Investing in skill and expertise management requires a commitment. Many companies are shy to make this commitment because they are not sure about what is involved. There is fear of the change required and questions about the return on investment. We will have more to say on the nature of the commitment and the change management required. Here the focus is on what drives the ROI on skill management for professional services firms.
Professional services firms rely on the skills and expertise of their people to deliver projects for clients. There are many professional services, from management consulting firms like A.T. Kearny, BCG, Bain and McKinsey, to design consultancies like IDEO or Frog, and engineering firms like Urban Solutions or AKKA Technologies. Lawyers and accountants are also professional services, and some even consider the provision of healthcare a kind of professional service. At the largest scale, the big four Accenture, Cap Gemini, Deloitte and EY have grown far beyond accounting and integrate virtually all types of knowledge-based work.
Skill and expertise management is mission critical for all of these companies as it is what allows them to win more work and deliver work efficiently once they have the contract. It is the most powerful tool they have to grow capabilities.
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How much would skill insights help grow your business?
In a recent conversation with the former manager for knowledge management at a global consulting firm, I was told that the partner consensus was that deeper insight into skills and knowledge across the firm would add 10% to revenues. As this firm has more than $1 billion in revenues that would be a lift of $100 million. Skill management is a compelling investment for this firm.
Skill and expertise management delivers its ROI in three ways:
Winning more work
In this post the focus is on how skill and expertise management helps companies win more work, we will look at utilization and engagement in future posts.
Win more work
TeamFit helps professional services firms win more work in two ways.
A the sales level, TeamFit drives ROI in three ways.
A small consulting firm doing relatively large projects gave us the following model.
This gives an increase in revenues of 26%. The impact on gross profit is greater at 33%, because of the impact TeamFit can have on sales efficiency and project economics.
Professional services firms that adopt skill and expertise management will have a competitive edge over their competitors in the sales process. This translates into a large business impact.
Understanding the skills you have and the skills you need shouldn’t be so hard.
TeamFit can quickly and precisely give you the skill insights you have always wanted.
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