Building Professional Services

Building Professional Services

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Product companies worldwide are recognizing that their best growth opportunities lie in professional services -- but building professional services organizations at companies that have traditionally focused on products can be extremely challenging. Now, two leading experts present a comprehensive guide to creating professional services organizations, managing them to maturity, and delivering both excellent services and excellent profitability. Using real-world examples, Building Professional Services offers a complete, practical framework for creating and managing organizations that provide support, education, managed services, consulting, outsourcing, and other professional services. Coverage includes: chartering, organizing, and establishing metrics for professional services; addressing the unique challenges faced by professional services in traditional product companies; and managing a professional services business at every stage of its lifecycle. Part of the Harris Kern Enterprise Computing Institute Series, the world's foremost source of information on the people, process, and technology issues behind enterprise computing.show more

Product details

  • Paperback | 384 pages
  • 182.88 x 236.22 x 25.4mm | 748.42g
  • Pearson Education (US)
  • Prentice Hall
  • Upper Saddle River, United States
  • English
  • 0130353892
  • 9780130353894
  • 1,308,785

Back cover copy

How to build a winning professional services organization.Companies worldwide are discovering outstanding growth opportunities in professional services-but building professional services organizations at "product-centric" firms can be extremely challenging. Now, three leading experts present a comprehensive guide to creating professional services organizations, managing them to maturity, and delivering both quality services and superior margins. Building Professional Services introduces a complete, practical framework for delivering the full spectrum of professional services--from support and education services to managed, consulting, and productized services. Managing the professional services business at every stage of its lifecycleFocusing on the key factors that drive success: revenue, references, and repeatabilityResponding to the unique challenges faced by professional services in product-based companiesAligning services with the rest of the organizationEstablishing effective metrics and business review processesThe four phases of building a successful professional services organizationFrameworks for organization, project delivery, solutions development, and operational infrastructureCustomer engagement models and workflowsDrawing on their experience working with leading technology service providers, the authors cover every aspect of professional services: strategy, tactics, and operations. From financial models to customer relationships, "Building Professional Services" will help you transform the promise of services into a profitable reality. "I can't imagine anyone starting a professional services organization without first referencing this work."--Dave Nestic, President, NezTech Corporation"This book is a significant contribution and a practical guide to a fast-evolving frontier. With clearly expressed views and recommendations, it will stimulate both thought and action."--David H. Maister, co-author of "First Among Equals""Extraordinary insight into the issues faced when building a professional services business unit at a product company."--Kenneth Coleman, Sr. Vice President of Silicon Graphics and retired CEO of K&S SolutionsHarris Kern's Enterprise Computing Institute SeriesSolutions for IT Professionals.show more

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.show more

About Thomas E. Lah

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.show more