ISBN-10:
0130353892
ISBN-13:
9780130353894
Pub. Date:
06/12/2002
Publisher:
Prentice Hall
Building Professional Services: The Sirens' Song / Edition 1

Building Professional Services: The Sirens' Song / Edition 1

Hardcover

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Product Details

ISBN-13: 9780130353894
Publisher: Prentice Hall
Publication date: 06/12/2002
Series: Harris Kern's Enterprise Computing Institute Series
Edition description: New Edition
Pages: 384
Product dimensions: 7.28(w) x 9.60(h) x 0.97(d)

About the Author

THOMAS E. LAH has more than 15 years of experience in IT and consulting. As Director of Solutions Engineering at Silicon Graphics, he led a team responsible for developing and launching a professional services consulting organization on a global basis and growing it from zero to $150 million in four years.

STEVE O'CONNOR has held both business and IT services leadership roles for over 20 years. He served as Vice President for Professional Services at SGI and before that, as SGI's Chief Information Officer.

MITCHEL PETERSON has held a variety of financial and operational roles for more than 18 years. Most recently, he was the Senior Manager of Strategic Planning andCommunications for SGI's Professional Services Organization and was responsible for developing and implementing strategic and tactical programs.

Table of Contents



Introduction.


Why Product Companies Jump In.


The Sirens' Song of Services.


The Product-Services Wheel.


Good Reasons to Offer New Services.


1. Mapping the Voyage.

Parameters for Success. Primary Audience. Chapter Structure. Secondary Audiences. Chapter Overview Table.


2. Setting the Parameters.

Are You Sure? Four Qualifying Questions. Mission. Format. Audience. Overarching Objective. Mission and the SAR Factor. Business Model. Objectives. Guiding Principles.


3. Levers for Profitability.

Revenue. Revenue Types. Revenue Mix. Revenue Growth Rate. References. Product References. Capabilities References. Solution References. Industry References. Repeatability. Tale of Two Business Units.


4. Organizational Overview.

Professional Services Functional Map. Selling. Delivering. Productizing. Promoting. Operations. Professional Services O-Map. General PS Interfaces. O-Map Interfaces.


5. Selling.

Supply and Demand in Professional Services. Warning! Function Overview. Critical Success Factors. Services Sales Charter. Identify and Close. Identify. Qualify. Propose. Negotiate. Forecast. Roles and Responsibilities. Key Interfaces for Sales. Compensation for Sales. Key Variables. Key Metrics for Sales. Organizational Structure and Sizing. Target Revenue. Rep Quotas. Geography versus Industry Based. Sample Organizational Structure. Sample Budget. Issues to Watch.


6. Delivering.

Function Overview. Critical Success Factors. Services Delivery Charter. Estimate. Execute. Requirements Review. Plan. Design and Develop. Implement. Sign-Off. Review. Follow-On. Educate. Roles and Responsibilities. Key Interfaces for Delivery. Compensation for the Delivery Function. Key Metrics. Organizational Structure and Sizing. Revenue Mix. Billable Utilization Rate. Billable Rate. Sample Organizational Structure. Sample Budget. Issues to Watch.


7. Productizing.

Function Overview. Critical Success Factors. Services Engineering Charter. Capture. Project Review. Solution Review. IP Capture. Improve. Solution Development. Sample Architecture. Sample Project Plan. Sample Proposal. Engagement Framework and Engagement Activity Forms. Resource Profiles. Partner Profiles. Source Code. Training Materials. Demonstrations. Leverage. Solution Rollout. Sales Support. Solution Evaluation. Roles and Responsibilities. Key Interfaces for Services Engineering. Compensation for Services Engineering Staff. Key Metrics for Services Engineering. Organizational Structure and Sizing. Target Mix. Number of Solutions. Sample Organizational Structure. Sample Budget. Issues to Watch.


8. Promoting.

Function Overview. Critical Success Factors. Services Marketing Charter. Differentiate. The Solution Review. Solution Rollout. Campaign Development. Validate. Demos. Benchmarking. Evangelize. Sales Training. Channel Management. Lighthouse Accounts. Roles and Responsibilities. Key Interfaces for the Services Marketing Function. Compensation for Services Marketing. Key Metrics for Services Marketing. Organizational Structure and Sizing. Unique Regions. Number of Solutions. Sample Organizational Structure. Sample Budget. Issues to Watch.


9. Operational Infrastructure.

The Framework. Critical Success Factors. Operational Process. Legal Support. PS Automation. Operational Reports. Funnel Reports. Bookings Reports. Billings Reports. Backlog Reports. Web Sites. Electronic Newsletters. Internal Distribution Lists. Financial Reporting. Executive Dashboard. Metrics Reporting. Project Processes. Partner Management. Resource Management. Solutions Assurance Review. Project Accounting. Project Reports. Knowledge Management. Staff Processes. Commission Payments. Proposal Generation. Professional Development. Project Management Certification. General Training. PS Specific Training. Staff Reports. Time Reporting. Roles and Responsibilities. Key Interfaces for Operations. Compensation for Operations. Organizational Structure and Sizing.


10. Putting It All Together.

Organizational Parameters. Organizational Interfaces. Interfaces within Professional Services. Interfaces with the Larger Company. External Interfaces. Interfaces by Function. Technical Staff versus Sales and Marketing Staff. Field Staff versus Corporate Staff. Organizational Structure. Roles and Responsibilities. Processes and Metrics. Compensation. Business Model and Budget. Summary.


11. Customer Engagement Workflow.

Workflow Overview. Step 1: Request. Step 2: Qualify. Step 3: Bid. Step 4: Negotiate. Step 5: Develop. Step 6: Implement. Step 7: Sign-Off. Step 8: Review. Summary.


12. Four Phases of Building PS.

Overview of Phases. Phase I-Implementation Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase II-Integration Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase III-Consulting Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase IV-Productized Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Maturity Time Line. Services Phases Graph. Skipping a Phase. Stalling in a Phase. Services Market Landscape. Hewlett Packard: More Than Just an Integrator? Compaq: Buying Its Way Around the Wheel. Sun: Not Sure They Want In. EMC: Knows the Way to Go. Management Positioning.


13. Unique Issues.

Alignment. Vertical Alignment: Aligning Service Solutions and Capabilities. Horizontal Alignment: Aligning Service Departments. Aligning Skills. Overlap. Partner Conflict. Product Infrastructure versus Service Infrastructure. Internal Education and Promotion. Global Differences. Closing Comments.


14. Summary of Key Concepts.

The SAR Factor. Four Qualifying Questions. Ten Parameters for Running a Business. Key Levers of a Professional Services Business. Organization Structure, Metrics, and Compensation. Business Model and Objectives. Maturity Time Line. Unique Issues. Sirens' Song.


Appendix A. Evaluating Your Service Vendors.

Tier I-Solutions and Capabilities. Tier II-Ability to Execute. Tier III-Strategic Fit.


Appendix B. Key Financial Models.


Appendix C. PS Business Review.

Timing. Attendees. Agenda. Sample Review Packages.


Appendix D. Sample Project Review.

Project Review Executive Summary. 1.0 Project Overview. 2.0 Project Team. 3.0 Project Statistics. 3.1 Phase I: Detailed Design. 3.2 Phase II: Interpretation. 3.3 Project Statistics Interpretation. 4.0 Repeatable Components. 5.0 Conclusions.


Appendix E. Solution Portfolio Management.

Solution Portfolio Graph. Solution Revenue. Solution Maturity. Solution Margin. Portfolio Ownership. Services Marketing. Services Engineering.


Appendix F. Customer Request and Qualification Form.

Request and Qualification Form. Customer Qualification Information.


Glossary.


Glossary of Terms.


Selected Bibliography.


Index.

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