Critical Success Factor
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
Customer Satisfaction
Success Factor Suggested PI Improved customer relationships %of communications not returned Negative responses from site meetings Number of
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
Customer Satisfaction
Success Factor Suggested PI Improved customer relationships %of communications not returned Negative responses from site meetings Number of