2008 March Edition

A Message from Doris: Managing Proposal Time To Render New Work

Understanding and accessing the client need is important. Knowing when to decline work, stop work and manage a change order is equally critical. Defining and clarifying the difference between a billable assessment and a proposal effort is an art.

We've all done it. That is, place hours or dedicate time into rendering new work only to NOT move forward with the project. At some point there are only 2080 hours in a year. How does one more effectively, with profit in mind, "get the work?" How does one communicate “knowledge is value” while differentiating "real" work from those prospects just running you through a promotional cycle? (i.e. Meaning no work).

Some Tips:

• Billing for assessments and overviews is not an unreasonable deliverable that good existing or new clients will pay for.
• Overviews offer a compromise; the client pays less and the servicer is better able to plan the next phase in the project.
• Assessments and Overviews are almost invariably far less expensive upfront than trying to estimate the full project. The post assessment project proposal is more true to the scope of work.
• Ask clear and strategic questions when prospective new work comes through the door. That will save you a lot of time. Start with the 4 W's: When will the work begin? Who am I speaking with; are you the decision maker? What are you hiring us for? Where did you locate us?
• If prospective work is referred or called in, the above 4 questions will assist you in valuing the status of the opportunity. Then you can place a level of effort on rendering the work. At DMC, we are less interested in the size of the work, but listen for readiness to hire us.
• When did time and material become flat fee? Don't laugh, both flat fee and time and material have their up and down sides.
• Time and material can be disastrous if the client is swinging your staff into all sorts of changes and rush items, but fairest or a windfall to the client if they are bright and use your staff skill sets well.
• Flat fee if scoped and determinable is usually a better fit for servicer, its clear amount and changes/new work can be clearly managed.
• Back to my comment: when did time and material become flat fee? To my knowledge it did not, and this can be problematic to a project if not well managed.
• At some point either on the front end or the back end of a project you must reconcile the monies charged back to your scope of work (i.e. account for changes). The new millennium trend is that time and material is somehow fixed fee.
• Compromise works. Engage a client in a scope of work that assesses the need, then the subsequent time and material can operate on a fixed budget over the original proposal/ upset limit.

Certain work scope can be placed on flat fee: for instance we have monthly backup/restore data on most of our supported applications, training classes/ manuals, as well as assessments overviews. Other work; such as implementation, migrations, software selection are too integral to the clients business to take a phone call, book an appointment and away we go!

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Managed Services Why We Recommend It? by Doris Cahill

The days of managing technology with engineers on-site are over. Remote support for desktop applications and servers is more effective, and timely. Calling in to schedule an appointment for any piece of systems work can be time consuming from the service's end and not as responsive enough from the client end. Specifically, here at DMC where the client allows us, we can login and support most of our applications without having to visit the site. Our infrastructure securely supports Citrix, Cisco, GO TO MY PC, MS, and Sonic VPN/remote connects to name a few. We use Citrix online to train and take control of our clients desktop where VPN or remote solution is not in place at a client site.

We are recommending to our clients to reduce outsourced engineering costs and find network providers that can service them remotely and more consistently on a day to day basis. Also, it saves those travel charges and converts them to valuable labor hours.

Remote servicing does not replace the planning meeting or the all important phone calls, but I think it provides a much needed consistency in supporting the day to day needs of our systems.

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Getting More Business! by Guillaume Deflers

Like every other company, all companies need more work in order to continue developing. It may sound simple, but when it comes to accomplishing this it can prove to be very difficult - and that’s when the hard work starts. All companies, whether big or small need to get the correct information at the right time to stay competitive. So, the first thing you need to do is communicate.

In order to communicate properly and effectively, you must have a plan. With no plan, you have no goals to achieve/reach and nothing to measure where you stand. First, prepare a list of what you and your company wish to accomplish in the next three, six and twelve months. It does not necessarily have to be big steps; think of it as a guideline to help you stay on track. Steps can be as simple as attending one or two networking events a month, and ideally would be easy to put in place without radically changing your company’s way of doing things. When putting your plan in place, you want to always keep the big picture in mind, and be asking yourself: “Where do you want to be in a year?”, and “How much would you like to increase your revenue, and what do I need to do to achieve it?” Do not over think it; but try to stay focused.

Now that you have a plan in place, what else can you do to gain more business? Most business to business is done through referrals and word-of-mouth. So, what can you do to put your company out there and make people talk about your company? The first place to start is with contacts, because the more people you know the more likely you will land a new project. So, in order to increase your number of clients, you need to increase the number of contacts. If the law of averages proves true, and you get one new project for every ten contacts you make, then by meeting 100 new contacts you will grab 10 new projects. Where do you look for contacts? One of your first steps would be to analyze what kinds of companies and industries are more likely to hire you. Start by looking at your existing client base, and you can determine past tendencies. Even though emails are getting more and more accepted, do not forget that calling and meeting people in person are still the most effective ways to gain trust.

Once you know who and what your targets are, then it is time to “get your hands dirty”. If your budget will allow it, subscribing to Hoovers (www.hoovers.com) could be a good move for your company. This is a great marketing tool that will help you obtain industry overviews, names of companies and the key people with their contact information. There are less expensive alternatives to get company names. You can simply grab your old yellow pages and flip through the different industries you want to target and select the companies you will add to your database, perform an on-line search in your target area, or use something like the “Find Businesses” application in Google Maps. After you have a list of possible contacts, you want to check if the contact information is up-to-date before sending them anything. The main point is to create a relationship and discover if that person has a need for your services.

Attending conferences or user groups can help you to meet new people out of your original circle of contacts. I realize it can be time consuming and sometimes expensive, but in the long run it can be very rewarding. Be sure to always have your business cards with you when attending any of these events.

Additional suggestions to get your name out there:

• You must have a website!! Do not hesitate to highlight your new projects. This a good way to say we are still in business and to tell your target markets that you are working for some of their peers. You never know, they probably know someone in this company you are working with and will contact them regarding your services.
• Subscribing to magazines that your potential clients consider a good reference in the business is also a must. Usually in magazines, there is a section for newly incorporated businesses or news about companies. Contact them and introduce yourself. Also, think about putting an ad in those magazines.
• Publishing articles or press releases (online and/or in print) is a way to get your company established as a legitimate entity. Many news outlets are looking for content, and if published, advertise it on your website (As seen in …). This will show everyone who is visiting your website that you are up-to-date and it will also give you more credibility.
• Speaking at conferences on a specific topic that you are knowledgeable in is also a possible way to promote your business - often for free.
• Client Referrals - Actual clients are a great source of information, because nobody knows you better than your clients. They know how you operate and the quality of your services.
• Customer Surveys - A customer survey can help your company to assess the strengths and weaknesses of your business. Using services such as Constant Contact (www.constantcontact.com) can help your company create a professional online survey and assist with your marketing campaigns.

In conclusion, developing your business is not a one time shot. Strategic development needs to be an ongoing activity for the life of your business.

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Quotes of the Month

“In the business world, the rearview mirror is always clearer than the windshield.” - Warren Buffett

“At work, you think of the children you have left at home. At home, you think of the work you’ve left unfinished. Such struggle is unleashed within yourself. Your heart is rent.” - Golda Meir

“The ancestor of every action is a thought.” - Ralph Waldo Emerson

“In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman.” - David M. Ogilvy

“The end result of kindness is that it draws people to you.” - Anita Roddick

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