Ensuring that agreements are constantly profitable isn't always an easy thing; there's lots of variables which can effect just how much money you end up keeping.
We think that is good to think about agreements as fixed fee projects that go on for, say 3 years. That way you can plan for the total labor budget throughout the term.
Step 1 - identify which agreements need attention
You might be able to trust your gut and be right some of the time - but to be accurate you need some measurement to identify which agreements aren't performing as well as you would like.
Our agreements dashboard shows you how many agreements aren't meeting your targets and then you can easily drill down into the details to discover why.
Step 2 - prioritize the ones that aren't performing well.
Once you find which agreements aren't meeting target, you need need to rank them in order of important to fix.
Some questions you ask would be, is it just this month that's bad, or is it a constant thing? Is there a trend downwards? If we used a lower cost resource, would we meet our targets? How much are we actually losing in terms of opportunity cost?