This document provides an overview of practice management strategies and key performance indicators (KPIs) for maximizing productivity and attracting/retaining top talent. It outlines goals and initiatives such as minimizing costs and overheads, improving team training and knowledge management, and maximizing revenue, margins, and client/staff satisfaction. Various KPIs are proposed for tracking financial and operational metrics, human capital management, service delivery, and client experience. The document aims to define strategies and measurements for optimizing a professional services practice.
4. Firm’s - Overview
Firm’s Annual Revenue
Total # of Employees by Category (Finance, HR,
Practice)
Practice Revenue as a % age of Firm’s Annual Revenue
Total Firm’s Overhead Charges (IT, Facilities, HR)
Practice Overhead as a % age of Firm’s Annual
Overhead
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5. Practice Management - Overview
Annual Practice Revenue
Total # of Practice Employees
Year-over-year change in Practice Revenue
Year-over-year change in Practice Employee
Headcount
Practice Employee Categories (Consultants,
Project Managers)
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6. Practice Management - Revenue
Average Billable Hourly Rate
Percent of Practice Employees Billable /
Chargeable
% age of Practice Revenue delivered by
Third-Parties (Sub-contractors)
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7. Practice Management - Overhead
Spend / Overhead Categories
Practice Overhead (IT, Facilities, Admin)
as a % of Annual Practice Revenue
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8. Practice Management – (Non) Billable
Hours
Administration Education / Training
Days
Public Holidays
Annual Billable Hours
Staff Annual Leave (Budget vs. Actual)
Research & Annual Non Billable
Hours (Budget vs.
Development
Actual)
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9. Practice Management - Integrated Solutions
Business Intelligence Solution (BI)
Human Capital Management (HCM)
Professional Services Automation (PSA)
Enterprise Resource Management (ERP)
Customer Relationship Management (CRM)
Enterprise Performance Management (EPA)
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10. Practice Management - Goals / Strategy
Vision, Mission, “SMART” Objectives
Priorities by Quarter
Minimise – Costs, Overheads
Team – Training, Knowledge Management
Performance Measurements – Budget vs. Actual, KPIs
Maximise – Service Revenue, Margins, Utilisation, Client
/ Staff Satisfaction
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11. Practice Management - Initiatives
Staff Training
Knowledge Management
Staff Training / Certification
Quality Standards / Assurance
Investments (IT, Professional Books / Magazines)
Practice Delivery “Methodology / Frameworks / Tools”
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12. Practice Management – Finance / Ops
Bid / Win Ratio Average Annual Revenue per Billable
Staff
Average Staff Burden Rate
Project Margin for Time & Materials
Projects
Days Sales Outstanding (DSO)
Average Quarterly Non-Billable
Annual Net Contribution Margin Expense per Staff
% age Billable Work Written-off % age Invoices Redone (Error, Client
Rejections)
Project Margin for Fixed Price Projects
Quarterly Average Forecast Revenue
Average Gross & Net Margin on & Cost Variance
Projects
% age Quarterly Revenue Target
Average Sub-contractor Margin Backlog (Increase / Decrease)
% age of Compensation (Fixed & % age of Discounting (Rates, Revenue
Variable) Leakage, FREE Consulting)
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13. Authority – Pricing & Discounting
Sales
Finance
Service Head
Practice Staff – Senior
Practice Staff – Junior
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14. Practice Management – Human Capital
Mentor / Mentee Program Incentive Program (Referrals)
Annual Training Budget per Succession / Career Planning
Staff
Standard Job Descriptions for
# days from Advertising to all Staff
Hire
Staff Competency / Capability
Periodic Staff Satisfaction Skill Profile
Survey
Regular Performance Reviews
Practice Staff annual attrition linked to Industry Benchmarks
rate
# of Guaranteed Annual
Practice Management to Staff Training Days per Staff
Ratio
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15. Practice Management – Service Delivery
% age Cancelled Projects % age of Projects – Delivered on Time
& Budget
% age on Time & Materials
Delivery Model / Methodology /
Framework utilised
% age on Fixed Time / Fixed Fee
% age Project Revenue spent for
% age on Shared Risk / Performance Quality Assurance
% age Work done On-Site vs. Off-Site Duration (Days) for an “average”
Project Completion
% age Annual Staff Utlisation
(Average) Standardised Estimating Processes
(Over / Under Budget)
% age Billed for Project Management
Time Frequency (Days) and % age of
Project Overruns (Average)
# of Staff on Project Engagement
(Average) # of Projects Managed on an average
by Project Manager at one time
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16. Practice Management – Client Experience
% age Clients "Referenceable“ Incentive Program for Staff Leads &
Referrals
% age Client Satisfied and Rating
# of Days - From Suspect to Signing
Contract
% age Clients Surveyed Periodically
Solutions Collateral / Service
Service Sold by Sales or Practice Marketing Utilised
Manager
Sales & Marketing Cost as a % age
Application utilized for Proposal Practice Revenue
Generation
% age / $$ obtained from Cross / Up
"Top Client" Premium Program & Selling Annually
Incentives
% age variance - Deal Pipeline to
Pre-Sales Cost as a % age Practice Quarterly Bookings Forecast
Revenue
# of Days Product Training given by
Practice Staff to Sales Force
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17. “Where there is no vision, the people
perish.”
- Proverbs 29: 18
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