Friday, June 21, 2002

Something New. If you are a consulting, and particularly if you manage a services group, you'll find that Building Professional Services fills a sorely needed gap in the computer consulting industry, and is especially valuable for start-up consulting companies, established companies that want to achieve higher profitability, and for internal IT organizations that are seeking a way to move from a cost center to a profit center.

Regardless of your goals or motivations, the first two chapters helps you to clarify your objectives, decide on the appropriate business model and mission statement, and introduces key concepts that will be used throughout the book. One of the most effective techniques in this section of the book is the way the authors lead you through framing your mission and goals and employing a service alignment risk factor to test the clarity of your mission and how it aligns to other business processes. This is especially important if technical services is not your core business.

Chapters 3 and 4 are, in my opinion, the heart of the book because they address revenue and profitability, and organizational structure - two areas with which many companies struggle. The information in these chapters will show you what you need to do to become and remain profitable, as well as how to best organize your resources to deliver in accordance with your chosen business model. For start-ups Chapter 3 provides an excellent framework for business plan pro formas. Chapter 5, Selling, thoroughly covers the critical success factors and metrics for selling services.

In chapters 6 through 8 services delivery, productizing and promotion are given the same thorough and insightful treatment. Of particular value is the customer engagement workflow that is provided in Chapter 11, and the four phases of professional services given in chapter 12. The phases provide a path by establishing basic implementation services as a service offering, then building upon these to provide integration services, consulting services and productized services - each phase represents an increase in what you offer customers (external or internal). For each of the phases the authors address the following factors: value proposition, profitability triangle focus, critical skills, required operational infrastructure, target mix, revenue growth rate, target gross margin and target operating profit.

I like the way that these (and all of the chapters) end with sample budgets and issues to watch, and the key financial models provided in Appendix D.

You can get more information about this book, including associated articles and PowerPoint presentations, from the author's webpage.

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