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1 RTM Consulting We help consulting, professional, and support services organizations get better at what they do Overcoming the Five Biggest Barriers to Effective Resource Management Randy Mysliviec President and CEO RTM Consulting Kevin Sequeira General Manager/Dir. Product Management Tenrox Marlon Arevian Solution Consultant Tenrox RTM Consulting, Inc. All Rights Reserved. 1

2 RTM Consulting Our mission is to help consulting, professional and support services organizations get better at what they do Since 2007 Management & Operational Consulting Services Transformation Experts for Tech Companies #1 in Resource Management: Just-in-Time Resourcing Two Locations: Cincinnati (HQ) Wash. DC 100+ Years of Senior Partner Experience >100 Clients Worldwide on 5 Continents Consulting Training Mentoring Staffing Software Tools Assess Design Transform RESULTS! RTM Consulting, Inc. All Rights Reserved. 2

3 Randy Mysliviec President and CEO Acknowledged expert in Global Resource Management (GRM) Author of the Just-in-Time Resourcing solution Formerly SVP, Consulting and Professional Services for Convergys Successfully managed and grew a multi-hundred million dollar business with 1600 employees in 31 countries across six continents Began career with 18 years at IBM Serving in a variety of sales, marketing, and general management roles CEO of two successful startup firms B.S. from California Polytechnic State University, San Luis Obispo, California. Founding member of the Technology Professional Services Association (TPSA now TSIA) and served as a member of the TPSA Advisory Board. Randy is also a licensed instrument rated private pilot RTM Consulting, Inc. All Rights Reserved. 3

4 Featured Clients & Associations Copyright RTM Consulting, Inc. All Rights Reserved. 4

5 Agenda Resource Management (RM) Overview Drivers of RM Performance and Implications for Change Overcoming the Barriers to Success Benefits of Investing in Resource Management Q&A RTM Consulting, Inc. All Rights Reserved. 5

6 Why We Are Here: How many times have you heard (or said)? I know I have people with the skills I need, I just can t find them. I know my revenue forecast, how do I get a people forecast? I have no idea what my resource needs will be 2, 3, 4 months from now. If everyone is assigned, why am I not making my numbers? Where did that project come from? RTM Consulting, Inc. All Rights Reserved. 6 6

7 Resource Management (RM) Definition What is it? Staffing? Human Resources? Recruiting? A function? Who does it? Practice Leads? VPs? Admin? The RMO? Getting the Right Person in the Right Place at the Right Time Or Just-in-Time Resourcing RTM Consulting, Inc. All Rights Reserved. 7

8 Why is This So Important? Annual Increase in Marginal Revenue and OI from Utilization Improvement MARGINAL REVENUE IMPROVEMENT MARGINAL OI IMPROVEMENT Increase in Utilization by (pts): Increase in Utilization by (pts): # of Consultants # of Consultants $208,000 $1,040,000 $2,080,000 $3,120, $104,000 $520,000 $1,040,000 $1,560, $416,000 $2,080,000 $4,160,000 $6,240, $208,000 $1,040,000 $2,080,000 $3,120, $624,000 $3,120,000 $6,240,000 $9,360, $312,000 $1,560,000 $3,120,000 $4,680, $832,000 $4,160,000 $8,320,000 $12,480, $416,000 $2,080,000 $4,160,000 $6,240, $1,040,000 $5,200,000 $10,400,000 $15,600, $520,000 $2,600,000 $5,200,000 $7,800, $1,352,000 $6,760,000 $13,520,000 $20,280, $676,000 $3,380,000 $6,760,000 $10,140, $1,560,000 $7,800,000 $15,600,000 $23,400, $780,000 $3,900,000 $7,800,000 $11,700,000 Assumptions Assumptions Billable Hourly Rate $200 Billable Hourly Rate $200 Loaded Hourly Cost $100 Gross Revenue $200 Gross Margin $100 Small improvements in utilization can have significant bottom line impact Analysis does not account for additional benefits from: 1. Reduced hiring / training costs 2. Improved preparedness to start client engagements on time and with appropriate resources 3. Reduced attrition / Improved employee satisfaction RTM Consulting, Inc. All Rights Reserved. 8

9 Utilization Benchmarks TSIA Datapoint* Comment There is a 6 pt and 9% diff between planned and actual utilization For a $100m PS business with 400 FTEs the $$ impact of this gap is???? $4,467,840 *Technology Services Industry Association RTM Consulting, Inc. All Rights Reserved. 9

10 Agenda Resource Management (RM) Overview Drivers of RM Performance and Implications for Change Overcoming the Barriers to Success Benefits of Investing in Resource Management Q&A RTM Consulting, Inc. All Rights Reserved. 10

11 Enterprise PSO RM Metrics/drivers RM Performance Drivers / Implications Demand Process Supply Utilization Data Analysis Labor cost / Attrition Revenue / Gross Margin / Project Performance RTM Consulting, Inc. All Rights Reserved. 11

12 Typical RM Execution 15-20% of resource population averaging 80%+ utilization 5-15% averaging <45% - 55% utilization At the same time, high degree of contractors in use Most PS orgs: Resource Management = Tactical Activity RM Focused narrowly on Staffing As a result, while overall billable utilization targets are met, they are supported by: Hard work of a dedicated few Masking underutilization of a large number of resources A review of existing staffing processes provides greater insight into why these situations occur: Tactical (vs. strategic) orientation of both Practice Leads and Account Management ( -10 to +20 day syndrome ) Significant reliance on a handful of experts at the expense of getting more leverage out of the full PS team Lack of clear visibility to the skills of the under utilized (i.e., they are not all poor performers) Lack of centralized process for staffing resource needs and forecasting future needs RTM Consulting, Inc. All Rights Reserved. 12

13 Utilization Trend Datapoint Comment Utilization is trending down Structural challenges are not being met with corresponding process improvement How to beat the trend? Adopt Utilization Best Practices and Best in Class Toolkit RTM Consulting, Inc. All Rights Reserved. 13

14 Agenda Resource Management (RM) Overview Drivers of RM Performance and Implications for Change Overcoming the Barriers to Success Benefits of Investing in Resource Management Q&A RTM Consulting, Inc. All Rights Reserved. 14

15 Five Barriers to Success And How to Overcome Them 1. Breaking down organizational silos 2. Lack of strong RM process discipline and needed RM competencies 3. Weak or limited view of future demand (forecasting) 4. Old PSA technology or poor implementation of a modern system 5. Current culture for managing billable utilization RTM Consulting, Inc. All Rights Reserved. 15

16 Breaking Down Silos Matters Datapoint Comment Silos are the enemy of the enterprise A transparent view of available resources speeds staffing time and improves results What s the lesson? Centralizing RM is a huge efficiency and productivity play RTM Consulting, Inc. All Rights Reserved. 16

17 Just-in-Time Resourcing (JITR) Bringing Strong Process Discipline to RM Process Governance Candidate Sourcing & Development Automation Tools e.g. PSA/PPM Skills Inventory GRM* Processes Forecasting Just-in-Time Resourcing (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply Staffing o More information at o Justintimeresourcing.com o o o o Resource Skills Inventory Process Staffing requests Characterizing Demand o Forecasting future needs Managing Talent o Candidate Sourcing & Development Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM Ensuring Compliance o Process Governance *Global Resource Management RTM Consulting, Inc. All Rights Reserved. 17

18 Solving the RM Competency Gap No broadly accepted RM discipline exists in the industry today Yet, the economics are compelling for RM Many people are reluctant to commit to an RM role since in most companies no defined career path exists Need to institutionalize better RM disciplines RTMC is solving this gap with a Professional Skills certification program for RMs RTMC Innovating in Resource Management RTM Consulting, Inc. All Rights Reserved. 18

19 Resource Management Certified Professional (RMCP) SM What is RMCP SM? First-of-its-kind certified professional skills development program for: Resource Managers Learn Best Practice Application RM Toolkit - RMCPSM Resource Center Collaborate with Industry Peers RTM Consulting, Inc. All Rights Reserved 19

20 What We Teach/Certify: Just-in-Time Resourcing (JITR) Process Governance Candidate Sourcing & Development Automation Tools e.g. PSA/PPM Skills Inventory Global Resource Management Staffing Forecasting Prerequisite study 3-day classroom program Interactive lectures, case study workshops Certification exam Re-certification process Pricing: $1,395 per person* Student pays travel expenses Materials and testing fee included Next Program: Dallas, Sept For current RMCP s this webinar is worth one PCU credit-hour (PCU=Professional Certification Unit) Note: * Enterprise volume discounts available. Recertification fees apply. Talk to an RTMC representative for more information. Prices subject to change RTM Consulting, Inc. All Rights Reserved 20

21 Jun July Aug Sept Oct Nov Jun July Aug Sept Oct Nov Jun July Aug Sept Oct Nov Jun July Aug Sept Oct Nov Resource Management Forecasting Practice Financial Services N.A. Gross HC Needs HC Assigned Gross HC Gap Probability Adjusted HC Gap Client Project Probability Start End Bank of America SAP Implementation 100% 5/1/ /31/ Bank of America Program Management 90% 6/10/ /15/ Chase CRM Implementation 100% 3/1/2008 6/15/ Chase Program Management 90% 6/15/2008 2/10/ E*Trade Bank Skilled Resourcing 100% 2/1/2008 7/30/ E*Trade Bank CRM Implementation 100% 1/15/2008 9/11/ E*Trade Bank Data Warehousing 50% 7/1/2008 2/6/ US Bank SAP Implementation 100% 3/15/2008 6/23/ US Bank Data Warehousing 70% 7/9/2008 3/16/ Total Available HC Not Assigned Net Unfilled HC Needs Net Adjusted HC Needs By capturing, reporting, and analyzing future resource needs, we can identify where we need to: 1. Hire for what skills and in what quantity 2. Partner to source resources for peak load demand 3. Cross-train to take advantage of available capacity that requires skills development Enabling PS Management to focus on the future - not just the here and now RTM Consulting, Inc. All Rights Reserved. 21

22 Getting the Right Technology Support Spreadsheets are ok, but there s better out there Don t buy a PSA tool, select one that really meets your needs Do the right job of requirements planning - this starts with defining target RM processes Process and technology go together - implement them together Adopt the emerging standard in the industry - JITR! RTM Consulting, Inc. All Rights Reserved. 22

23 Change Manage the Culture Shift Build a change management plan to address anticipated needs Get senior management support for the change management plan Centralize your view into resources break down the silos Build the RMO and empower them to help staff projects Build bridges with sales for better forecasting and project staffing RTM Consulting, Inc. All Rights Reserved. 23

24 Agenda Resource Management (RM) Overview Drivers of RM Performance and Implications for Change Overcoming the Barriers to Success Benefits of Investing in Resource Management Q&A RTM Consulting, Inc. All Rights Reserved. 24

25 The Bottom Line Datapoint Comment The benefits of formal resource management are undeniable One consistent benefit is increased billable utilization Ultimate message?? Better RM practices will make your PSO more profitable RTM Consulting, Inc. All Rights Reserved. 25

26 Key Benefits Financial Results Improved Project Performance Redirection of Delivery Leadership Time Resource Enhancement of Work for Practitioners Utilization Calculator Reduced Escalations for Leadership Better utilization = improved gross margins More projects on-time, on-budget, on-quality Increased strategic focus of management via decreased App For time spent on staffing needs and issues iphone Users Mobile Services Transformation Thought Leadership Greater visibility to future needs/roles to be used to develop practitioners skills leading to lower attrition Proactively identify future needs reduces need to react to crises RTM Consulting, Inc. All Rights Reserved. 26

27 Agenda Resource Management (RM) Overview Drivers of RM Performance and Implications for Change Overcoming the Barriers to Success Benefits of Investing in Resource Management Q&A RTM Consulting, Inc. All Rights Reserved. 27

28 Q&A Randy Mysliviec RTM Consulting We help consulting, professional, and support services organizations get better at what they do RTM Consulting, Inc. All Rights Reserved. 28

29 Gain real-time visibility into your projects. cloud-based, workflow-driven Professional Services Automation Overcoming the Five Biggest Barriers to Effective Resource Management Kevin Sequeira General Manager & Director of Product Management Marlon Arevian Sr. Solution Consultant

30 Agenda 1. Upland 2. Tenrox PSA 3. Resource Management - Live Demo 4. Q & A

31 Overcoming the Five Biggest Barriers to Effective Resource Management Upland

32 Who is Upland? The leading provider of cloudbased enterprise work management applications 7 award winning products 288 people committed to innovation and customer success United by shared vision to revolutionize the way organizations plan, manage and execute projects and work 2

33 Solution: Enterprise Work Management What it is: Software that enables organizations to plan, manage and execute projects and work Who it is for: 200 Million Knowledge Workers $4 Billion Bottom Up Market Opportunity Strategic Planning Work Execution What it does: IT Marketing Finance Professional Services Process Excellence Increases Visibility, Collaboration and Productivity What it is disrupting: On-premise applications Spreadsheets applications Manual processes Paper-based processes Benefits: Optimize Resources + Time + Money 13

34 Enterprise Work Management Solutions Solution stacks for five key functions and supported by Upland s cloud platform IT Marketing Finance Professional Services Process Excellence Program & Portfolio Management Project Management & Collaboration Professional Services Automation Time & Expense Tracking Workflow & Document Management Financial Management Web Content Management CLOUD PLATFORM Single Sign-on Integrations Analytics Mobile Scalable Reliable Secure Flexible Extensive Configurable 6

35 Our Family of Enterprise Cloud Applications Upland s award-winning products meet different work management challenges, but all enable alignment, productivity, and governance. IT Business & Financial Management Project Management & Collaboration Web Content Management Workflow & Document Automation Program & Portfolio Management Time & Expense Tracking Professional Services Automation

36 Overcoming the Five Biggest Barriers to Effective Resource Management Tenrox PSA

37 Professional Services Automation (PSA) PSA software supports a company's ability to address and respond to customer-driven demand for services, billable projects or other types of customer-support interactions. PSA software improves service delivery, resource management, project management and collaboration, while ensuring accurate and timely time and expense capture and billing.

38 Tenrox PSA Enables services organizations to improve service delivery and resource management, while streamlining accurate time and expense capture and billing. Key Benefits & Capabilities: Key Functional Areas: Awards & Accolades: PPM for PSA Certified Best Project Management Solution Niche Magic Quadrant for Cloud Based IT PPM Monitor and increase resource utilization Increase control over fixed bid projects, scope change and employee-related expenditures Implement consistent project execution best practices Automate project compliance with labor and industry regulations Increase project visibility, workforce productivity and operational effectiveness Facilitate real-time communication and decisionmaking Resource & Capacity Planning Project Planning Revenue Management Workflow Designer Time Tracking Expense Management Project Financials Analytics & Reporting Integration Mobile

39 Process Driven Solution Opportunity / Projects Plan & Forecast Execute Integrate Accessible Anywhere Workflow-Engine Analyze & Report Bill, Invoice, Chargebacks & Rev. Rec.

40 Overcoming the Five Biggest Barriers to Effective Resource Management Resource Management Live Demo

41 Overcoming the Five Biggest Barriers to Effective Resource Management Questions?

42 Contact Us: Phone: Direct: Toll free (US and Canada): PLAN (7526) Website: Connect with Tenrox Company: Tenrox

43 PDU Credits This webcast session entitles you to obtain 1 PDU towards your PMP as per the PMI Organization. This session appears on web site page. Continuing Certification Requirements System: Course information: Provider ID#: 2579 Provider Name: Upland Software Course ID: Program Name: Overcoming the Five Biggest Barriers to Effective Resource Management

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