SlideShare a Scribd company logo
1 of 16
Download to read offline
A Service Performance Insight White Paper
Service Compass: Charting the Course to
Professional Service Excellence
May 2013
Service Performance Insight
6260 Winter Hazel Drive
Liberty Township, OH 45044 USA
www.SPIresearch.com
TABLE OF CONTENTS
Introduction.................................................................................................................................... 1
Highlights from the 2013 Benchmark.......................................................................................... 1
Looking Ahead............................................................................................................................... 4
A Catalyst for Transformation...................................................................................................... 5
The Five Service Performance Pillars™...................................................................................... 6
Maturity Levels Provide Insight for Improvement...................................................................... 8
The Professional Service Excellence Roadmap....................................................................... 10
Why Maturity Matters .................................................................................................................. 12
Conclusions and Recommendations ........................................................................................ 12
About Service Performance Insight ................................................................................................. 14
FIGURES
Figure 1: Bid-to-Win Ratio – 2008-2012.......................................................................................................2
Figure 2: Sales Cycle Length .......................................................................................................................2
Figure 3: Annual Employee Attrition – 2008-2012........................................................................................3
Figure 4: Billable Utilization – 2008-2012.....................................................................................................4
Figure 5: Service Performance Pillar Maturity™ ..........................................................................................6
Figure 6: The Five Service Performance Pillars™ .......................................................................................7
Figure 7: Professional Services Maturity™ Model Levels............................................................................9
Figure 8: Maturity Progression .................................................................................................................. 12
TABLES
Table 1: Maturity Matters!.............................................................................................................................6
Table 2: Performance Pillars Mapped Against PS Maturity™................................................................... 10
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 1
INTRODUCTION
The Professional Services Maturity Model™ is designed to help service
and project-driven organizations understand their relative performance
compared to an expansive benchmark of peers. It provides visibility into
critical business processes and key performance measurements so
organizations can compare, diagnose and improve their own execution.
It also provides prescriptive advice so organizations can pinpoint current
levels of maturity and visualize the steps required to advance to the next
level.
Service Performance Insight (SPI Research) first introduced the “New
Professional Services Maturity Model™” benchmark report in January
2008. Since that time more than 6,000 organizations representing 1.5
million consultants worldwide have adopted the PS Maturity Model™ as
a strategic planning and management framework. Cumulatively, 1,059
organizations have completed the maturity survey from 2007 through
2012. The 2013 benchmark report is based on completed surveys from
234 participants and provides comparative year-over-year trend analysis
to the 216 participants in 2011, 214 in 2010, 225 in 2009, 118 in 2008, as
well as the initial 52 in 2007.
The core tenet of the PS Maturity Model™ is service and project-
oriented organizations achieve success through the optimization of five
Service Performance Pillars™:
 Leadership – Vision, Strategy and Culture
 Client Relationships
 Human Capital Alignment
 Service Execution
 Finance and Operations
HIGHLIGHTS FROM THE 2013 BENCHMARK
2012 was a pivotal year in the professional services market. While the
world was consumed with the future direction of the economy,
presidential elections, and the changing geo-political landscape, the
professional services sector grew at a fairly impressive rate and achieved
pre-recession profit levels.
2013 will be a transitional year, as markets driven by people (such as
professional services) will face increased healthcare costs, higher taxes
and a looming talent cliff. Organizational profitability will become
increasingly difficult; meaning PS executives must place increased
emphasis on talent management and streamlining business processes, to
improve their use of capital. SPI Research does not expect profit levels
to significantly rise from the 2012 highs but there is still plenty of room
for revenue growth through market expansion.
The 2012 survey was the sixth annual survey conducted. Rather than
look back to the initial year of the survey, SPI Research prefers a five-
year trend analysis, which gives readers a birds-eye view of the trends
that will shape the next five years.
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 2
Figure 1: Bid-to-Win Ratio – 2008-2012
Source: Service Performance Insight, May 2013
Figure 1 shows the average bid-to-win ratio over the past three years has
remained fairly constant. This figure indicates on average PSOs win
slightly over half the bids they submit (5 out of 10). As global
competition intensifies, this key performance indicator could be
negatively impacted, meaning more money must be spent on sales and
marketing initiatives. Almost all of the professional services
organizations interviewed for this year's benchmark stated sales and
marketing remains one of their highest priorities. Service productization
is becoming increasingly important to help organizations better package,
market, sell and deliver consistent high quality services.
Figure 2: Sales Cycle Length
Source: Service Performance Insight, May 2013
Interestingly, the average length of the sales cycle (Figure 2) from
qualified lead to signed contract declined in 2012 from 100 days in 2011
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 3
to a little over 95 days in 2012. This key performance measurement
means there is pent-up demand for professional services; consulting
buyers are opening up their wallets with shorter approval times. In
conjunction with year-over-year revenue growth (11.5%), a strong sales
pipeline (193% of forecast) and starting backlog of 43%, 2013 should be
another strong year for PS.
Figure 3: Annual Employee Attrition – 2008-2012
Source: Service Performance Insight, May 2013
Figure 3 shows annual employee attrition is slightly lower than last year's
benchmark, but overall still on the rise. SPI Research expects it to
increase further as the economy continues to recover. SPI Research
interviews - especially with those firms who earned best-of-the-best
status - indicates serious concerns about finding, hiring and retaining
qualified employees.
The market is at the beginning of the retirement of the baby boomer
generation, which will hit its peak by 2018. A new talent cliff of
qualified resources with critical skills in science, technology, engineering
and math (STEM) portends a deficit of over 230,000 workers with these
skills in the US by 2018. Underfunded advanced STEM education, baby
boomer retirement and restrictive immigrant visa policies exacerbate the
problem. The talent cliff topic is one PS executives should closely
monitor as it will increasingly become the number one growth inhibitor.
Figure 4 shows employee billable utilization has continued to rise over
the past five years. SPI Research has always considered 70% to be an
achievable target, and this year's results came in right at that percentage.
Billable utilization, coupled with the percentage of billable employees,
have both risen over the past year, which enabled organizations in this
year's benchmark to achieve their highest profitability in the past five
years. The results of this study continue to show increases in staff are
slightly below increases in revenue, meaning PSOs are consistently
becoming more efficient, as well as doing a better job of resource
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 4
scheduling. The market appears to have finally recovered from the
downturn that started four years ago.
Figure 4: Billable Utilization – 2008-2012
Source: Service Performance Insight, May 2013
The bottom-line is that the PS market is very much alive, well and
growing with no let-up in sight. The greatest challenge going forward
for PS providers will be finding the skilled talent they need for growth
which means both large and small firms will have to develop innovative
new talent management techniques to stay ahead of the curve.
2012 was an exceptional year for the 234 participating organizations as
average profit for the entire benchmark increased from 6.9% in 2010 to
13.5% in 2011 and now 18.3% in 2012! Both embedded (ESOs)and
independents (PSOs) significantly increased their profits - ESOs
[13.3% (2010) to 17.0% (2011) to 23% (2012)] outperformed
independents [6.0% (2010) to 10.6% (2011) to 15.6% (2012)].
LOOKING AHEAD
The professional services market has experienced high levels of growth
the past two years. A focus on greater efficiency and productivity were
major reasons for success in 2012. 2013 will require greater creativity,
as increased burdens, such as healthcare costs and taxes, could not only
limit profitability for PSOs, but could also inhibit growth as their clients
face similar challenges.
The professional services marketplace has grown and succeeded because
a majority of the organizations offer innovative services to help their
clients manage change and improve performance. As market dynamics
change, leading PSOs have been able to adapt to take advantage of new
technologies to create innovative solutions to help their clients. 2013
will be no different in terms of the need for continuous improvement.
But, the headwinds will be slightly stronger. The need for repeatable
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 5
service offers and organizational efficiency and effectiveness will
become increasingly critical to remain competitive and profitable.
A CATALYST FOR TRANSFORMATION
Until now, little if any research examined professional service
strategies and benchmarks within the context of a rapidly maturing
technology environment. The original concept behind SPI
Research’s PS Maturity Model™ was to investigate whether
increasing levels of standardization in operating processes and
management controls improve financial performance. The
Maturity Model™ benchmark seeks to answer these questions:
∆ What are the most important focus areas for professional
service organizations (PSOs) as their businesses mature?
∆ What is the optimum level of maturity or control at each
phase of an organization’s lifecycle?
∆ Can diagnostic tools be built for assessing and determining
the health of key business processes?
∆ Are there key business characteristics and behaviors that
spell the difference between success and failure?
SPI Research’s 2013 PS Maturity™ Benchmark demonstrates
that increasing levels of business process maturity do indeed
result in significant performance improvements.
In fact, SPI Research found that high levels of performance have far
more to do with leadership focus, organizational alignment, effective
business processes and disciplined execution than "time in grade."
Relatively young and fast-growing organizations can and do demonstrate
surprisingly high levels of maturity and performance excellence if their
charters are clear. Further improvements accrue when their goals and
measurements are aligned with their mission, and they make the
investments they need in talent and systems to provide visibility and
appropriate levels of business control. Of course, it certainly helps if
they are well positioned within a fast-growing market.
As Table 1 shows, the payoff from investing in a program to assess
current maturity and prioritize maturity improvements can be substantial.
Based on the 2013 benchmark of 234 service organizations, 55%
performed at maturity levels 1 and 2, 25% at level 3 and 20% performed
at maturity levels 4 and 5. The 48 level 4 and 5 organizations
significantly outperformed their peers by generating significantly higher
revenue per billable consultant combined with higher project and
operating margins.
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 6
Table 1: Maturity Matters!
Key Performance Measurement
Maturity
Level 1-2
Maturity
Level 3
Maturity
Level 4-5
PS EBITDA 6.7% 13.2% 29.9%
Annual revenue growth 10.9% 11.8% 12.9%
Billable utilization (2,000 hours) 69.2% 73.9% 74.5%
Project gross margin 31.9% 37.4% 41.4%
Revenue per billable consultant (k) $175 $223 $252
Source: Service Performance Insight, May 2013
SPI Research summarizes individual PSO performance in a spider chart
(Figure 5). The maturity scorecard provides a measurement for each
organization in comparison to the benchmark maturity definitions. It
provides an invaluable tool to analyze current performance and prioritize
future improvement priorities.
This graphical depiction of the Service Performance Pillars by maturity
level enables PS executives to quickly scorecard their organization’s
performance, and diagnose areas of relative strength and weakness.
Figure 5: Service Performance Pillar Maturity™
Source: Service Performance Insight, May 2013
THE FIVE SERVICE PERFORMANCE PILLARS™
SPI Research developed a model that segments and analyzes a PSO into
five distinct areas of performance that are both logical and functional.
We call the five underpinning elements Service Performance Pillars™
because they form the foundation for all professional services
organizations (Figure 6):
1. Leadership - Vision, Strategy and Culture: (CEO) a
unique view of the future and the role the service organization
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 7
will play in shaping it. A clear and compelling strategy provides
a focus for the organization and galvanizes action. Effective
strategies bring together target customers, their business
problems, and how a solution solves those problems differently,
uniquely, or better than its competitors. For a service strategy to
be effective, the role and charter of the service organization must
be defined, embraced, communicated and supported throughout
the company. Depending on whether the service strategy is to
primarily support the sale of products, or to drive service
revenue and profit, service organization goals and measurements
will vary. Leadership skills and competencies must mature as
the organization matures. Culture is the unwritten customs,
behaviors and beliefs that determine the “rules of the game” for
decision-making, structure and power.
Figure 6: The Five Service Performance Pillars™
Source: Service Performance Insight, May 2013
2. Client Relationships: (Marketing and Sales) the ability to
communicate effectively with employees, partners and
customers to generate and close business and win deals.
Successful client management involves developing effective
marketing and sales programs to better understand client needs,
while ensuring clients will continue to buy and provide
references and testimonials.
3. Human Capital Alignment: (Human Resources) the ability to
attract, hire, retain and motivate a high quality consulting staff.
With changing workforce demographics, talent management has
increased in importance. Human capital represents the essence,
brand and reputation of the firm. PSOs are starting to adopt
hybrid on and off-site staffing models which put increased
pressure on customer-facing staff to develop client relationships
and more carefully define client requirements. Demands for
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 8
career planning, skill development and flexible work options
have intensified.
4. Service Execution: (Engagement/Delivery) the
methodologies, processes and tools to effectively schedule,
deploy and measure the quality of the service delivery process.
Service execution involves a number of factors: from resource
management, to delivering projects in a predictable and
acceptable time frame, to reducing cost while improving project
quality and harvesting knowledge. Processes include resource
management, project planning and quality control, knowledge
management and methodology and tool development.
5. Finance and Operations: (CFO) the ability to manage
services profit and loss — to generate revenue and profit while
developing repeatable operating processes. The finance and
operations pillar focuses on revenue, margin and cost and the
financial, contractual and IT operating processes and controls
required to run a profitable and predictable business.
MATURITY LEVELS PROVIDE INSIGHT FOR IMPROVEMENT
Within each of the Service Performance Pillars™, SPI Research
developed guidelines for process maturity. These guidelines cut across
the five service dimensions to illustrate examples of business process
maturity. This study has been developed to measure the correlation
between process maturity and service performance excellence.
The model is built on the same foundation as the Capability Maturity
Model (CMM), which has been adopted for software development; but is
specifically targeted toward billable PSOs, that either exclusively sell
and execute professional services or complement the sale of products
with services. Figure 7 depicts the percentage of firms at each maturity
level and outlines the primary characteristics for each level:
Level 1 — Initiated “Heroic”: (approximately 30% of PSOs) At
maturity level 1, processes are ad hoc and fluid. The business
environment is chaotic and opportunistic, and the focus for a PSO is
primarily on new client acquisition and reference building. Often
professional service employees at this level are chameleons — able to
provide presales support one day and develop interfaces and product
workarounds the next. Success depends on the competence and heroics
of people in the organization, and not on the use of proven processes,
methods or tools. Practices and procedures are informal and quality is
based on individual experience and aptitude. Level 1 organizations are
often characterized as “informal” and “heroic”.
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 9
Figure 7: Professional Services Maturity™ Model Levels
Source: Service Performance Insight, May 2013
Level 2 — Piloted “Functional Excellence”: (approximately
25% of PSOs) at maturity level 2, processes have started to become
repeatable. Best practices may be demonstrated in discrete functional
areas or geographies but they are not yet documented and codified for the
entire organization. Basic processes have been established for the five
Professional Services Performance Pillars, but they are not yet
universally embraced. Operational excellence and best practices may be
discerned within functions but not across functions. By level 2
individual Functional Excellence should have emerged in key areas.
Level 3 — Deployed “Project Excellence”: (approximately
25% of PSOs) at maturity level 3, the PSO has created a set of
standard processes and operating principles for all major Service
Performance Pillars but renegades and “hold-outs” may still exist.
Management has established and started to enforce financial and quality
objectives on a global basis. Processes have been established to focus on
effective execution and there is spotlight on alignment between and
across functions. By level 3 project delivery methodologies and quality
measurements are in place and enforced across the organization. Level 3
organizations should exhibit “Project Excellence” with a consistent,
repeatable project delivery methodology.
Level 4 — Institutionalized “Portfolio Excellence”:
(approximately 15% of PSOs) at maturity level 4, management uses
precise measurements, metrics and controls, to effectively manage the
PSO. Each Service Performance Pillar contains a detailed set of
operating principles, tools and measurements. Organizations at this level
set quantitative and qualitative goals for customer acquisition, retention
and penetration, in addition to a complete set of financial and quality
operating controls and measurements. Processes are aligned to achieve
leverage. The portfolio is balanced with a focus on project selection and
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 10
execution. Level 4 organizations should exhibit “Portfolio
Excellence”.
Level 5 — Optimized “Collaborative”: (approximately 5% of
PSOs) at maturity level 5 executives focus on continual improvement of
all elements of the five Service Performance Pillars. A disciplined,
controlled process is in place to measure and optimize performance
through both incremental and innovative technological improvements.
Quantitative process-improvement objectives for the organization are
established. They are continually revised to reflect changing business
objectives, and used as criteria in managing process improvement.
Initiatives are in place to ensure quality, cost control and client
acquisition. The rough edges between disciplines, functions, and
specialties have been smoothed to ensure unique problems can be
addressed quickly without excessive bureaucracy or functional silos.
Level 5 organizations are visionary and collaborative both internally
and with clients and external business partners.
THE PROFESSIONAL SERVICE EXCELLENCE ROADMAP
If the Service Performance Pillars are mapped against process maturity a
“Professional Service Excellence Roadmap” can be developed. Table
2 provides insight into where an organization fits within the service
maturity model as well as a guideline to move from one level of maturity
to the next. It allows organizations to diagnose their performance
strengths and develop plans to bring lagging areas into alignment.
Table 2: Performance Pillars Mapped Against PS Maturity™
Level 1
Initiated
Level 2
Piloted
Level 3
Deployed
Level 4
Institutionalized
Level 5
Optimized
Leadership
Initial strategy is to
support product
sales and provide
reference customers
while providing
workarounds to
complete immature
products. Leaders
are “doers”.
PS has become a profit
center but is subordinate
to product sales.
Strategy is to drive
customer adoption and
references profitably.
Leaders focus on P&L
and client relationships.
PS is important
revenue and margin
source but channel
conflict still exists.
Services differentiate
products. Leadership
development plans are
in place. Leaders have
strong background &
skills in all pillars.
Service leads products. PS
is a vital part of the
company. Solution selling
is a way of life. PS is
included in all strategy
decisions. Succession
plans are in place for critical
leadership roles
PS is critical to the
company. Service
strategy is clear.
Complimentary goals
and measurements
are in place for all
functions. Leaders
have global vision and
continually focus on
renewal & expansion.
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 11
Level 1
Initiated
Level 2
Piloted
Level 3
Deployed
Level 4
Institutionalized
Level 5
Optimized
ClientRelationships
Opportunistic. No
defined solution
sets or Go to Market
plan. Focus is on
new customers and
reference building.
Individual heroics,
no consistent sales,
marketing or
partnering plan or
methodology. Ad
hoc, one-off
projects.
Start to use marketing to
drive leads. Multiple
sales models. Start
investing in sales
training, CRM & sales
methodology. Start
measuring sale
effectiveness & customer
satisfaction. Start
developing partners and
partner programs. Some
level of proposal reviews
and pricing control.
Marketing, inside
sales, solution sales
with defined solution
sets. CRM integrated
with financials and
PSA. Deal, pricing and
contract reviews.
Partner plan and
scorecard. Tight
pricing and contract
mgmt. controls. High
levels of customer
satisfaction.
CRM, PSA, ERP integration
provides 360 degree view of
client relationships.
Business process, vertical
and horizontal solutions.
Vertical client centers of
excellence. Top client and
partner programs. Global
contract and pricing
management. Key partner
relationships. Strong
customer reference
programs.
Executive
relationships. Thought
leadership. Brand
building and
awareness. High
customer satisfaction.
Integrated sales,
marketing and
partnering programs.
High quality
references.
HumanCapital
Alignment
Hire as needed.
Generalist skills.
Chameleons, Jack
of all Trades.
Individual heroics.
May perform
presales as well as
consulting delivery.
Begin forecasting
workload. Start
developing job and skill
descriptions &
compensation plans.
Rudimentary career
paths. Start measuring
employee Satisfaction
Resource, skill and
career management.
Employee satisfaction
surveys. Training
plans. Goals and
measurements aligned
with compensation.
Attrition <15%
Business process and
vertical skills in addition to
technical and project skills.
Career ladder and
mentoring programs.
Training investments to
support career. Low
attrition, high satisfaction
Continually staff and
train to meet future
needs. Highly skilled,
motivated workforce.
Outsource commodity
skills or peak demand.
Sophisticated variable
on and offshore
workforce model.
ServiceExecution
No scheduling.
Reactive. Ad hoc.
Heroic. Scheduling
by spreadsheet. No
consistent project
delivery methods.
No project quality
controls or
knowledge
management.
Skeleton methodology in
place. Centralized
resource mgmt. Initiating
project mgmt. and
technical skills. Starting
to measure project
satisfaction and harvest
knowledge.
PSA deployed for
resource and project
management.
Collaborative portal.
Project dashboard.
Global Project
Management Office,
project quality reviews
and measurements.
Effective change
management.
Integrated project and
resource management.
Effective scheduling. Using
portfolio management.
Global PMO. Global project
dashboard. Global
Knowledge Management.
Global resource
management.
Integrated solutions.
Continual checks and
balances to assure
superior utilization
and bill rates.
Complete visibility to
global project quality.
Multi-disciplinary
resource
management.
FinanceandOperations
The PSO has been
created but is not
yet profitable.
Rudimentary time &
expense capture.
Limited financial
visibility and control.
Unpredictable
financial
performance.
Rudimentary
contract
management.
5 to 20% margin. PS
becoming a profit center
but still immature finance
and operating processes.
Investment in ERP and
PSA to provide financial
visibility. May not have
real-time visibility or BI.
Standard Library of
Contracts and
Statements of Work.
20 to 30% margin. PS
operates as a tightly
managed P&L.
Standard methods for
resource mgmt., time
& expense mgmt., cost
control & billing. In
depth knowledge of all
costs at the employee,
sub-contractor &
project level.
Processes in place for
contract management,
legal and pricing
decisions.
PS generates > 20% of
overall company revenue &
contributes > 30% margin.
Well-developed finance and
operations processes and
controls. Systems have
been implemented for CRM,
PSA, ERP and BI. IT
integration and real-time
visibility. Systems have
been implemented for
contract management, legal
and pricing decisions.
> 40% margin.
Continuous
improvement and
enhancement.
High profit. Integrated
systems.
Global with disciplined
process controls and
optimization.
Completely integrated
financial, CRM,
resource
management,
contracts and pricing
systems, processes
and controls.
Source: Service Performance Insight, May 2013
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 12
WHY MATURITY MATTERS
SPI Research believes wide support for the PS Maturity Model™ is due
to its holistic approach to measuring performance. Maturity is
determined through alignment and focus both within and across
functions. For example, although financial measurements are of primary
importance they are equally weighted and correlated with leadership and
sales and quality measurements to ensure organizations improve across
all dimensions, not just in terms of financial performance. However, if
the organization is profit-motivated (which most are), increasing
maturity levels do show up in significant bottom-line profit. Figure 8
highlights major key performance measurements by maturity level, and
should alone be an important reason why PS executives should look
deeper into using it to increase profits.
Figure 8: Maturity Progression
Source: Service Performance Insight, May 2013
CONCLUSIONS AND RECOMMENDATIONS
With increased global competition for business and resources PSOs must
continually improve. These improvements cut across every aspect of the
organization, and all departments must work together to achieve service
performance excellence. Executives need key performance
measurements, integrated business applications and a plan for continual
advancement.
The leading financial indicators – backlog, revenue per person and sales
pipeline in this year’s study all trended higher. More than ever before,
winning professional service firms must seriously benchmark their
operations and develop improvement plans to bring lagging areas into
alignment.
This white paper provides a glimpse into areas where PSOs can improve
by showing statistics for average performance reported by over 1,050
professional service organizations. The comprehensive 2013 PS
Maturity™ Benchmark report describes how Service Performance Pillars
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight Page 13
can be optimized and provides prescriptive advice to help organizations
enhance their business process maturity while improving bottom-line
results.
As the technology professional service industry has matured, the stakes
and the “ante” to play have been raised. Today’s PSO requires
significant investment in tools, methods and business controls in all areas
of Leadership, Client Relationships, Human Capital Alignment,
Service Execution and Finance and Operations to prosper. High-
performing organizations must optimize each Service Performance Pillar
and take advantage of technology and process advancements to be
competitive.
While much progress has been made in service revenue and margin
achievement, significant gaps in strategy, service sales and pricing,
project delivery methods, service quality and human capital alignment
persist. Variable onshore and offshore workforce models have made a
disciplined approach to managing all facets of the business more
important than ever before. We believe this study and continued focus
on the Professional Service Maturity Model™ provide a roadmap for
achieving Professional Service Excellence.
Service Compass Introducing the Professional Services Maturity Model™
Service Performance Insight (SPI Research) is a global research, consulting and training organization dedicated to helping professional
service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a
strategic planning and management framework. It is now the industry-leading performance improvement tool used by over 6,000 service and
project-oriented organizations to chart their course to service excellence.
SPI provides a unique depth of operating experience combined with unsurpassed analytic capability. We not only diagnose areas for
improvement but also provide the business value of change. We then work collaboratively with our clients to create new management
processes to transform and ignite performance. Visit www.SPIresearch.com for more information on Service Performance Insight, LLC.
© 2013 Service Performance Insight Page 14
About Service Performance Insight
R. David Hofferberth, PE, Service Performance Insight founder,
managing director and licensed professional engineer has served as an
industry analyst, market consultant and product director. He is focused
on the services economy, especially productivity and technologies that
help organizations perform at their highest capacity.
Dave’s background includes application and analytical tool development
to support business decision-making processes. He has more than 30
years of domestic and international experience with firms including the
Aberdeen Group and Oracle. Contact Hofferberth at
david.hofferberth@spiresearch.com or 513-759-5443.
Jeanne Urich, Service Performance Insight managing director, is a
management consultant specializing in improvement and transformation
for project- and service-oriented organizations. She has been a corporate
officer and leader of the worldwide service organizations of Vignette,
Blue Martini and Clarify, responsible for leading the growth of their
professional services, education, account management and alliances
organizations.
Jeanne is a world-renowned thought-leader, speaker and author on all
aspects of Professional Services. Contact Urich at
jeanne.urich@spiresearch.com or 650-342-4690.
Carey Bettencourt, Service Performance Insight managing director, is a
management consultant who specializes in improvement and
transformation for project-driven professional services organizations.
She is an experienced change management leader, expert in helping
clients develop high-performing teams that deliver increased utilization,
profit and customer satisfaction.
Carey has more than 20 years of domestic and international experience in
leadership roles with software firms including Oracle, ChannelPoint and
J.D. Edwards. Contact Bettencourt at carey.bettencourt@spiresearch.com
or 949-521-3830.

More Related Content

What's hot

Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy Webinar
Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy WebinarRole with IT(IL) - V3 Roles and Responsibilities - ITSM Academy Webinar
Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy WebinarITSM Academy, Inc.
 
Managed It Services
Managed It ServicesManaged It Services
Managed It ServicesGss America
 
ITSM and ITOM Coming Together
ITSM and ITOM Coming TogetherITSM and ITOM Coming Together
ITSM and ITOM Coming TogetherOpsRamp
 
Managed Services Support
Managed Services SupportManaged Services Support
Managed Services Supportjdivalerio
 
Managed IT Solutions
Managed IT SolutionsManaged IT Solutions
Managed IT SolutionsJohn Maguire
 
ITIL 4 service value chain data flows (input and outputs)
ITIL 4 service value chain data flows (input and outputs)ITIL 4 service value chain data flows (input and outputs)
ITIL 4 service value chain data flows (input and outputs)Rob Akershoek
 
IT Infrastructure Managed Services and RIMS
IT Infrastructure Managed Services and RIMSIT Infrastructure Managed Services and RIMS
IT Infrastructure Managed Services and RIMSRazak Mohammed Ali
 
Htc Staff Augmentation Capability V0.2
Htc Staff Augmentation Capability V0.2Htc Staff Augmentation Capability V0.2
Htc Staff Augmentation Capability V0.2guest88e405
 
Managed Services Presentation
Managed Services PresentationManaged Services Presentation
Managed Services PresentationEduardo Garcia
 
ITSM Project
ITSM ProjectITSM Project
ITSM ProjectOleksandr
 
Servicenow overview
Servicenow overviewServicenow overview
Servicenow overviewCloudSyntrix
 
IT Service Management Overview
IT Service Management OverviewIT Service Management Overview
IT Service Management OverviewAhmed Al-Hadidi
 
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSM
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSMISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSM
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSMGlobal Manager Group
 
Business Focused IT Strategy
Business Focused IT StrategyBusiness Focused IT Strategy
Business Focused IT Strategymuhammadsjameel
 
Managed Services Presentation
Managed Services PresentationManaged Services Presentation
Managed Services PresentationIISGL
 

What's hot (20)

Cobit presentation
Cobit presentationCobit presentation
Cobit presentation
 
Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy Webinar
Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy WebinarRole with IT(IL) - V3 Roles and Responsibilities - ITSM Academy Webinar
Role with IT(IL) - V3 Roles and Responsibilities - ITSM Academy Webinar
 
Managed It Services
Managed It ServicesManaged It Services
Managed It Services
 
ITSM and ITOM Coming Together
ITSM and ITOM Coming TogetherITSM and ITOM Coming Together
ITSM and ITOM Coming Together
 
Managed Services Support
Managed Services SupportManaged Services Support
Managed Services Support
 
Managed IT Solutions
Managed IT SolutionsManaged IT Solutions
Managed IT Solutions
 
ITIL 4 service value chain data flows (input and outputs)
ITIL 4 service value chain data flows (input and outputs)ITIL 4 service value chain data flows (input and outputs)
ITIL 4 service value chain data flows (input and outputs)
 
Software development company
Software development companySoftware development company
Software development company
 
IT Infrastructure Managed Services and RIMS
IT Infrastructure Managed Services and RIMSIT Infrastructure Managed Services and RIMS
IT Infrastructure Managed Services and RIMS
 
Htc Staff Augmentation Capability V0.2
Htc Staff Augmentation Capability V0.2Htc Staff Augmentation Capability V0.2
Htc Staff Augmentation Capability V0.2
 
ITSM-ISMS
ITSM-ISMSITSM-ISMS
ITSM-ISMS
 
Managed Services Presentation
Managed Services PresentationManaged Services Presentation
Managed Services Presentation
 
ITSM Project
ITSM ProjectITSM Project
ITSM Project
 
Servicenow overview
Servicenow overviewServicenow overview
Servicenow overview
 
IT Service Management Overview
IT Service Management OverviewIT Service Management Overview
IT Service Management Overview
 
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSM
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSMISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSM
ISO 20000-1:2018 Awareness and Auditor Training PPT Presentation kit for ITSM
 
Salesforce PPT.pptx
Salesforce PPT.pptxSalesforce PPT.pptx
Salesforce PPT.pptx
 
Business Focused IT Strategy
Business Focused IT StrategyBusiness Focused IT Strategy
Business Focused IT Strategy
 
Managed Services Presentation
Managed Services PresentationManaged Services Presentation
Managed Services Presentation
 
ITIL4 and ServiceNow
ITIL4 and ServiceNowITIL4 and ServiceNow
ITIL4 and ServiceNow
 

Similar to Introducing the Professional Service Maturity Model

Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014
Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014
Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014Mercer Capital
 
Q1 bms business services sales index report
Q1 bms business services sales index reportQ1 bms business services sales index report
Q1 bms business services sales index reportBMSRecruitment
 
Q2 bms construction sales index
Q2 bms construction sales indexQ2 bms construction sales index
Q2 bms construction sales indexBMSRecruitment
 
Q2 bms business services sales index
Q2 bms business services sales indexQ2 bms business services sales index
Q2 bms business services sales indexBMSRecruitment
 
Digital Salary and Industry Insights 6th Edition
Digital Salary and Industry Insights 6th EditionDigital Salary and Industry Insights 6th Edition
Digital Salary and Industry Insights 6th EditionAlex Straw
 
Q2 bms manufacturing sales index
Q2 bms manufacturing sales indexQ2 bms manufacturing sales index
Q2 bms manufacturing sales indexBMSRecruitment
 
Hiring for success — what makes the difference? Why are so many organisations...
Hiring for success — what makes the difference? Why are so many organisations...Hiring for success — what makes the difference? Why are so many organisations...
Hiring for success — what makes the difference? Why are so many organisations...Steven Jagger
 
Q2 bms fmcg sales index
Q2 bms fmcg sales indexQ2 bms fmcg sales index
Q2 bms fmcg sales indexBMSRecruitment
 
Michael Page - Global Employment Trends - Financial Sector 2013
Michael Page - Global Employment Trends - Financial Sector 2013Michael Page - Global Employment Trends - Financial Sector 2013
Michael Page - Global Employment Trends - Financial Sector 2013Raquel Kroich
 
Executive Employment Trends Report Q3 2017 - Q3 2018
Executive Employment Trends Report Q3 2017 - Q3 2018Executive Employment Trends Report Q3 2017 - Q3 2018
Executive Employment Trends Report Q3 2017 - Q3 2018BPI group
 
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018BPI group Executive Employment Trends Report Q3 2017 - Q3 2018
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018BPI group
 
Hiring for success-uk-web
Hiring for success-uk-webHiring for success-uk-web
Hiring for success-uk-webGary Fay
 
Q2 bms medical sales index
Q2 bms medical sales indexQ2 bms medical sales index
Q2 bms medical sales indexBMSRecruitment
 
Executive Employment Trends Report Q2 2019
Executive Employment Trends Report Q2 2019Executive Employment Trends Report Q2 2019
Executive Employment Trends Report Q2 2019BPI group
 
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply Report
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply ReportDCR TrendLine January 2014 – Contingent Worker Forecast and Supply Report
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply Reportss
 
Executive Employment Trends Report Q3 2019
Executive Employment Trends Report Q3 2019Executive Employment Trends Report Q3 2019
Executive Employment Trends Report Q3 2019BPI group
 
Digital Salary Insights 5th edition
Digital Salary Insights 5th editionDigital Salary Insights 5th edition
Digital Salary Insights 5th editionAlex Straw
 

Similar to Introducing the Professional Service Maturity Model (20)

Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014
Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014
Mercer Capital's Value Focus: Professional Services Industry | Mid-Year 2014
 
Q1 bms business services sales index report
Q1 bms business services sales index reportQ1 bms business services sales index report
Q1 bms business services sales index report
 
Q2 bms construction sales index
Q2 bms construction sales indexQ2 bms construction sales index
Q2 bms construction sales index
 
EFHK_p16-19
EFHK_p16-19EFHK_p16-19
EFHK_p16-19
 
Q2 bms it sales index
Q2 bms it sales indexQ2 bms it sales index
Q2 bms it sales index
 
Q2 bms business services sales index
Q2 bms business services sales indexQ2 bms business services sales index
Q2 bms business services sales index
 
Digital Salary and Industry Insights 6th Edition
Digital Salary and Industry Insights 6th EditionDigital Salary and Industry Insights 6th Edition
Digital Salary and Industry Insights 6th Edition
 
Q2 bms manufacturing sales index
Q2 bms manufacturing sales indexQ2 bms manufacturing sales index
Q2 bms manufacturing sales index
 
Hiring for success — what makes the difference? Why are so many organisations...
Hiring for success — what makes the difference? Why are so many organisations...Hiring for success — what makes the difference? Why are so many organisations...
Hiring for success — what makes the difference? Why are so many organisations...
 
Q2 bms fmcg sales index
Q2 bms fmcg sales indexQ2 bms fmcg sales index
Q2 bms fmcg sales index
 
Michael Page - Global Employment Trends - Financial Sector 2013
Michael Page - Global Employment Trends - Financial Sector 2013Michael Page - Global Employment Trends - Financial Sector 2013
Michael Page - Global Employment Trends - Financial Sector 2013
 
Executive Employment Trends Report Q3 2017 - Q3 2018
Executive Employment Trends Report Q3 2017 - Q3 2018Executive Employment Trends Report Q3 2017 - Q3 2018
Executive Employment Trends Report Q3 2017 - Q3 2018
 
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018BPI group Executive Employment Trends Report Q3 2017 - Q3 2018
BPI group Executive Employment Trends Report Q3 2017 - Q3 2018
 
Hiring for success
Hiring for successHiring for success
Hiring for success
 
Hiring for success-uk-web
Hiring for success-uk-webHiring for success-uk-web
Hiring for success-uk-web
 
Q2 bms medical sales index
Q2 bms medical sales indexQ2 bms medical sales index
Q2 bms medical sales index
 
Executive Employment Trends Report Q2 2019
Executive Employment Trends Report Q2 2019Executive Employment Trends Report Q2 2019
Executive Employment Trends Report Q2 2019
 
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply Report
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply ReportDCR TrendLine January 2014 – Contingent Worker Forecast and Supply Report
DCR TrendLine January 2014 – Contingent Worker Forecast and Supply Report
 
Executive Employment Trends Report Q3 2019
Executive Employment Trends Report Q3 2019Executive Employment Trends Report Q3 2019
Executive Employment Trends Report Q3 2019
 
Digital Salary Insights 5th edition
Digital Salary Insights 5th editionDigital Salary Insights 5th edition
Digital Salary Insights 5th edition
 

Recently uploaded

Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCR
Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCRCall Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCR
Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCRsafdarjungdelhi1
 
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Service
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts ServiceBook Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Service
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Servicemonikaservice1
 
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607dollysharma2066
 
FULL ENJOY Call Girls In Gurgaon Call 8588836666 Escorts Service
FULL ENJOY Call Girls In Gurgaon  Call 8588836666 Escorts ServiceFULL ENJOY Call Girls In Gurgaon  Call 8588836666 Escorts Service
FULL ENJOY Call Girls In Gurgaon Call 8588836666 Escorts ServiceCALLGIRLS DELHI
 
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)riyaescorts54
 
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts Service
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts ServiceBook Call Girls in Anand Vihar Delhi 8800357707 Escorts Service
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts Servicemonikaservice1
 
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhimonikaservice1
 
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCREscort Service
 
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCRthapariya601
 
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Viharmalikasharmakk1
 
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocity
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls AerocityDelhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocity
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocitymonikaservice1
 
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncrthapariya601
 
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...Call Girls In saket 9711800081 Low Rate Short 1500 Night ...
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...gitathapa4
 
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Service
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts ServiceJustdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Service
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Servicesafdarjungdelhi1
 
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)thapagita
 
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)riyaescorts54
 
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)ayushiverma1100
 
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...Lipikasharma29
 
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts Service
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts ServiceCall Girls In New Delhi Railway Station 9667422720 Top Quality Escorts Service
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts ServiceLipikasharma29
 
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABAD
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABADWHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABAD
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABADmalikasharmakk1
 

Recently uploaded (20)

Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCR
Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCRCall Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCR
Call Girls In Lajpat Nagar Delhi➥9911191017 High Class Escorts In 24/7 Delhi NCR
 
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Service
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts ServiceBook Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Service
Book Call Girls In Mahipalpur Delhi 8800357707 Hot Female Escorts Service
 
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607
FULL NIGHT≼ Call girls in Janakpuri Delhi | 8377087607
 
FULL ENJOY Call Girls In Gurgaon Call 8588836666 Escorts Service
FULL ENJOY Call Girls In Gurgaon  Call 8588836666 Escorts ServiceFULL ENJOY Call Girls In Gurgaon  Call 8588836666 Escorts Service
FULL ENJOY Call Girls In Gurgaon Call 8588836666 Escorts Service
 
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)
(9818099198) Noida Escorts Service Sector 60 (NOIDA CALL GIRLS)
 
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts Service
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts ServiceBook Call Girls in Anand Vihar Delhi 8800357707 Escorts Service
Book Call Girls in Anand Vihar Delhi 8800357707 Escorts Service
 
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi
8800357707, Munirka Metro Good Looking For Call Girls And Escort Service Delhi
 
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR
(9599264170) ↫ Call Girls In Rk Puram ↫ Delhi NCR
 
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR
9643097474 Full Enjoy @24/7 Call Girls in Hauz Khas Delhi NCR
 
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar
9911558886 Cash on Hand Low Costly Russian Call Girls In Naraina Vihar
 
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocity
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls AerocityDelhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocity
Delhi Escort Service [Today√√ 8800357707 √√ Sexy VIP Call Girls Aerocity
 
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr
9643097474 Full Enjoy @24/7 Call Girls In Laxmi Nagar Delhi Ncr
 
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...Call Girls In saket 9711800081 Low Rate Short 1500 Night ...
Call Girls In saket 9711800081 Low Rate Short 1500 Night ...
 
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Service
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts ServiceJustdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Service
Justdial Call Girls In Moolchand Metro Delhi 9911191017 Escorts Service
 
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)
Call Us ☎97110√14705🔝 Call Girls in Majnu Ka Tilla (Delhi NCR)
 
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)
(9818099198) Call Girls In Noida Sector 88 (NOIDA ESCORTS)
 
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)
Call Us ≽ 9643900018 ≼ Call Girls In Lado Sarai (Delhi)
 
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...
▶ ●─Hookup Call Girls In Noida Sector 137 (Noida) ⎝9667422720⎠ Delhi Female E...
 
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts Service
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts ServiceCall Girls In New Delhi Railway Station 9667422720 Top Quality Escorts Service
Call Girls In New Delhi Railway Station 9667422720 Top Quality Escorts Service
 
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABAD
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABADWHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABAD
WHATSAPP CALL - 9540619990 RUSSIAN CALL GIRLS GHAZIABAD
 

Introducing the Professional Service Maturity Model

  • 1. A Service Performance Insight White Paper Service Compass: Charting the Course to Professional Service Excellence May 2013 Service Performance Insight 6260 Winter Hazel Drive Liberty Township, OH 45044 USA www.SPIresearch.com
  • 2. TABLE OF CONTENTS Introduction.................................................................................................................................... 1 Highlights from the 2013 Benchmark.......................................................................................... 1 Looking Ahead............................................................................................................................... 4 A Catalyst for Transformation...................................................................................................... 5 The Five Service Performance Pillars™...................................................................................... 6 Maturity Levels Provide Insight for Improvement...................................................................... 8 The Professional Service Excellence Roadmap....................................................................... 10 Why Maturity Matters .................................................................................................................. 12 Conclusions and Recommendations ........................................................................................ 12 About Service Performance Insight ................................................................................................. 14 FIGURES Figure 1: Bid-to-Win Ratio – 2008-2012.......................................................................................................2 Figure 2: Sales Cycle Length .......................................................................................................................2 Figure 3: Annual Employee Attrition – 2008-2012........................................................................................3 Figure 4: Billable Utilization – 2008-2012.....................................................................................................4 Figure 5: Service Performance Pillar Maturity™ ..........................................................................................6 Figure 6: The Five Service Performance Pillars™ .......................................................................................7 Figure 7: Professional Services Maturity™ Model Levels............................................................................9 Figure 8: Maturity Progression .................................................................................................................. 12 TABLES Table 1: Maturity Matters!.............................................................................................................................6 Table 2: Performance Pillars Mapped Against PS Maturity™................................................................... 10
  • 3. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 1 INTRODUCTION The Professional Services Maturity Model™ is designed to help service and project-driven organizations understand their relative performance compared to an expansive benchmark of peers. It provides visibility into critical business processes and key performance measurements so organizations can compare, diagnose and improve their own execution. It also provides prescriptive advice so organizations can pinpoint current levels of maturity and visualize the steps required to advance to the next level. Service Performance Insight (SPI Research) first introduced the “New Professional Services Maturity Model™” benchmark report in January 2008. Since that time more than 6,000 organizations representing 1.5 million consultants worldwide have adopted the PS Maturity Model™ as a strategic planning and management framework. Cumulatively, 1,059 organizations have completed the maturity survey from 2007 through 2012. The 2013 benchmark report is based on completed surveys from 234 participants and provides comparative year-over-year trend analysis to the 216 participants in 2011, 214 in 2010, 225 in 2009, 118 in 2008, as well as the initial 52 in 2007. The core tenet of the PS Maturity Model™ is service and project- oriented organizations achieve success through the optimization of five Service Performance Pillars™:  Leadership – Vision, Strategy and Culture  Client Relationships  Human Capital Alignment  Service Execution  Finance and Operations HIGHLIGHTS FROM THE 2013 BENCHMARK 2012 was a pivotal year in the professional services market. While the world was consumed with the future direction of the economy, presidential elections, and the changing geo-political landscape, the professional services sector grew at a fairly impressive rate and achieved pre-recession profit levels. 2013 will be a transitional year, as markets driven by people (such as professional services) will face increased healthcare costs, higher taxes and a looming talent cliff. Organizational profitability will become increasingly difficult; meaning PS executives must place increased emphasis on talent management and streamlining business processes, to improve their use of capital. SPI Research does not expect profit levels to significantly rise from the 2012 highs but there is still plenty of room for revenue growth through market expansion. The 2012 survey was the sixth annual survey conducted. Rather than look back to the initial year of the survey, SPI Research prefers a five- year trend analysis, which gives readers a birds-eye view of the trends that will shape the next five years.
  • 4. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 2 Figure 1: Bid-to-Win Ratio – 2008-2012 Source: Service Performance Insight, May 2013 Figure 1 shows the average bid-to-win ratio over the past three years has remained fairly constant. This figure indicates on average PSOs win slightly over half the bids they submit (5 out of 10). As global competition intensifies, this key performance indicator could be negatively impacted, meaning more money must be spent on sales and marketing initiatives. Almost all of the professional services organizations interviewed for this year's benchmark stated sales and marketing remains one of their highest priorities. Service productization is becoming increasingly important to help organizations better package, market, sell and deliver consistent high quality services. Figure 2: Sales Cycle Length Source: Service Performance Insight, May 2013 Interestingly, the average length of the sales cycle (Figure 2) from qualified lead to signed contract declined in 2012 from 100 days in 2011
  • 5. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 3 to a little over 95 days in 2012. This key performance measurement means there is pent-up demand for professional services; consulting buyers are opening up their wallets with shorter approval times. In conjunction with year-over-year revenue growth (11.5%), a strong sales pipeline (193% of forecast) and starting backlog of 43%, 2013 should be another strong year for PS. Figure 3: Annual Employee Attrition – 2008-2012 Source: Service Performance Insight, May 2013 Figure 3 shows annual employee attrition is slightly lower than last year's benchmark, but overall still on the rise. SPI Research expects it to increase further as the economy continues to recover. SPI Research interviews - especially with those firms who earned best-of-the-best status - indicates serious concerns about finding, hiring and retaining qualified employees. The market is at the beginning of the retirement of the baby boomer generation, which will hit its peak by 2018. A new talent cliff of qualified resources with critical skills in science, technology, engineering and math (STEM) portends a deficit of over 230,000 workers with these skills in the US by 2018. Underfunded advanced STEM education, baby boomer retirement and restrictive immigrant visa policies exacerbate the problem. The talent cliff topic is one PS executives should closely monitor as it will increasingly become the number one growth inhibitor. Figure 4 shows employee billable utilization has continued to rise over the past five years. SPI Research has always considered 70% to be an achievable target, and this year's results came in right at that percentage. Billable utilization, coupled with the percentage of billable employees, have both risen over the past year, which enabled organizations in this year's benchmark to achieve their highest profitability in the past five years. The results of this study continue to show increases in staff are slightly below increases in revenue, meaning PSOs are consistently becoming more efficient, as well as doing a better job of resource
  • 6. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 4 scheduling. The market appears to have finally recovered from the downturn that started four years ago. Figure 4: Billable Utilization – 2008-2012 Source: Service Performance Insight, May 2013 The bottom-line is that the PS market is very much alive, well and growing with no let-up in sight. The greatest challenge going forward for PS providers will be finding the skilled talent they need for growth which means both large and small firms will have to develop innovative new talent management techniques to stay ahead of the curve. 2012 was an exceptional year for the 234 participating organizations as average profit for the entire benchmark increased from 6.9% in 2010 to 13.5% in 2011 and now 18.3% in 2012! Both embedded (ESOs)and independents (PSOs) significantly increased their profits - ESOs [13.3% (2010) to 17.0% (2011) to 23% (2012)] outperformed independents [6.0% (2010) to 10.6% (2011) to 15.6% (2012)]. LOOKING AHEAD The professional services market has experienced high levels of growth the past two years. A focus on greater efficiency and productivity were major reasons for success in 2012. 2013 will require greater creativity, as increased burdens, such as healthcare costs and taxes, could not only limit profitability for PSOs, but could also inhibit growth as their clients face similar challenges. The professional services marketplace has grown and succeeded because a majority of the organizations offer innovative services to help their clients manage change and improve performance. As market dynamics change, leading PSOs have been able to adapt to take advantage of new technologies to create innovative solutions to help their clients. 2013 will be no different in terms of the need for continuous improvement. But, the headwinds will be slightly stronger. The need for repeatable
  • 7. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 5 service offers and organizational efficiency and effectiveness will become increasingly critical to remain competitive and profitable. A CATALYST FOR TRANSFORMATION Until now, little if any research examined professional service strategies and benchmarks within the context of a rapidly maturing technology environment. The original concept behind SPI Research’s PS Maturity Model™ was to investigate whether increasing levels of standardization in operating processes and management controls improve financial performance. The Maturity Model™ benchmark seeks to answer these questions: ∆ What are the most important focus areas for professional service organizations (PSOs) as their businesses mature? ∆ What is the optimum level of maturity or control at each phase of an organization’s lifecycle? ∆ Can diagnostic tools be built for assessing and determining the health of key business processes? ∆ Are there key business characteristics and behaviors that spell the difference between success and failure? SPI Research’s 2013 PS Maturity™ Benchmark demonstrates that increasing levels of business process maturity do indeed result in significant performance improvements. In fact, SPI Research found that high levels of performance have far more to do with leadership focus, organizational alignment, effective business processes and disciplined execution than "time in grade." Relatively young and fast-growing organizations can and do demonstrate surprisingly high levels of maturity and performance excellence if their charters are clear. Further improvements accrue when their goals and measurements are aligned with their mission, and they make the investments they need in talent and systems to provide visibility and appropriate levels of business control. Of course, it certainly helps if they are well positioned within a fast-growing market. As Table 1 shows, the payoff from investing in a program to assess current maturity and prioritize maturity improvements can be substantial. Based on the 2013 benchmark of 234 service organizations, 55% performed at maturity levels 1 and 2, 25% at level 3 and 20% performed at maturity levels 4 and 5. The 48 level 4 and 5 organizations significantly outperformed their peers by generating significantly higher revenue per billable consultant combined with higher project and operating margins.
  • 8. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 6 Table 1: Maturity Matters! Key Performance Measurement Maturity Level 1-2 Maturity Level 3 Maturity Level 4-5 PS EBITDA 6.7% 13.2% 29.9% Annual revenue growth 10.9% 11.8% 12.9% Billable utilization (2,000 hours) 69.2% 73.9% 74.5% Project gross margin 31.9% 37.4% 41.4% Revenue per billable consultant (k) $175 $223 $252 Source: Service Performance Insight, May 2013 SPI Research summarizes individual PSO performance in a spider chart (Figure 5). The maturity scorecard provides a measurement for each organization in comparison to the benchmark maturity definitions. It provides an invaluable tool to analyze current performance and prioritize future improvement priorities. This graphical depiction of the Service Performance Pillars by maturity level enables PS executives to quickly scorecard their organization’s performance, and diagnose areas of relative strength and weakness. Figure 5: Service Performance Pillar Maturity™ Source: Service Performance Insight, May 2013 THE FIVE SERVICE PERFORMANCE PILLARS™ SPI Research developed a model that segments and analyzes a PSO into five distinct areas of performance that are both logical and functional. We call the five underpinning elements Service Performance Pillars™ because they form the foundation for all professional services organizations (Figure 6): 1. Leadership - Vision, Strategy and Culture: (CEO) a unique view of the future and the role the service organization
  • 9. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 7 will play in shaping it. A clear and compelling strategy provides a focus for the organization and galvanizes action. Effective strategies bring together target customers, their business problems, and how a solution solves those problems differently, uniquely, or better than its competitors. For a service strategy to be effective, the role and charter of the service organization must be defined, embraced, communicated and supported throughout the company. Depending on whether the service strategy is to primarily support the sale of products, or to drive service revenue and profit, service organization goals and measurements will vary. Leadership skills and competencies must mature as the organization matures. Culture is the unwritten customs, behaviors and beliefs that determine the “rules of the game” for decision-making, structure and power. Figure 6: The Five Service Performance Pillars™ Source: Service Performance Insight, May 2013 2. Client Relationships: (Marketing and Sales) the ability to communicate effectively with employees, partners and customers to generate and close business and win deals. Successful client management involves developing effective marketing and sales programs to better understand client needs, while ensuring clients will continue to buy and provide references and testimonials. 3. Human Capital Alignment: (Human Resources) the ability to attract, hire, retain and motivate a high quality consulting staff. With changing workforce demographics, talent management has increased in importance. Human capital represents the essence, brand and reputation of the firm. PSOs are starting to adopt hybrid on and off-site staffing models which put increased pressure on customer-facing staff to develop client relationships and more carefully define client requirements. Demands for
  • 10. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 8 career planning, skill development and flexible work options have intensified. 4. Service Execution: (Engagement/Delivery) the methodologies, processes and tools to effectively schedule, deploy and measure the quality of the service delivery process. Service execution involves a number of factors: from resource management, to delivering projects in a predictable and acceptable time frame, to reducing cost while improving project quality and harvesting knowledge. Processes include resource management, project planning and quality control, knowledge management and methodology and tool development. 5. Finance and Operations: (CFO) the ability to manage services profit and loss — to generate revenue and profit while developing repeatable operating processes. The finance and operations pillar focuses on revenue, margin and cost and the financial, contractual and IT operating processes and controls required to run a profitable and predictable business. MATURITY LEVELS PROVIDE INSIGHT FOR IMPROVEMENT Within each of the Service Performance Pillars™, SPI Research developed guidelines for process maturity. These guidelines cut across the five service dimensions to illustrate examples of business process maturity. This study has been developed to measure the correlation between process maturity and service performance excellence. The model is built on the same foundation as the Capability Maturity Model (CMM), which has been adopted for software development; but is specifically targeted toward billable PSOs, that either exclusively sell and execute professional services or complement the sale of products with services. Figure 7 depicts the percentage of firms at each maturity level and outlines the primary characteristics for each level: Level 1 — Initiated “Heroic”: (approximately 30% of PSOs) At maturity level 1, processes are ad hoc and fluid. The business environment is chaotic and opportunistic, and the focus for a PSO is primarily on new client acquisition and reference building. Often professional service employees at this level are chameleons — able to provide presales support one day and develop interfaces and product workarounds the next. Success depends on the competence and heroics of people in the organization, and not on the use of proven processes, methods or tools. Practices and procedures are informal and quality is based on individual experience and aptitude. Level 1 organizations are often characterized as “informal” and “heroic”.
  • 11. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 9 Figure 7: Professional Services Maturity™ Model Levels Source: Service Performance Insight, May 2013 Level 2 — Piloted “Functional Excellence”: (approximately 25% of PSOs) at maturity level 2, processes have started to become repeatable. Best practices may be demonstrated in discrete functional areas or geographies but they are not yet documented and codified for the entire organization. Basic processes have been established for the five Professional Services Performance Pillars, but they are not yet universally embraced. Operational excellence and best practices may be discerned within functions but not across functions. By level 2 individual Functional Excellence should have emerged in key areas. Level 3 — Deployed “Project Excellence”: (approximately 25% of PSOs) at maturity level 3, the PSO has created a set of standard processes and operating principles for all major Service Performance Pillars but renegades and “hold-outs” may still exist. Management has established and started to enforce financial and quality objectives on a global basis. Processes have been established to focus on effective execution and there is spotlight on alignment between and across functions. By level 3 project delivery methodologies and quality measurements are in place and enforced across the organization. Level 3 organizations should exhibit “Project Excellence” with a consistent, repeatable project delivery methodology. Level 4 — Institutionalized “Portfolio Excellence”: (approximately 15% of PSOs) at maturity level 4, management uses precise measurements, metrics and controls, to effectively manage the PSO. Each Service Performance Pillar contains a detailed set of operating principles, tools and measurements. Organizations at this level set quantitative and qualitative goals for customer acquisition, retention and penetration, in addition to a complete set of financial and quality operating controls and measurements. Processes are aligned to achieve leverage. The portfolio is balanced with a focus on project selection and
  • 12. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 10 execution. Level 4 organizations should exhibit “Portfolio Excellence”. Level 5 — Optimized “Collaborative”: (approximately 5% of PSOs) at maturity level 5 executives focus on continual improvement of all elements of the five Service Performance Pillars. A disciplined, controlled process is in place to measure and optimize performance through both incremental and innovative technological improvements. Quantitative process-improvement objectives for the organization are established. They are continually revised to reflect changing business objectives, and used as criteria in managing process improvement. Initiatives are in place to ensure quality, cost control and client acquisition. The rough edges between disciplines, functions, and specialties have been smoothed to ensure unique problems can be addressed quickly without excessive bureaucracy or functional silos. Level 5 organizations are visionary and collaborative both internally and with clients and external business partners. THE PROFESSIONAL SERVICE EXCELLENCE ROADMAP If the Service Performance Pillars are mapped against process maturity a “Professional Service Excellence Roadmap” can be developed. Table 2 provides insight into where an organization fits within the service maturity model as well as a guideline to move from one level of maturity to the next. It allows organizations to diagnose their performance strengths and develop plans to bring lagging areas into alignment. Table 2: Performance Pillars Mapped Against PS Maturity™ Level 1 Initiated Level 2 Piloted Level 3 Deployed Level 4 Institutionalized Level 5 Optimized Leadership Initial strategy is to support product sales and provide reference customers while providing workarounds to complete immature products. Leaders are “doers”. PS has become a profit center but is subordinate to product sales. Strategy is to drive customer adoption and references profitably. Leaders focus on P&L and client relationships. PS is important revenue and margin source but channel conflict still exists. Services differentiate products. Leadership development plans are in place. Leaders have strong background & skills in all pillars. Service leads products. PS is a vital part of the company. Solution selling is a way of life. PS is included in all strategy decisions. Succession plans are in place for critical leadership roles PS is critical to the company. Service strategy is clear. Complimentary goals and measurements are in place for all functions. Leaders have global vision and continually focus on renewal & expansion.
  • 13. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 11 Level 1 Initiated Level 2 Piloted Level 3 Deployed Level 4 Institutionalized Level 5 Optimized ClientRelationships Opportunistic. No defined solution sets or Go to Market plan. Focus is on new customers and reference building. Individual heroics, no consistent sales, marketing or partnering plan or methodology. Ad hoc, one-off projects. Start to use marketing to drive leads. Multiple sales models. Start investing in sales training, CRM & sales methodology. Start measuring sale effectiveness & customer satisfaction. Start developing partners and partner programs. Some level of proposal reviews and pricing control. Marketing, inside sales, solution sales with defined solution sets. CRM integrated with financials and PSA. Deal, pricing and contract reviews. Partner plan and scorecard. Tight pricing and contract mgmt. controls. High levels of customer satisfaction. CRM, PSA, ERP integration provides 360 degree view of client relationships. Business process, vertical and horizontal solutions. Vertical client centers of excellence. Top client and partner programs. Global contract and pricing management. Key partner relationships. Strong customer reference programs. Executive relationships. Thought leadership. Brand building and awareness. High customer satisfaction. Integrated sales, marketing and partnering programs. High quality references. HumanCapital Alignment Hire as needed. Generalist skills. Chameleons, Jack of all Trades. Individual heroics. May perform presales as well as consulting delivery. Begin forecasting workload. Start developing job and skill descriptions & compensation plans. Rudimentary career paths. Start measuring employee Satisfaction Resource, skill and career management. Employee satisfaction surveys. Training plans. Goals and measurements aligned with compensation. Attrition <15% Business process and vertical skills in addition to technical and project skills. Career ladder and mentoring programs. Training investments to support career. Low attrition, high satisfaction Continually staff and train to meet future needs. Highly skilled, motivated workforce. Outsource commodity skills or peak demand. Sophisticated variable on and offshore workforce model. ServiceExecution No scheduling. Reactive. Ad hoc. Heroic. Scheduling by spreadsheet. No consistent project delivery methods. No project quality controls or knowledge management. Skeleton methodology in place. Centralized resource mgmt. Initiating project mgmt. and technical skills. Starting to measure project satisfaction and harvest knowledge. PSA deployed for resource and project management. Collaborative portal. Project dashboard. Global Project Management Office, project quality reviews and measurements. Effective change management. Integrated project and resource management. Effective scheduling. Using portfolio management. Global PMO. Global project dashboard. Global Knowledge Management. Global resource management. Integrated solutions. Continual checks and balances to assure superior utilization and bill rates. Complete visibility to global project quality. Multi-disciplinary resource management. FinanceandOperations The PSO has been created but is not yet profitable. Rudimentary time & expense capture. Limited financial visibility and control. Unpredictable financial performance. Rudimentary contract management. 5 to 20% margin. PS becoming a profit center but still immature finance and operating processes. Investment in ERP and PSA to provide financial visibility. May not have real-time visibility or BI. Standard Library of Contracts and Statements of Work. 20 to 30% margin. PS operates as a tightly managed P&L. Standard methods for resource mgmt., time & expense mgmt., cost control & billing. In depth knowledge of all costs at the employee, sub-contractor & project level. Processes in place for contract management, legal and pricing decisions. PS generates > 20% of overall company revenue & contributes > 30% margin. Well-developed finance and operations processes and controls. Systems have been implemented for CRM, PSA, ERP and BI. IT integration and real-time visibility. Systems have been implemented for contract management, legal and pricing decisions. > 40% margin. Continuous improvement and enhancement. High profit. Integrated systems. Global with disciplined process controls and optimization. Completely integrated financial, CRM, resource management, contracts and pricing systems, processes and controls. Source: Service Performance Insight, May 2013
  • 14. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 12 WHY MATURITY MATTERS SPI Research believes wide support for the PS Maturity Model™ is due to its holistic approach to measuring performance. Maturity is determined through alignment and focus both within and across functions. For example, although financial measurements are of primary importance they are equally weighted and correlated with leadership and sales and quality measurements to ensure organizations improve across all dimensions, not just in terms of financial performance. However, if the organization is profit-motivated (which most are), increasing maturity levels do show up in significant bottom-line profit. Figure 8 highlights major key performance measurements by maturity level, and should alone be an important reason why PS executives should look deeper into using it to increase profits. Figure 8: Maturity Progression Source: Service Performance Insight, May 2013 CONCLUSIONS AND RECOMMENDATIONS With increased global competition for business and resources PSOs must continually improve. These improvements cut across every aspect of the organization, and all departments must work together to achieve service performance excellence. Executives need key performance measurements, integrated business applications and a plan for continual advancement. The leading financial indicators – backlog, revenue per person and sales pipeline in this year’s study all trended higher. More than ever before, winning professional service firms must seriously benchmark their operations and develop improvement plans to bring lagging areas into alignment. This white paper provides a glimpse into areas where PSOs can improve by showing statistics for average performance reported by over 1,050 professional service organizations. The comprehensive 2013 PS Maturity™ Benchmark report describes how Service Performance Pillars
  • 15. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight Page 13 can be optimized and provides prescriptive advice to help organizations enhance their business process maturity while improving bottom-line results. As the technology professional service industry has matured, the stakes and the “ante” to play have been raised. Today’s PSO requires significant investment in tools, methods and business controls in all areas of Leadership, Client Relationships, Human Capital Alignment, Service Execution and Finance and Operations to prosper. High- performing organizations must optimize each Service Performance Pillar and take advantage of technology and process advancements to be competitive. While much progress has been made in service revenue and margin achievement, significant gaps in strategy, service sales and pricing, project delivery methods, service quality and human capital alignment persist. Variable onshore and offshore workforce models have made a disciplined approach to managing all facets of the business more important than ever before. We believe this study and continued focus on the Professional Service Maturity Model™ provide a roadmap for achieving Professional Service Excellence.
  • 16. Service Compass Introducing the Professional Services Maturity Model™ Service Performance Insight (SPI Research) is a global research, consulting and training organization dedicated to helping professional service organizations (PSOs) make quantum improvements in productivity and profit. In 2007, SPI developed the PS Maturity Model™ as a strategic planning and management framework. It is now the industry-leading performance improvement tool used by over 6,000 service and project-oriented organizations to chart their course to service excellence. SPI provides a unique depth of operating experience combined with unsurpassed analytic capability. We not only diagnose areas for improvement but also provide the business value of change. We then work collaboratively with our clients to create new management processes to transform and ignite performance. Visit www.SPIresearch.com for more information on Service Performance Insight, LLC. © 2013 Service Performance Insight Page 14 About Service Performance Insight R. David Hofferberth, PE, Service Performance Insight founder, managing director and licensed professional engineer has served as an industry analyst, market consultant and product director. He is focused on the services economy, especially productivity and technologies that help organizations perform at their highest capacity. Dave’s background includes application and analytical tool development to support business decision-making processes. He has more than 30 years of domestic and international experience with firms including the Aberdeen Group and Oracle. Contact Hofferberth at david.hofferberth@spiresearch.com or 513-759-5443. Jeanne Urich, Service Performance Insight managing director, is a management consultant specializing in improvement and transformation for project- and service-oriented organizations. She has been a corporate officer and leader of the worldwide service organizations of Vignette, Blue Martini and Clarify, responsible for leading the growth of their professional services, education, account management and alliances organizations. Jeanne is a world-renowned thought-leader, speaker and author on all aspects of Professional Services. Contact Urich at jeanne.urich@spiresearch.com or 650-342-4690. Carey Bettencourt, Service Performance Insight managing director, is a management consultant who specializes in improvement and transformation for project-driven professional services organizations. She is an experienced change management leader, expert in helping clients develop high-performing teams that deliver increased utilization, profit and customer satisfaction. Carey has more than 20 years of domestic and international experience in leadership roles with software firms including Oracle, ChannelPoint and J.D. Edwards. Contact Bettencourt at carey.bettencourt@spiresearch.com or 949-521-3830.