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Keys to Success of Financial Leadership in Driving Revenue Growth
Ken JuddChief Financial Officer, Keste
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AgendaIntroduction – Keste
Our Key Performance Indicators
Changepoint PSA
KPI’s – What’s Important to Capture & AnalyzeIndividual Professionals
Customers and Engagements
Business Units and Practices
Conclusions & Take-Aways
Q&A
Important Part
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Consultants – 1 hour at a time200+ Dedicated Oracle ProfessionalsSolution Centers in Dallas, TX and Hyderabad, IndiaApplications Business:
Oracle EBS, CRMProduct Configurator (Complex Selling and Ordering Process)
Technology BU: FMW / Collaboration SpecialistsWebCenter (Portal, Content and Collaboration)SecuritySOA / BPMOracle ADF DevelopmentCloud
Platforms Business Unit:ExalogicExadataExalyticsSPARC Servers and Storage
Who is Keste?
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Growing – Stats and Vision• 2008• $8.7M• 65 people/4 in India
• 2009• $9.5M• 75 people/6 in India
• 2013• $30M• 250+ people/100 in India
• $50M – 300 people• $100M – 500+ people
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A Typical Keste Engagement?
• $200 to $500K SOW
• 4 to 12 weeks in Duration• Phases• Multi-year
• 3 to 10 delivery consultants• Up to 50+• Some single staff
augmentation
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KPI’s -- Actionable Information• Revenues• Hours Billed• Realized Bill Rates• Utilization Stats
• Costs and Margins• Engagement Milestones• Initial Budgets / Spend to Date / Estimates to Complete
Multiple Dimensions• Individual Employee/Consultant• Customer• Business Units or Practice Areas
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Professional Services Automation (PSA) Software
• Changepoint Solution• Mature, fully-baked• Synthetic Cloud
Accessible anywhere. Browser based
• Knowledge Repository• Single Source of
Truth
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Basic Resource View
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Complete Work History by Engagement
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Investment Returns by Individual
• For any time period (screen shot above is calendar year 2012)• Utilization statistics • Revenues generated• Cost and contribution margins
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An Interesting Pattern Emerged from the Utilization Data
• Utilization pattern did NOT follow a normal distribution• Superstars carry the load• Laggards – weak performers
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Actionable Items• Modified/Implement Variable Compensation Plans
Individual plans based on targets Utilization Revenues Margins
Team Plans Reward Practice Principals and BU leaders for utilizing
junior talent
• Implement Intern and Fresher Programs
• Expected Results Higher individual employee satisfaction Reduced burn-out and turnover Talent development Higher utilization rates and margins
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360 Degree Customer View – Basic Info
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360 Degree Customer View – Key Contacts
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360 Degree Customer View – Engagement History
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360 Degree Customer View – Contracts
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360 Degree Customer View – Engagement Dashboard
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What Actions Came from this Information?• Mid-course/real-time project corrections – from Stop Light Dashboard
Change Requests Better status reports to customer Higher engagement profitability/margins
Customer investment reporting Significantly improved value messaging Put a value to non-billable time invested by Keste in customer solutions Effective rate discussions vs. SOW rate discussions Interrupt price erosion before it happens
Contracts improvements – Statements of Work (SOW) Use the data to understand cost overruns Improved SOW language to better specify customer responsibilities
and project impact when there are failures/delays Overall Reduced Leakage
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Business Units & Practice Areas
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Capacity Planning
• Resources/Head Count
• Utilization Targets• Revenues• Averages• Minimum• Maximums• Targets
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What Actions Came from this Information?Determine Profitable Practice Areas and Opportunities
• Strategic planning• Kill-off unprofitable practices• Grow/invest in the profitable practices
Better individual resource planning/optimizationCapacity planning• Recruiting direction
Proxy for full P&L Reporting• Allows for minimal accounting staff• Allows for CFO focus on operations instead of accounting system
upgrades• Faster information
Modified/Implement Variable Compensation Plans
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Conclusions/Take-Aways• Technical Professional Services can
be analyzed in a systematic manner• End to End Visibility on the
operations of the business• Ability to be proactive - deal with
circumstances before it goes to Red Alert
• Increase employee AND customer satisfaction
• Scalable platform for growth• Increase revenues and drive
profitability
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Keys to Success of Financial Leadership in Driving Revenue Growth
Thank You
Ken JuddChief Financial [email protected]
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