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The client, an internationally known provider of consulting services delivered a wide range of specialist services at his customers offices via salaried consultants. The nature of the work required a range of expertise to be available and the level of demand for specific services fluctuated daily.
The work was traditionally charged at an hourly rate which caused friction with clients when budgets were exceeded, and also made revenue forecasting difficult. While the business was profitable due to the high level of fees charged, increasing competition had started to exert downward pressure on fees, reducing proftability and undermining the business. See also, Operations and People studies.
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Problem Definition
High fixed costs of employing expensive consulants to deliver full range of services Low employee productivity due to narrow range of qualifications
Unpredictable levels of revenue due to the hour based charging practice and low levels of commercial awareness |
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Solutions
Contracted a team of associates to provide specialist skills as required
Increased productivity by upskilling employees to broaden capabilities
Introduced a fixed price system for services which improved revenue forecasting while also increasing effective hourly rate. |
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Benefits
Reduced fixed costs by 12%
Improved productivity by 15%
Increased net profit by by 10% | | 
Case Studies 
