Project firm leaders rate good granular project history as essential to winning more profitable business and they are using ERP software providers to help.
Project-based firms are often notoriously difficult to manage efficiently. From the legal landscape to IT, much of what they do is centred around naturally complex projects. This doesn’t mean their own project management systems have to be equally complicated, particularly since the way in which they manage their projects impacts everything in their business – from how much profit they make to their staff retention rate.
This is why highly focused project management leads to a slick and effective process, ensuring project-based firms deliver projects as efficiently as possible. This leads to more accurate bids and better business wins. The best way to ensure highly focused project management is implemented is to use an ERP software provider.
Knowledge is power
Only 9% of project firm leaders have won 75% or more of their project bids, with around half (49%) reporting they only ever win 25-50%. In other words, 61% experience an engagement win rate of less than 50%. Not just a disappointing win rate, but a waste of sales’ efforts in pursuing the wrong opportunities.
Why is this? In short, a lack of reliable data and historic information.
We all learn from our mistakes and, in most cases, don’t repeat them. We only know we’ve made such mistakes if we are told or if they’re recorded. ERP software providers can provide Professional Services firms with the full project lifecycle visibility that they need to identify where things have gone wrong.
Project-based companies that accurately record past projects, showing what worked, what didn’t, and why, can learn from this data and turn it into intelligence for future success. The information will show where they made costly mistakes, therefore highlighting the less profitable work not to pursue. The sales team is then in a much better position to chase target leads and, most importantly, win them.
As the much-admired businessman Peter Drucker noted: “Today knowledge has power. It controls access to opportunity and advancement”.
Knowledge gives companies more flexibility in the business they decide to pursue, meaning that they can win better suited and more profitable business for their organisation.
58% of project firm leaders highlighted an inability to target the most potentially profitable engagements as a contributory factor to poor win rates. The same number also blamed poor win rates on an inability to offer a trade-off between project completion date and cost.
Since knowledge is power, project-based firms need to embrace every source they can to ensure they have clear succinct information in spades. This is where ERP software providers come in.
Using ERP software providers means no more separate spreadsheets or generic ERP systems that are square pegs in round holes. ERP software providers will help project-based businesses to manage their entire project lifecycle, recording every detail from start to finish: good and bad, profitable and unprofitable, winning or losing.
ERP software providers deliver one simple organisational change that really can help you win the best business.