CASE STUDY: critical success factors and performance indicators for a services company Financial Success Factor Improved cash flow Suggested PI %of those paying cash up front %of new projects where payment up front received Timing of billing on milestones e.g. if 5 days late result would be + 5 days etc. %of customer balance to fees No. of projects with all progress payments paid Costs of lost bids vs. costs of won bids %of successful bids %of successful bids a project group gets Number of customers who increase consulting by xx% per quarter Sales by manager
Costs Measure success of bids
Managing the risk of customer’s Number of regular risk management reviews prepared on time project as a whole Bad debt % to turnover Evaluate political risk of Number of overseas clients/jobs where risk review was not overseas clients/jobs undertaken Tracking of loss leaders Number of winning contracts which have created losses Maximum % of overall revenue Actual time spent as % of budget $ spent as a % of budget Improved profitability Profitability of service area vs. profitability of jobs Total hours non billable pre contract Evaluation performed on prospective clients Budgeted time against actual time on weekly basis %of profitability per project %chargeable work/non recoverable Collection ratio against progress payments %complete to % billed by job Value of work in progress $ No. of days spent as stock in hand (uncharged) % of projects passed post project budget audit No./% of projects completed on time/budget Strategic mix of business Minimum cash flow requirement Acceptable levels of risk &tracking Recovery of chargeable hours % of hours charged / % of recovery Time sheets / invoiced / received cash Better benchmarking Measure, report & publish No./% of projects with industry benchmark action plans
Success Factor Suggested PI Improved customer relationships %of communications not returned Negative responses from site meetings Number of contacts with customer during project and post-project success Number of visits made Number of hours in contact with client Report on customer satisfaction of top 10 customers quarterly Number of customer complaints Number of customer referrals / new clients Repeat business (No or $ within xxx timeframe) New business – by occurrence type e.g. referrals Response time to customer requests - duration between enquiry and response / resolution [hours] Relationships with key clients $ revenue gained from top clients in the week No. of weekly proactive visits to top 10 customers Understanding client needs Number of variations to contract by type Additional revenue generated by Number of referrals by employees employees (measuring the business acumen of staff) Getting a larger slice of business %of top 10 customers business from our important customers Top 10 clients measure % of dollar value business company has Number of projects Bid (proposals) success %bids accepted vs. bids submitted Expected milestone sign-offs versus those completed (e.g. on Meeting client expectations project 10 milestones with 4 signed off) Client projects to budget and on Actual projects on time [% of total] and cost vs. budget [% of time budget] %of projects completed vs. actual Project actual costs vs. budget Customer’s understanding of During project survey measuring top 5 customer quality standards quality Post project survey measuring top 5 customer quality standards
Environment / Community
Success Factor Suggested PI Environmentally friendly culture and reputation (if known for Procurement practices, % supplies eco-friendly (see guidelines) environmental /community focus won’t attract clients who could damage that reputation) 2
Environment/ community awards won [No of instances in a week/month/quarter] %of jobs that are environmentally friendly Turnaround time of resource permit applications [days elapsed] Community interaction (offering Media coverage [No of instances in a...
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