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.

1. Practice Management
Maximise Productivity
Attract & Retain - The Best
Anand Subramaniam

2. “The first responsibility of a leader is to
define reality.
The last is to say thank you. In between,
the leader is a servant.”
- Max DePree
2

3. Highlights
 Revenue / Profit Maximisation Strategies
 Cost Minimisation Strategies
 Improvement Initiatives
 Finance & Operations
 Human Capital Management
 Service Delivery
 Client Experience Management
3

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
4

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)
5

6. Practice Management - Revenue
 Average Billable Hourly Rate
 Percent of Practice Employees Billable /
Chargeable
 % age of Practice Revenue delivered by
Third-Parties (Sub-contractors)
6

7. Practice Management - Overhead
 Spend / Overhead Categories
 Practice Overhead (IT, Facilities, Admin)
as a % of Annual Practice Revenue
7

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)
8

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)
9

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
10

11. Practice Management - Initiatives
 Staff Training
 Knowledge Management
 Staff Training / Certification
 Quality Standards / Assurance
 Investments (IT, Professional Books / Magazines)
 Practice Delivery “Methodology / Frameworks / Tools”
11

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)
12

13. Authority – Pricing & Discounting
 Sales
 Finance
 Service Head
 Practice Staff – Senior
 Practice Staff – Junior
13

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
14

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
15

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
16

17. “Where there is no vision, the people
perish.”
- Proverbs 29: 18
17

18. Good Luck
http://www.linkedin.com/in/anandsubramaniam
18