Put simply, it takes $7 of services revenue just to breakeven on margins for every $1 of extra (unplanned) project costs.
Rule 71: The One Thing To Know About Professional Services
August 10, 2017
Boost Service Margins with Service Catalogs
August 01, 2017
In a recent blog post I articulated the key sales challenges faced by most product services teams in boosting services margins. Let's now take a closer look at the first challenge, "Explosion in Service Offerings"
The Age of Product Services
July 17, 2017
For decades professional services (PS) businesses in product companies have operated with the mindset that professionals, i.e. resources, are the nucleus of the operating model with the most important metric being resource utilization rate. The desire to improve utilization rate has, in some cases, morphed PS businesses into glorified staffing companies ready to implement "whatever" the customer ...
Mr. President, "Tear Down This Wall"
April 07, 2017
If you work for a product company (i.e., product sales constitutes the majority of the company revenue), no matter what function you work in, your job #1 is to make the product better.
Winning Has A Common Face...
March 31, 2017
"...it goes to the people who are productive, innovative, competitive, adaptive and resilient", says Jeff Immelt, Chairman & CEO of GE. I recently watched a video of Jeff (if you have time, I recommend watching the first 10 mins of the video) summarizing GE's strategy in two simple words - Rebooting Productivity.
Airplanes Take Off Against The Wind, Not With It
March 10, 2017
Do the challenges facing your professional services organization seem insurmountable? If the answer is yes, let me assure you that you're not the only one in that conundrum. Based on hundreds of conversations with services executives (Sr. Directors, VPs, SVPs) these challenges can be grouped into 3 mega trends.
Quality Control vs. Quality Assurance
February 15, 2017
Winning deals is not easy especially in competitive markets. So loosing a deal when you seemed like a clear winner is understandably frustrating. Most of the times these losses can be easily avoided. Well, this is precisely the intent behind your review and approval process… To ensure your proposals and statement of work documents convert customer interest into won deals. But virtually all ...
Goodbye "Professional" Services, Welcome "Product" Services
February 06, 2017
Businesses become successful by solving customer problems that are deep and meaningful. But how do you go about uncovering these customer problems?
Always Lead with Professional Service
January 22, 2017
The recent hype surrounding technologies such as Internet of Things (IoT), Artificial Intelligence (AI) and Virtual Reality (VR) has become almost deafening. Although it’s great for exposure and recognition, hype can also be a detriment to successful adoption —paired as it often is with inflated expectations and even disillusionment.
Is Software Professional Services Dead?
January 16, 2017
Not quite, but it's in the midst of a significant business model disruption! More specifically its the transition of enterprise software from on-premise to software-as-a-service (SaaS) that's driving the business model disruption. Just take a look at some of these metrics...