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Butler Group White Paper Professional Approach for Professional Service Organisations LLP Group

Author: Gary Cooper
Date: July 2001

MANAGEMENT SUMMARY

time@work, from LLP Group, is a powerful and flexible Professional Services Automation (PSA) solution that offers Professional Services Organisations (PSOs) an integrated environment for project recording and management, billing, resourcing, analysis, and reporting. The solution is scalable to thousands of users, supports both Web and e-mail-based clients for data entry, and provides the capability for client collaboration through Web-based reporting.

The typical scenario that is prevalent amongst PSOs is one of many disparate, automated systems with no enterprise-wide functionality. This severely hampers the competitive ability of the organisation, as it becomes buried in a flood of information from word-processed files, spreadsheets, e-mails, faxes, images, and other documents. Additionally, PSOs are increasingly working on an international or even global basis, bringing new challenges that must be met by the organisation’s IT systems.

time@work addresses these issues through the following key functions:

  • Seamless Integration is provided with financial and other third-party systems, including CRM, ERP, and Microsoft Project. eXstensible Markup Language (XML) can also be used to exchange data with virtually any other application.
  • Multi-Company, Multi-Currency, and Multi-Language. time@work supports multi-company structures, operating across international borders, and handles all the legal, cross-charging, and reporting issues that may arise. It supports an unlimited number of currencies, and the complex calculation issues that are involved in multi-currency operation. It is developed solely on Unicode, and supports a wide range of languages, including double-byte languages such as Japanese and Chinese.
  • Powerful Analysis and Reporting capabilities provide accurate business information to all authorised participants. Customers have access to information via customised reports, which can be transmitted directly to their desktop over the Web or by e-mail, providing a fast, selective, and optimised reporting service.

Founded in Prague, Czech Republic in 1992, LLP Group has experienced consistent growth to become a major international organisation. Initially established as a reseller of Systems Union SunSystems software, LLP has spread its influence far beyond its established base of Central and Eastern Europe. The company also sells the Pivotal CRM system, Fourth Shift (an integrated manufacturing system), and the full range of Ariba B2B solutions. LLP works with clients in more than 40 countries and employees over 100 people.

Consultants need to take their Own Medicine

PSOs have long been the ‘Cinderellas’ of the business world in terms of totally integrated, out-of-the-box packaged, application software solutions. This is due, in part, to the complex management issues inherent in both small and large projects that create problems for many PSOs, problems which have been managed either by point solutions, manually, or a mixture of the two. People and time are critical elements in any project, therefore the ability to allocate the correct level and skill of human resources (where key skill shortages are not uncommon), as well as analysing information that enables managers to keep tight control on the work content – and, therefore, all relevant costs over the total period of the project are vital. Failure to do so leads to projects over running both in terms of time and budget, and incomplete and inaccurate billing that ultimately leads to dissatisfied/lost customers.

In order to overcome these shortcomings, many project-based organisations have implemented stand-alone point solutions for accounting, timekeeping, and project management, leading to significant gaps in functionality. These solutions have emerged as ‘islands of automation’, with little or no integration, leading to many widely dispersed knowledge bases, where no one individual has sight of the big picture. These problems have been exacerbated where projects are based over multiple, geographical locations, with no standard method of recording information, leading to a totally fragmented picture of the progress (or otherwise) of each project. This results in redundant data entry of information and, consequently, inconsistent or inaccurate data, leading to a lack of collaboration and knowledge sharing: the key elements in creating competitive advantage.

PSA is a concept that has been gaining momentum over the last two years and is only now being accepted by PSOs as the answer to many, if not all, their problems. PSA solutions provide tools for keeping track of the skills, experience and availability of consultants and of billable time and expenses. By utilising PSA solutions organisations can track all current projects, know what skills are required and where they are located, re-use knowledge and expertise from previous projects, track current staff allocations and the up-to-date position regarding client billing.

Many claims have been made regarding the benefits of PSA, for example, increased productivity of operatives, higher quality of work, sharing and retaining of knowledge within the organisation, and closer relationships with customers. What cannot be disputed, in Butler Group’s opinion, is that PSA applications provide organisations with the ability to accurately record all elements of any project, regardless of its size, duration or location, enabling managers to make more accurate, timely decisions.

Although PSA has its origins in IT consultancy, this now represents a small, though significant, sector of the PSA market. PSA is expanding its market reach and, in Butler Group’s view, will continue to do so as the market develops and matures. Just about any type of organisation that employs expert staff to work on projects, and who are required to bill customers for their services, fit into this category.

A number of vendors are now entering the PSA space, enticed by the huge market potential, which has been estimated to be $4 billion by 2003. LLP (London Logic Partners) Group, a Prague-based organisation, is one such company that has recognised the importance and potential of PSA. It has developed its product time@work to specifically address the problems associated with project-based operations in the areas of IT, accounting, tax, management consultancies, law firms, advertising, and public relations markets.

Professional Services Organisations

PSO Types

PSOs can justifiably be classified as one of the best kept secrets in the world of business. It is a most undervalued market sector and yet generates revenues running into the billions of dollars. It has largely been ignored because of its unique operations and needs with its discrete engagements involving external and internal customers, where each contract is project-based, with delivery based upon an agreed schedule, cost, and itemised deliverables.

Typical PSOs operate in the commercial and non-commercial world and include:

  • Consultancies – of various types.
  • Accounting and law organisations.
  • Government agencies, local authorities, police forces.
  • Architects, engineering, environmental, and planning organisations.
  • Public relations and advertising agencies.

PSOs are becoming increasingly mobile and geographically dispersed. They face many challenges; for example, billing across multiple international offices, international currencies, tax regimes and languages, sharing information throughout the organisation, ensuring consistency and accuracy in data capture, and knowledge dissemination. The success of any PSO is dependent upon the skill of its workforce, the ability to manage projects and the efficient collection of data for analysis and billing purposes. The ability to track time and expense information, automate invoicing, management reporting, resource utilisation, and project management are all, therefore, fundamental requirements in order to achieve success.

PSO Operational Environment

A major differentiation between PSOs and most other organisations is that people are perceived as being their most important asset. Therefore, skill shortages in key areas have a serious impact upon the ability of PSOs to operate, which can create bottlenecks that directly impact upon the profitability of the project and ultimately the company. Effective and organised recruiting is, therefore, critical to enable the organisation to take on additional work and increase its presence in the market. Skilled workers equate to competitive edge and therefore the retention of both key workers and their knowledge are increasingly important when operating in a high-turnover environment. A major problem for PSOs is that they are all competing for the same very scarce resources, which Butler Group believes will eventually lead to consolidation in the market through mergers and acquisitions or companies simply going out of business. Survivors of the impending shakeout are more likely to be those PSOs who have successfully adopted PSA as a central plank for organising and managing their projects.

The skills shortage situation places a heavy dependency upon efficient resource planning in order to place the right people in the right place at the right time, and in the most cost-effective way. Because employee skills are key, there is a heavy dependency upon sourcing people with the relevant skills for the market in which they operate. This is not easily achieved without having access to a centralised repository where the skills, qualifications, and experiences of their employees is recorded. Therefore, the importance of an integrated HR system is vital, a requirement that is increasingly important as project teams form and disband for specific projects or phases of a project, making the recording of employee information a major challenge.

Because people are the major creators of revenue, it is vitally important to be able to accurately record their involvement in each project in a timely manner. Failure to do so, on both counts, creates major concerns regarding the viability, profitability, and successful execution of the project. For example, the ability to accurately and speedily input time sheet and expense information produces key cost savings, which are lost where manual or spreadsheet-based systems are the only option. Where operatives are engaged on a global basis, where the ability to provide a central operation with relevant information is compromised through distance and time, the ability to deliver content via the Internet is essential.

PSOs and Technology

Many PSOs are acutely aware of the benefits to be gained from automation. The use of technology has slowly increased over the past 30 years mainly through production and accounting systems, with project management systems now a more familiar feature, especially in the larger companies.

A number of stand-alone systems have been implemented by many PSOs, for example: HR; Project Management; Support Desk; Billing; General Ledger accounting systems; and, latterly, Customer Relationship Management (CRM) systems.

However, the ad hoc approach taken has created a major problem, namely the lack of integration and a unified interface with the islands of information created as a consequence.

The adoption of technology has, in these instances, taken a bad situation and actually made it worse. Whilst the actual processing of data is faster than previously, access to it and therefore its usefulness to the business, has not been enhanced at all. In addition, many of the solutions implemented are single site systems, and not at all suitable for organisations operating over multiple locations.

XML has the potential to substantially simplify the integration puzzle. By providing a common format for passing data between applications, XML can act as a universal connector, replacing the proprietary solutions that have predominated to date. It also enables the application vendor to build an integration interface into their product, by implementing an XML capability. It provides a plug-and-play approach, with an open format for applying business rules and transformations that does not require complex technical skills.

The recognition by board-level executives of the importance of technology as a competitive enabler is fuelling the urgency for early adoption of the PSA systems currently entering the market. The ability to operate enterprise-wide on a worldwide basis, using the Internet, has struck a chord with many senior executives, a crucial requirement as ownership at a high level is essential if a PSA system is to be successfully adopted and implemented.

It is for these reasons that LLP Group has developed its time@work PSA product to enable PSOs to capture time and expense data from front-line operatives. Integration of sales, planning, costing, management, support, resourcing, and billing of projects processes is a key objective.

time@work

The current scenario prevalent among many PSOs is one of many disparate, automated systems with no integrated enterprise-wide functionality. The situation for companies that find themselves in this situation is dire from a competitive point of view as they become buried in a flood of word processing files, spreadsheets, e-mails, faxes, images, and a plethora of other documents.

With many PSOs undergoing rapid change as the global business scene perpetually develops, much like a frequently shaken kaleidoscope, then their systems must change also, the watch word must be integrate or fail, for surely failure is the only other option.

time@work is designed to provide a totally integrated environment where all systems inter-operate, enterprise-wide, to provide executives with the big picture in managing their projects. It offers a flexible, powerful, and scalable – up to thousands of users – PSA solution, including sophisticated reporting features, powered by Crystal Reports – plus the ability to empower customers to select the information they wish to access to encourage collaborative commerce.

Developed in Visual Basic (VB) and based on Microsoft technology, time@work runs on Windows 2000 and NT with a SQL Server database serving as a central repository. Access is either through Web and WAP-based ultra-thin clients – to provide minimum support requirements – or using e-mail enabled client software.

time@work utilises any Mail Application Programming Interface (MAPI)-compliant e-mail package – for example Outlook, Netscape, Eudora, etc. – to send and receive timesheets on the client. Therefore, when a user opens a mail attachment, the timesheet client is opened simultaneously and the timesheet is then sent directly from the client software to the core application via the e-mail program.

LLP Group is a Microsoft Certified Partner, which gives it access to Microsoft information and products that can prove to be invaluable in future product development. LLP has focused on the Microsoft platform because of its popularity in its target market and worldwide implementation.

Administration support is minimised through utilising time@work’s zero-deployment option, which allows administration to be concentrated centrally, removing the requirement for application updates at the desktop, at the same time ensuring that all users are working from the same application version. Centralised administration minimises Total Cost of Ownership (TCO) and maximises Return On Investment (ROI).

time@work is an out-of-the-box product, which provides users with a high degree of configurability. Key functionality includes:

  • Seamless Integration.
  • Multi-company, Multi-currency, and Multi-language.
  • Analysis and Reporting powered by Crystal Reports.

Seamless Integration

A current weakness among many PSOs is a lack of integration with various ‘point’ systems having been implemented that create ‘islands’ of automation. However, time@work provides seamless integration, enterprise-wide, with financial and other third-party best-of-breed systems, for example, CRM, ERP, and Microsoft Project, via SQL tools or XML.

From LLP’s perspective, incorporating an XML interface into the product offers the maximum degree of flexibility for integration with other applications. Although XML integration is still relatively immature, there are protocols available for transmission of XML messages between systems and, in any case, XML can easily be transformed, if required, to comply with the target application. eXtensible Stylesheet Language (XSL) stylesheets have already been defined which allow time@work to interface with several non-XML compliant systems. XML is also well-suited to the loosely coupled style of integration that is necessary for extending business processes outside the organisation, should information need to be passed to business partners, suppliers, or customers.

Support for a variety of input technologies including client/server, Internet, Wireless Application Protocol (WAP) and Local and Wide Area Networks (LAN/WAN) and e-mail, with access to data available to all supported devices.

Configurable Timesheets and Expense Forms

In order to minimise the form filling procedure and, therefore, to maximise the time spent on the project, timesheets and expense form creation is highly configurable.

In theory, each employee could have an individual personalised document, such is the level of customisation available.

An easy to use client interface encourages data input, with on-line validation, which alerts the user to any invalid entries immediately. Flexible time units, for example charging by the minute or the hour, further increase user productivity. Different rates can also be applied for different clients and different projects. Up to 20 calculation types are available on each document. Administration of timesheets is minimised through time@work’s Status Enquiry tool, enabling the current status of timesheets to be monitored when required.

Notes can be entered on each document, which can if required, be printed on an invoice. Transmission can be over the Web or, in order to support off line working, as an attachment to an e-mail. Data validation is carried out at the client level reducing network traffic as a consequence. A Web client, or a wireless WAP device can also be used to submit time and expense data, regardless of location.

Flexible Billing

An area full of potential for conflict between customer and provider, therefore a flexible approach is essential in order to satisfy a widely diverged customer base. Incomplete and inaccurate billing, for example under and over billing, coupled with an inflexible approach is a major reason for client dissatisfaction, leading to extended time-scales for payment of fees, with a potential loss of revenue and profit directly affecting the bottom line.

time@work avoids this particular hazard by providing a number of options, for example, fixed price basis, discounted, or full or discounted work in progress. Through automating key processes the billing cycle is reduced thereby minimising administrative procedures and cutting costs. Invoices are created utilising a valuation algorithm, created by LLP, for calculating employee’s chargeable time. Full multi-currency capability is also provided.

time@work’s approval process provides customers with pre-billing information, covering both professional services and disbursements, reducing queries and optimising the billing process.

Automatic Invoicing

Invoices can be produced as and when required, minimising disruption on operational systems and schedules.

Flexible invoice layouts, created using Crystal Reports and easy to use templates, are supported to enable clients to receive customisable documents for integration with their internal systems. An invoice worksheet provides extensive manipulation procedures where an invoice grid displays all chargeable and non-chargeable items identified automatically by time@work.

Selected lines can be re-allocated, discounted or even excluded from the invoice process, and held over for a future invoice creation run. Discounted lines create a ‘discounted’ record for input to the project ledger. Lines can be re-calculated to take account of exchange rate fluctuations. Data is exported to the ledger in XML format and converted to flat file format using XML Stylesheets.

Creation of credit notes, invoice reversals, and invoice batches are all supported.

A Calendar facility enables the identification of selected time periods, for example, weekends, Bank holidays, or a standard period. The ability to identify unavailable time enables the forward planning of projects, which is essential when dealing with scarce human resources. The use of colour coding, which is user defined, makes each period easier to identify.

Multi-Company, Multi-Currency and Multi-Lingual

PSOs do not operate in an enclosed environment. This is particularly true of the medium to large PSOs, where international or even global trading is common. Therefore, any PSA solution that does not or cannot support multi-company, multi-currency, and multi-language falls well short of the necessary requirements essential in a modern business environment.

LLP Group has extensive experience of operating in international environments all over the world. It has taken cognisance of this experience when designing time@work to ensure it is capable of operating in a global market.

Multi-company organisations, which may be located anywhere in the world, are faced with legal, tax, and business issues that enforce them to be broken down into separate legal entities in order to comply with government rules and regulations. The legal, cross-charging and reporting issues raised in this type of environment are all supported by time@work in any currency.

Operating globally raises many complex currency issues. Companies, for example, may quote in one currency, bill the customer in another, process expense claims in another, and report in yet another. time@work supports all these situations, enabling currency transactions to be communicated in one currency and displayed to the recipient in another (probably their native currency). A maximum of 20 multi-currency fields are available, in the users preferred unit, for example GBP or US Dollar.

Multi-lingual embraces both language and expression. Through the use of its centrally held data dictionary time@work labels relating to language ensure controllable translation into any language of choice. Because all information on users is also data dictionary-based, each individual can be associated with their native language, regardless of their operational base.

time@work is developed solely on Unicode, the international standard for displaying multiple character sets, therefore it supports double byte languages such as Japanese and Chinese and right to left languages such as Hebrew and Arabic. Butler Group is impressed with the depth and breadth of international languages supported by time@work, it is not standard practise to find such a diversity of language support in a product.

Resource Analysis and Allocation

Before any project can commence it is necessary for it to be resourced with sufficient people with the necessary skills to carry out the customer’s requirements. Efficient management of the project staffing process is therefore essential to ensuring a successful implementation. People are the key resource for any PSO and it is, therefore, vital to ensure that they are efficiently and appropriately matched to projects in order to maximise the number of hours billable.

The centralised data repository holds details relating to all employees, including their particular skills, knowledge, and a history of previous/current projects engaged in. Resource Managers are, therefore, able to quickly and easily make decisions regarding project deployment as well as any future training requirements.

Analysis and Reporting

The collection of data, whilst a necessary exercise, can prove to be an expensive waste of time if the tools for analysis and reporting are not available. Information is a powerful weapon and can make the vital difference between success and failure. The ability to make quick, accurate decisions based on up-to-date information is key to achieving a competitive edge.

Access to important business information is equally important for both customer and provider if a collaborative relationship is to be established. time@work provides secure access via the power of Crystal Reports and its own multi-dimensional reporting engine, to all authorised participants engaged in the project life cycle, both customer and provider. Data is exported to Crystal Reports via an easy-to-use enquiry profile interface using Wizards, including Proper Name headings. Business users, prior to installation, can establish pre-configured reports to their personal specification.

For the PSO, it provides the ability to accurately monitor each project as it progresses, including profit level, revenue or contribution by employee, project or client. For example, Finance departments are able to receive pre-defined reports delivered automatically over the Web.

Customers have access to information via customised reports, which can be automatically transmitted direct to their desktop over the Web or by e-mail, providing a fast, selective, and optimised reporting service.

MARKET PROFILE

In terms of markets, PSA tools must be highly functional and suitable for operating in an international environment. Multi-currency, multi-language, and multi-company must be available as standard features, any product not capable of supplying all of these components will without doubt fail.

time@work has been developed from the ground up as a PSA system that is suitable for operating in international markets. LLP Group, its creators, has extensive experience in these markets and has used its knowledge to good effect. For example, close working relationships have been established with several of the ‘Big Five’ accounting organisations, a relationship that has been used to garner invaluable knowledge for operating in international markets. Primary focus is on IT, accounting organisations, and tax and management consultancies.

LLP’s current focus is on medium size organisations, concentrating on IT companies, law firms, plus advertising and public relations agencies. However, future market extension will embrace all types of organisation operating in the PSO space. The first two customer installations have been successfully implemented, with NetU, a Cyprus-based IT company its first client, where implementation took a mere ten days. NetU selected time@work because of its Web capabilities, an essential requirement for an organisation operating internationally throughout Europe, and its capability to accommodate NetU’s planned growth.

LLP intends to distribute time@work in key markets worldwide, starting initially in Europe, Middle East and Africa (EMEA), followed by Asia-Pacific and the Americas. Plans to distribute in the UK and Middle East are already well advanced, with Australia and Japan also on the radar.

Although mainly users of its business and financial software solutions, LLP clients represent many different types of organisation, from petrochemical to TV stations, from blue-chip to start-up and include large enterprise organisations such as: GlaxoSmithKline; Johnson&Johnson; Shell; Kodak; Motorola; Roche; KPMG; Unilever; Marriott Hotels; and UPC. Involvement with such high profile, international customers, has provided LLP with a solid business base for penetration into what is a highly competitive global market. In addition, LLP manages projects in countries including Italy, Saudi Arabia, Venezuela, Japan, USA, and Israel. It has developed solutions for more than 280 manufacturing companies, distributors, service and non-profit organisations, locally, regionally, and internationally.

Distribution of time@work will mainly be by channel partners, including resellers, ASPs, service partners, and OEMs. An extremely competitive pricing structure has been devised that includes outright purchase or transaction- based, where customers only pay for how much they use the software, or if using an ASP, rental of the selected applications only.

VENDOR PROFILE

Established in 1992 in Prague, Czechoslovakia (now Czech Republic), as a channel provider of financial and business systems, LLP Group has experienced consistent growth to become a major international organisation. Initially established as a re-seller of Systems Union SunSystems software, LLP has spread its influence far beyond its established base of Central and Eastern Europe. It is also resells Pivotal, a CRM system and an integrated manufacturing solution, Fourth Shift. LLP has also gained Certified Ariba System Integrator in the CEE region, reselling and implementing the full range of Ariba Business-to-Business (B2B) solutions, it also implements SAP R/3 Enterprise Resource Planning (ERP) solutions.

For many business organisations, a Prague-based software company may cause a few raised eyebrows, however, there is nothing lowbrow about LLP. It is a very professional organisation headed by its founder Adam Bager, an Englishman who has lived in Prague for almost ten years. He is more than ably assisted by his Managing Director Tim Cobbold, another Englishman, who has also lived in Prague for a number of years. Both have extensive experience in the international PSO market place. Development of time@work began approximately two years ago when Bager recognised a gap in the PSO market for such a product, an insight brought about by his extensive experience of operating in the PSO market. In fact, LLP has such faith in time@work that it is taking its own medicine and using it in-house to manage and control its own projects.

The company employs more than 100 people, which includes specialists in business processes, project management, accounting, databases, communications, networks, and application development. In the financial year 2000, the company’s revenues reached $5.27 million. LLP is cash rich and has no debt, placing it in a very strong position to finance future growth.

Although based in Prague, LLP has established subsidiaries in several capital cities throughout Central and Eastern Europe, mainly Bratislava, Budapest, Bucharest, Sofia, Warsaw, and Zagreb. In spite of having its origins in the former Eastern Bloc, LLP has established international projects in over 40 countries worldwide. Its international credentials are therefore beyond reproach.

Butler Group believes that with its low cost base, coupled with a highly professional and experienced workforce, and backed up by its extensive international experience, LLP is geared to make a significant impact in its chosen sector of the PSA market.

LLP Prague
Palac Karlin, Thamova 11-13 186 00 Praha 8, Czech Republic, Tel:(00420-2) 840 016 11, Fax:(00420-2) 840 016 22.
E-mail:contact@llpgroup.com

www.llpgroup.com