How relevant business metrics become visible with Vertec

Without the right Kpi, a company is constantly on sight. In other words, it can only react to the things that are in sight. What might work well in a smaller company with 10 people is impossible with 50 or 100 people. Sale forecasts, utilization, profitability – no one can provide these figures without data.

KPIs are the foundation for many important decisions. On the one hand, strategically (where do we want to go?), on the other hand tactically (how do we get there?). Therefore, companies have a competitive advantage because they have KPI available more quickly and in better quality for their decisions.

Letwe take a look at typical Vertec customers. These service companies have a project or client focus, so they are consultantsconsultants engineersengineers lawyerslawyers IT service providers software vendors or trust companies that use Vertec.

Which Kpi are important in these companies and how can Vertec help to keep track of them?

Resource Planning and Utilization

For many companies with a project or mandate focus, Resource Planning is perhaps the most important planning task. Offer (employees with skills and availability) and demand (projects/cases with requirements) must be constantly balanced. With Vertec, thanks to integrated Resource Planning, you have the following KPIs available:

– View Net and gross capacity per employee or team
– Capacity as a graph with overload and underload
– Pivot tables by employees, projects and project phases
– View Free capacity by individual employees or teams

Typical questions in companies that can be answered with key KPI from Resource Planning:

– Be the teams sufficiently busy for the coming months?
– Do we have enough resources for ordered projects?
– How much capacity do we have for projects in the sales pipeline?

Gross margin

The contribution margin 1 indicates how much revenue a project generates after deduction of variable project costs (usually labour costs). Thus, contribution margins can be used to analyse how profitable projects, project phases or customers are.
If standard cost rates for employees are stored in Vertec, contribution margins can be easily determined.

Typical questions in companies that can be answered with contribution margin KPI:

– How profitable are the projects of customer X?
– Be projects of Category X more profitable than projects of Category Y?
– What was the contribution margin of Person X in the last three months?

Revenue forecast

a sales forecast is essential for practically any business. In the service sector, it is often collected in conjunction with a sales pipeline. This pipeline summarizes potential orders, typically with a probability of success. For example, orders can be included in the sales pipeline with a probability of at least 80%; everything below that is left out. This then results in the forecast sales, usually spread over months, according to the payment terms.

The further you look into the future, the less clear the forecast is. It is therefore important that this Kpi can be used periodically in management. The source for the sales pipeline and revenue forecast are probably the offers registered in Vertec.

Typical questions in companies that can be answered with key Kpi from the revenue forecast:

– What (additional) revenues can we plan with in the coming months / quarters?
– If the forecasted revenues are realized, what does this mean for our capacity utilization?
– Do we market to focus more on revenue generation in marketing and sales?

Degree of completion

Project planning with tools such as milestones or phases is one thing, reality is another. The completion rate of projects is rarely 1:1 identical to the initial planning. The consequences of delays can be immense.

Scheduled teams stay on a project longer and can therefore only start the next project later. Contractual regulations on completion rates may also be important.

Vertec allows you to graphically show critical projects in terms of completion. Under-fulfilment notifications are also possible, allowing you to intervene early and get projects back on track.

Typical questions in companies that can be answered with key KPI from the sales forecast:

– How well is project X on schedule?
– Will the projects at customer Y be completed on time?
– Can Team X start the project with the new customer on schedule?

Further potential for Kpi

– HR (absence, vacation, sick leave, ...)
– Projects to deadlines in projects
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Individual Kpi

The above KPIs are, of course, only the lowest common denominator. Depending on the business model, specific numbers come to the fore. The company structure also has an important influence on the analysis needs. With its individual adaptability, Vertec provides you with a fantastic basis for Kpi in project controlling Values entered in Vertec can also be evaluated in the vast majority of cases.

Do you want to combine values from Vertec with external data and then evaluate them? Export Vertec data via the BI module is a good way to do this. In this way, tools such as Power BI or Tableau can be supplied with Vertec data.