Revenue Growth Programs for Professional Services Companies

Johnny Grow

Business Growth Programs for Services Companies

Ready to fast-track revenue growth?

To Grow a Services Company, start with Data Driven Insights

So how do you grow a professional services company? That's a question best answered with data.

Research published in the Business Growth Report found that the highest growth services companies (i.e., the Best-in-Class which achieved the top 15% growth) excelled in up to 9 revenue growth programs.

These 9 programs stood apart from all others in terms of their ability to deliver the most significant and sustained revenue impact. A relative comparison showing how these 9 programs were applied by each performance archetype is displayed below.

Professional Services Growth Programs
Professional Services Growth Programs | Source: Business Growth Report

Here are some research insights that share how these programs impact revenue growth.

Corporate Culture

Service companies that cited corporate culture as a growth strategy achieved an average of 42% higher revenue growth than those who did not. They also achieved 16% higher revenue per employee and 9.5% lower staff churn. Research linked corporate culture to business growth and found that creating an intentional and proactively designed growth culture can grow annual revenue from 1.85 to 2.6 percentage points and EBIT margins by 2.4 to 3.3 percentage points.

Customer Affinity

Customer affinity is essential to services companies because strong customer relationships are a leading indicator of continued purchases, referrals, client share and retention; all factors that deliver significant and sustained business growth.

Services companies that managed active customer affinity programs achieved 5% higher annual revenue growth than those who did not.

Services Innovation

Service companies are incurring accelerated services commoditization that is putting a downward pressure on fees and margins. It's a touchy subject, but the truth is service buyers find providers to be largely undifferentiated. They offer similar people with similar benefits.

Services innovation is needed to avoid commoditization and create differentiation. Innovation research found that fluctuating the innovation budget allocation toward more transformative innovation can achieve annual revenue growth of 1.6 to 2.3 percentage points and EBIT margins by 1.9 to 2.9 percentage points.

PSA Software

Professional Services Automation software improves project estimating and solutioning, facilitates consistent and repeatable project execution, and delivers real-time visibility to project performance and profitability.

PSA software reduces project overruns by 21% due mostly to real-time performance visibility and lowers labor cost by an average 9% due to more effective resource management. And experience shows PSA software delivers a payback period of less than one year and ROI of 39%.

Services companies that realized the highest revenue growth assembled a mix of the 9 most impactful revenue growth programs. That helped them outperform competitors and achieve their business strategy.

Each of these 9 programs are solidified into evidence-based best practices that provide prescriptive implementation frameworks to be replicated by others seeking to achieve similar growth results.

Professional Services Growth Formula

The Johnny Grow Services Growth Formula is a proprietary 3-step model that brings simplicity and data-driven direction to systemically scale company revenues.

There are dozens of things you can do to grow revenues and every one of them delivers a different result. Executives don't want to experiment over extended periods to figure out what works. They want to quickly know the shortest route to revenue maximization.

The Services Growth Formula models, forecasts and compares best practices and financial levers to quickly prioritize those that maximize growth. It's a precision approach and alternative to pursuing company growth by investing in arbitrary strategies or best guess explorations.

Company Growth Formula
Company Growth Formula

Here's how it works.

We start with Predictive Revenue Analytics (PRA), which are pro forma financial models that forecast the revenue uplift from each of the top 9 revenue growth best practices. For example, in the services industry, four best practices that combine to deliver significant and sustained revenue uplift include company culture, customer affinity, revenue operations and PSA technology automation.

Using predictive analytics to measure the financial impact from each best practice, as well as combinations of best practices, allows management to compare and rank them so that the company can select those that deliver the maximum revenue in the least time, cost and risk.

Company Growth Formula Predictive Model

We then move from precision planning to prescriptive execution with a Revenue Growth Playbook. Plays provide guidance or operational instruction for revenue growth best practices. Many times, they are execution plans with sequenced activities, progress milestones, phase gates, performance metrics and exit criteria. Other times they are brief but pointed recommendations such as next best action.

Best Practices Blueprint

We then apply Growth Analytics to measure progress and flag variances in need of swift remediation.

We use performance dashboards to display the most important key performance indicators (KPI) in an easy to consume visual interface. The dashboards prioritize role-based information to show what should be done first, and then next, and so on. They identify variances and trouble spots in real-time so staff can quickly intervene with timely course corrections.

Most services company reporting displays historical data. Better reporting shifts from lagging to leading indicators. And the best reporting enables metrics to be interactive, so managers can perform What-If modeling and scenario planning.

Professional Services Dashboard

Helping Clients Grow their Business is our Business

Our core competency is helping clients implement best practices that accelerate revenues and profits.

Our evidence-based revenue growth best practices are validated by industry research, include prescriptive frameworks, leverage technology automation, and have purpose-built measurement systems (i.e., dashboards and predictive analytics.)

And to de-risk our programs, our services include program management, organizational change management and governance.

How to Grow a Services Company

Johnny Grow Signature Services

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Revenue Growth Strategies

Companies with active, data-driven growth strategies achieve 2.8 times higher annual sales growth than those without

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Revenue Operations (RevOps)

SiriusDecisions reports organizations that deployed RevOps grew revenue three times faster than those that didn't

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Growth Technologies and Rev Tech

Growth technologies and organized RevTech stacks achieve double digit ROI and scale company growth

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Innovation & Market Disruption

Create competitive differentiation that increases margins, accelerates revenues and grows companies

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Customer Growth Strategies

Increase customer purchases, customer share and retention; all factors that deliver significant and sustained sales growth

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High Performance Corporate Culture

Build a growth culture to drive double digit improvements to labor productivity, customer engagement and sales growth

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Process Automation

Streamline and automate business processes to improve productivity, lower cost and drive operational excellence

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Sustainability

Services-based sustainability programs to lower carbon emissions, reduce costs and grow revenues

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M&A

Use M&A to accelerate organic growth, leapfrog competitors, create new revenue streams and quickly boost top line revenues

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Professional Services Best Practices White Paper

Professional Services Company Growth Best Practices

Best practices drive service company growth using verified and repeatable methods.

Four highly effective best practices to grow professional service companies include customer affinity, corporate culture, services innovation and growth analytics.

This White Paper shares insights and action to put each of these practices to work.

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Visit the Professional Services Insights Hub for more research findings, best practices and enabling technologies