KPI of the Day – Business Consulting (BC): # Consulting hours sold
Definition
Measures the total number of consulting hours sold by a services firm, during a defined period of time. It applies to a range of industries, from business consulting, to engineering and legal practice.
Purpose
To monitor & manage the workload, in order to see exactly how well the company is doing in terms of its consulting efforts.
Recommendations
An old adage of the consultancy industry states that clients usually prefer to buy and not to be sold to. Therefore, maybe the most effective approach in achieving a high level of # Consulting hours sold is when no real selling actually occurs. It is important for managers to create an informal process that can turn every sales pitch into an opportunity for hesitant clients. Therefore, the greater the opportunity, the more # Consulting hours sold.
This KPI is a measure that helps the calculation of other KPIs. As consulting service providers bill hourly, it is important to set proper expectations on how much a service will cost, in actual dollars. This helps both consultants and clients reach expectation consensus and avoid confusion and frustration.
Advertising and selling consulting services is also about keeping customers engaged in the vending discourse. This involves the provision of information requested by clients, providing a solution to their problems, as well as issuing advice on how to remedy said problems. An effective communication process will enable clients to better express their needs, which will further aid consultants when it comes to finding ways to address those needs.
Some more recommendations on effectively selling consulting hours include the following:
- Building a solid discourse based on factual information so as to enable customer engagement;
- Providing a unique buying experience based on originality, experience and professionalism;
- Backing up promises with actual results so as to strengthen client relationships;
- Focus on building brand and position so as to get bigger deals and sell more consulting hours.
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Our dedicated Library contains relevant resources to improve your KPI practices, and if you want to further improve your knowledge, feel free to explore our latest publication – Top 25 Business Consulting KPIs: 2016 Extended Edition, download our webinar on this topic – Business scenarios in strategic planning, or maybe even enroll in our course, Applied Strategy and Business Performance Improvement with KPIs, which provides a three-day roadmap for the long-term improvement of your organization.
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Tags: business success, Consulting performance, KPI
