Market volatility, increased competition, and a shortage of skilled resources all combine to create pressures on today’s services business. Making the most of the available resources and staying on top of performance levels is key to enabling growth and success. Learn from our expert panelists in this discussion of best practices in improving these and other elements of successful professional services firms with NetSuite, the leading solution for services businesses. For 34 years, Blytheco has designed and implemented business systems for thousands of companies nationwide. Now we are sharing our best practices with you.

1. December 2, 2014
Improving Control Visibility and
Profitability in the Services Business:
Optimizing Project Resources and Improving Visibility into Performance
www.blytheco.com

2. Agenda
Panel Introductions
Questions for Our Panel
 The State of the Industry Today
 The Top Requirements and Capabilities
 Solutions to Help
Why NetSuite?
Your Questions
Next Steps

3. Introductions
John Garzouzi
Senior Solutions Consultant, NetSuite
Designs cloud-based technology systems for
businesses nationwide.
Jeanne Urich
Managing Director, Service Performance
Insight
Co-author of the Professional Service Maturity
Model™ benchmark used by over 10,000
project and service oriented organizations to
diagnose and improve their performance.
www.spiresearch.com
jeanne.urich@spiresearch.com

4. Introductions
Alicia Anderson
Strategic Marketing, Blytheco
19 years in ERP sales, service and marketing
Leading ERP provider to thousands of
companies nationwide
Rick Cobb
Senior Solutions Architect, Blytheco
Helps companies evaluate and design ERP
and CRM solutions.
24 years of industry experience in
designing and implementing business
management technology

5. What is the Current “State of the Industry?”

6. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
2014 Service Industry Trends
Revenues are increasing!
Attrition is on the rise!
Finding skilled talent is a top challenge!
Importance of workforce engagement
Virtual teams and workplaces

7. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
Organizational Challenges Are Changing!
Challenges (Rated 1 to 5 Scale) 2012 2013 2014
Improve sales and marketing 4.18 4.21 4.15
Talent attract, retain high-quality staff 4.28 3.94 4.11
Support rapid growth and expansion 4.09 4.06 4.10
Achieve revenue and margin targets 4.18 4.18 4.06
Improve quality and consistency 4.20 4.12 3.85
Improve and expand portfolio and markets 3.82 3.83 3.83
Alignment - between functions or groups 3.72 3.59 3.31

8. “On the Ground” Observations

9. How Do the Challenges Show Up in PSOs?

10. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
Resource Management is Critical!
Bill rates and utilization are stagnant! But attrition is rising!
66%
67%
67%
68%
68%
69%
69%
70%
70%
71%
2010 2011 2012 2013 2014
67.5%
69.6%
70.3%
69.7%
69.8%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
2010 2011 2012 2013 2014
6.8%
7.4%
7.2%
8.3%
8.4%
Annual Employee AttritionBillable Utilization

11. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
Some good news! Firms are reducing overhead!
Lower Overhead! Much Higher Revenue Yields!
68%
69%
70%
71%
72%
73%
74%
75%
76%
2010 2011 2012 2013 2014
70.8%
74.2%
75.2%
71.2%
74.6%
Percentage Billable Employees
$145
$150
$155
$160
$165
$170
$175
2010 2011 2012 2013 2014
$156
$167 $168
$155
$175
Annual Revenue Per Employee

12. Rev Rec
Inefficiencies Abound!
Projects

13. How are Companies Solving these Challenges?

14. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
Service Delivery Excellence depends on Integrated Systems
KPI Best Rest ▲
Use a standardized delivery methodology 77.3% 64.5% 19.9%
Average project duration (months) 5.95 5.11 16.5%
Average project staff (people) 4.3 3.7 15.2%
Projects delivered on-time 84% 77% 9.2%
Use a commercial PSA 83.3% 77.2% 7.9%
Level of PSA integration with ERP 75.0% 59.9% 25.2%
 Integrated PSA/CRM/ERP provides visibility – open books
 Resource visibility ensures high utilization
 Supporting methodology, tools, templates, learning guides
 Constant quality reviews and continuous improvement

15. www.spiresearch.com
SPISPI
ResearchResearch
People
People
Process
Process
CapitalCapital
Copyright © 2014 Service Performance Insight
All rights reserved. Not for distribution.
The “Best” versus the “Rest” shows up on the bottom-line
KPI Best Rest ▲
EBITDA 30.2% 9.8% 209.0%
Average revenue per project (k) $413 $178 132.0%
Annual revenue per employee (k) $236 $150 57.3%
Annual revenue per billable consultant (k) $291 $187 55.6%
Quarterly revenue target in backlog 65.8% 43.7% 50.7%
Project margin for time & expense projects 40.4% 37.4% 7.9%
Larger projects due to positioning, service productizing
Precision execution – high utilization, rates, integrated systems
Robust pipeline, attention to backlog
Lean overhead – virtual facilities and workforce

16. Enterprise-Wide Visibility
Project
Billing Rules
Revenue Rules
Expenses and
Purchases
Timesheets
Bills
Employees Project and
Resource
Management
Finance
Invoices
Charges

17. Next Steps
Learn more about best practices in
managing PSOs, including:
Download SPI Research’s “Introducing the PS
Maturity Model™” paper.
Take the PS Maturity™ benchmark survey and get a
FREE ($995 value) copy of the “2015 PS Maturity™
Benchmark” report when it is published in February,
2015
View the NetSuite flash demo
info.blytheco.com/services-resources