The Professional Services Business Model - Fighting The 40/20 Myth
Many Professional Services Organizations focus on increasing bill rates, increasing utilization, and reducing load costs to meet profitability targets. While it's important to track such metrics, oftentimes, the senior management team has not yet defined a target business model for their Professional Services team. The lack of a clearly defined business model can lead to poor decisions. A sound business model considers all of these items. In essence, a business model demonstrates how a company will manage all of these parameters to grow and make money on a sustainable basis. If you don't have a business model that eventually makes money, you don't have a sustainable business model. A financial business model reflects the realities of your overall business model.