Performance improvement for a global HCM consulting practice
The Problem: Inefficient delivery, hampering profitability
A global HCM consulting practice was not delivering the economics expected when compared with its peers in the industry and standard Professional Services benchmarks.
Performance was highly variable between country teams across key metrics: utilisation, billability, change order management & project profitability.
Credo was asked by the CEO to analyse historic performance, determine the core reasons for underperformance and establish a new delivery paradigm.
Our Approach: Establish the facts, establish targets, educate management
We started by helping management establish a data set to allow for true peer compare and country-by-country comparison. Normalising outliers to arrive at an accepted view of underlying performance.
We challenged local practice management to justify ‘local exceptions’ and issues arising that impacted performance to an objective baseline.
We ‘sized the prize’ for profit improvement, building a plan and timetable for the adjustment of the necessary profit levers to achieve the margin uplift.
We put in place simple, but effective tools to track and analyse the right KPIs, and established a set of targets with global management buy-in.
The Result: Step change in practice economics
We worked with practice management over a 90-day period to adopt the new delivery paradigm. We supported the tactical actions required to change local teams, and embedded a new KPI culture into the business.
3 months later the practise was delivering appropriate economics and exhibiting performance close to industry benchmarks.