Architectural firms face constant challenges balancing budgets and getting projects completed on-time and on-budget. Precious time is often lost when project managers manually work on support functions and administrative tasks (i.e., assigning specific projects to different people, over/under budgeting, not logging in time efficiently, etc.), putting a wrench in workflow and profitability goals. Operating these tasks manually is costly, time-consuming and can be prone to errors. A recent survey on www.FoxBusiness.com revealed small business owners collectively waste 4 billion hours of company time annually by spending too much time on back-end support functions and administrative tasks. A manual approach keeps owners and management in the industry from focusing on what’s important-their core business processes.
Because architectural firms face these pressures, it is crucial to automate as many business functions as possible, allowing for more projects to be completed quickly. Ongoing pressure to compete and survive in the marketplace is driving many architectural business owners and project managers to adopt comprehensive and integrated Professional Services Automation (PSA) solutions to help them better manage their pipelines, reduce costs, increase employee productivity, and ultimately, revenues.
A report by the Aberdeen Group, Boston, found that best-in-class professional services firms are 77 percent more likely than other firms to implement integrated PSA software to attract new customers, achieve more favorable contract terms and increase retention rates. Because of this growing trend, the PSA software market is projected to be an estimated $7.63 billion industry by 2017 (according to Global Industry Analysts Inc., San Jose, Calif.).
Today, PSA software doesn’t just manage resourcing and scheduling. It is more sophisticated in what it can deliver, from revenue recognition, sophisticated billing (including intra-company billing) and supply chain functionality to customer relationship management (CRM). PSA software can provide a solution that addresses automation needs where managers and staff can collaborate effectively, stay organized and easily access data
(on-site or remotely). Through these solutions, firms can customize workflow and back-end systems, preventing escalating budgets and improving profitability.
At Plano, Texas-based Vorex, for example, we recognized a need and developed a module of features specifically for architectural firms. These cloud-based solutions include:
- Ability to invoice according to labor hours, or based on a fixed contract amount, or both.
- A ticketing and issue-tracking module with instant notification.
- An easy-to-use time and expense tracking interface, with the ability to add notes and attach receipts.
- Invoicing fixed contracts, which can be broken down by completed phases, project percentage completion and down percentages within a single phase.
- Key performance indicators (KPIs) and reports that show project performance, labor utilization, etc.
As the PSA software market booms, there will be an increase in providers and products, which is a win-win for companies and firms. Not all PSA providers are the same, so it’s important to explore different vendors to see which solutions fit best for your firm.
Do you think PSA software could make a major difference for an architectural firm trying to survive and thrive? I would love to hear from you.
—
Mike Salem is the co-founder and CEO of Vorex, Plano, Texas. Vorex PSA solution options include Vorex Project, Vorex 360 and Vorex BackOffice. To schedule a free trial, demo or for more information about Vorex PSA products, call (888) 908-6739 or log onto www.vorex.com.