Where information means insight



Project Visibility and Control for Project Managers

by Kim KosterProject Management

Apr 23, 2019

Do you need project visibility and analytics to drive decision-making? Would real-time querying make your job easier? Do you need a tool to communicate with all project stakeholders (executives and project teams) in both a simple and sophisticated manner? If the answer is YES, this blog is for you! Project managers (PMs) and their teams scramble too often for project visibility information in Excel and perform busy work instead of actively managing their projects and fostering relationships with customers. With the right processes and tools, PMs can have the information at their fingertips needed to focus on performance and profitability, reduce risk, and manage their projects. Successful PMs have the tools to look deep within the project data past, present and future. Their goals are met because they can obtain the right information with accurate data, eliminating costly manual manipulation of data. These best-in-class PMs have comprehensive and timely visibility and control over their projects, resources, revenue, profitability, schedule, pipeline, and financials. They can make decisions quickly and effectively, resulting in a positive effect to the bottom line of the organization. What is Project Portfolio Management (PPM)? The purpose of project/program integration management is to… Coordinate project activities and integrate all efforts into a project plan Integrate, analyze, and report the project results in carrying out the project plan Control changes to the baseline plan Collect, integrate, and organize project information in a project information system. (Reference: Project Management Maturity Model by J. Kent Crawford pg. 27) Project Portfolio Management is a great overall philosophy that enables organizations to efficiently manage projects. A major outcome of PPM is having visibility and control over the projects, which will benefit the organization by: Fostering a greater understanding of the key drivers of revenue and profit in your organization Proactive tracking and management of performance relative to an annual operating plan Elimination of profit losses on direct projects due to unanticipated project overruns Increased profitability on T&M and Fixed Price projects Reduction in the amount of funding “left on the table” (revenue backlog) Increased adoption rates for the system you choose as it relates to planning and forecasting Reduction in Days Sales Outstanding (DSO) or other invoicing metrics Less time spent managing the financial aspects of direct projects Key Performance Indicators (KPI) As we discussed in a previous blog, KPIs provide status and information for all levels within the organization. KPIs are typically displayed on dashboards and they should be a real-time visual representation of the role-based information needed to manage the business. You should be able to quickly see with colors and graphs where you are against your plans. KPIs provide actionable insights to help you run your business on one single screen. Commonly Used KPIs Below are a few examples of commonly used metrics that project managers should have access to in order to run their projects successfully. Hopefully your organization is running a software package that provides this information. Annual Billable Utilization: Billable Hours / Total Hours or Billable Days / Total Days Booking: A commitment by a customer to buy your goods or services Backlog: Total Bookings – Delivered Goods or Services Billing: An invoice requesting payments for goods delivered or services rendered Revenue: The amount of earnings that can be recognized T&M Revenue per Employee: Actual Bill Rate x Hours Charged + ODC For a more in-depth look on establishing strong KPIs, read our blog, “Tips for Developing Key Performance Indicators for Your Organization.” Earned Value Management (EVM) Another helpful aspect of project visibility is earned value management. Earned Value Management (EVM) is a project management best practice that flows directly with your established PM policies. The basics of EVM are plan, execute, assess performance, and monitor the project. Project managers can assess completion of the work at the task level and by doing this will get a host of metrics on current and future performance. Gain Project Visibility and Control with Unanet’s Project Management Software How can one just system provide project managers with the project visibility and control they need to ensure business success? Unanet’s project management software allows you to align projects to corporate strategy, lower project management costs, gain key real-time project insights, and much more, all in one single source of truth! We’ve helped over 2,000 customers transform their project management processes. To learn more about Unanet and how it can provide your project managers the visibility and control they need to ensure project success, download our eBook, 9 Simple Steps to Convince Your Leadership to Adopt Project Portfolio Management (PPM).


8 Tips to Budgeting for Project Based Organizations

by Kim KosterBudgeting & Forecasting, Professional Services

Apr 21, 2019

Budgeting for Project Based Organizations One of the most challenging activities performed by a company is budgeting. Every year there is a large investment made to create annual budgets. So, what is the role of a budget? It should represent what the business believes is achievable and what it intends to accomplish. The organization establishes a budget that becomes the baseline for performance management. A large investment is made by many within the organization, so there are a lot of moving parts. Follow the 8 tips below to create a budget that is a useful tool for your business: Kick-off the budgeting cycle, providing a timeline, parameters, and overall goals. Include all stakeholders. Establish clear guidelines for the budget process. Below are just a few examples: What is the horizon of the forecast? What are the due dates? How to handle proposals in the forecast? What is the growth rate expected? Make sure your organization has a tool that provides all stakeholders with the visibility and control they need over the budget. The budget should be time-phased and align to the timing of the work. Scenario modeling is critical to understanding the best case, most likely, and worst case scenarios. A tool that allows for what-iffing or modeling is a necessity. Account for rate differences whether they be OH, G&A, COM, or Labor Rates. Make sure your tool is flexible enough to account for project specific rates, ceilings, and budget as well as forecasting rates. Throughout the year hold monthly reviews where the budget is reviewed, and course corrections are made via a forecast. Understand that the budget is a living and breathing document…not a static metric that is put on the shelf. Update it for changes in your business environment. Budget Revenue Budgeting revenue is crucial as it drives many other metrics (profit, growth rates, etc). The revenue plans are the barometer of your company health. The revenue plan will contain awarded contracts and opportunities that are still in the pipeline so make sure both are included. Tips for revenue budgeting are below: Look closely at your pipeline for new opportunities. Understand how your profit is trending. Labor vs Subcontractor – examine closely. Examine backlog, breaking it out between opportunities and awarded work. Benchmark your expenditures with prior years. Look Closely at Your Resources People are by far the biggest investment and in turn it is the largest revenue generator for services-based companies. Resources should be managed during the entire project lifecycle including proposal, project initiation, execution, and closeout. Measuring the utilization of resources is critical and below are a couple of questions you should be able to answer. What utilization do you need to be profitable? What utilization should you aim for to avoid burnout? Understanding billable and non-billable utilization? Project probability in people forecasting to more accurately understand both billable revenue and utilization? Indirect Rates are Pivotal The management of indirect rates can be the difference between winning a bid, losing a bid, making profit, and the ability to grow. It is critical to have the ability to look both at the actual rates being charged as well as bid rates to determine profit by resource. Often proposed rates will be different than actual rates, budget rates different than forecast rates, forecast rates are different year over year, and having the ability to apply multiple rate scenarios to your direct cost is very valuable in helping you create your forecast. Rates play a big role in revenue baseline assumptions. For instance, if your overhead rates are less than you predicted on Cost Plus projects, the actual revenue recognized will be less. On Fixed Price projects, higher than anticipated rates will eat into planned profit. Having revenue forecasts for the 1-5 year horizon will help the finance team more accurately predict corporate or forward pricing rates. Managing rate forecasts is important for all contract types and communication of rate changes to project and proposal teams will help eliminate a rate impact surprise. Below are a couple of pointers for indirect budgeting: Don’t forget to budget your indirect costs. Look at labor utilization to better understand the indirect component. Do you have a system that will handle cost pools and allocations? Understand your sales forecast and demand for resources. Hope these tips helped spark new ideas for your budgeting process and gave you some new things to think about! Learn more about how Unanet can improve your budgeting and forecasting practices.


Tips for Developing Key Performance Indicators for Your Organization

by Kim KosterBusiness Development & Growth

Apr 16, 2019

If you can’t measure it, you can’t improve it! And if your organization is not measuring its performance, how can you hope to improve? Key Performance Indicators (KPIs) serve as important measures of your organization’s progress. They provide actionable insights to help you run your business on one single screen. These can be invaluable benchmarks that your team can use to determine if you are on track to reach your project and financial goals, giving you a clear path to growth. The Advantages of Key Performance Indicators They allow you to focus on corporate and strategic goals Real-time information gives you the ability to be proactive vs. reactive You can study lessons learned so improvements can be made in the future They provide insight into what types of projects to chase Tips for Developing KPIs It is clear that KPIs can greatly benefit organizations, but how can you ensure your KPIs are the best for your company? Some organizations use common KPIs within their industry. While this can be valuable for gauging industry-wide success, your organization will not grow efficiently unless you develop KPIs specific to your company’s resources, needs, and goals. Naturally, no two organizations’ key performance indicators will look exactly the same, but here are a few general tips for making sure your KPIs are a good fit: Avoid KPI multiplying—KPIs should reflect overall corporate goals The data quality must be good to have accurate indicators The person responsible for the KPI must have direct control over results Relevance to all levels of the organization KPIs should be in simple terms Benchmark both externally and internally Collect lessons learned and learn from the past Utilize a system that has easy access to KPIs that are real-time and accurate Examples: Utilization, %Complete, Earned Value, Gross Margin%, Net Margin%, Burn Rate, etc. In addition, you must make sure that your KPIs are not vague, abstract goals you hope to achieve someday. You need clear, actionable performance indicators that your team will use as benchmarks on the path to success. Each KPI you create should have the following details outlined: Concrete, specific details about what you hope to achieve. Goals that are realistic for your organization. Many organizations think too big and cannot reach these goals within their current means. A way to measure your progress. Do not think in abstract terms. Establish a system where each KPI is measured with thorough, real-time data. A realistic deadline by which you will complete your goal. Define benchmarks by which parts of the project or goal will be completed to keep you on track every step of the way. Define and Measure Your Key Performance Indicators with Unanet ERP software like Unanet is designed to help your organization manage its projects, people, and financials to promote project success and company growth. Unanet provides real-time insights and data that project managers, directors, and CEOs alike can use to measure their organization’s progress and make changes when needed. With an ERP system streamlining your processes, you can watch your business thrive and break new ground. To learn more about how Unanet’s project based ERP system can benefit your business, download our ebook, The Business of Projects for Dummies.


What to Look for in Pipeline Management Software

by Kim KosterBudgeting & Forecasting

Apr 09, 2019

Your project based company’s pipeline is invaluable for your growth, so managing it properly should be high priority. With everything else in your enterprise that needs organization, however, how do you make sure your pipeline gets the attention it deserves? Some organizations may struggle with dedicating enough people, resources, and time to closely monitoring their pipeline, which means they miss out on gaining valuable insights that they can use to vastly improve their sales. If this describes your organization, you could benefit greatly from pipeline management software. In this blog, we will explain the benefits of using pipeline software as well has how to find the right tool for your business.   Why Use Pipeline Management Software? How exactly can pipeline management software help? Being able to measure your pipeline health will give you a depth of insight that only few companies enjoy. This insight will help to understand the past, current standing, and a view into the long-range forecast. Having real-time reports and dashboards gives all stakeholders actionable information to make decisions for their role and level in the business.   What Features Should a Pipeline Management Tool Have? Keep in mind that not all pipeline management software will give you the features and data that you need. Shopping around requires a keen eye and strong understanding of what characteristics will most benefit your organization. Although no two companies have the exact same needs, a pipeline management tool that serves as a good one-size-fits-all solution will be able to do the following: The tool is 100% integrated with the project based ERP system you select Customer Relationship Management (CRM): track your customer interactions Contact categorization for easy reference (decision maker, geographic location, golf buddy, etc.) Workflow optimization, assigning tasks and providing notification Opportunity tracking by phase Easy-to-use reporting, dashboards, and metrics to direct business decisions Real-time data Project notes and code fields for unparalleled analytics Resource demand planning with both current and TBD resources Ability to shift forecasts to the right or left Ability to make POA adjustments as opportunities move through the funnel One-click transformations from proposal project to an executable project Cloud based system so there is 24/7/365 access to your information   Important Pipeline Management Metrics to Look for In addition to the above key characteristics, an efficient pipeline management tool will have valuable metrics that allow you to take your pipeline management even further. With these metrics, you can pay attention to crucial details that may make all the difference between a Closed Won or Closed Lost. Pipeline Snapshots (comparing the pipeline to the same time last year, quarter, month) Bid to Win Ratio = # of bids/# of wins Bid to Loss Ratio = # of bids/# of losses Length of the sales process = number of days from identification to contract award Phase statistics—what types of opportunities are in each phase, customer, etc. Labor Utilization Skill Set Utilization Revenue targets by region, portfolio, customer etc. Rate analysis by year Forecast comparisons utilizing POA or other % forecasting methodology   Gain Real-Time Visibility of Your Pipeline with Unanet’s Pipeline Management Software The health of your pipeline correlates to the health of your business, so why take any chances when it comes to your pipeline management tool? Unanet is an all-in-one ERP software for project based organizations. Our Pipeline Management and Customer Relationship Management software is designed to provide your business the real-time data and analytics it needs to keep on top of your prospects and branch into new market territory. To learn more about the benefits of ERP software for not only your pipeline but your entire business, download our ebook. Or if, you want to test-drive Unanet for yourself, contact our sales team.


What Makes a Project Based ERP System Special?

by Kim KosterERP Software Best Practices, GovCon

Mar 20, 2019

Every project based business requires projects to keep it running smoothly and growing, so why not choose an ERP system that is built to manage them? A project based ERP system can help a business streamline and automate its project management process to avoid delayed projects, a lack of skilled employees, and unbilled hours. In short, project based ERPs are designed to promote project success and company growth. But what about generic ERP systems? While they have a few benefits, there are a few key differences between generic and project based ERPs. Generic vs Project Based ERP Systems Generic ERPs are still prevalent in the marketplace today, but they are costly and very difficult to maintain if your business is projects. These ERPs typically do not have the project as the center of the universe. Generic ERPs focus on the account and the department/organization, and the project is accounted for with a separate tool. In a generic world, the project is an afterthought. Why Project Based ERP Systems? In a recent blog, we discussed what to look for when choosing project-based ERP software. But why are project based ERP systems the clear choice for project based organizations? We explore 8 main reasons below: Transactions are attached to a project, department/organization, and a general ledger account. This ensures that transactions do not get lost in the midst of a project and prevents team members from tracking them down while running expense reports.  A time collection system attaches charges directly to the tasks that the individual works on. This makes tracking billable hours much easier and more intuitive. Costing architecture is tailorable for each project and task. No two projects are alike, so why should there be a single costing architecture? Costs are often outlined in a Work Breakdown Structure (WBS), which project managers and standard employees alike use to monitor the progression of the project. Visibility is provided into the financials of each project (i.e. profit, cost, billing). This visibility and transparency is crucial for all team members be aware of what the project is costing and make adjustments if needed. A resourcing tool provides project managers with information on what skills are available at what time. This prevents surprises and winding up with a lack of skilled employees to handle a project. Complete financial reporting with the project in mind. Financial reporting of a project plays a large role in the project being an efficient success or dragging on for months. Project based key performance indicators to help drive the organizational and project goals. System controls that send notifications when project restraints are met, configured to the needs of your business To Best Manage Your Organization’s Projects, Trust Unanet’s Project Based ERP System Project based companies require project based ERP systems. It’s as simple as that. Unanet’s project management software allows you to align projects to corporate strategy, lower project management costs, gain key real-time project insights, and much more. Learn how you can unlock greater productivity, operational efficiency, and profitability with project clarity and control, download our ebook, The Business of Projects for dummies.


What to Look for When Choosing Project Based ERP Software

by Kim KosterERP Software Best Practices, GovCon

Mar 11, 2019

If you are considering using ERP software for your business or are not satisfied with your current one and are looking elsewhere, understand that not all ERP systems are created equally. As we think about what makes great ERP software, we should consider the project lifecycle and the process of project management. The ERP should have all the elements of the project lifecycle as a basic part of the system. Below are only a few of the elements your ERP system must have in order to be a good fit for your business: Customer Relationship Management Customer Relationship Management (CRM) is a discipline that manages your company’s interaction with current and potential customers. CRM has become a priority to improve overall relationships with customers, specifically to focus on customer retention (stickiness) and to drive sales growth. Opportunity Management An opportunity pipeline for a project-based business is the visualization and/or measurement of contracts or projects that you will attempt to win over time.  Visibility into the pipeline gives vital information on needed resources, enterprise growth, profitability, and revenue trajectory. Resource Management Project stakeholders can visually see the availability, skills, utilization, and time phasing of the resources. Resource management’s level of visibility and control will help maximize overall performance and profitability. Budgeting A budget represents what the business believes is achievable and what it intends to accomplish. The project establishes a budget that becomes the baseline for performance management. Visibility into budget vs. actuals is important project manager information. Forecasting Throughout the execution of the project plans may change, the resources may change too, and it is the responsibility of the project manager to revise the work to best accomplish the end goal.  How much is it going to cost and when will the project finish?  The forecast will answer that question. Earned Value Earned Value Management (EVM) is a project management best practice that flows directly with your established PM policies. The basics of EVM are plan, execute, assess performance, and monitor the project.   Project managers can assess completion of the work at the task level and by doing this will get a host of metrics on current and future performance. Revenue Recognition Revenue is the amount of income the organization is making. It is one of the most important metrics/KPIs that a business/project monitors.  Project Managers are responsible for achieving revenue goals, so having the ability to track revenue real-time is a huge benefit. Time and Expense Time collection systems are used by every employee in the organization. They collect hours for tracking project effort, and are supporting systems for payroll, invoicing, project accounting, chargeback, and job cost accounting.  Expense systems track employee expenses to a project. Integration of time and expense directly to the project keeps project managers up-to-date on resources and current costs. Billing As engineering companies, it is critical to be able to automate and shorten the bid-to-bill lifecycle. Engineering organizations need revenue recognition and billing to be completely in lock step. The concept of billing and invoicing does not need much explanation as we deal with bills continually in our daily lives. Billings/Invoices typically are a form that contains information like name, address, payment terms, a unique id, elements of cost, direct costs, and indirect costs applied. Real Time KPIs and Reporting Real-time information is key to managing the day-to-day operations. Project team members need information throughout the life of the project. For instance, project status reports, EVM, time and expense, financial, and resource reports are a must.  Dashboards are eye candy for all levels within the organization. They are a real-time visual representation of the role-based business information needed to manage the business.  PMs should be able to quickly see with colors and graphs where they are against plan. Key Performance Indices (KPIs) provide actionable insights to help execute projects. Your Search is Over! Choose Unanet’s Projct Based ERP Software When it comes to an ERP system, your business needs a streamlined, efficient solution that helps you manage resources, staff, projects, and more to keep you organized, on schedule, and under budget. Unanet is here to help. To learn more about the moving parts of ERP software, download our ebook, Selecting an ERP for Professional Services, or our white paper, “Have You Outgrown Your Existing ERP?“