Chapter 13: Structuring the Practice
Introduction
Your manufacturing IT practice just crossed $5M in annual revenue with three automotive tier-1 clients and 2 major implementations underway. Great news—until your top solution architect gives two weeks' notice. He's the only one who understands the complex SAP-to-Rockwell integration architecture you're deploying across 8 plants. Losing him could derail $2.3M in active projects.
This is what happens when practices are built on heroes instead of systems.
Successful manufacturing IT practices institutionalize knowledge, templatize delivery, and build repeatable capabilities that don't depend on individual heroes. This chapter provides the blueprint for building a scalable, profitable manufacturing IT practice.
13.1 Practice Organization Models
Table 13.1: Practice Structure Options
| Model | Structure | Best For | Pros | Cons |
|---|---|---|---|---|
| Vertical Silos | Separate teams per vertical (Automotive, Pharma, F&B, etc.) | Deep vertical expertise; 50+ consultants | Deep domain knowledge; credible to buyers | Difficult resource sharing; duplicate capabilities |
| Horizontal Capabilities | Teams by technology (MES, ERP, Data, Security) | Broad portfolio; tech-led approach | Easy to hire; clear career paths | Lack manufacturing domain depth |
| Hybrid Matrix | Vertical account teams + horizontal CoEs | Most versatile; 30+ consultants | Balance domain + tech expertise; efficient resource use | Complex; matrix management challenges |
| Pod Model | Cross-functional pods (domain + tech + delivery) | 10-30 consultants; project-based | Clear ownership; accountability | May duplicate skills across pods |
Recommended: Hybrid Matrix for practices with 30+ consultants serving multiple verticals.
13.2 Key Roles and Responsibilities
Table 13.2: Core Practice Roles
| Role | Count (per 50 consultants) | Responsibilities | Key Skills |
|---|---|---|---|
| Practice Lead | 1 | P&L ownership, strategy, partnerships, talent | Manufacturing + business + leadership |
| Vertical Leads | 2-3 | Domain expertise, client relationships, sales support per vertical | 15+ years manufacturing in vertical |
| Solution Architects | 5-7 | Design, integrations, technical leadership | MES/ERP/PLM + IT/OT + architecture patterns |
| Delivery Managers | 8-10 | Project management, client delivery, quality | PMP + manufacturing domain + people skills |
| Manufacturing SMEs | 10-15 | Domain expertise (quality, supply chain, OT) | Plant floor experience + specific domain |
| Technical Consultants | 20-30 | Development, testing, configuration, support | Technology + willingness to learn manufacturing |
13.3 Centers of Excellence (CoEs)
Table 13.3: Manufacturing IT Centers of Excellence
| CoE | Charter | Deliverables | Team Size |
|---|---|---|---|
| Integration CoE | IT/OT integration patterns, accelerators, best practices | Reference architectures, connectors, playbooks | 3-5 |
| Data & Analytics CoE | Data platforms, historians, dashboards, ML/AI | Data models, pipelines, KPI packs | 4-6 |
| Cybersecurity CoE | OT security architecture, assessments, compliance | Security frameworks, assessment tools, training | 2-4 |
| Quality Excellence CoE | QMS, SPC, compliance, validation | Validation protocols, inspection templates | 2-3 |
13.4 Talent Acquisition and Development
Table 13.4: Hiring Strategy
| Profile | Where to Find | Interview Focus | Typical Comp (US) |
|---|---|---|---|
| Manufacturing SMEs | Retired plant managers, LinkedIn, industry associations | War stories, problem-solving, communication | $120K-$180K |
| Solution Architects | SI firms, vendor partners (Rockwell, Siemens, SAP) | Architecture skills, client presence, integrations | $150K-$220K |
| Delivery Managers | Consulting firms, manufacturing IT vendors | Delivery track record, client mgmt, rigor | $130K-$190K |
| Technical Consultants | Bootcamps, universities, technology training programs | Aptitude, willingness to learn, technical depth | $80K-$140K |
Training Investment: $5K-$10K/person/year for certifications, conferences, and internal training.
13.5 Knowledge Management
Table 13.5: Knowledge Assets to Build
| Asset Type | Examples | Ownership | Refresh Cycle |
|---|---|---|---|
| Reference Architectures | SAP-MES integration, Data platform blueprints | Integration CoE | Quarterly review |
| Playbooks | MES implementation, Quality pilot, Security assessment | Delivery Managers | After each project |
| Accelerators | Connectors, data models, dashboard templates | CoEs | Continuous |
| Case Studies | Client success stories with metrics | Marketing + Vertical Leads | Bi-annual |
| Lessons Learned | Post-project retrospectives | Delivery Managers | After each project |
13.6 Partnerships
Table 13.6: Strategic Technology Partnerships
| Partner | Value | Investment | Certification Requirements |
|---|---|---|---|
| Rockwell Automation | MES, SCADA, controls access | 3-5 certified consultants; $50K+ annual | FactoryTalk certifications |
| Siemens | MES, PLM, controls ecosystem | 3-5 certified; $50K+ annual | Opcenter, NX certifications |
| SAP | ERP for manufacturing | 5-10 certified; $100K+ annual | SAP S/4HANA Manufacturing certifications |
| Microsoft | Azure, Power Platform, Dynamics | 5-10 certified; Azure consumption | Azure + Dynamics certifications |
| AWS | Cloud, IoT, ML/AI services | Consumption-based; 3-5 certified | AWS IoT, SiteWise certifications |
13.7 Financial Management
Table 13.7: Practice Economics (Target Metrics)
| Metric | Target | How to Calculate | Why It Matters |
|---|---|---|---|
| Revenue per Consultant | $250K-$350K | Annual revenue ÷ billable headcount | Productivity indicator |
| Utilization Rate | 70-85% | Billable hours ÷ available hours | Efficient resource deployment |
| Gross Margin | 35-50% | (Revenue - direct costs) ÷ Revenue | Profitability before overhead |
| Project Margin | 25-40% per project | Actual margin vs. sold margin | Delivery efficiency |
| Sales Pipeline | 3-5× annual revenue target | Qualified opportunities value | Pipeline health |
| Customer Retention | 85-95% | Clients renewed ÷ total clients | Client satisfaction |
13.8 Go-to-Market Strategy
Table 13.8: Demand Generation Tactics
| Tactic | Investment | Expected ROI | Timeline to Results |
|---|---|---|---|
| Industry conferences (e.g., Automation Fair, Hannover Messe) | $20K-$50K/event | 3-10 qualified leads | 3-9 months |
| Webinars / thought leadership | $5K-$15K/quarter | 5-15 leads/webinar | 1-6 months |
| Account-based marketing (ABM) | $30K-$80K/year for 10-20 target accounts | 2-5 wins/year | 6-18 months |
| Partner co-marketing (with Rockwell, Siemens, SAP) | $10K-$30K/campaign | 5-20 leads | 3-12 months |
| Referrals from existing clients | $0 (relationship investment) | 1-3 deals/year | 3-6 months |
| Case study + PR | $10K-$25K/story | Brand credibility; indirect pipeline | 6-12 months |
13.9 Scaling Stages
Table 13.9: Practice Growth Stages
| Stage | Revenue | Team Size | Key Focus | Challenges |
|---|---|---|---|---|
| Startup | $0-$2M | 3-8 | Win first clients; prove value; build credibility | Cash flow; talent; references |
| Emerging | $2M-$10M | 8-25 | Scale delivery; hire specialists; build accelerators | Quality; process; knowledge transfer |
| Growth | $10M-$50M | 25-100 | Vertical specialization; partnerships; managed services | Margin pressure; talent retention |
| Enterprise | $50M+ | 100+ | Global delivery; offshore capability; platform thinking | Bureaucracy; maintaining culture |
Chapter Summary
Successful practices balance domain expertise, repeatable delivery, and scalable business models. Key principles: institutionalize knowledge (not heroes), invest in partnerships and certifications, track financial and delivery metrics rigorously, and grow vertically before expanding horizontally.
What's Next?
Chapter 14: Solution Accelerators and Frameworks details how to build reusable assets (connectors, data models, templates) that reduce delivery time 40-70% and enable fixed-price engagements.