keys to success of financial leadership in driving revenue growth

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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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keys to success of financial leadership in driving revenue growth

Business

customer responsibilities

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individual plans

business units practice

typical keste engagement

india applications business

business ability

growth increase revenues