Domain 6: Management

Question 1

Additional Services

Answer 1

New scope or services requested of your firm by the client that are beyond the initial agreed upon scope.

Question 2

Coach

Answer 2

Person who takes a teaching role to improve student performance with an issue or skill set.

Question 3

Arbitration

Answer 3

Use of a third party to settle a dispute.

Question 4

Consequential Damages

Answer 4

Damages not directly caused by a breach of a contract, but that may result from a breach.

Question 5

Backlog

Answer 5

Work (revenue) logged which has yet to be completed.

Question 6

Consideration

Answer 6

Value exchanged between two parties in a contract. It can consist of promises, services, goods and/or money.

Question 7

Charge-Out Rate

Answer 7

Person’s hourly billable rate based on their salary, firm overhead and target profit.
Hourly Rate = (Hourly Wage x Overhead Rate) + Profit

Question 8

Contract

Answer 8

Mutually-binding legal relationship, generally written, that specifies the agreed-upon parameters and mitigates risk of non-performance by one party or the other.

Question 9

Cross-Functional Training

Answer 9

Training conducted so staff of each functional area is aware of the needs and opportunities presented by teammates in another department.

Question 10

Doer-Closer

Answer 10

Senior member of the firm who focuses on marketing existing clients and spends most time on billable projects.

Question 11

Cross-Selling

Answer 11

Selling a different service you provide to an existing client.

Question 12

Direct Costs

Answer 12

Labor costs associated with selling work, particularly in face-to-face situations.

Question 13

Current Ratio

Answer 13

Ratio of current assets* to current liabilities
(*Cash, accounts receivable, unbilled services, prepaid expenses, etc.)

Question 14

Firm Offer

Answer 14

Offer to perform services that is only open for a limited time period.

Question 15

Curve of Relationships©

Answer 15

Model that describes relationship-building through five levels of connection and three stages of evolution.

Question 16

Indirect Costs

Answer 16

Labor costs not associated with selling work but in support of it.

Question 17

Internal Marketing

Answer 17

Multi-dimensional strategy for growing from the inside out. It is a continuous, participative process of training and motivation, principally those with client contact.

Question 18

Mentor

Answer 18

Long-term teaching role to support the development of a professional.

Question 19

Lead

Answer 19

Indication or a clue to a potential project.

Question 20

Net Multiplier

Answer 20

Ratio of net revenues (in-house labor only, without reimbursables) to total direct labor
(raw labor salary only, without any fringe benefits).

Question 21

Lead Originator

Answer 21

Person who brings a new lead or opportunity.

Question 22

Net Profit Ratio

Answer 22

Ratio of net profit* to net revenues.
(*Income minus expenses)

Question 23

Mediation

Answer 23

Procedure in which the both parties in a contract submit the details of their dispute to an independent third-party mediator.

Question 24

Networking

Answer 24

Gaining and giving info with those who could assist you in doing a better job,
in your work or in your life.

Question 25

Overhead Costs

Answer 25

Costs that are not invoiced or paid by clients.

Question 26

Probability of Close

Answer 26

Rough estimate – expressed as a percentage – of the likelihood that a lead will become new business.

Question 27

Overhead Rate

Answer 27

Ratio of overhead costs to total direct labor.

Question 28

Rainmaker

Answer 28

Someone who generates leads and converts them into work.

Question 29

Pipeline Amount

Answer 29

Number calculated by multiplying the value of the engagement by the probability of close.

Question 30

Rainmaking System

Answer 30

Four-point intervention process developed to give professionals the skills, standards, systems and support to become a rainmaker.

Question 31

Pipeline Report

Answer 31

Report to measure pending sales opportunities weighted by probability
of closing the sale.

Question 32

Sales Success Cycle

Answer 32

Model to describe stage of client development where small successes, self-motivation and self-confidence feed off each other to become a self-sustaining cycle.

Question 33

SMART Goals

Answer 33

Characteristics of achievable goals – Specific, Measurable, Attainable, Relevant,
and Time-bound.

Question 34

Valley of Death

Answer 34

Early stage of client development when the time and effort put in does not seem to be reflected in outcomes.

Question 35

Staff Utilization Ratio

Answer 35

Ratio of a firm’s total direct labor to its total labor (all salaries and benefits).

Question 36

Value-Added Services

Answer 36

Additional services that can be provided because of the firm or project team’s specific expertise.

Question 37

Standard of Care

Answer 37

Legal language defining the level of skill and care that would be used by other competent practitioners of the same discipline under similar circumstances.

Question 38

Working Lead

Answer 38

Person who will follow up on a lead or opportunity – may or may not be the lead originator.

Question 39

Target Multiplier

Answer 39

Ratio of a person’s charge-out rate to their hourly wage.