Domain 6: Management Flashcards
Additional Services
New scope or services requested of your firm by the client that are beyond the initial agreed upon scope.
Coach
Person who takes a teaching role to improve student performance with an issue or skill set.
Arbitration
Use of a third party to settle a dispute.
Consequential Damages
Damages not directly caused by a breach of a contract, but that may result from a breach.
Backlog
Work (revenue) logged which has yet to be completed.
Consideration
Value exchanged between two parties in a contract. It can consist of promises, services, goods and/or money.
Charge-Out Rate
Person’s hourly billable rate based on their salary, firm overhead and target profit.
Hourly Rate = (Hourly Wage x Overhead Rate) + Profit
Contract
Mutually-binding legal relationship, generally written, that specifies the agreed-upon parameters and mitigates risk of non-performance by one party or the other.
Cross-Functional Training
Training conducted so staff of each functional area is aware of the needs and opportunities presented by teammates in another department.
Doer-Closer
Senior member of the firm who focuses on marketing existing clients and spends most time on billable projects.
Cross-Selling
Selling a different service you provide to an existing client.
Direct Costs
Labor costs associated with selling work, particularly in face-to-face situations.
Current Ratio
Ratio of current assets* to current liabilities
(*Cash, accounts receivable, unbilled services, prepaid expenses, etc.)
Firm Offer
Offer to perform services that is only open for a limited time period.
Curve of Relationships©
Model that describes relationship-building through five levels of connection and three stages of evolution.
Indirect Costs
Labor costs not associated with selling work but in support of it.
Internal Marketing
Multi-dimensional strategy for growing from the inside out. It is a continuous, participative process of training and motivation, principally those with client contact.
Mentor
Long-term teaching role to support the development of a professional.
Lead
Indication or a clue to a potential project.
Net Multiplier
Ratio of net revenues (in-house labor only, without reimbursables) to total direct labor
(raw labor salary only, without any fringe benefits).
Lead Originator
Person who brings a new lead or opportunity.
Net Profit Ratio
Ratio of net profit* to net revenues.
(*Income minus expenses)
Mediation
Procedure in which the both parties in a contract submit the details of their dispute to an independent third-party mediator.
Networking
Gaining and giving info with those who could assist you in doing a better job,
in your work or in your life.
Overhead Costs
Costs that are not invoiced or paid by clients.
Probability of Close
Rough estimate – expressed as a percentage – of the likelihood that a lead will become new business.
Overhead Rate
Ratio of overhead costs to total direct labor.
Rainmaker
Someone who generates leads and converts them into work.
Pipeline Amount
Number calculated by multiplying the value of the engagement by the probability of close.
Rainmaking System
Four-point intervention process developed to give professionals the skills, standards, systems and support to become a rainmaker.
Pipeline Report
Report to measure pending sales opportunities weighted by probability
of closing the sale.
Sales Success Cycle
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.
SMART Goals
Characteristics of achievable goals – Specific, Measurable, Attainable, Relevant,
and Time-bound.
Valley of Death
Early stage of client development when the time and effort put in does not seem to be reflected in outcomes.
Staff Utilization Ratio
Ratio of a firm’s total direct labor to its total labor (all salaries and benefits).
Value-Added Services
Additional services that can be provided because of the firm or project team’s specific expertise.
Standard of Care
Legal language defining the level of skill and care that would be used by other competent practitioners of the same discipline under similar circumstances.
Working Lead
Person who will follow up on a lead or opportunity – may or may not be the lead originator.
Target Multiplier
Ratio of a person’s charge-out rate to their hourly wage.
