When it comes to managing a services business, few topics generate as much interest—and controversy—as the topic of Metrics. Whether the question is what to measure or how to measure it, it can be challenging to reach consensus within a single team environment, much less at departmental and organisational levels.
There are easily over fifty meaningful metrics a management team could use to assess their professional services business. The issue is determining what specific metrics provide the greatest insight. Unfortunately, revenue and profitability are not the beginning and ending of your measurement process. These two metrics provide very limited insight into the strengths and weaknesses of your PS business. In this article, we will introduce practical framework managers can use when selecting the appropriate metrics for their PS organisation. Future articles will discuss types of metrics in more detail and discuss the process of defining and deploying a metric strategy.