What are some performance metrics to measure the productivity of a consultant?
Question by Truth: What are some performance metrics to measure the productivity of a consultant?
It can be any consultant. The core element that I would like to know is what can we measure? Amount of time needed to begin, output, amount of resources required? Amount of time to complete tasks? Costs involved?
Using Six Sigma what do you think are various performances measures for a role of a consultant?
The consultant here could be the individual at the company who reviews legal compliance documents for a company and ensures that the company adheres, abides, follows, complies to the legal contracts.
Best answer:
Answer by QueryJ
Fact and information finding:
What are the significant goals or outcomes of the process? Are these achieved?
Are there policies and procedures, business rules, that must be adhered to? Are they followed?
Is there a project plan, scope and task completion process?
Is there effective change management on the program? When working on projects the time employed making changes because of client error, client changes, consultant learning curve, and any unexpected changes as in software, etc..
Is there a communication method such as email, wiki, etc. Are discussions documented along with completions, contingent outcomes, performance requirements, etc.
Does the consultant employ good procedures to document compliance requirements and reviews?Is the consultant required to teach or communicate new methodology to assist the client? Are these effectively communicated?
Outline the Process, Cost and Expectations:
If you map the process you need to know an effective time frame to complete the job. This is fine if the work has a routine aspect about it and an expected time frame for completion.
If the consultant’s role is to advise the client, and the work takes expertise, you can only base the consultant’s time on similar time of a like consultant in a role, or on similar tasks. (It might not be fair if the task has complex elements, except to let the individual describe why it might take longer.)
Resources used may depend on software, special equipment, additional labor could be part of the cost, also added space requirements.
Cost to employ the consultant would include travel if per diem (not part of their rate.)
I would recommend quantifying the benefit to the company and determining the cost/benefit ratio and the ROI. Related: Also the risk of not employing a consultant, the cost of hiring an outside firm, and other options, such as employing internal personnel, (added training etc.)
These KPI’s provide something to measure the consultant against.
Note also if the consultant is consistently employed at the required task, the length to complete the job may be longer if consultant is also working on other projects.
Does the company employ internal resources, purchase outside resources or does the consultant supply their own resources? How much internal time and effort is spent supporting the consultant?
Is this more cost effective?
Identify the signatory items of effective service:
Service Sigma Example: http://www.sixsigmasystems.com/service_sigma.htm
Streamline the service delivery process
Reduce errors in customer encounters and internal processes
Reveal factors critical to customer value
Optimize capital resources
Drive measurable business results
KPI’s
Annual billable utilization %
Percentage of billable hours divided (2080 hours – vacation and holidays)
Profit per project (Benefit to company)
A strategic KPI that focuses service-based companies on achieving the maximum profit per project they work on
% of consulting hours that generate revenue (or value/benefit to compliance procedure or savings)
Percentage succesful intakes per client (successful compliance reviews)
A review of process documents and communications can reveal other items to be considered.
Know better? Leave your own answer in the comments!