P&L Readiness Self-Assessment: 20 Questions to Ask Before You Say Yes

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P&L Readiness Self-Assessment: 20 Questions to Ask Before You Say Yes

This is a set of questions to validate the strength of a consulting unit before you take on the P&L. Test team structure and location mix, decision rights on pricing/hiring/marketing, the performance math, pipeline health, revenue concentration, and defensible differentiators—if they don’t add up, renegotiate or walk.

Team & Structure

  1. What is the overall team size ?
  2. What is the team size per offering ? (Apps, Infra, Dynamics, Modern Workplace, …)
  3. What is the balance between delivery and sales roles ?
  4. How is the team organized ?
  5. What is the overall team size you want to reach in the coming years ?
  6. What is the your ratio between onshore / nearshore / offshore ?
  7. Does nearshore and offshore operates as a cost center ?
  8. How many project managers, architects and QA leads to ensure quality delivery ?
  9. How many technical pre-sales consultants do you have ?
  10. Do you use bench capacity to absorb peaks ?

Performance & Investments

  1. What are your target this year (sales, revenue, chargeability, margin, …)?
  2. Do you know your average deal size ?
  3. Do you have recurring or multi-year contracts that secure a baseline of revenue/sales ?
  4. What is your unit’s historical P&L performance ?
  5. What are your levers that most affect your margin (margin, cost of sales, failed delivery, …)?
  6. What are your marketing and sales budget for the department ?
  7. How much control do I have over pricing, hiring marketing ?

Strategy & Pipeline

  1. Do you have a view on your growth target by sector or offering ?
  2. What are the possible challenge to your plan ?
  3. What is your weighted pipeline for the department ? Ideally three times your annual target.
  4. Is your revenue diversified or dependent on a few clients ?

Revenue & Differentiation

  1. What is your mix between staff augmentation and project work?
  2. What are your differentiator against your competitors ?
  3. What is your biggest risks on the market ?
  4. Do you have a roadmap to strengthen differentiators ?