BTerrell Group Blog

Acting on KPIs Benefits Businesses in the Service Industry

Posted by Brian Terrell on Thu, May 08, 2014

The capabilities of software these days are endless, so it comes as no surprise that ERP publishers promote dashboards and “information at your fingertips” to business leaders. I believe recognizing successes and potential problems from the statistics helps me take action toward continuous improvement. The cost of not taking action pales in comparison to understanding and acting on the information you have.

For example, this past year we adjusted pricing after reviewing our historical gross margin and the proforma budget. Understanding and acting on that key information adds purpose and intention to our pricing going forward, which is much better than pricing based on reaction and reflection.

The first step is to determine your company’s specific KPIs. There are great industry standard KPIs for the service industry, such as gross margin and net profit, but many times the company-specific KPIs are even more relevant. At BTerrell Group, I track a mix of industry-specific and company-specific KPIs. I use revenue per loaded labor dollar and conversion ratios for each step of the sales cycle, to help predict future revenue and utilization when applied to the size of the current pipeline.

Once you determine and understand your company’s KPIs, you need a way to see them in real-time, at anytime. Good business intelligence systems enable you to view vital company data instantly and accurately, so it is important to set up and present the data in way that works for you. Sage 300 ERP even allows you to build dashboards based on user roles, so each person can see the metrics that matter most to them!

Below are a two examples using Sage 300 ERP. As you can see, they are very intuitive.

Top 5 Expenses Dashboard Sage 300 ERP

Top 5 Customers resized 600

Tags: Sage 300 ERP, KPI service industry, service industry, KPI, KPIs

KPIs Lead to Improved Performance in the Service Industry

Posted by Keith Karnes on Fri, May 02, 2014

When it comes to staying on top of company performance, industry-specific KPIs such as new projects booked per month and A/R aging as well as company-specific KPIs are imperative for CFOs and Presidents of professional service organizations to know. Unfortunately, the information isn’t always real-time, which makes it ineffective.

I found a great whitepaper recently from Intacct and Service Performance Insight, LLC about KPIs for businesses in the professional service industry, recommending a focus on financial performance for greater financial success. It advises integrating financial management solutions with other departmental solutions for seamless reporting. Reporting is crucial when it comes time to present to key stakeholders, and it is crucial for timely visibility into the performance of the organization.

By narrowing your lens of focus on only those KPIs that are relevant to your role, it will allow you to communicate effectively and make better business decisions. For me, an opportunity would have been missed to improve our company’s utilization and realization if I had not been aware of our metrics in real-time. Now, I am able to tie employee rewards and compensation to metrics to drive improved performance and employee satisfaction.

Here’s an example of what it looks like to track KPIs using Intacct:

Intacct KPI dashboard

In January, CodePartners posted a great blog explaining how to set up a dashboard in Intacct. Once you set up your dashboard, you are on your way to optimal success!

Tags: KPI, KPI service industry, service industry