Professional services organizations were already doing their best to embrace the challenges of ever-evolving technology developments when COVID-19 hit, forcing remote work, which in turn affected project delivery and resource management. Read on for growing trends that will support and enable growth and profitability for professional services businesses long after the disruptions of the pandemic have passed.
Implementing Automation and Artificial Intelligence
Extensive data-analysis is the most effective way to provide useful business solutions to clients, but it is a time-consuming process that is sensitive to human errors. Enter smart technologies enabled by artificial intelligence and machine learning. By decoding real-time data and systematizing large chunks of data into usable information, the process becomes simpler and less laborious. Utilizing past data can also help generate strong and clear data-driven insights for the client.
Look for organizations to start using emerging technologies to automate back-end tasks, which will allow employees to focus on specific roles within the company and grow in individual skill sets and abilities.
Increasing Remote Work and Virtual Offices
The pandemic pushed us into a virtual world overnight, and now that we know video-conferencing and collaboration tools are vital information-sharing resources, remote work has become an integral part of the work culture. Additionally, managers can keep track of project progress and employee performance across diverse geographic boundaries through resource management software. Virtual offices allow companies a wider reach of clientele, who have the opportunity to vet companies based on reputation and work portfolios, regardless of location.
Enforcing a Value-Driven Revenue Model
Some professional services charge clients by the hour, but this method excludes the value generated out of each task. For example, when an accountant saves a client 10% in taxes after an hour of billable work, the client is still invoiced based on the employee’s charge out rate instead of on the task’s value. Not only does this decrease profit margins for firms, but clients may not recognize the benefits realized. However, with the adoption of a value-driven revenue model, invoices to clients can reflect the benefits and profits made over the duration of the project (e.g., tax savings, ROIs, and insurance claims), which will increase earnings for firms.
Adopting a Hybrid-Talent Model
In order to reduce project resourcing expenses, professional services firms are embracing the use of digitized project management tools that predict resource demand ahead of time. This provides firms with the opportunity to draft a hiring plan based on project costs and demands. As such, many firms are moving toward a hybrid-talent model—a team comprised of contractors, freelancers, etc., as well as full-time employees. Not only does optimizing resource allocation help to prevent employee burnout, but it also controls project financials and helps to increase profitability.
Establishing a Tech-Supported and Connected Team
Research suggests that highly engaged and connected teams experience greater productivity, improved performance, and enhanced team morale. Moreover, an engaged team produces greater profitability. However, if some or all of your team is working from remote locations, encouraging team engagement can be challenging. By investing in a tech-enabled work culture with the use of collaboration tools, employees can communicate, problem-solve, and share important information in real-time.
