2015 Professional Services Maturity™ Benchmark - PS Journal
Item Number: SPI15PSMBPSJ - PS Journal
The Professional Services Maturity™ Benchmark is designed to help Professional Service Organizations (PSOs) 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 performance. It 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 10,000 PS organizations have adopted it to chart their course to service excellence.
The report contains:
- 190 pages with 235 insightful charts and graphs
- Analysis derived from 220 Professional Service Organizations
- Five year trend analysis for 200 key performance indicators (KPIs)
- Base and variable compensation for 12 job titles
- Eight PS vertical markets: Advertising/Marketing, Architecture/Engineering, IT Consulting, Management Consulting, PS within Hardware, PS within SaaS and Software companies
- Detailed income statements
In 2014 SPI Research saw growth of 10% or more for the third consecutive year, signaling the end of the recession in most markets and geographies. Many small improvements combined to make 2014 an excellent year in professional services. Service Performance Insight is calling 2014 a “Goldilocks” year because incremental growth, productivity and profit enhancements combined to deliver results that were “not too hot”, “not too cold” but “just right!”
To give you a glimpse of what you will find in this report, here are a few highlights from this year’s benchmark:
- Steady revenue growth: the leading indicators for growth — annual revenue growth, headcount increases, size of the deal pipeline and backlog — were all up slightly in 2014, signifying, steady, consistent and manageable growth. Predictable growth helped firms optimize supply and demand resulting in significant profit improvement.
- Productivity improvements: across the board professional services organizations experienced moderate increases in billable utilization and the percentage of the workforce that is billable resulting in significant improvements in revenue per consultant and revenue per employee.
- Sales and marketing remain the top challenge: perennially, firms rate business development as their top challenge. Sales results were very positive in 2014 with stronger sales pipelines; shorter sales cycles and larger backlogs, which all added up to more firms achieving their revenue targets. Sales, marketing and solution development effectiveness ratings all went up while the overall cost of sales and marketing went down from 9.1% to 7.4% of total revenue.
- Profits are up: a host of incremental enhancements added up to strong profit improvement in 2014. Profit was up in all vertical markets and all geographies. Embedded service organizations delivered exceptionally strong performance with net contribution margin increasing from 15.4% in 2013 to 19% in 2014. EMEA, finally recovering from a prolonged recession, posted the best geographic profit progression from 12.7% in 2013 to 15.5% in 2014.
Your email address is important. We will email you a link to the report PDF. The report is over 8MB, so many email systems do not accept files this large.