Double Your Revenue Growth With Effective Resource Planning
Your sales pipeline and marketing funnel are important as a source of leads and revenue, but the real driver of growth for your consulting firm may be from an unexpected source: effective resource planning. Building an efficient lead-to-close system will drive revenue, but if you can’t deliver the work efficiently and profitably, your firm isn’t actually growing; it’s just getting more busy.
The key to growth in any consulting firm is matching increased revenue with the most efficient use of available resources. You need to avoid the common scenario of revenue growth being accompanied by decreasing margins, and instead turn your resource planning process from an administrative task to a strategic growth initiative.
Effective Resource Planning Is A Growth Strategy
Typically, most boutique consulting firms treat resource planning in a reactive manner. They may have an idea of what the schedule for the next few weeks looks like, but planning for scenarios outside of that is more guesswork than science. This leads to a cascade of problems that will prevent increased revenue from translating to real growth: Under utilization leads to increased bench time and costs; rush-hiring to cover a sudden demand spike leaves your firm open to under or overstaffing and hurts margins; and assigning work based on who is available instead of the best skill match leads to write-downs, slipped delivery dates and unhappy clients.
Getting an accurate look into your resourcing months in advance requires real-time data from your timesheets, sales pipeline and project management platforms. PSA platforms specifically built for consulting firms join these data sources into a single dashboard that shows you a visual representation of your future work and resource allocation, enabling you to spot gaps in coverage, shift resources based on skill fit, and optimize for the highest margins.
The Financial Impact Of Resource Planning
According to Projectworks platform data, consulting firms who plan more than 50% of their resources just 2 months out saw the following results:
- 2x Revenue Growth
Firms that plan more than 50% of their resources 2 months out have over 2 times the revenue growth of firms that plan less than 50% or their resources 2 months out.
Key Takeaway: Increased resourcing accuracy and higher utilization leads to more confident pitches, project plans, and happier clients. More accurate resourcing makes it easier to say yes to more work.
- $28,000 More Revenue Per Consultant
Firms that plan more than 50% of their resources 2 months out average $28,000 more revenue per consultant than firms that plan less than 50% or their resources 2 months out.
Key Takeaway: More accurate resourcing leads to less “bench time”, increasing the average revenue per consultant.
- 5% Higher Utilization Rate
Firms that plan more than 50% of their resources 2 months out have an average utilization rate of 70%, 5% higher than firms that only plan less than 50% or their resources 2 months out.
Key Takeaway: Higher resourcing rates lead to an optimal utilization rate, increasing revenue without risk of burnout.
- 50% Higher Margins
Firms that plan more than 50% of their resources 2 months out average 50% higher service margins than firms that plan less than 50% or their resources 2 months out.
Key Takeaway: An accurate forward-look into your resourcing enables the most efficient use of your resources, dramatically increasing your margins.
Accurate Planning Starts With PSA Software Made For Consultants
Managing resources using PSA software enables your time tracking, sales pipeline and resource management data to be linked in real time. This is the key to getting an accurate forward view into the next two months of work and availability. You can transform your resource planning from an administrative task to a strategic growth engine today, by signing up for a free trial of Projectworks, or let us demo Projectworks for you.
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