Margin Optimisation
Our customer was a B2B business who was looking for operational improvements in their service business unit. The working Hypothesis was that billable hours could be improved. We started the project with a short initial analysis phase after which we together decided which projects should be implemented.
We started by analyzing the end-to-end process from price quotation to cash collection to identify the biggest margin leakages. From there we identified 12 improvement areas which we prioritized and supported in the implementation of 6 of these areas. These were mainly tailored around simplifying the time booking entry & sign-off process and around implementing the earned value analysis (EVA) together with clear target setting and active management of these.
Project targets are now set based on realistic expectations (e.g. staffing) and project managers have the tools to manage project margins proactively in case of deviations. The time registration process is as well slimmed down to free capacities.
In order to safeguard the right implementation focus, we included management in the process actively who after we left had all the tools available to manage the process actively.