Your consulting will have multiple projects with various clients open on the books at any given time. And you probably already know this can make managing resources, time tracking, planning, and collaboration challenging.
PSA software, like Workflow Max, can help your business overcome all these challenges by providing a single, highly effective platform for managing projects and resources.
This guide will show you the importance of professional services automation software for consulting firms and the five-step process for choosing the right software provider for your needs.
What is Professional Services Automation Software?
Professional services automation software combines separate systems and tools for time management, project management, bookkeeping, scheduling, and analytics into one platform. By having all these essential tools in one place, consulting firms can improve project performance and ensure everyone on the team has consistent, up-to-date information.
Why is PSA Essential For Consulting Firms?
Your firm might already have accounting software, time management tools, file-sharing capabilities, etc., so why invest in PSA software?
Better Resource Management
It’s much easier for consultants to allocate resources effectively with PSA software. It provides higher visibility into resource availability and utilization, making planning and prioritizing projects easier.
Efficient Time Tracking
As a consultant, you can easily track time spent on projects using PSA software, giving managers insights into project profitability to make informed decisions. This also makes it easier to invoice clients accurately and provide transparent reporting.
A report by Services Performance Insights (SPI) shows that companies that use PSA software bill more time. Employee billable utilization is 73.2% with PSA tools, and just 68.7% without.
What’s more, the average project time is 8.37 days with PSA solutions, but 10.19 days without them, showing PSA tools help boost billable hours and productivity.
Effective Planning & Scheduling
Project planning and scheduling are both critical components of the consulting role. PSA software, such as Workflow Max, provides project planning and scheduling tools, such as task assignment, deadline tracking, and project dependencies.
These tools allow project managers to create effective project timelines, set milestones, and efficiently assign tasks to available team members.
Enhanced Collaboration
Collaboration is key to the success of any consulting firm, and professional service automation software provides a centralized platform for team communication and file sharing. This allows all team members to stay up-to-date on project progress, document production, and client satisfaction.
Streamlined Invoicing and Payments
PSA software can also generate invoices and track payments, allowing you to streamline the billing process and ensure timely payments. You’ll get real-time visibility into billing data to track project profitability and manage cash flow more efficiently.
The Step-By-Step Guide For Choosing PSA Software For Your Consulting Firm
There are plenty of options on the market, so how do you choose the best professional services automation software? We’ve put together a step-by-step guide to help you invest in the right one.
Define Your Requirements
Start by clearly defining your objectives for PSA software implementation. Consider your firm size, industry needs, and budget constraints when prioritizing your goals.
Here are a few examples of requirements we see often in consulting firms looking for new PSA software:
- Improve resource allocation
- Gain visibility into project progression
- Streamline time tracking
- Increase billing accuracy
- Improve project profitability
- Enhance collaboration
- Simplify reporting and analysis
Make a note of any necessary workflows and integrations with software you already have, and clearly identify must-have and nice-to-have features (this will help prioritize your goals if you run into budget constraints).
Research Vendor Options
Now you have a full list of goals and must-have features, you can begin researching the best vendor options. For large-scale projects, you might decide to create a request for proposal (RFP) to get tailored bids from the leading PSA software providers.
Otherwise, make a list of the top PSA providers and review their features, pricing models, and customer reviews.
You also need to check on integration options, level of customization on offer, and customer support. This is a software vendor you’ll be working closely with, so take time to create a shortlist of the best options for your firm.
If you’re struggling to find professional services automation software options that fit your business needs, our software consultants can help. We have experience with some of the best PSA software platforms on the market, and we can advise which tools would be the most effective to reach your business goals.
Develop Selection Criteria
When developing your selection criteria, prioritize your key workflows, such as project management, billing, etc., based on the impact on your business processes. This ensures the most critical functionalities are addressed first, ensuring the most efficient software implementation process.
Here are a few things to consider when creating your selection criteria:
- Cost of software
- Security features
- Scalability – can the software grow with your business over the next 3-5 years?
- Easy of use
- Integration with existing systems
Develop a scoring matrix to compare different software providers based on your chosen criteria. You can then make a shortlist of vendors to interview in more detail.
Evaluate Shortlisted Solutions
Once you’ve narrowed down the different PSA software options into a shortlist, you can request demos from each one to test-drive functionality. Get input from key stakeholders on the demos, and keep ease-of-use as a high priority to avoid lengthy training periods.
While you’re testing out software, ask the potential providers about implementation support, training, and ongoing support. This is also a good time to check previous case studies to see if they’ve had success in your consulting niche and check on client references.
If you’re looking for support from an experienced implementation consultant, connect with a tech advisor today. Our highly specialized tech advisors and software consultants can help you choose the right software and ensure successful implementation.
Choose Your New PSA Software
After you’ve gone through a demo of each shortlisted PSA software, checked on references, and filled out your scoring matrix, it’s time to pick a winner.
This is your final chance to weigh the pros and cons of each software provider and look at the total cost of ownership.
Once you have a preferred choice, get approval from management by outlining your reasoning and demonstrating the benefits and cost analysis of your choice.
Find The Right PSA Fit at Coachbar
Professional services automation software is a must-have tool for consulting firms. From efficient project management and time tracking to streamlined invoicing and client management, you will save countless hours with the right PSA software.
The key is testing options to find the best fit for your company. At Stackplan, our tech advisors can help you make an informed, research-backed decision on the best PSA software for your specific requirements, and our team of software implementation experts will help you successfully implement the new software and get the most out of each feature.
Ready to get started? Connect with a tech advisor today!
