May 2005 Circle Update
In the short gap between the end of tax season and the beginning of Circle meetings for 2005, another important aspect of the Boomer Technology Circles has been playing out over the past few weeks. That, of course, is the annual collection of metrics, or financial and performance data for the member firms.
So far, over 40 firms have reported their data, with more sure to come. Boomer Technology Circle members will have access to several important sets of data when this exercise is complete. First, member firms will have access to aggregated data from all reporting firms, regardless of Circle. None of this information will be attributable to any particular firm, but will show totals and averages for all reporting firms. Next, member firms will be able to see aggregated data for their own circle, as well as specific firm information for their own Circle. Note the distinction: Firms can see specific information ONLY for firms within their own Circle. All data from other Circles is in aggregate form only! This is due to our policy of geographic market protection, so no firm is expected to expose their financial data to local competitors.
The data collection form for this year is largely similar to the one used in past years, however it features a greater focus on capital purchases, depreciation and amortization, and lease versus buy conditions within firms. This should make line item comparisons more valuable than in the past.
Key indicators which are computed from the data submitted include Revenue per Full Time Equivalent, Revenue per Charge Hour, Percent Chargeable, IT Support Ratio, IT Expense per FTE, and Percent of Revenue Spent on IT, and more.
A significant new feature this year is a hardware and software inventory, designed to help Circle firms find other Circle members who are using certain combinations of software, or those who use a particular brand of hardware. This will allow firms to contact one another to ask about compatibility issues, or simply the level of satisfaction with hardware and software in use.
All this data will be available on the Boomer Knowledge Network. Member firms can log on, view, and download the data weve collected. This is another important benefit of membership in the Circle program. If your firm isnt a member yet, contact Eric Hunt at 888-266-6375 (erich@boomer.com) to find out how you can join and share in this valuable resource.