Getting your head wrapped around the levels is very important. The next step will be plotting a number of different variables in the PS business in assessing your firm's maturity. Once the maturity level is know for each of the variables, you'll be reviewing PSMM Protocol Packs for specific actions on advancing maturity. It goes without saying, that if you don't plot the variables correctly, the PSMM Protocol Packs will do you very little good.
Once you fully understand and appreciate the levels within the maturity model, your view of what needs to be done next will be clear.
Since my forte' is in the Information Technology industry, my definitions of the Indicators are slanted toward that specific industry subtype. It would be great if you would post comments on how these categories and indicators can be augmented to support your specific subtype.
Level 0: Staff Augmentation
| Category | Indicators |
| Buyer | Vendor Management Office or Procurement Lower Level Manager IT Manager Typically in the IT department Not affected by the business problem |
| Consultant | Typically a "gun for hire" looking for a new project Contractor mentality Paid hourly Looking for the most money Doesn't know how, or doesn't contribute to firm growth Knows little about establishing firm credibility within the client Probably wouldn't contribute to proposal development unless paid for his time. |
| Consultant Direction / Management | Given by the client |
| Consultant Bench | 0 - 2 weeks |
| Firm Risk | Biggest Risk: on an economic downturn or when the client is acquired, Contract Resources are the first to be cut from the budget Business as Usual: On an individual by individual level, there is very small risk if any. Typical risk would be 40 hours of billing should the client decide the contractor will not work out |
| Contractual Terms | There are no terms associated to deliverable, date, or quality |
| Profit Margins | Low, comparatively |
| Consultant Leverage | None |
| Sales - Budget Targets | Sales requires funding to be budgeted Targeting the Staff Augmentation Spend |
| Sales - Account Planning | Non Existent |
| Sales - Strategies | Relationship based |
| Sales - Positioning | We have good recruiting We have strong testing capabilities to ensure our consultants are of high quality We have good training opportunities |
| Type of Purchase | Typically commodity unless the firm specializes in a very specific niche. |
| Brand Equity | Limited to and influenced by the relationship of your Sales Executive and the performance of your Contractor |
| Delivery Methodology (ies) | Non Existent or very immature |
| Service Offerings | Usually very generic and resource specific. (i.e. Project Management Services) These types of service offerings are just fronts or different marketing schemes for staff augmentation |
| Delivery Leadership / QA | Non existent, or borrowed time from another resource |
| Model Requirements | Excellent Recruiting that can find the "in" or "hook" - which is typically relationship based Relationship Salesmanship |
| Value to client | Fulfilling temporary staffing needs Payroll service |
| Competitive Differentiations | Good recruiting Good testing Relationship building Strong relationship based sales |
Level 1: The Chasm
Recall from my earlier post that in Level 1 the PS firm is going through significant transformation on it's way to being a "Project Shopper". It's typical that a firm in this stage will perform both Staff Augmentation Services as well as the services of a "Project Shopper" although they aren't nearly as good at it. This is THE most difficult stage to be in because the focus of the firm (sales, recruiting, delivery) is ambiguous. Any time you have an ambiguous focus, it is extremely difficult, if not impossible, to gain traction in either direction.
The best way to define a firm in the "Chasm" is by having the indicators of both Level 0 and Level 1.5.
Level 1.5: Project Shopping
| Category | Indicators |
| Buyer | IT Manager or IT Director Still in the IT department Still not affected by the business problem |
| Consultant | In the early stages: * Recruiting is still hiring the staff-augmentation consultant (see above) In the later stages: * The Delivery Leadership understands more about the business and can/does generate more client revenue |
| Consultant Direction / Management | Typically from PS Delivery Leadership as the engagement should be under a Statement of Work. |
| Consultant Bench | In the early stages: * the firm still operates like a Staff Augmentation firm giving 0 - 2 weeks of bench time In the later stages: * the sales pipeline is larger and more predictable. Bench time is critical to the success business model. Firms understand that experience working as a team and experience with the methodologies is critical to ongoing success. |
| Firm Risk | The risk at this level is more substantial. Proposals and Contracts become very specific and unless managed well, one project going south can tank a firm. |
| Contractual Terms | Proposal/SOW/Contract terms are now directly tied to deliverables, dates, or quality. |
| Profit Margins | Higher than Staff Augmentation but lower than Solutions. Margins vary depending upon leverage models employed (see below) |
| Consultant Leverage | In the early stages: * Typically none as the hiring process is still too close to staff augmentation. In the latter stages * Better. Firms begin to understand what type or classification of consultants they need (or do not need) to be successful. |
| Sales - Budget Targets | Closed Sales requires funding to be budgeted Targeting the RFP spend |
| Sales - Account Planning | In the early stages: * Very little In the latter stages * More sophisticated, but still IT based and still heavily relationship based |
| Sales - Strategies | More sophisticated |
| Sales - Positioning | We are the best at "XYZ" skill specific projects. |
| Type of Purchase | Still relatively commodity based. Global competitors force rates down because there is still relatively little differentiation |
| Brand Equity | Getting better. You may be known or becoming known in your marketplace for having good "XYZ" skills |
| Delivery Methodology (ies) | In the early stages: * Typically just starts with some number of resources who have similar skill sets. * Methodologies begin to emerge In the latter stages: * Methodologies are improved and tweaked over the course of multiple engagements. * Resource familiarity with the methodology improves. |
| Service Offerings | Service offerings are now more specific, but they are usually targeted to one or a few very specific type of skill sets rather than solving business problems (e.g. Java Development, Portal Development, etc). The Service Offerings at this level are still more tactical than strategic. |
| Delivery Leadership / QA | In the early stages: * Non existent, or borrowed time from another resource In the later stages: * Practice and/or Delivery leadership emerges |
| Model Requirements | Resources with a specific skill set(s) More sophisticated sales personnel who can adequately project the firm's capabilities. More sophisticated recruiters who can find the right profile consultants In the later stages, * Dedicated Delivery Leadership / QA * Organization Design * Methodologies * Experienced consultants |
| Value to client | More valuable to the client than Staff Augmentation firms. Capable of fulfilling the same duties as their own internal IT department |
| Competitive Differentiations | Taking on more Risk |
Level 2.0: Solutions Providers
| Category | Indicators |
| Buyer | Line of Business Executive Directly affected by the business problem |
| Consultant | More sophisticated consultant. Often, firms in this category hire directly out of college and train/mold the consultant. Investments are made into making each resource a model consultant. |
| Consultant Direction / Management | Always from PS Delivery Leadership as the engagement will be under a Statement of Work. |
| Consultant Bench | Absolutely yes. |
| Firm Risk | The risk at this level the most substantial. Proposals and Contracts are very specific and usually include penalty clauses. |
| Contractual Terms | Proposal/SOW/Contract terms are directly tied to deliverables, dates, or quality. |
| Profit Margins | The highest margins as Solution Providers are sophisticated at optimizing the leverage model (see below) |
| Consultant Leverage | Very sophisticated. Usually utilizing one high cost resource to many low cost resources. |
| Sales - Budget Targets | Strategic Budget. Often, due to the firm's ability to create demand, business is closed when no budget has been allocated. Capable of creating budget. |
| Sales - Account Planning | Very sophisticated and is aligned to the Line of Business |
| Sales - Strategies | Very sophisticated and includes tools like Benefit Ladders and Influence Maps. |
| Sales - Positioning | We can help you solve your business problems. |
| Type of Purchase | Strategic |
| Brand Equity | Best. When you are known as business problem solvers, your value is much more strategic, and thus, your brand is more relevant. |
| Delivery Methodology (ies) | Very sophisticated and has been proven over many projects. |
| Service Offerings | The service offerings at this level are Line of Business specific. |
| Delivery Leadership / QA | Very sophisticated and often comes out of industry |
| Model Requirements | Industry expertise |
| Value to client | Strategic |
| Competitive Differentiations | Industry expertise |
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