With CVM’s Fee for Service “FFS” software it is simple to create, cost and price service offerings. Providing value to customers is doing the “right thing”. Each service offering is made up of value generating actions. This allows the software to easily measure “effectiveness” through a staff effectiveness scorecard. The FFS software also produces a forward looking P&L statement. Provision is made for both new business and ongoing servicing budgets. This P&L statement provides a financial roadmap for the practice to follow going forward on the FFS journey.

The typical method used to price a service, i.e. take an hourly rate and double it, is primitive. There is an element of “I hope there is enough margin” in this method. CVM System’s “Fees for Service” software allows for a detailed and accurate costing (and therefore) pricing of ongoing service offerings.

Most practices expend a fair amount of time on prospecting and generating new business. CVM’s FFS software includes prospecting actions when pricing new business services. Having separate ongoing and new business budgets also allows for a new business target to be easily derived once the ongoing costing is completed.

Employees are the most scarce and highest paid resource in a practice. Ensuring effectiveness is essential. The FFS software shows where effective time is being spent on the right things; servicing ongoing customers and the generation new business.

Moving to FFS can be daunting, but having a mapped out financial plan helps. The Profit and Loss statement, made up from planned activity, is for a forward looking financial plan for the FFS future that makes the transition easier.