Industries

Professional Services

A professional firm sells time it cannot restock and cannot easily measure. Which is why so many firms know their revenue precisely, their utilisation approximately, and their realised margin per engagement not at all.

The situation

What we usually find

For consulting, engineering, legal, accounting and advisory firms billing time and expertise against fixed and variable fees.

The economics of a firm are decided by three numbers: how much of available time is billable, how much of billed time is recovered, and how much of the fee survives to the bottom line once delivery is done. All three depend on timesheets, which are the least popular administrative act in any firm and the first thing to slip when people are busy.

The consequence is a lag. Work is delivered, time is recorded late or not at all, the invoice is raised on a fee agreed months earlier, and the true margin becomes visible after the engagement has closed and the same terms have already been quoted to the next client.

For firms that are themselves in finance and accounting, there is a second layer: the client work runs on client systems, each different, and the firm carries the cost of maintaining competence across all of them.

How the work flows

Where the pressure points are

Every business in this sector runs a version of this cycle. These are the points where it strains when the systems behind it do not join up — and where the value of joining them up shows first.

The Pitch to recovery cycle, and where it strains without joined-up systems. Pitch: Fees quoted from a rate card rather than from what similar work actually consumed. Resource: Who is available and who is overloaded known by asking around, not by looking. Deliver: Scope expanding through goodwill, with no record of when it started. Record: Timesheets completed at the end of the month, from memory. Recover: Write-offs taken quietly at invoicing and never fed back into pricing.

Where we'd start

The first move

We would take three completed engagements — one that went well, one that overran, one where nobody is sure — and rebuild the actual margin on each from the time recorded. The gap between that and what was assumed at pricing is normally the entire business case.

Where we are not the answer

We are not a practice management vendor for regulated legal case management or a specialist audit toolset, and we do not replace the professional software your discipline requires. Where you run those, we integrate with them. Our work is the commercial layer — what the work costs, what it recovers, and what that should change about pricing.

Is this how your operation runs?

Tell us where it strains, and we will tell you plainly which of this is relevant to you and which of it is not — before you commit to anything.

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