The 2080 Rule for Professional Service Firms

Partners & Principals in Profitable Professional Service and Consulting firms know these rules and metrics:

  • 2080 Baseline
  • 3x+ multiple
  • Utilization rate
  • Realization rate

Every month these firms update the answers to the following questions:

  • What is the revenue generating capacity of our current team?
  • How do we know when we can add staff and maintain profit margin goals?
  • How do we know when we should reduce staff to avoid losses?

Do Not be Afraid of Free

Walking around in wholesale clubs( i.e. Costco, BJs) has taught me the power of the free sample.   I have bought products that I would never have taken a chance on if I had not had the opportunity to try them for free.  Back in the early days of the software biz, alpha/beta customers were gold.  We all need reference accounts to sing our praises.  Donate your product/service to charity auctions or offer a reduced feature set as a door prize at a professional group meeting.

Published on the TPE Blog “Simple Ways to Test a Product or an Idea”

Spotting Bad Hire Candidates before Hiring

If you could spot one, you wouldn’t hire him would you?

All kidding aside. It is the classic points: Late for the interview but doesn’t apologize, inappropriately dressed, trashes prior bosses/companies, blames others for problems in prior jobs, never gives direct answers to questions, doesn’t look you in the eye, doesn’t have a clue about what your company’s business is, doesn’t ask you any intelligent questions, favorite words are “like, totally, whatever and umm.”

Ask your receptionist what impression the candidate made when he/she arrived and was waiting to see you.

HJG on The TPE Blog “Spotting Bad Employees Before Hiring”

Staying on Your Feet Helps you Stay on The Agenda

  1. One of the more extreme but effective strategies I have seen is to have conference rooms without chairs.  This keeps people focused.  No one likes standing longer than they have to.
  2. Schedule the meeting to start the amount of time you want it to last just before people take lunch or end of the day.  People are more time focused when it runs the risk of using their own time.
  3. Start on Time. End on Time.  Lock the door when the meeting begins.

Published on The TPE Blog : “Tips for More Effective Meetings

Can I come to work in my Pajamas?

Does your company need a Dress Code?

If your staff visits clients, you definitely need one. You want the team to look their best on the job. Do clients & referral sources visit the office?  If not, you may not need one.  Staff working from home are working in PJs.

Who wants to work with the consultant who is dressed like he is there to wash the car.  A tech CEO once told me to give 24hrs notice when wearing a suit; it scared the software engineers making them think the company was for sale.

I am with “Fernando aka Billy Crystal “to look good is to work good.”

HJG on The TPE Blog “Why Your Business Needs a Dress Code”

Productive Habits for Getting More Done

Commit to a Contact Management Tool.

Find a contact management & calendar system that works for you and use it to manage your business life and your personal schedule as well.  I have used ACT! for over twenty years.  I know when, where & how I have met my contacts and have a history of our interactions.

HJG on The TPE Blog “Productive Habits for Getting More Done”