 11© 2013
An Interesting Pattern Emerged from the
Utilization Data
• Utilization pattern did NOT follow a normal distribution
• Superstars carry the load
• Laggards – weak performers

12. 12© 2013
Actionable Items
• Modified/Implement Variable Compensation Plans
 Individual plans based on targets
 Utilization
 Revenues
 Margins
 Team Plans
 Reward Practice Principals and BU leaders for utilizing
junior talent
• Implement Intern and Fresher Programs
• Expected Results
 Higher individual employee satisfaction
 Reduced burn-out and turnover
 Talent development
 Higher utilization rates and margins

13. 13© 2013
360 Degree Customer View – Basic Info

14. 14© 2013
360 Degree Customer View – Key Contacts

15. 15© 2013
360 Degree Customer View – Engagement History

16. 16© 2013
360 Degree Customer View – Contracts

17. 17© 2013
360 Degree Customer View –
Engagement Dashboard

18. 18© 2013
What Actions Came from this Information?
• Mid-course/real-time project corrections – from Stop Light Dashboard
 Change Requests
 Better status reports to customer
 Higher engagement profitability/margins
 Customer investment reporting
 Significantly improved value messaging
 Put a value to non-billable time invested by Keste in customer solutions
 Effective rate discussions vs. SOW rate discussions
 Interrupt price erosion before it happens
 Contracts improvements – Statements of Work (SOW)
 Use the data to understand cost overruns
 Improved SOW language to better specify customer responsibilities
and project impact when there are failures/delays
 Overall Reduced Leakage

19. 19© 2013
Business Units & Practice Areas

20. 20© 2013
Capacity
Planning
• Resources/Head
Count
• Utilization Targets
• Revenues
• Averages
• Minimum
• Maximums
• Targets

21. 21© 2013

22. 22© 2013
What Actions Came from this Information?
Determine Profitable Practice Areas and Opportunities
• Strategic planning
• Kill-off unprofitable practices
• Grow/invest in the profitable practices
Better individual resource planning/optimization
Capacity planning
• Recruiting direction
Proxy for full P&L Reporting
• Allows for minimal accounting staff
• Allows for CFO focus on operations instead of accounting system
upgrades
• Faster information
Modified/Implement Variable Compensation Plans

23. 23© 2013
Conclusions/Take-Aways
• Technical Professional Services can
be analyzed in a systematic manner
• End to End Visibility on the
operations of the business
• Ability to be proactive - deal with
circumstances before it goes to Red
Alert
• Increase employee AND customer
satisfaction
• Scalable platform for growth
• Increase revenues and drive
profitability

24. 24© 2013
Keys to Success of Financial Leadership
in Driving Revenue Growth
Thank You
Ken Judd
Chief Financial Officer
ken.judd@keste.com
301.452.8921

25. 25© 2013
Thank You Sponsors!
PLATINUM
GOLD
SILVER
DIAMOND