Regardless of the resource metric...
with the right approach, your resources team can be:
· Over Utilized
· Highly Realized
· Extremely Profitable
Here’s the plan
· Refine team workflow efficiency to gain greater capacity without comparable cost increases.
· Automate lower repetitive tasks to free team resources for higher level client tasks
· Introduce client self service automation, further freeing resources for higher level tasks,
· Find more revenue to fuel the extra team resource capacities.
This is what's occurred in the accounting industry over the past 20 years by applying new technologies.
It also fostered service revenue expansion into markets previously not targeted by accountancy.
And according to McKinsey, this was achieved with 'professional services' sitting 2nd last in the uptake of technologies to increase efficiency and earnings*
Change is Inevitable.
It’s likely the next 2 years will out-pace the last 20 years in team efficiency improvements.
New efficiency solutions seem to launch every week, whether new applications or feature upgrades to existing management tools.
While most new offers may not be suitable for teams servicing major clients, a few are, therefore all segments are destined for a shakeup.
Starter’s gun has fired.
While still early days, the pace of change will increase towards an industry tipping point.
With most successful tech advances, earlier adopters win the easy spoils at healthier margins, until enough new tech competitors make an impact.
By the time the rest of the industry is investing to stay competitive, price competition will already be forcing down rates, with stragglers fearing client retention threats.
The emphasis shouldn’t just be around decreasing team costs.
Platforms also need to provide leverage assistance towards winning more revenue on merits other than price.
With future team costs set to reduce, industry temptations will be to compete on price, rather than demonstrate a greater value.
It's About Scale.
Increasing productivity should be the conduit to winning more business, not short-term profits boost, soon to be whittled away.
Right now, the opportunity exists to gain a competitive edge in team productivity and differentiate yourself to major clients as providing advanced services capabilities.
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*Source: McKinsey Global Institute Analysis.