Chapter Overview

CHAPTER OVERVIEW
Introduction: Sirens’ Song to Scylla’s Fee
A review of why companies are pursuing professional services in the first place. Key reasons include REVENUE, customer REQUEST, and RELATIONSHIP. Why do companies continue to struggle with their professional service efforts?

Ch 1: Strategy, Structure, Culture
An overview of the three fundamental areas that cause friction for professional services within a company. Each area is explored and specific challenges are itemized.

Ch 2: Services Strategy Context
This chapter reviews the environment that gives birth to a new services strategy.
Discusses common misperceptions that exist when company executives first articulate a professional services strategy.

Ch 3: Three Pillars of a Services Strategy
This chapter introduces a model to align the service strategy to the company strategy. The first pillar of the framework is titled “revenues”, and it focuses on how to effectively set the charter and business model of a professional services organization at a product company. The second pillar is titled “services”, and it aligns your market objectives with your service offerings and channel strategy. The final pillar of the services strategy is “skills”. This pillar focuses on defining core competencies and scaling service capabilities.

Ch 4: Mastering Financial Objectives
To master the management of financial objectives for the Professional Services organization, the management team must look beyond financial targets. This chapter discusses the three critical variables of the “revenues” pillar:

Charter
How to conduct a charter discussion that aligns services management and executive management.

COMPANY CASE: Hitachi Data Systems

Business Model
Example business models for Professional Services. Importantance of setting and using a target business model.

COMPANY CASE: Genesys Labs

Financial Objectives
Sample financial objectives and how they must align with charter and business model.

COMPANY CASE: IBM Global Services, Cambridge Technology Partners

Ch 5: Mastering the Services Portfolio
To create a successful services portfolio, the management team must consider the markets being targeted and the sales channels being accessed. This chapter moves to the “services” pillar and provides tool in the following areas:

Markets
Tools to define market types and customer types are reviewed.

COMPANY CASE: Progress Software

Service Offerings
After target markets are defined, types of potential services are discussed. The criticality of aligning service offerings to market objectives is outlined.

COMPANY CASE: Convergys Inc.

Channels
The bane of every services marketing manager: the services channel mix. A six-step process to determine the appropriate service channel mix is presented.
COMPANY CASE: Lucent

Ch 6: Mastering Scalability
To master the art of scaling professional service capabilities, the management team must clearly understand what skills are core to company. This chapter moves to the final pillar of a services strategy: skills.

Core Competencies
The importance of clearly defining core competencies is discussed. A standard skills map for a professional services organization is introduced.

Partners
The process of identifying, qualifying, and enabling delivery partners is reviewed.

Scalability Mix
Five strategies to scale competencies are compared and contrasted

CASE: EMC

Ch 7: Strategy Evaluation
Using the service strategy pillars to complete subjective and objective evaluation a services strategy.

Ch 8: Metrics that Matter
Introduction of The Metrics Perspectives Graph TM. Methodology to develop a metrics portfolio that provides leading insight into the health of the services business.

Ch 9: Signs of Success
Is your company becoming more solutions centric? Signs a management team can look for to help determine if progress is being made in the effort to truly deliver value add services.

Appendix A: Scylla’s Fees Summary
An executive summary of the key concepts presented in the book.

Appendix B: Positioning Pentagon
Introduction of the Positioning Pentagon TM. A unique model to identify and assess the positioning of target services.

Appendix C: Pricing Pentagon
Introduction of the Pricing Pentagon TM. A unique model for determining what pricing model makes sense for target service offerings.

Appendix D: Services Leadership
Template to evaluate executive leadership for the service function.