What does CRM Mean? CRM (Customer Relationship Management) is a solution that enables your firm to cultivate relationships and gain valuable insight in to marketing efforts. An integrated CRM solution brings together data from all data sources within an organization to provide a holistic real-time view of each customer or campaign. This real-time knowledge provides your team with the metrics and data needed to make informed decisions in a quick, yet calculated manner. 

What Does CRM Mean for My Firm 

A CRM system is truly something that each member of your team can benefit from. Examples of the benefits a CRM solution provides include: 

• Track client contact information | No need for the use of virtual cards or digging through outlook to find email signatures, a CRM allows your entire firm to store valuable customer information in one location.
• Monitor marketing campaigns and efforts | What good are your marketing efforts if you cannot track the results? Track the effectiveness of your efforts and campaigns to help better refine your message and target audience.
• Review past engagements | Utilize dashboards to easily track which messages, campaigns, and leads resulted in the highest wins.
• Access customer (or lead!) information, on the go | Never get left out in the cold again! Gain access to your customer information on the go! Readily available intelligence allows your business development staff to go out and produce, and track, results.

What does CRM mean for your SMB, and how can you use it to grow stronger? The answer is simple; a CRM solution means that as your business grows, and the associated contacts and connections grow with it, you have the ability to manage a myriad of relationships across your entire firm. Clients are the lifeblood of any professional services firm, and without a proper CRM solution in place, you are essentially ignoring an open wound. So how can your firm use CRM to manage an opportunity from concept to completion? Simple: 

• Pipeline and Cash-flow forecasting | Avoid rough patches and dry spouts by becoming intimately familiar with your pipeline of potential new business, and the value of your current projects.
• Track progress on current sales opportunities, review historical information on past opportunities | When speaking to a client or prospect, easily log details about the conversation for later follow-up. Tracking detailed information about interactions can allow you to win future work, based on often overlooked past experiences.
• Create milestones for each step of the project, and specify a target completion date | Tasks can be created and associated with each milestone within the project, so you have more granular control of what needs to be done, by whom, when.
• Comprehensive reporting allows deeper insight | Setup your marketing goals within your CRM and track status and progress quickly and easily.

It is important to not only track valuable customer data, but to do so in a way that promotes sharing amongst your team. Promote growth and sharing and consider taking your customer data in to the cloud with an all-in-one CRM solution that consolidates all of your information in to an easy to access system. Stop wasting valuable customer insights and information, and start impressing customers with your deep firm-wide knowledge about each relationship. 

So next time someone asks you ‘what does CRM mean’, you can tell them, “CRM means winning more work!” 

Full Sail Partners, offering business consulting, technology solutions, and application hosting for Deltek Vision, recently announced it has earned a spot on Accounting Today’s 2013 Top Value-Added Reseller (VAR) List.  Accounting Today is a leading provider of online business news for the tax and accounting community, offering breaking news, in-depth features, insightful editorial analysis, and a host of web-related resources and services.

Each year a select group of 100 organizations are honored for their accomplishments as VARs. The top VARs are selected from organizations focused on sales and implementation of accounting and Enterprise Resource Planning (ERP) software. Criteria used to determine the winners include 2012 revenue, number of offices, and staff size.

According to Accounting Today, “There can be no doubt that many of this year’s top accounting and ERP value-added resellers benefited from an improved economy, but adding niche-focused services and software and even new product lines helped keep them at the top and prepare for the future.”

"Full Sail Partners is extremely honored to be named a Value-Added Reseller for the second year in a row," said Sarah Gonnella, Vice President of Marketing and Business Development of Full Sail Partners. "Our firm continues to look at ways to strength our relationship with our clients and serve as a voice for the SMB market. It is because of this, coupled with a strong reputation as a leading Deltek Vision implementation partner that we not only remained on the top list, but moved up nine spots. We will continue to work hard for our clients to provide them the tools needed to help them grow their business.”

Full Sail Partners provides on-premise and cloud-based solutions for architects and engineers, energy and environmental consultants, and professional service firms across the United States. Full Sail Partners' team, collectively, brings more than 200 years of experience with Deltek solutions. The firm also provides unique technology solutions that integrate with Deltek Vision including Deltek’s Kona social collaboration platform, the Client Feedback Tool, and Vision Unleashed.

“At Deltek, we rely on our strategic partner relationships to extend our solutions in key markets, and Full Sail Partners has a long history as a committed Deltek Premier Partner. They understand the challenges and issues professional services firms face on a day-to-day basis and ensure their customers have solutions in place that will deliver the critical information they need to be successful,” said Claus Thorsgaard, Executive VP and General Manager – Professional Services at Deltek. “On behalf of Deltek, I’d like to congratulate Full Sail Partners for being named a Top 100 Value-Added Reseller – a well-deserved recognition.”

About Full Sail Partners 
Full Sail Partners specializes in client-focused technology solutions for architects and engineers, energy and environmental consultants, and professional service firms across the country. Full Sail Partners offers business consulting, technology solutions, and application hosting for Deltek Vision. Partnering with more than 1000 clients nationwide, Full Sail Partners builds long-term relationships and seeks to identify the critical resources to create a faster, more efficient, and integrated business.

Full Sail Partners – Keep Your Business on Course. | For more on Full Sail Partners profile and background on the Full Sail Partners crew, visit us at http://www.fullsailpartners.com.

About Deltek 
Deltek is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 16,000 organizations and 2 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.® http://www.deltek.com

Full Sail Partners, Deltek Premier Partner, is pleased to announce its recent hire of Nicole Temple who will join the Full Sail Partners team as a Senior Consultant. Within this role, Nicole will provide consulting and training to Deltek Vision users. Ms. Temple has a proven background supporting firms through system implementation and user training. With this most recent hire, Full Sail Partners continues to provide clients with the most knowledgeable professionals in the industry.

“I believe my unique experience of working with Deltek Vision as both the front end as an accounting user, and back end as a consultant will provide clients with a strong functional foundation to address their daily challenges,” said Nicole Temple. “With the introduction of Vision 7.1, I look forward to bringing my passion for training to Full Sail Partners to assist clients with the transition from legacy software and prior versions, to gain more from their Deltek experience.” 

Nicole Temple comes to Full Sail Partners with 15 years of experience A/E/C industry. Most recently, Nicole worked for Deltek University providing clients with Deltek Vision system implementation, customized and front-end training. Through her rich history working with Deltek Vision, Nicole is uniquely qualified to assist firms in the training and implementation of Deltek Vision software, methodologies, and best practices.

Nicole Temple’s appointment comes shortly after the one year anniversary of Full Sail Partners. "Full Sail Partners is excited to add Nicole to our Consulting staff solidifying a very strong Consulting Team" said Scott Seal, Vice President at Full Sail Partners. "Nicole’s depth of experience, energy, enthusiasm with Deltek Vision and proven track record of success are exactly what the company needs for its next major phase of growth to ensure great service to our clients."

For more information, please contact Full Sail Partners’ Marketing Communications Department or check out the rest of the Full Sail Partners Deltek Vision Consulting Team.

You might be tempted to think that the hardest part of using business performance metrics to guide your business is gathering and analyzing the metrics. 

But equally important — maybe even more so — is selecting the right metrics to begin with. Of course, there are some people who observe that there are no “bad metrics.” The argument goes that a metric itself is neither good nor bad; it could be just as likely that your data is wrong, or possibly that the metric is simply not a good fit for your needs or your organization. 

But even though the metric itself is neither good nor bad, there are other ways that business performance metrics can be failing you. Let me describe three of the most common problems. 

1. Inconsistency. One of the most common ways a metric can go south is inconsistency. Granted, some people think consistency is overrated: the philosopher Ralph Waldo Emerson once railed in his classic essay, Self-Reliance, that “A foolish consistency is the hobgoblin of little minds.” (It’s good stuff — look it up!)

2. Unintended consequences. Another problem is if your metrics are somehow incentivizing your employees to do the wrong thing. For example, imagine your firm has put a recent focus on customer service. Unfortunately, last year you notified all employees that their pay raises will be based on employee utilization rates. The longer your employees spend keeping your clients happy (non-billable work), the lower their utilization rate. You are telling your employees one thing, but your actions are saying the complete opposite.

Although it should go without saying, it’s absolutely critical to make sure that the math and logic that feed into your business performance metrics remain consistent, regardless of the timeframe or operating unit being analyzed. 

So in this example, a better metric would be to incentivize your employees on a combination of utilization rate and customer satisfaction — more complicated to gather, but ultimately closer to what you want to reward and encourage. What’s more, a great reason to plan your metrics with care! 

3. Understanding Lagging vs. Leading Indicators. To be most effective, you need business performance metrics in as close to real-time as possible. Understanding the difference between lagging vs leading indicators can often be the defining factor for setting your firm on the correct course. Lagging indicators help your firm indentify historical trend information, while leading indicators provide predictive information that can allow you to make data-driven decisions to change future outcomes.

QuickBooks, Excel and other office applications can help in collecting and analyzing data, but lacks the sophistication to provide real-time insight. A purpose built ERP, like Deltek Vision, provides front and back office functions insight into historical and predictive information. Whatever tools you use to gather your metrics, be sure to automate the process as much as possible to provide your team with the ability to make the best data-driven decisions.

Start measuring!

So how does one avoid the pitfalls of metric management? A great starting point is to understand your business and what your version of success looks like. For example, is it total revenue, net profits, other measures, or a weighted combination? 

At Full Sail Partners, we work with a large number of professional services firms — especially those that are project-based. As a result, we have a lot of insight and experience into the metrics that are most telling for them. To learn more, keep exploring our blogs, or contact us.

In order to truly gain a holistic view of the organization, there are key financial ratios and indicators that project-based firms should focus upon at regular intervals. Some key project performance metrics need to be monitored on a real-time basis, or at least weekly, while others are more relevant on a monthly basis. Also, because firms must first win projects and engage in other activities that do not directly produce revenue, project-based firms should also regularly monitor firm-wide metrics.

We should not focus on a single metric but rather, should adopt a more comprehensive view and monitor a handful of key metrics. For example, firms might reach the target for their Net Effective Multiplier (NEM) and yet have too few revenue producing projects, too much overhead, and poor utilization rates.

Key Project Performance Metrics for Management

At a minimum, firms should monitor their Net Effective Multiplier (NEM) on a monthly basis. The NEM is calculated by dividing net services revenue by direct labor, which is the cost of labor charged to projects. Net service revenue is total revenue less direct cost (i.e., Direct and Reimbursable Consultants and Expenses).

Most firms would like to see a multiplier that is better than 3 times direct labor. In its recent AE Clarity Report for 2012, Deltek reported an average of 2.9 with top performing firms reporting 3.43.

One way higher performing firms achieve a better NEM is by assigning appropriate resources to their projects. More experienced resources are typically very productive, but their higher labor cost drives the NEM downward. Thus, it is important to assign the resources with the right level of expertise to complete the task at hand.

Some firms prefer to report and monitor the Realization Ratio in lieu of the NEM. The Realization Ratio is calculated by dividing net services revenue by direct labor at billing rates instead of cost rates. A target Realization Ratio would be greater than 1.

On at least a weekly basis, if not real-time, firms should monitor Project Estimate-to-Complete (ETC) and Estimate-at-Completion (EAC) values. ETC amounts are how much additional money must be spent from tomorrow through the end of the project to complete the work. EAC amounts are how much total money you expect to have spent at the end of the project. This is calculated as the job-to-date costs plus the estimate-to-complete costs. ETC amounts can be calculated simply by maintaining schedules. With a timeline defined, ETC amounts are simply future scheduled amounts at either cost or billing rates.

Best Practices Tips: To monitor ETC and EAC amounts in real-time, it’s a best practice to complete timesheets on a daily basis. Additionally, to establish a proper Project Work Breakdown Structure, subdivide a project into smaller more manageable components (e.g., phases and tasks) to maintain schedules and monitor these amounts. Ideally, EAC amounts will not exceed budgets but by monitoring these calculations weekly, firms are better able to keep projects on track and the work within scope. 

Key Firm-Wide Management Metrics

Firms should monitor their utilization and overhead rates on a monthly basis, at a minimum. The Utilization Rate is calculated by dividing the cost of labor charged to projects by the total labor cost of the firm. In the early referenced Deltek's 2012 AE Clarity Report, the average employee utilization rate was reported as 59.8%. Excluding vacation, holiday, and sick time it was 65.4%.

Firms can improve employee utilization by setting realistic utilization targets, properly allocating resources, managing client expectations, and having employees monitor their performance against their target, real-time, while completing timesheets each day. The Overhead Rate is calculated by dividing total overhead (before distributions) by total direct labor expense. Typically, bonuses are excluded from overhead for this calculation.

An interesting finding from Deltek’s AE Clarity Report was the average overhead rate for 2012 which was 161.6% with bonuses excluded and 175.7% with bonuses. Rates were not significantly different for higher performing firms suggesting they had achieved higher project profitability with better NEMs and better utilization rates.

The bottom line is that there is no magic bullet but rather a handful of key project performance metrics firms should monitor at regular intervals to maintain profitability. Does your firm have a global view of your firm metrics? Schedule a demo today to see how Deltek Vision is an ERP specifically designed to provide access to these key metrics and many more. 

At the core of a project-based firm’s business is the need to monitor the progress of your projects. As Project Manager’s we are busy and we need quick, real-time information to help us steer our projects. Just as a dashboard in a boat identifies and provides feedback regarding the status of our voyage – the speed, the wind angle, the wind force, and the navigational direction – a dashboard can provide the same information about your project.

Specifically, a project KPI dashboard can examine some simple indicators that allow a project manager to gauge which project(s) need more attention.  They should be examined on a regular basis. 

What Project KPIs should I be looking at?

• Accounts Receivable - Overdue AR can be a warning sign for many problems including:  client dissatisfaction, overall project communication issues, and client insolvency (they can’t pay us if they have no money. . . should we be loaning them more money?).  Make sure your AR is in line with a Summary AR Dashboard Part and one for each individual project.  We recommend examining this Project KPI at least twice every billing cycle.

 Tip to Think About:  What is my outstanding AR?  Not only the amount, but how many days out is it? 

• Unbilled Labor – A large amount of unbilled labor is a serious risk not only to the project, but to general firm cash flow.  The company cannot get paid for it if it doesn’t get billed.  A Project Manager should monitor this Project KPI closely all the time, but especially after invoicing.  Make sure to avoid carrying large amounts of unbilled labor from billing cycle to billing cycle.

Tip to Think About:  How much labor is sitting on my project that has not been marked as billed?  In other words, have I been billing my project progress correctly?  

• Estimated to Complete (ETC) and/or Estimate at Completion (EAC) – These schedule based measures will help you determine not only if you are on budget, but if you will finish the project within the overall budget as well.  Compare the EAC to the overall budget and if it is greater, you may decide to either reduce future expenditures or accept the fact that you going to be over budget. 

 Tip to Think About:  How much more do I need to finish this Project?
 When over  budget, confirm that you didn’t forget to send out additional services  contracts. 

• Summary Key Performance Indicators - Above the project level, the measures are usually about Net Revenue, Utilization and Backlog.  By putting these Project KPIs on your Dashboard, you can improve your performance and make your boss look good too.

Tip to Think About:  What is your Boss being measured on?  How can you manage your   projects better with the use of Project KPIs to improve those Summary Key Performance   Indicators?

There may be other metrics your firm utilizes.  Share with us what you have on your project KPI dashboard.  Also, be sure to check out our past webinar: Get the Work Done.

In this Deltek Vision How-To Video, we will demonstrate how to configure a graph from a Deltek Vision report to display on your dashboard. Firms that optimize their dashboard gain greater visibility into to their company as a whole.

Looking for more information on how to optimize your Deltek Vision system? Check out these other How-To videos.

Do you lose sleep at night wondering if you have the capacity to handle work coming in or even worse if you have too many people?  As a manager of a professional service firm, managing your human capital is a daily necessity to achieve firm growth and the anticipated performance expected from your employees.  As the market changes, your firm needs information readily available to make quick decisions about acquiring, training, and scheduling your talent.  Many firms rely on resource forecasting tools to handle the management of their employees.  Let’s take a further look at some of the challenges firms have with managing their resources: 

Challenge #1: What are my employees currently doing?  In the past, to see what an employee was working on, managers would go to the desk of their employees to check on the progress of their projects.  However, now resources aren’t always in the same office, state or even country.  Managers are finding they need to easily identify on a daily basis how their employees’ time is being used so they can plan for future work.

Solution - Collect and Measure Time.  As a professional service company – time is what we sell.  Sometimes there is a product that we deliver, but we still internally measure how valuable that product is based upon how much time we have spent creating it.  By capturing an employee’s actual time against a project your firm can now measure that time against what was forecasted to determine the variance. That variance provides you with data to use when projecting future projects.

Challenge #2: How do I match skills with available work?  Some firms are small enough that managers know everyone. However, for a larger firm or as a small firm grows, you don’t necessarily know the skills available within your firm.  Being able to match skills to the work you pursue and win becomes a juggling act.  Not all firms have the critical information available to predict when they need to hire an employee with specific skill sets.

Solution - Identify the Right Resource.  In an ERP, your firm identifies skills, training, role, and experience.  Having this information available allows project managers to identify the right resource based on real-time information.  An integrated solution provides your firm with the ability to search for similar past projects and determine how much experience (time data) they have working on this type of project.  The availability of this employee data allows project managers to make decisions about their collective skills and come up with a plan to increase / diversify their skills needed for the project.

Challenge #3: What predictions can I make about future work?  In order to make a well-informed decision on how to handle the future work, a firm needs historical data.  Without this information, you might as well turn over your resource forecasting to a psychic because your firm is just guessing.  Many firms don’t have the data available to make these decisions.

Solution - Availability.   Project schedules require managing all types of commitments – planned and unplanned. In addition to project commitments, employees take vacation, are on holiday leave, and have internal meetings and activities.  Developing a comprehensive plan for each employee provides accurate resource forecasting to handle future demands.  This helps identify capacity excess or shortage gaps.

The ultimate goal for any project is to end up with a loyal client that will use your firm again.  In order to do that, firms must finish the project on time and on budget.  Choosing a solution that integrates all of these data points allows your firm to report real-time information to make well-informed decisions about resource forecasting needs.  By optimizing your resources, project managers can shorten the decision cycle, increase profitability, and better plan for the future.  

Learn more about Resource Management?  

Last week I was working on my plans for a few upcoming implementations (yes, I have to do plans just like you do).  As I was using the “Resource Search” feature, I thought it would be helpful to demonstrate some of the features of this powerful tool for fellow project managers.  So for those that are thinking about using Deltek Vision's Resource Planning tool and those that need a refresher, here are some great features of the tool.  

What Is Resource Search Option?
The Resource Search option allows you to see who is available to work and when they are available. It allows users to quickly assign resources and respond to client needs. This feature is accessed when working on the Labor Tab of the Planning module.  To search for resources, right click on the left side bar to search for a resource. Then select “Resource Search.”   

Who Has Skills?  
If you are like me, you are already familiar with your team’s skill set because we have a smaller team. Depending on the size of your firm, you may or may not need this feature. However, as your firm grows (that's the purpose of tool, right?) knowing the skills available can be very helpful. The resource search has the capability to search for resource skills. To take advantage of this feature, your organization must simply take the time to enter data within the Experience Tab. The skills feature is also used by marketing as a part of the government SF330 form. The skill and level of expertise is customizable to your firms needs.

Who is Available?  
In addition to searching for skills, the resource search allows you to identify resource availability and commitment. The commitment search allows me to search for over and under usage, as well as, a specific percentage of utilization for a specific date range. This feature in combination of the skills search allows me to narrow down the person that fits my criteria.

An Alternative to Resource Search
I noticed I kept switching back and forth from the Planning module to Resource Management.  Once I've narrowed down my search on the employees I'm looking for, I like to use the Resource Management module.  For me, the coloring provides a quick visual of those that are over, under, or on target for a specific time period.

To simplify this process, lets pull up the Resource Utilization screen in a separate window (Right Click on ‘Resource Utilization’, click ‘Open in New Window’).  Now by simply moving the plan to the left hand side and the Resource Utilization screen on the right hand side, I'm now able to show the available resources.  In the Deltek Vision ERP system, this side by side comparison provides a quick view of our team members availability next to our project plan. This is simple, easy and saves me at least 3 mouse clicks.

More Resources
Are your Project Managers using these tools?  Searching by skills, commitment, and availability are only a few of the features in Deltek Vision's project-based ERP.

Be sure to view our Resource Planning Demo to learn more.

For those using Deltek Vision Resource Planning, try out these tip and let me know how they work for you. If you have any tips and tricks you've learned, please add a comment.

Be sure to check other Project Management articles.