We’re all striving to run organizations that consistently deliver profitable projects and products. But do you truly know which clients are most effective in boosting the bottom line?
This information is critical, both pre and post-sale. Knowing what’s most profitable should drive sales priorities and inform how aggressive your reps can be with negotiating competitive pricing.
On the service side, baselining the resources required for different types of projects provides data to drive staffing decisions, as well as highlights bottlenecks and efficiency benchmarks.
How to Measure Project Profitability
Determining which projects are profitable requires detailed tracking of:
- Scope and details of project proposal
- Change requests
- Resource assignments
- Billable and non-billable time spent on the project, broken out by team member
- Fully burdened hourly rate for each team member working on the project
- Expenses (airfare, hotels, meals, etc.)
- Baseline resource requirements (i.e. expected number of hours for a particular task)
- Expected customer lifetime value
- Payments received from the client
- The cost of sales
Many organizations track only a portion of these. Of those that do monitor all of these data points, reporting on this is usually either a month-end process or part of a project post-mortem.
Gaining Deeper Insight into Project Performance
What if you could have visibility into this information on a real time basis? What if your Project Managers didn’t just manage time, scope, and schedule, but also had their eye on project profitability targets?
Here’s a snapshot of how Project Pulse surfaces this information, displaying it in a way that your teams can act on:
Want to learn more about how your organization can use KPIs and profitability metrics to empower your project managers and front-line delivery resources? Request a demo, and we’d be happy to discuss!