The Essential Key Performance Indicators (KPIs) for Consulting Firms
Effectiveness, quality, efficiency, performance… so many KPI for Consulting Firms that allow you to monitor the evolution of your activity. If companies are very attached to these performance indicators, independent consultants may still put these KPIs into perspective too often. Revealing the quality of the work provided by each, these metrics can also guide consultants to fill their gaps or possibly to question their skills in order to increase their performance and thus open new markets.
Never fall asleep on what you have learned, persist in training, … so many approaches in which each consultant should engage in an increasingly competitive universe.
If it is not always easy to self-evaluate, here are some ways to encourage you in this direction. To do this, all independent consultants concerned with the growth of their services should maintain a dashboard in which they could integrate this data.
1. ADR (Average Daily Rate) for independent consultant
The ADR or Average Daily Rate is the rate invoiced by a freelancer per day. The amount of ADR is always billed before tax.
Many consultants tend to carry over from one mission to another always the same Average Daily Rate. However, after a detailed analysis of this ADR, it would seem that the latter is not or no longer in phase with the skills acquired by the expert consultant. An ADR must be reassessed regularly on the basis of several factors such as the average of the rates charged on the same segment of expertise, the evolution of this level of expertise with regard to the experience acquired, the quality of the missions carried out, etc. Do not hesitate to re-evaluate this ADR which, against all expectations, should not be too weak. Indeed, companies that use the services of expert consultants are used to certain rates. If the rates charged are too low, this may raise questions and the consultant risks losing a contract.
ADR (Average Daily Rate) formula for independent consultant
Once defined, the cost of the assignment is calculated and invoiced as follows: [number of days worked] x [ADR]. This figure differs from a fixed price (which reflects a specific service or set of services that are usually delivered on a monthly basis).
It is also not a question of overvaluing it but of charging for the services provided to match the skills of the expert consultant. You must always be well aware of the benefits that the client will derive from the mission on which he mandates you.
If in doubt about the ADR to practice, your Wage Portage advisor will be able to guide you in the evaluation of a coherent ADR in line with your Skills.
2. Number of customers
The search for new clients must always remain a priority for all independent consultants. While the vast majority of independent consultants are committed to building customer loyalty, canvassing remains a priority. Between canvassing and loyalty, it is necessary after a few years of practice to take stock of your client portfolio. The quality and richness of the portfolio are an integral part of these KPI for Consulting Firms. This is a good indicator of the visibility of your activity in a rapidly changing economic world.
3. Customer satisfaction
All companies, regardless of their size, pay particular attention to the customer satisfaction indicator. The same should apply to all independent consultants. All those who offer their services on platforms systematically suffer from a rating principle that must be taken into consideration. Everyone must be able to question themselves as to the quality of their work, the understanding of the missions offered… If everyone uses the positive testimonials of their customers to enhance the quality of their services, it is essential for all freelancers to carry pay close attention to any less flattering testimonials or ratings lower than expected or expected.
This customer satisfaction indicator is essential, even essential. Everyone should set up their own objective scale for self-assessment.
4. The success rate in applications
Salespeople call this indicator the conversion rate. Applying for a job, responding to a call for tenders or other requests does not necessarily mean getting a job. We all know that just because you apply doesn’t mean you get selected. Again, every independent consultant should be able to quantify this success rate. Everyone can put in place indicators that must be carefully examined on a regular basis.
5. Mission success rate
When an independent consultant signs and commits to an assignment contract, he has, in fact, an obligation of results. The success of this mission will certainly result in other collaborations. If missions fail, everyone must question themselves both in terms of their skills and their approach to the client company. When the number of failed missions are too numerous or recurrent, perhaps it is time to take a few days off and analyze these failures to question your practices.
6. Recommendation rate
Over the years, we realize that the oldest independent consultants no longer need to communicate or sell their expertise on platforms. These expert independent consultants have a very high recommendation rate. The leaders and decision-makers who recommend them recommend above all expertise and flawless service. Everyone must be able to boast of having an increasingly high recommendation rate over the missions. The analysis of this recommendation rate must correspond to the customer satisfaction rate.
7. Reputation and e-reputation
As an independent consultant, each consultant must ensure their reputation and e-reputation. Never forget that a dissatisfied client will not miss an opportunity to tarnish the reputation of the consultant. For example, satisfied customers can also be solicited to improve your reputation. You have to be able to solicit them and above all know how to read between the lines comments they will leave on your website or on the platform where you offer your services. This reputation is essential because your prospects refer to it for sure.
8. Certifications / initial and acquired training
Each independent consultant is initially the custodian of a certain expertise. Over the years, everyone will be keen to boost their skills either by multiplying their experiences or through their training. Throughout their career, an independent consultant must pay particular attention to self-training and the acquisition of new certifications in order to remain competitive. Beyond their initial training, the independent consultant must be able to list these skills and expertise in order to expand their offer and enhance their specificities.
9. International presence
It is more and more common to see independent consultants, especially in the context of Wage Portage, accepting assignments abroad. This international presence is an undeniable plus in the measurement of KPIs. Whatever the contours of these international missions, they are a guarantee of quality of adaptation and a desire for openness. On the other hand, for potential clients, these missions outside France are also the assurance, real or not, of having recourse to a consultant with additional skills and knowledge. In a globalized economic world, this international reference is an added value.
10. The professional network
When a client appoints an independent consultant, it means that he does not have the resource internally. By combining missions in companies of all sizes and in different sectors, independent consultants are expected to have a solid, rigorous and varied professional network.
This professional network, which is neither more nor less than a well-stocked address book, is also highly appreciated by clients who trust you with assignments. If you are successful, you undoubtedly have other trusted consultants in your professional network who are as rigorous as you. Co-option is also expected by many decision-makers who themselves act in this way.
A good solid professional network is an excellent performance indicator that should not be overlooked.
11. The wage portage reference
As strange as it may seem to you, integration into a wage portage company is a very good indicator, and this, for several reasons. First of all, this means that your skills, your autonomy and your expertise are validated by wage portage, which is particularly demanding. Then, in the eyes of many business leaders and decision-makers, wage portage is a reference to which they no longer hesitate to turn to find high-level expert consultants.
Finally, the universe of wage portage is a unique ecosystem where only rigorous and demanding expert consultants gravitate. For junior consultants, this is an opportunity to build a professional reference network. Loyalty to a Wage Portage company such as Portageo, which has more than twenty years of experience and continuous presence on the market, is an essential guarantee of seriousness and rigor.
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