Top tips you can’t afford to miss
PROFESSIONAL
SERVICES
SMARTER SMALL
BUSINESS REPORT
SHIFTING BOUNDARIES IN AUSTRALIA’S
PROFESSIONAL SERVICES SECTOR
RETAIN STAFF WHILE CONTROLLING COSTS
BOOST PRODUCTIVITY THROUGH KNOWLEDGE SHARING
DIFFERENTIATE THROUGH CUSTOMER SERVICE
MANAGE CONTRACTOR AND TECHNOLOGY RISK
STORIES FROM SMALL BUSINESSES LIKE YOURS
BUILDING FOR THE FUTURE
FOUR THINGS YOU CAN DO TODAY
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CONTENTS
The professional services sector has enjoyed an annual
growth rate of six per cent per year between 2006 and
2011 – thanks to the growing trend of business and
government outsourcing of non-core activities such as
legal advice, accounting, IT management and advertising.
1Globalisation means competition from overseas is rising
in some sectors, yet capitalising on overseas expertise is
potentially another business opportunity.
SHIFTING BOUNDARIES IN
AUSTRALIA’S PROFESSIONAL
SERVICES SECTOR
1 Source ABS report 8155.0 Australian Industry (2011-12)
GROWTH IN EMPLOYEES IN HEALTHCARE
Between 2005 and 2010 the number of people
employed by this sector grew by 26 per cent.
Of the 737,400 employees, 19 per cent are
aged 55 or older and 75 per cent are female.
Source Towards a Clever Australia - industry insights white paper
(Health): Telstra (2013)
$26%
The professional services sector grew by 25 per cent
(Growth Value Added or GVA) between 2006 and 2011,
which was the largest increase in GVA of all sectors.
Source ABS report 8155.0 Australian Industry (2011-12)
Our professional services sector
contributed $103 billion to
Australia’s economy in 2011-12,
making it the second highest
contributor after mining. An extra
80,000 workers (an 8.7 per cent
increase) joined the sector in 2012.
Source ABS report 8155.0 Australian Industry (2011-12)
AUSTRALIA’S SECOND
LARGEST BUSINESS SECTOR.
Many firms are capitalising on the benefits
of Cloud computing by outsourcing services
and using technology to expand services
without necessarily adding headcount.
This brings new risk management challenges in
protecting client data and intellectual property.
THE CLOUD IS CHANGING
WORKPLACE BOUNDARIES.
Many professional services firms take
a team approach to client service,
so collaboration and communication
between locations is important.
CLIENTS WANT
YOU ON SITE,
OR EASILY
ACCESSIBLE
.
11.7 per cent of all Australian businesses are
in this sector and competition is increasing –
adding value to differentiate your service is vital.
Source ABS Report 8165.0 Counts of Australian Businesses; ABS Media
Release (21 May 2013) Increase in the number of Australian businesses
THERE ARE OVER
IT’S AUSTRALIA’S
FASTEST GROWING
BUSINESS SECTOR.
250,000
PROFESSIONAL SERVICES BUSINESSES.
43%
LABOUR COSTS CONSUME
OF LAW FIRM REVENUE.
Professional services staff
typically need tertiary
qualifications, so wage costs
are a massive share of revenue,
and keeping good workers is
a challenge.
Source IBISWorld Report M6931 (2012)
TOP FOUR ISSUES FOR PROFESSIONAL SERVICES FIRMS
1
STAFF RETENTION GIVEN SPIRALLING WAGE COSTS
2
COLLABORATION AND KNOWLEDGE SHARING
3
DIFFERENTIATION IN AN INCREASINGLY COMPETITIVE MARKET
Keeping highly skilled staff is a big challenge for all
businesses within the professional services sector.
For example, in the engineering, design and consultancy
sub-sectors the inadequate supply of skilled local
labour has seen the demand for engineers met by skilled
overseas migrants.
1Managing salary budgets is the
reciprocal challenge: in law firms wages represent
43.4 per cent of revenue.
2RETAIN STAFF WHILE
CONTROLLING COSTS
AVOID TECHNOLOGY GROWING PAINS
When adding more staff quickly, technology must keep pace or workers will become frustrated and lose productivity.
27%
OF AUSTRALIAN BUSINESSES SAY
THEIR BIGGEST PRODUCTIVITY ISSUE IS
DOWNTIME AND KNOWLEDGE LOSS DUE
TO INCREASING EMPLOYEE TURNOVER.
Source Randstad World of Work Report 2013
WHAT TO CONSIDER
n Have a Bring Your Own Device
(BYOD) policy. BYOD can reduce costs and boost productivity, but it can also put IT systems at risk, so best-practice security measures are essential
n Get access to files through
the Cloud. Mobile working also offers the potential to reduce rent costs
n Quality video conference
technology will cut travel time and make multisite collaboration easier.
WHAT TO CONSIDER
n Cloud technologies – many firms are looking at Cloud-based
solutions as they make it easier for teams to collaborate online. For example, in the accounting sub-sector 23 per cent of accountants currently use Cloud-based accounting solutions, with 60 per cent not currently using it intending to do so in the future3
n VoIP phone systems – Voice over Internet Protocol systems use
data connections to deliver communications, so you can scale your business faster without having to wait for extra lines
n Technologies which put data connections to clever use can offer
cost savings that allow you to deliver better services to more clients.
MAKE IT EASY TO MOBILISE YOUR
WORKERS
A flexible workplace is attractive to many professionals in this sector as they often need to work onsite with clients. Providing them with the tools to work away from the office will help ensure an engaged, productive workforce.
I’ve got a desktop, a laptop, an iPad and
an iPhone, and now I can use any one of
those to access an up-to-date [version] of
what I need. They are all synced – which
means we’ve really improved our productivity.
Martin Nally, HR Anywhere
“
”
1 Source Engineers Australia: Inquiry into the Shortage of Engineering and Related Employment Skills (March 2012) 2 Source IBISWorld Report M6931 (2012)
Professional services businesses are already operating online. In 2012, 68 per cent of
them went online for ordering and invoicing.
1Many accounting firms now access client
financial records through Cloud-based software, cutting the time they used to spend
chasing clients for missing statements. With secure online access to data, documents,
knowledge and internal advice when out of the office, professionals can work flexibly
and improve customer service response times.
BOOST PRODUCTIVITY
THROUGH
KNOWLEDGE SHARING
WHAT TO CONSIDER
n Synchronisation – make sure any new toolkit integrates with
your other systems
n Familiar interfaces – your people need to be comfortable with
the new technologies, so choose tools that present familiar user controls and work across multiple platforms
n Gain access to real-time data and clever analytics – a sure-fire
way to impress clients is to give them the best answer the first time, by accessing complex analytical tools and real-time reports via Cloud technologies.
WHAT TO CONSIDER
n Video calls offer a face-to-face conversation when building relationships and delegating tasks across cultural borders. Video calls can make client meetings and team building more personal.
We get in there,
roll up our sleeves
and deliver
outcomes for
our clients.
We can only do
that because
we have access
to our tools,
templates
and processes
via the Cloud
Elizabeth Newbound, Australian Pressure Testing Services
“
”
OF SMES WOULD CONSIDER
CHANGING ACCOUNTANTS
IF THEY DO NOT MOVE TO
A CLOUD-BASED SYSTEM.
Source CCH Survey April 2013: Cloud Computing –
a matter of survival for the accounting industry?
52%
1 Source ABS Year Book Australia 2012: How Australia accesses and uses the internet
USE THE CLOUD TO COMPETE
If you’re not already using Cloud-based collaboration tools, there’s a good chance your competitors are – and they’re able to respond faster to customer queries, with more accurate and timely advice and analysis.
CREATE A TEAM WITHOUT BORDERS
In some sectors, such as legal services, profit growth might only come from streamlined management and cost savings. For example, the Law and Justice Foundation of NSW found that video conferencing technologies deliver savings in travel costs. Many firms are also looking at outsourcing non-core operations to offshore offices to reduce the costs of routine tasks.
MAKE SECURITY PART OF THE SERVICE
For any organisation, it’s crucial to partner with reputable providers – the potential loss of reputation and business through lost time or data is too great a risk.
While the professional services sector is growing in Australia, so too is the
competition from emerging economies. While this could be an opportunity for
your firm to outsource, it might also pose a threat to your existing client base.
What’s more, many professional service firms find they’re now competing across
other sectors. So evolving your services to meet customer needs is critical.
For example, if clients are using Cloud-based accounting solutions such as
Sage One or Xero, bookkeepers may find their time-based revenue is under
threat. Yet it also creates time – and growth opportunities – for high value-add
services such as tax advisory and cash flow management.
DIFFERENTIATE THROUGH
CUSTOMER SERVICE
WHAT TO CONSIDER
n Expanding geographically?
You’ll need to roll out simple, easy to use technology and processes so that all customers get the same quality local service, plus the benefits of nationwide insights and knowledge
n Provide local support.
If you see a specific regional opportunity, create a local office
n Be reliable and contactable.
Customers want to have a direct connection with your team, whether that’s on the phone, via email or through a video conference, so invest in your communications systems
n Create a network. Another way
to expand geographically is to create a national network of local experts. This may happen organically or through a merger, acquisition or franchising arrangement.
MANAGE CONTRACTOR
AND TECHNOLOGY RISK
We replaced the majority of our servers
and use the Cloud for services like email,
file collaboration and online telephony.
We only pay for what we use so we can
treat computing like a utility such as power.
Brad Rappell, Mr Rental
WHAT TO CONSIDER
n Fit secure systems –secure Cloud services can support tracking and reporting on compliance with anti-money
laundering laws, tax accounting, privacy issues and other requirements
n Use online knowledge
portals. Knowledge libraries or subject matter experts can help you stay on top of regulatory changes.
If your team is working offsite or you’re relying on contractors for specialist support,
how are you managing the risks involved? As many professional services clients come
from the banking and finance industry and government, winning new clients could
come down to your ability to protect confidential client data and intellectual property.
“
”
EXPAND YOUR SERVICE CAPABILITIES
Add to your specialist services by bringing in contractors or creating a professional network. Or turn your service into a product, creating a ‘self-service’ digital tool or app based on your intellectual property or processes.
$288
THE GLOBAL IT OUTSOURCING
MARKET WILL REACH
BILLION
IN
2013.
Video calls through IP telephony let us work
more effectively without worrying about
breakdowns or sound quality. It makes it
like having a conversation in the next room.
Ashley Simpson, Galilee Solicitors
“
”
PROTECT YOUR REPUTATION,
AND YOUR BUSINESS
The risk of fraud or data theft is always present, so you need reliable back-up systems and data recovery plans. For some professional sectors, changing and complex regulations provide a steady revenue stream, but for others they’re a significant cost.
WHAT TO CONSIDER
n Protect your reputation 24/7 – IT consultants especially need to instil
confidence in the systems they use or recommend, so 24/7 proactive monitoring and support is typically a given
n Get local support for you and your clients. Your Cloud provider’s
monitoring and support can be an additional benefit if you make sure their infrastructure is located in Australia under Australian law
n Comply with international security standards. Check your Cloud
services are certified to stringent international data security and privacy compliance standards, such as ISO 27001. And make sure you have a disaster recovery plan in place to help minimise the damage of business downtime.
27%
OF ALL MALWARE ATTACKS
GLOBALLY IN 2012 TARGETED
KNOWLEDGE WORKERS.
Source Symantec Internet Security
Report (2013) Vol 18
STORIES FROM SMALL
BUSINESSES LIKE YOURS
SECURE CLOUD SERVICES
CREATE SERVICE IMPROVEMENTS
Mr Rental is one of Australia’s largest home-grown domestic appliance and furniture hire chains. The business started in 1991 after the owners of a small Bribie Island video store noticed a gap in the market to rent televisions and video players. The company went through a rapid growth phase when it became a franchise 10 years later, and has grown to more than 90 stores across Australia and New Zealand. Mr Rental’s chief information officer, Brad Rappell, explains that the business needed to invest $30,000 to build its own secure network to run the chain and was facing hefty maintenance and electricity charges to keep the systems running. He says the move was risky given the company’s changing needs and its plan to experiment with new initiatives. “We had all these roadblocks in terms of technology,” Rappell says. Turning to Telstra’s Cloud services cleared the road ahead. The business found that by using the Cloud it has helped cut infrastructure costs, while tailoring systems to complement new initiatives. Mr Rental now uses powerful Cloud-based tools to communicate new campaigns to franchisees says Rappell: “We’ve elevated IT from a role of ‘keeping the lights on’ to a business improvement. We replaced the majority of our servers and use the Cloud for services like email, file collaboration and online telephony,” Rappell says. “We only pay for what we use so we can treat computing as a utility, just like power.” He notes, the franchise also operates more cohesively and by using video conferencing for training, it has overcome the distances between its franchisees while cutting $70,000 in travel expenses.
GALILEE DELIVERS BETTER SERVICE WITH
IP TELEPHONY
Galilee Solicitors specialises in property and general commercial law and has a number of offices in Australia and South-East Asia. Switching to Telstra’s unified communications allows employees to use video calls to connect and collaborate, helping foster a strong sense of camaraderie between the Australian and Filipino teams. “I can see my manager in Manila and that makes it a bit more personal,” says chief operating officer Ashley Simpson.
Click here to find out more.
ALTERED IMAGES IS ALWAYS AVAILABLE
Melbourne-based commercial photographer Ian van der Wolde, of Altered Images, keeps many balls in the air at one time – juggling travel for shoots, studio work and the admin to keep his business humming. “In this day and age everything is red hot urgent. Clients don’t like it if they can’t get hold of you,” he explains.Click here to find out more.
HR ANYWHERE, IN THE CLOUD
HR Anywhere’s consultants are spread all over Australia, and even work as far afield as Canada. It depends on Cloud services to provide workers with the information they need to troubleshoot problems and deliver expert advice to clients. “We get in there, roll up our sleeves and deliver outcomes for our clients,” says managing director Martin Nally. “We can only do that because we have access to our tools, templates and processes via the Cloud.”
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RAISE THE BAR ON YOUR CUSTOMER SERVICE RESPONSE
n Make sure your phone systems connect multiple sites, with the ability to automatically forward calls to mobiles or another office.
n Use a voicemail-to-email function so you can capture more incoming calls .
2
USE SMART COLLABORATION AND WORKFLOW MANAGEMENT TOOLS
n Set up a shared document system such as Aris so your staff can access the latest version of everything they need on a compatible tablet or smartphone.
n Cut the time and cost of manual data entry by digitising customer forms with mobile apps like Canvas on a tablet and making sure data syncs with your backend systems – for example, Cloud-based project management systems should connect with your client database and invoicing systems.
n Look into Microsoft® Office 365 as a way to share email, calendar and all working documents, or industry-specific platforms for time or project tracking that work across compatible mobile devices and laptops.
3
CONNECT WITH CLIENTS AND STAFF VIA VIDEO
n Video conferencing can provide immediate savings on your travel budget, as well as a big boost in collaboration between team members.
n IP telephony makes video calls far more affordable, as it brings voice and data together on one network. With a reliable, fast network you should get great sound and visual quality.
4
UPDATE YOUR RISK PLANS
n Ensure you have access to 24/7 support, set up a data recovery plan and train staff in what to do if something goes wrong.
n Check that suppliers, contractors and software providers have systems set up to protect your data.
FOUR THINGS YOU
CAN DO TODAY
PROTECT YOUR BIGGEST ASSET: YOUR PEOPLE
There are ways to grow your business
without necessarily adding to your salary
overheads, and retaining your most
talented staff is vital. Offer the flexibility
to work from home or remotely, however
be sure to include security protocols
within any BYOD policy. Set up regular
training programs to develop your team’s
technical and management skills –
consider outsourcing leadership and
coaching training, or deliver via video or
app modules to remote teams.
1
CONSIDER NEW REVENUE STREAMS
Mobility, the Cloud and
fast broadband speeds can
support new services you
might not have considered
yet. Turn your expertise into
a product – for example, by
creating tailored software or
apps, or add a lower-cost
‘self-service’ option for smaller
clients. Consider creating
online training courses to
build your reputation for
thought leadership.
2
BE SMARTER WITH CLIENT DATA
It can be much easier to get more
business from your existing clients
than add new ones, so investing in
data management tools can pay
big dividends as it allows you to be
proactive with client relationships.
Make sure your customer relationship
management (CRM) system tracks data
and syncs with your other systems,
so you can trigger marketing campaigns
and automated service reminders.
Check your team can access client
data from their mobile devices so they
can be more productive onsite.
3
BUILDING FOR
THE FUTURE
GET READY TO EXPAND
If you’re planning to outsource by
bringing in specialist expertise, or
curb the cost of non-core activities,
you need strong risk management
and communication systems to
make this strategy effective.
Only outsource tasks offshore if
they are easily explained through
a set of steps – invoice processing,
for example, rather than creative
design. Add collaboration tools,
such as video conferencing and
screen sharing, so virtual teams
can collaborate and work together.
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If you’d like to discuss your communication needs or get more ideas on how to
work smarter, feel free to drop into your nearest Telstra Business Centre.
Here are a few simple,
readily available digital tools
that you can begin implementing
today to help you start building
for your business’s future.
Brought to you by Telstra
in association with
Smarter Business Ideas
If you have any questions about this publication, please contact Smarter Business Ideas via [email protected]
Contact Telstra Business directly for information on products and services on 13 2000. Glass™ Glass is a trademark of Google Inc. Microsoft and Office 365 are a registered
trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Sage One is a registered trademark of Sage Software, Inc. Xero is a trademark of Xero Limited.
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