Improve Operational Efficiencies: One of the critical objectives of digital transformation is to improve operational efficiencies. According to McKinsey, 79% of all companies have cut costs in response to the global economic crisis, but only 53% of executives think that doing so has helped their companies weather it. Even though there’s a commonsense ring to trimming costs, research demonstrates that approaching operational efficiency with the aim to reduce expenses is not nearly enough.
Besides being highly work-intensive, the professional services industry is bogged down by administrative duties that are repeated ad nauseum without producing any real value. This might come as a surprise, but in professional services, almost every core business process that’s repeatable can be automated, from quote to invoice, starting from project planning and proposal development to knowledge sharing and financial reporting, you name it.
83% of executives name resource allocation as the most critical management lever for spurring growth, according to McKinsey. Sadly, not all companies get the hang of how to do it right. Project and operation managers still fail to use resource allocation to their advantage. Poor resource management has seen the largest increase since 2018 and is now ranked as the 2nd top challenge to companies across different industry sectors in the United Kingdom and internationally, remarks Vince Hines, a Managing Director at Wellingtone.
Another thing essential to support people from day one, regardless of their role, is teaching them data literacy in the workplace. More specifically, setting KPIs for everyone. Determining the most valuable KPIs for each function across the company will not only be beneficial for tracking performance, but will also empower people and help them realize their part in the company’s goals and objectives.
The challenge most companies face today is the lack of data determining whether a project team truly needs to hire new people. Having an overview of the entire portfolio of resources could not only inform hiring decisions but also give you a snapshot of who’s fully booked with work or not having enough on their plates. If you’re missing it at the moment, here’s a list of signs and wake-up calls implying it’s time to expand your workforce:
Dodgy data across project management, operations, and finance will only grow if you continue using color-coded antiquated spreadsheets as a single source of truth. It’s often a hassle that slows teams down in a way that requires unnecessary administrative work of filling in a spreadsheet that is only used for payroll. Using a spreadsheet or disparate systems for resource management or time registrations, for example, won’t get your company very far, simply because it isn’t cut out for setting this data in motion.
Think for a moment, can spreadsheets answer questions like ‘what’s the current status of the project?’ ‘what’s the operating margin?’ or ‘how profitable are the projects? They can’t, because there are only a few things a spreadsheet can automate.