Balancing work: bidding strategies and workload dynamics in a project-based professional service organisation

Project-based professional service organisations supply tailored, one-off projects to individual clients. Specific types of client relationships and the non-routine, creative nature of work combine to make management of these businesses particularly demanding. A common challenge is managing resources across a fluctuating workload. it is usually assumed that external dynamics dictate workload and the scope to manage resources. Firms often accept these conditions believing that there is little they can do to moderate fluctuations. This paper examines the internal causes of workload fluctuation showing that approaches to acquiring work can create significant future problems. A system dynamics model is developed to explore resource deployment and the interaction between business and project processes. We find that it is possible to make a significant difference to workload fluctuations and resourcing if internal factors are considered and managed. The paper concludes by showing that a bidding strategy using staff not currently engaged in project work is superior to having a dedicated work acquisition department as long as the project pipeline and resource requirements are properly considered. In some circumstances, firms are better to do nothing, leaving staff idle, than to bid for and win new work. Copyright (c) 2006 John Wiley & Sons, Ltd.