The 40^th Annual Deltek AE Clarity study uncovered some interesting trends regarding business development from last year. The results indicated that AE firms still are struggling to find new opportunities early enough to convert them into sales. Additionally, a large number of firms that participated in the study identified the need to be more strategic about which potential projects to pursue. Here’s a quick summary of some business development findings from the 40^th Annual Deltek AE Clarity Study.

Business Development Challenges

One of the most significant findings in the study is that firms have trouble with prioritizing time to nurture client relationships. More importantly, this is a leading challenge for the second year in a row. The seller-doer model seems to be the go-to business development method for AE firms where not enough attention is given to focusing on potential new business opportunities. If firms stay with this outdated model, this trend will unfortunately continue.

Diving deeper, the number 2 and 3 challenges firms reported are increased competition and identifying new prospects. In regard to competition, this is going to occur in any industry and this challenge sounds more like an excuse. However, identifying new prospects has a direct correlation to firms using the seller-doer model. 61% of firms stated that project managers are almost always responsible for business development. With project managers being tasked to do their core job, delivering projects, they struggle in their efforts to successfully generate new business.

Revenue Growth Forecast Findings 

Less shockingly, net revenue growth remained at 5.1% on average. This is very little change from last year. So, why is this not surprising? The findings that firms lack having a dedicated business development team pinpoint the reason for net revenue growth staying stagnant.

Another notable discovery from the study is that smaller firms continue to pursue small projects that have shorter timelines as opposed to focusing on trying to win larger long-term projects. This business development model is proving to be less effective for generating increased revenue year after year. Smaller firms should take this under consideration when making plans for long term growth.

Key Takeaways from the 40^th Annual AE Deltek Clarity Study 

Out of all the firms that participated, less than half of the firms stated that they have a formal business development process. This is astonishing since creating new business is essential for future firm growth. Even more, firms are continuing to use the seller-doer model, and as a result, project managers face the challenge of balancing expectations which can hinder the success of their projects. Learn more by downloading your free copy of the 40^th Annual Deltek AE Clarity Study.

According to Gallup’s most recent research, only 13% of employees worldwide feel engaged in their workplace. Additionally, only 33% of Americans are engaged at work based on a report from the latest State of the American Workplace. Without employee engagement, there is limited innovation and problem solving which leads to a dissatisfied customer base. Converting these uninspired workers into engaged employees is a must for a firm to be successful. A sure-fire way that firm leaders can do this is with employee training, learning and development.

Effective Training

To encourage employees to become engaged, managers must first show interest in their employee trainings. They should speak to their employees before a training to discover what they are looking to get out of it. Afterwards, they should take the time to talk about what has been gained from the training. Additionally, there should be a balanced blend of training options to appeal to a diverse workforce. Embracing technology is also an excellent way to make training enjoyable. Managers should know their people and what works for them, and with well thought out trainings, employees will stay engaged.

Constant Learning

Another way to keep employees engaged is to provide them with constant learning opportunities. One size does not fit all. Some employees like a structured lesson while others prefer an interactive approach which gets them more involved. There is certainly more accessibility to learning activities with technology so again using technology as part of the learning options is ideal. Additionally, offering employees a yearly allowance for professional learning is a great way to get employees engaged. The allowance could be spent on books, on online classes or even industry conferences.

Career Development

Another big area for engaging employees is their career development. Managers should sit down with their employees and evaluate what the future holds for them. They should be offered the opportunity to experience different roles in the firm, gradually being given more challenging work and responsibility. This entails daily learning of new skills to help reach the ultimate position with the manager’s help. From the manager’s side, this means aligning firm needs with employee aspirations. Knowing that their managers are interested in what they desire in their career path makes for engaged workers.

Worth the Time Required

While the time required to provide a balanced training menu, a variety of learning opportunities, and personal career development is high, the cost of losing the firm’s key knowledge base or customer connections outweighs the burden. Employees are a firm’s best asset and keeping them engaged should be a priority. Engaged employees work harder for your firm and ensure customer happiness so it’s worth it to spend the time to make them so.

You’ll be happy to know that the 40^th annual Deltek AE Clarity Study found that AE firms’ financial metrics increased across the board. However, what you’re really wondering is how your financial metrics matched up against the findings of the AE Clarity Study. By comparing your metrics with the study findings, your firm can see what it must do to ensure it has an even more successful future when compared to past performance. Here are some financial highlights from the 40^th Deltek AE Clarity Study.

Hurdles that Firm Financial Leaders Experience

A shocking reality to many firms is that finding and retaining top talent is becoming very costly. In fact, this challenge was introduced to the survey this year, and it was the largest one faced by financial leaders last year. To put this into perspective, it typically costs a business 1% to 2.5% of its total revenue to hire and onboard a new employee according to a study by MIT. For a firm with over $1 million in revenue a year, this is an astonishing amount.

However, there are other standout challenges firm financial leaders faced. Some of these included business development challenges such as increasing profitability and managing firm growth. But when closely reviewing the Clarity Study financial findings, human capital management issues were very common. Succession planning and ownership transition ranked as the fourth leading challenge for financial leaders.   

Key Financial Findings from the Deltek AE Clarity Study

Overall, the 40^th Annual Deltek AE Clarity Study found that the majority of firms are improving their financial performance. For instance, the study found that firms have increased their operating profit on net revenue by 1.2%. On the other hand, firms experienced only a 0.4% increase in utilization rate and a 0.05% increase in net labor multiplier.

Surprisingly, overhead rate changes affected firms differently depending on size. Whereas large firms experienced a decrease by 5% in their overhead rates, small firms reported an 11% increase. However, the increases are most likely associated with firms making investments back into their companies and their employees. Other reasons for these increases may be related to inflated office space costs and the general increase in the cost of doing business. Keep in mind, this is just a summary of the financial findings, and you will find more details in the actual report.

Finding Ways to Overcome Financial Hurdles

During the study, firm financial leaders were asked to rank their top three initiatives to overcome the hurdles they face. The majority listed business process improvement as the most important. This makes sense, as a more streamlined business process will quickly cut hidden costs. The study next revealed that firm project managers often lack financial understanding. Therefore, firms are increasing financial training for project managers to create more profitable projects. Lastly, financial leaders want to improve business forecasting which will also help with human capital management.

Benchmark Your Firm Against the AE Industry

The Annual Deltek AE Clarity Study is a great tool that allows AE firms to compare themselves to others in the industry. What makes this study so significant is that it uses information from over 700 companies of all sizes with over 2,500 individuals responding to the survey. As a result, the information contained in the study represents the entire AE industry. So, take advantage of this free study to discover how your firm measures up to the industry standard.

In the business world, it is vital that your company stays ahead of the competition. Business leaders must consistently evaluate many things from the technology being used to the way the business is organized. While firms tend to spend a lot of money on business development activities, they focus less on technology advancements. This is a costly mistake since technology is rapidly changing and continues to provide solutions to many common business challenges. Let’s see why companies should prioritize digital innovation.

Worth the Cost

Businesses push back on investments in technology because of the cost to upgrade their current systems. However, they don’t consider the cost of their current software being outdated. Choosing to save that money and not invest in new and up-to-date software could lead to more problems down the road like hardware failure.

Even more significant, using outdated systems can be frustrating and lead to less productive employees and slower work production. Using current technology will promote productivity plus allow employees to learn what is new so they can benefit their customers. Keeping up with the growing technology can give companies the edge over others that are still using out-of-date systems.

Reducing Redundancy 

There are many software offerings available to reduce redundancies and improve employee efficiency and productivity. Firms first should find an application that will communicate with other systems they have in place. Employees should have an easy and effective way to get data from one place to another without having to import and export to different systems. Having a system that can interface with a client’s software can make it easier to manage data. Working with current software eliminates duplicate data which results in more work down the line.

Remote Access

As newer technology arises in the business world, mobility becomes an option for more employees. The ability to access corporate data while not in the office is essential to employee productivity. There is an additional impact on your team since data can be updated whenever creating real-time information. Furthermore, being able to work from wherever provides more flexibility to meet customer needs whenever they arise. Only the most current technology allows for these benefits.

Fostering Collaboration

Digital innovation promotes global collaboration. While businesses require collaboration, it is becoming increasingly difficult with more companies going global. By employing collaboration solutions, employees are able to share information real-time instead of storing it. Having the ability to share results instantly can improve employee relationships within teams located around the world.

Make Technology a Priority

Unsupported software and out-of-date hardware can cause data failure, but it also prevents businesses from being as productive as they could be. Pursuing digital innovation, companies can make sure they are on top of their games.  Up-to-date systems offering employee mobility ensures productivity and an exceptional customer experience. Prioritize technology for your firm.

Have you ever wanted to learn how to get more out of your Deltek products? Well, Deltek has a solution for you! If you’re a go-getter, you’ll find the Deltek Learning Zone (DLZ) a great tool to expand your capabilities. Let’s take a look at how you can access what DLZ has to offer.

Gaining Access to the Deltek Learning Zone

Here’s some side information before we go to deep. For starters, Deltek Vantagepoint and Vision are offered in two versions. One being on-premise, which means your firm hosts Vantagepoint or Vision on their own servers. The other being software as a service (SaaS). This means your Deltek product is hosted in the cloud and maintained by Deltek IT staff which relieves your firm of the burden on maintaining your software and having to have hardware to store your data. So, why is this important?

If your firm is a SaaS Deltek client, there’s some good news! You have access to the DLZ at no additional charge. If your firm maintains their own Deltek database, you still have access to the DLZ. However, there is a nominal fee your firm will have to pay to gain access.

Benefits of the Deltek Learning Zone

For starters, the DLZ is a learning tool. It allows users to access information and training materials about the Deltek products your firm utilizes. These resources allow you to learn more about the products you use and how to maximize them to reap all the benefits to improve your work performance. But wait, there’s more!

Sure, you want to get the most out of the Deltek products you already have access to. However, is there an add-on module that can help your firm streamline more processes? Well, you probably know the answer is yes if you’re an avid Deltek user. But you may not be sure of how they work and how easy they are to use. Well, the DLZ offers a simple solution for you to learn how these additional modules work and how easy they are to navigate.

Even more, many Deltek Vision users are preparing to upgrade to the latest Deltek ERP, Vantagepoint. However, many people are hesitant to change which is a natural instinct. Therefore, the DLZ offers several training tools to help overcome fears and answer the questions you have before upgrading to Vantagepoint.

Here’s What is Offered in the Deltek Learning Zone

Deltek created DLZ with the core understanding that people learn in different ways. As a result, they created several ways for you to increase your knowledge and proficiency with your Deltek products. For starters, they organized the majority of the educational materials on a role-based library. Meaning that it’s easy to find the right materials and training information that is specific to your job at your firm.

Futhermore, one person might learn by reading a document or watching a video, while others may need a more interactive environment. The DLZ offers several types of training tools to help users of all skills and to meet the needs of how different individuals learn. When you log into the DLZ, you choose to register for an interactive class or download on-demand videos and documents to get instant answers to your challenges you experience on a daily basis.

Do More with the Deltek Learning Zone

If you haven’t explored what is offered in DLZ, you may want to start searching through the resources available. The reality is, you have created a career in the professional services industry and it’s likely you’ll be using Deltek products throughout your entire career. With that said, you should take a deep dive into the DLZ to see what new things you can learn to make yourself your firm’s go-to resource for any Deltek related questions.   

Technology is a huge part of any growing business and leaders are constantly searching for emerging technology trends that can drive their businesses forward. Originally, the A&E industry strayed from embracing new technology because of the time and effort it took to learn and adopt the new trends. However, firms are now identifying technology as a strategic and innovative way to educate staff, identify key initiatives, and implement incremental changes to improve business.

Top Three Technology Trend Challenges

In this year’s Deltek Clarity Survey, firms were asked about their top technology trend challenges. The results presented in the 40^th Clarity Report showed that the top three challenges were the struggles of prioritizing trends, the cost of technology, and the lack of time to learn. Other challenges included client education, lack of leadership, and buy-in from firms.

Emerging Technology Trends

For the second year in a row, firms were asked how important nine emerging technology trends were to their businesses. Lining up with the top four from last year, The Internet of Things (loT) and Geo locations ranked in, closely followed by big data and data science.

The loT is the interconnection of devices embedded in everyday objects, enabling them to send and receive data. It is important because connected devices offer the potential to better manage certain projects. The key is being able to extract and manage actionable data from the loT devices to make informed decisions.

Geo location is more prominent now than ever. Firms can leverage geo location information to make things easier for the employees and clients. Geo locations can be used to determine an employee’s location, to track how long an employee is on a job site or deliver valuable details about the client when you arrive at a project or client office. Firms can use this information to better manage projects and improve client satisfaction giving them a competitive advantage.

Application of Technology Trends

This year, firms were also asked to which areas of their business they apply technology trends. Most firms are looking at implementing these trends into projects themselves through either project management or project execution. Futhermore, more than half of the firms want to apply technology to improve their business development and marketing.

The problem is that not enough firms are seeing the value of technology and how it can improve human capital management. Potential and existing clients are wanting businesses to be tech-savvy, and those that can deliver streamlined services that use up-to-date technology will stand out from the rest. Embracing technology today can create a clear competitive advantage, while those who are not will have to play catch up later.

Top Technology Trend Initiatives

Additionally, firms were asked to identify the top three initiatives they are employing to address technology challenges in the next three years. Two-thirds of the firms identified creating a strategic plan as one of their top three initiatives, followed by educating staff and identifying and developing technology subject matter experts. With these initiatives in mind, how can firms get this information and learn from it and eventually apply it to their work forces?

First, firms just need to know where to start. Industry associations and partners are a great resource they can use to learn more about technology. Firms should not be nervous about integrating new technology into their organization because of the fear of failure. Once they gain an understanding of the technology, developing a budget for implementing these trends will become more manageable.

Learn More From the 40^th Annual Deltek Clarity Report

This is simply a summary of technology trends from this year’s report. For more details, download a copy of the 40^th Annual Deltek Clarity Report today. You may also find other topics of interest to keep your firm ahead of the competition.

At the beginning of 2019, Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) jointly implemented the Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. Essentially, ASC 606 now requires forms to recognize revenue from contracts with customers when goods or services are transferred. For professional services firms that use their expertise to sell their time, this has a significant impact on how firms recognize revenue.

About FASB ASC 606

With the new guidelines in ASC 606, firms must recognize revenue in their income statement during the period in which the revenue is earned and not when it is billed. Since professional services firms manage projects that can span across multiple periods, they might not bill until the project is complete. As a result, firms must use a form of percent complete for the project to determine how much revenue to state on their income statement for that period. For example, if during a specific period a firm completes 25% of the project, they must recognize 25% of the revenue that will be earned from the contract for that period.

There are three distinct ways to calculate percent complete:

1. Billing Percent Complete
2. Financial Percent Complete
3. Physical Percent Complete

Billing Percent Complete

Using billing percent complete is the most common method. Typically, this is driven by the project manager during the invoicing process. There are two options:

• Overall percent applied to the total contract value
• Percent complete by phase used to invoice based on the various components of scope/deliverables and these phases are broken down using either internal or external contract value

For many firms, this also drives revenue or earnings. Furthermore, it is recommended for people to review the current FASB 606 regulations. This will explain why earning what you invoiced may not be an acceptable solution any longer.

Financial Percent Complete

Another common technique is the financial percent complete. The formula for this method is job to date/job to date + estimate to complete. This indicates how much of the total estimate at completion has been spent or burned. When applied to the contract value, we can calculate revenue. Deltek Vision can facilitate this calculation using Resource Planning.

Physical Percent Complete

Lastly, physical percent complete can be utilized. This is usually calculated when the user or project manager has entered and can provide the following:

• Compared to financial percent complete, indicated whether the project’s progress is tracking with the financial burn
• When begin to drive earned value
• Have control earnings based upon contractual stipulations such as deliverables which can accelerate or slow down earnings and at the same time drive Work in Process (WIP) in tandem but that is separate from invoicing

Which Form is Right for Your Firm?

Let’s do some homework. Using a project your firm is executing, calculate/stipulate all three forms of percent complete and compare them. Then write a business case elaborating on the project’s health from these three statistics. You might surprise yourself with the results.  

Great news! Deltek Vantagepoint is continuing to expand its capabilities and more Deltek Vision users are able to upgrade from Vision to Vantagepoint. However, it seems some are either unaware of what Vantagepoint is or they’re hesitant to accepting change. Therefore, let’s take a moment to inform people about what Vantagepoint is and why you should be extremely excited about transitioning to Vantagepoint in the near future.

What is Deltek Vantagepoint?

In short, Deltek Vantagepoint is a Vision reimagined with several enhancements. When using Vantagepoint, users will find its new functionality easy to navigate. As a result, managing projects and driving business development will be much easier with more streamlined processes and workflows. With Vantagepoint, project-based business will see an increase in efficiency in all aspects of their business.

New Look and Feel

Deltek Vantagepoint is a web-browser based ERP that is built on the iAccess for Deltek Vision platform. When Deltek was creating Vantagepoint, a top consideration for them was creating a product that has a great user interface (UI). Studies have found that software products with an intuitive UI have a significant increase in user adoption. Therefore, Deltek knew that having a high-quality UI was essential, but they took it one step further.

“Hey Deltek”

Deltek is taking simple functionality to the next step. In today’s world, hey…Siri, Google, and Alexa are common features we use to access information from our smart device or the internet. Well, Deltek has created “Hey Deltek” to help users search through their database using voice commands. “Hey Deltek” utilizes natural language commands to help locate, open or create a new hub record, log activities and create reminders using a common phrase. Keep in mind, this product is still in development and the capabilities of “Hey Deltek” will continue to grow and allow users to update timesheets, expenses and more using voice commands. 

Improved Dashboards and Dashparts

Start seeing the information that is important for your role in colorful graphs and charts right on your dashboards. With an improved UI, Vantagepoint users can easily setup dashparts that allow them to make actionable decisions faster. Furthermore, they can select how they want to see the information. Now there are several ways to see your data. Users can select from different types of graphs and bar charts and tables to better visualize data.   

Get Prepared for Deltek Vantagepoint

While change can be scary, it shouldn’t be the case when upgrading to Deltek Vantagepoint. Deltek has taken very meticulous steps to ensure Vantagepoint is a vastly improved ERP product that is focused completely on helping project-based businesses improve their performance. If you’re a current Vision user, it is highly recommended that you start using iAccess (if your firm has it enabled) to get yourself comfortable with navigating around Vantagepoint as these are similar interfaces.