Measuring Success

April 16, 2008

So what does it mean to measure? Webster’s says to measure is “the act or process of ascertaining the extent, dimensions, or quantity of something; any standard of comparison, estimation, or judgment.”

One of the first lessons I learned during my career at P&G was “You get what you measure!” In other words, unless you’re tracking the activities that drive your business, you won’t know how you’re doing. Is the business healthy or not? In LÛCRUM’s Delivery Organization we’ve been focused on measuring a several key areas of our business over the last year. I’ll focus on 2 key measures - consultant utilization and engagement health.

Consultant utilization is key to our business health since our revenue is dependent on billable hours with a client. If we’re not billing hours, we’re simply not making money. Like any business, if we’re not making money, we won’t be in business very long. Not surprising, our goal is for all hours spent with a client to be billable. While there are times it’s necessary to provide ‘free’ effort, we obviously want to monitor that and ensure it’s in check. We also measure how many hours our consultants spend ‘selling.’ While selling is primarily a Business Development role, a consultant’s technical and business experience can be valuable in making a successful sales call.

Another area where consultant’s time will be spent is “developing the practice”. It’s important for us as a company to develop as individuals and to contribute to the development of the organization. Our contribution to the company might be working on an internal project or serving on a company committee. But one of coolest things I found when I joined LÛCRUM was the concept of “Geek Speak” and “Brain Brews” - technical and business training offered several times a month at lunch or after the business day. We’re each encouraged to attend as well as present to the organization. Yes, I’ve digressed from the topic of measures, but these sessions are really great!

So back to topic….On a weekly basis, the Senior Management team and the Delivery leadership spend time reviewing the overall utilization as well as drilling down to the portfolio and individual. We’ve learned a lot about how our time is spent and it’s helping drive business decision!

The other key area where I spend my time as the Quality Manager is tracking our engagement health. Key is to monitor the next ‘deliverable’ and through the use of conditional formatted ‘traffic lights’, monitor for those yellow and red light! It’s not rocket science, we’re currently doing this through an excel dashboard but it’s allowing us to see the current engagements in one view and ask ourselves questions about what’s going well or what needs attention.

While I’ve mentioned Senior Management and the Delivery leaders regarding the review of our measures, it important everyone knows and understands our Delivery measures. We recently made the information available to everyone through our Delivery Sharepoint site. This site provides weekly or monthly measure in dashboard format. In addition to utilization and engagement health, we also provide visibility to the revenue vs goal, bench, training, recruiting and years of service.

We’ve come a long way in the last year and the journey of Quality Management continues. Stay tuned…….

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