13 February, 2018

Don’t Get Surprised by Margin Erosion – Part 3

The following blog is third in a four-part series of blogs highlighting the causes of margin erosion and demonstrating how modern software like Progressus can help you minimize the effects of this common challenge!


From the first and second parts of this blog series, we learned that developing an accurate cost estimate and managing the change order process are important factors in avoiding margin erosion.
In this third blog, let’s talk about another factor to help you avoid margin erosion:


3. Provide visibility and effective coordination of resources

Teamwork and personal productivity are critical in the services industry. People are a professional services firm’s greatest asset. Keeping them busy on the right projects is absolutely critical to your profitability, today. But beyond that, they are critical to keeping your clients happy and the long-term success of your firm.


Improve billable utilization

To improve project margins, project managers must continually focus on increasing employee billable utilization, as well as increase the percentage of billable employees.


Achieve the right project resource mix

The right resource at the right time is critical to both client satisfaction and pro table project delivery, but it can be a balancing act. You must identify and schedule resources in a way that satisfies competing client demands. To address such demands, you need transparent access to information about your employees and contractors: their work history (including project and client experience), skill sets, availability, and more. Aggregating and analyzing this data can help your staff for project success.


Learn more about how to avoid margin erosion by downloading our white paper!

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