adapt & prosper
DESCRIPTION
CONSULTANCY IN A CHANGING CLIMATE A WHITE PAPER SUMMARY OF DISCUSSIONS WITH BUSINESS LEADERS BY NICK CLOSE & MEL CHAPLAIN OF EPI INTERNATIONALTRANSCRIPT
ADAPT & PROSPER
CONSULTANCY IN A CHANGING CLIMATE A WHITE PAPER SUMMARY OF DISCUSSIONS WITH BUSINESS LEADERS
BY NICK CLOSE & MEL CHAPLAIN OF EPI INTERNATIONAL
EPI WOULD LIKE TO THANK THE ABOVE CONSULTANTS FOR THEIR HELP IN THIS STUDY
Neil Morecraft
Marc Roberts
Len Todd
John Atkinson
Stephen McComb
John Anfield
Martin Riddell
Rob Hines
James Sale
Ian Luke
Darren Mee
David Beck
Peter Jones
Anonymous Consultants
Mark Davies
Andrew Wilcock
Alasdair Robertson
Ihsan Al-Zanki
David Oldroyd
Fergus Ryan
George Ryder
Bruce Lewin
Liz Machtynger
Stephen Murphy
Bob Apollo
Mark Burnett
Kit Patel
Anne Morris
Marco Busi
CONTENTS 2 Thanks to Those Who Helped
3 Contents
4 Setting The Scene
5 Response to Q1: What Changes In The Marketplace Have You Observed In The Last Few Years?
8 Summary Q1
9 Response to Q2: Have You Made Any Strategic Changes To Your Consultancy Practice?
12 Summary Q2
13 Response to Q3: What Do You Think Consultancies Need To Do To Thrive?
15 Summary Q3
16 Response to Q4: What Do You Think About Strategic Alliances With Other Consultancies?
19 Summary Q4
20 Response to Q5: What Trends Do You Foresee Over The Next Few Years?
23 Summary Q5
24 Response to Q6: What Are Your Biggest Consulting Challenges?
27 Summary Q6
28 CONCLUSIONS
29 Contact Information
OVERVIEWThis White Paper shares qualitative research sought from practicing consultants Q1/2013, and can be read in depth word-by-word, or as a useful quick-glance guide by going to the ‘summary’ page for each question, or the ‘conclusions’ page at the end.
All pertinent responses have been reproduced verbatim, and at the end of each question section, the key points have been summarised to capture the main findings.
EPI has been helping reduce costs and improve efficiency
for over 20 years, and in that time its business model has
changed quite radically. EPI moved away from traditional consultancy and towards
software with service & knowledge transfer.
Over a period of years we developed software (with Warwick University) that captures consultant expertise and
method. The result is iCEO - a suite of software tools that radically increases the
speed and quality of analysis, and offers advantages to both consultant and clients for cost and ‘relationship’ results.
We created iCEO as it was the software we wanted, so we could more simply and
easily VISUALISE, ANALYSE, PRIORITISE & ACTUALISE cost reductions & process improvements.
As a consultant, the software speeds up and simplifies process; it integrates data
from disparate sources, and creates highly visual spend models that can be sliced and diced for deep drilling. Clients value
the speed of turn around, flexibility of the
data, and the ‘knowledge transfer’ that can be part of the software-with-service
package - delivering perceived ‘extra value & expertise’.
As we moved into phase three of our business model and efforts, we began to look increasingly outwards and across the
market place, and began wondering...
If EPI has been changing to meet the
changing market place, is the rest of the market doing the same to future proof itself?
As we were already connecting with like-minded consultants within forums and
LinkedIn, we thought ‘let’s make those LinkedIn transactions with others equally focused and create some research of real
value’.
So we did, and this White Paper is the
result - and will be the first in a series exploring and answering questions on trends, challenges and opportunities
within this sector.
We hope you find it insightful and useful,
and we welcome any feedback on this paper or suggestions for future papers.
4 / 29
SETTING THE SCENET
Q: WHAT CHANGES IN THE MARKET PLACE
HAVE YOU OBSERVED THE LAST FEW YEARS?
Clients want bespoke solutions at off the peg prices.
This in itself is nothing new, but combined with increased availability of knowledge from the web,
consultancy needs more than just tools & techniques to survive. Andrew Wilcock
The market valuing focus & domain expertise. If you can demonstrate you’ve got that, you can
command significantly rising day rates & fees. Bob Apollo
Customer demanding more added-value from the
consultants, and they prefer the hands-on approach. Ihsan Al-Zanki
I am of the opinion that the major clients markets
have tended to use ‘the big 4’ primarily so as to be beyond criticism from the analysts. In other words
consultancy has followed the same pattern as external accountancy. At the other end of the market, small businesses have shied away from
consultancy usage as pressure on funding has intensified - courtesy of the tough recession. Only
chronic under-performers and those with significant growth aspirations have continued to make full use of consultants, but the space has become crowded
courtesy of inter im management supply. David Oldroyd
5 / 29
I’ve experienced clients become more open &
receptive to our offerings as economic conditions have effected confidence and forced change.
I’ve also observed in larger organisations, career orientated people are concerned about not doing the wrong thing - they are risk adverse, less nimble
and generally don’t feel market changes as quickly as smaller companies. They may take consultancy
as an insurance policy to fall back on.
Whereas the smaller company feels the market pain more readily, and is often more nimble and open-
minded from this receptive position.
I believe the softer middle market is niche focus - if
consultants can evidence their credentials. Bruce Lewin
As the pressures on businesses increase, they are
looking at more and more initiatives to try and reduce costs. However, the return on investment is
even more heavily scrutinised than previously, and there are reservations on making big investments to truly transform processes, business & customer
propositions.
Whilst this may seem the right thing to do, after
engaging on such projects for the last 3/4 years, it has led to a lot of the ‘simple & easy to complete’ programmes on minimal budgets. Thus leaving
more complex - but arguably more vital changes - with little or no appetite to invest.
The positive to this approach is that it has reduced the number of ‘pet projects’ being engaged around business significantly; driven improvement and
reduced the operating costs of the business aligned with the challenges faced externally.
The down side is that it has led to a culture of extreme short term views - and apathy within business to suggest vital improvement, as they
know that unless it will return X with little or no spend, it won’t get funding.
This in turn has lead to work around processes: sticky plasters and local fixes being applied which increases the stress and strain on the floor.
Kit Patel
Noticeable is a tightening of the purse strings and a
greater emphasis on outcome based charging. For the most part, consultants are chasing a reduced
work pool of assignments with a consequential negative impact on rates. George Ryder
Decreasing fees & shorter projects. Marco Busi
A confusion between consultancy, interim and temporary management roles. Stephen Murphy
I see a tendency to make the most of internal consultants/contractors as opposed to going to the
‘big 4’ - this may be perceived as a way to limit costs. Anon
A major change for us has been a marked shift to International (now some 70% of billed hours) with
particular focus on build/consultancy mix. John Atkinson
The market place tends to have more consultants -
often people whose positions have been made redundant. Companies are tightening their belts in
the recession and not increasing their permanent headcount, so those that require an income are often forced into consultancy. Often these
consultants under cut on charges, and some do not deliver to the necessary standard due to lack of
understanding of corporate business.Anne Morris
Bigger bang for buck; less patience for journeymen
consultants; more leverage of who you know and track record; less reporting/writing & more delivery.
Mark Davies
Move away from the straight consultancy in Government where they would bring in consultants
to do general work. Much more is now in house.
Much more of a demand for specific specialist
expertise e.g. Lean, business change and delivering cost reductions.Stephen McComb
6 / 29
Principally, the UK market in particular has become
more competitive, but the line between consulting and contracting has become even more blurred
than during the previous ten years. This I believe is due to clients balancing the risk of direct employment against short term contractors and the
consulting community needing to compete for that type of work, just to survive.
Martin Riddell
There is more of a focus on: providing solutions rather than advice; implementation rather than
recommendations, and increased importance on sector/industry knowledge and expertise.
Anon
A great deal of consolidation of established, smaller and medium sized consultancies into bigger entities
by acquisition, merger or strategic partnerships. A number of good practices have lost their ‘identity’
as a result.
Many consultant practitioners, particularly the larger ones, have expanded their services without
having the genuine in house capability to deliver - they are trading on their old reputation, when it is
not entirely appropriate.
As companies down size due to the economic climate, there seems to be an increased need to
utilise consultancies to fill the gap left by a loss of knowledge and expertise - thus increased demand
for consultants.
There is a growing market in services which businesses have not traditionally carried as in house
expertise e.g. CSR, sustainability, diversity, IT support etc.
Ian Luke
Trends towards consumer focus, value for money, cost reduction, results driven environment (facts &
figures). Dave Beck
Clients reducing their consulting budget. Consulting fees being tied to results delivered. More creative billing propositions being offered by
consulting firms such as contingent fees etc. More firms eyeing the implement pie which means longer
projects.Anon
More reluctance of businesses to engage in longer
term developments. Instead they seem more interested in the short term, quick wins even when
they may see the merits of reviewing how they work through initial discussions.Rob Hines
Massive. Where on earth would I start?Peter Jones
Generic stuff is a bit past it - forget the big consultancy/high day rate model - it’s all about small, specific providers with something new to say.
Alasdair Robertson
7 / 29
SUMMARY
WHAT CHANGES IN THE MARKET PLACE HAVE YOU OBSERVED IN THE LAST FEW YEARS?
• Principally, the UK market is becoming much more competitive. Largely due to there being more players in the market place, and budgets being cut whilst expectations rise.
• Clients are expecting more ‘value’ in many ways - by results, service, expertise and fee structure. More and more, fees are tied to results, with greater focus on measurable outcomes & ROI.
• Projects have become shorter.
• Additionally, specialist knowledge & niche focus is being perceived as the benchmark of excellence, and expected to continue gaining gravitas.
• VALUE and SPECIALISM are the buzz words.
Q: HAVE YOU MADE ANY STRATEGIC CHANGES TO
YOUR CONSULTANCY PRACTICE?
We’ve become ever more narrowly focused on a market segment that we identify through a number
of common demographics, structural, behavioural and situational factors. As a result, we’ve become better at qualifying in/out more accurately and
earlier.
We’ve also moved away from day rate based fees to
value-based charging (this has helped boost the notional day rate significantly). Bob Apollo
Yes I have, and I’ve started to make alliances with other other consultants and consultancies.
Ihsan Al-Zanki
We are moving more towards knowledge transfer as this gives us the ability to help clients over a longer
time frame, imbeds knowledge within the company, and reduces the pressure on our internal resources - and from our perspective becomes a variable
(project) cost rather than a fixed cost. We are also looking at new business models for consultancy
delivery.Andrew Wilcock
Other than aligning our focus and resources to
further exploit the shift to international business, no further strategic changes.
John Atkinson
9 / 29
Pre 2008 I was happy to be small business focused.
Then I effectively had 2.5 years away from consultancy as MD of a small business. When I
returned to the market I found that interest in using consultants had declined markedly. In many instances, clients were preoccupied with cost rather
than value. I have therefore elected to sell my services as ‘contracted resource‘ rather than as a
consultant. David Oldroyd
Within the practice we have restructured ourselves
to focus on strategic objectives. But with the key difference of being the conscience of the internal
colleague and customer. Whilst supporting on the ground delivery, we have identified and developed a nucleus of consultants that can work with the
senior stake holders around the business, to identify and articulate a more holistic and longer term view
on change and transformation.
This proposition is being uniquely packaged by looking at ways to drive and deliver the short term
benefits. But rather than simply banking the savings, we are looking at reinvesting and longer
term benefits. This has meant further developing the ‘run-rate’ savings, cost profile, and revenue profile models (to provide a holistic end-to-end
view). In addition, challenging the structure from functional to value-stream based accountability; by
truly looking at the big picture and working of Organisational and Operational design. Kit Patel
Yes. Given my background (EDS, Perot Systems etc) my practice was very out-sourcing focused. Out-
sourcing in the interim has been a crowded market, as well as suffering from excessive commoditisation. I have since wound up my
company (1stadvisory Ltd ) and incorporated Advisorment Ltd under the commercial mantra of
‘manage, market, mentor‘ (website under construction). George Ryder
Yes. I’ve lost faith in the validity of the consultancy model basically. I’m turning my practice into more
of an investment company (investing in the results of the consultancy we deliver).Marco Busi
I originally set out trying to work with local SMEs
(Dumfermline, Scotland). I have put this on the back burner and will take suitable work anywhere
for anybody. I still have a preference for smaller sites and smaller organisations. I wish to develop a business base in Scotland.
Stephen Murphy
As an internal consultant I’ve seen more work come
into my team than expected. We have made a conscious shift away from sheep-dip training and taking over smaller projects to train the trainer
training, and taking over larger diagnostic pieces of work.
Anon
Not really. Eagle Partnerships, my business since 1996, has always operated in a flexible manner. It
has always been recognised by it’s ongoing customers as being an extension of their business,
and providing a cost-effective and excellent service. Winning 4 Wales operates in the same way.Anne Morris
Specialising in one area, instead of spreading our consultancy thinly: results in maximum focused
performance and reputation...we focus on the automotive engineering sector.Dave Beck
I have tried to make strategic change to my practice but have only limited success in moving into new
areas. You get labelled and people do not see beyond it. Also, there is a reluctance to have new eyes looking into a problem.
Lenn Todd
No, but I network harder, and always look to help
as many people as possible in the hope there will be a referral back. Mark Davies
Move to specialism rather than generic project management etc.
Stephen McComb
Yes. Focus early 2013 on product, and then message. Just as I would advise my own clients.
Peter Jones
10 / 29
In 2010 I made a strategic change to move Beech
Tree away from offering multiple programmes for several diverse audiences, to offering services in
just one niche area: business ethics - as per my website, which was redesigned to reflect this. This won me a major client.
John Anfield
Yes. We have moved into a more strategic delivery
position and have developed an overseas company (Australia).Martin Riddell
Yes. Huge changes and they are ongoing - plans are nothing, planning is everything and has to be
kept under permanent review. The essence of it all is further niching, deeper value, more innovation, increased ‘layering’ - a process by which the
customer experiences s implici ty but the competition encounters complexity.
James Sale
Refocusing on our core competencies and a mix of junior and senior recruitment.
Anon
Bearing Point are making more of a shift towards
complimenting traditional consulting with asset based consulting. By this we mean that we are investing in assets that can be sold as services -
many firms are doing this: this is a trend in consulting that has building for some years.
Marc Burnett
Working with channel partners - they wrap their services around 4G software.
Bruce Lewin
Many. Re-organisation of internal teams to better
staff projects. Stress on internal knowledge transfer, development of Intellectual Capital. M&A to gain new skills/clients quickly.
Anon
I am in the process of changing my approach to be
more relevant, tying together marketing and operational functions.Rob Hines
Yes - specialise in high value add analytics.Alasdair Roberton
11 / 29
SUMMARY
HAVE YOU MADE ANY STRATEGIC CHANGES TO YOUR CONSULTANCY PRACTICE?
• A large number of consultants and practices have, or are intending to identify their specialisms and create a market niche.
• Many are looking towards new business models: some delivering more ‘knowledge transfer’ as it engages clients for longer and delivers additional ‘value’. Others bringing in assets such as software that can be sold as service packages.
• The continued focus on ‘value’ is leading the change to value-based charging.
• Companies are strengthening core competencies, to deliver expertly and ensure value-based charging delivers back.
• Some are moving into overseas markets.
Q: WHAT DO YOU THINK CONSULTANCIES NEED
TO DO TO THRIVE?Dedication, commitment, enthusiasm, structure, top level CEO / GM drive and leadership.
David Beck
Certainly be flexible - and up customer care standards.
Anne Morris
In my opinion develop niche specialisms to enable
clients to select appropriate expertise from the marketplace. This also enables collaboration/consortia bids.
John Atkinson
Evolve and listen to customer requirements and
feedback.Ihsan Al-Zanki
Radically change their profit model (basically charging out younger / less experienced consultants
as a higher price). Marco Busi
Flexibility is key. Listen to your customers needs
and wants but also evaluate what their level of understanding is - could it be that they are not sure
of what you can offer? Sometimes it’s worth doing a smaller piece of work to showcase what can be achieved - then the interesting stuff follows,
assuming you have done a good job.Anon
13 / 29
Adapt to current market conditions and look
outside the UK - languages are key to making this work (and fortunately my practice has most of the
important European ones). George Ryder
The whole market has become ultra-conservative.
You have had to have succ ess in the potential clients industry to be considered.
David Oldroyd
In essence they need to focus, although telling a client you can’t help them but you know a man
who can goes against the grain. Obviously they need lots of tools and techniques, but the major
challenge is to gain trust from their client base, preferably with 3rd party white papers and quality recommendations from existing clients.
Andrew Wilcock
Be focused, be experts and be practitioners rather
than pontificators.Bob Apollo
Skills and expertise that will deliver against the
specific requirements such as cost reduction, resolving operational issues, resolving quality
issues.Stephen McComb
Track record; network of referrals; the Ronseal effect
- do what it says on the tin; no waffle or time wasting; the ability to introduce others of equal
pedigree if you can’t deliver or it isn’t your expertise; ability to get right inside the issue empirically and with fact, and execute/implement/
assist with recommendations.Mark Davies
Say NO more often. I believe that the difficulties experienced over the past few years have meant that some consultancies have accepted
commissions that do not align with their core activities - with the result they have diminished
their reputation in the market place. STORM has avoided this tactic with the consequence that we have advanced our brand, particularly overseas.
Martin Riddell
Religiously focus on adding value and providing
real solution to problems; develop sector/industry focus; recruit great people; deliver great work.
Anon
Only sell what they can genuinely deliver and ensure that it is done in a high quality manner.
Ensure that the product being offered is refined before trying to sell it. Where appropriate join with
others who carry truly complimentary skills to provide a seamless service, and take away the need for the client to manage the interface. Set realistic
timescales to deliver the end product/service and if possible try to beat those durations - but do not
promise optimistic and almost impossible deadlines.
Look for the smaller niche markets which
differentiate the service and genuinely provide something the clients will need/benefit from. Resist
the current trend to ‘sell what it looks like rather than what it is’.Ian Luke
Keep reinventing themselves and think of the value they can provide.
Anon
A difficult one to answer. If you are by yourself, do you compete with established businesses who have
teams and more collateral to invest in marketing and promotional activities. I guess find common
ground with strategic partners, but my answer to 4 alludes to how difficult this may be.Rob Hines
Partner, innovate, collaborate, be creative, offer value, deliver service.
Peter Jones
Have something new to say - quick, short, focused ‘micro consulting’ offers are what the market is
responding to.Alasdair Robertson
For large consultancies to prosper they need to be able to articulate what value they can bring over and above what the associate pool can deliver.
Many businesses are now enhancing their own internal capability to enhance their value
propositionMarc Roberts
14 / 29
SUMMARY WHAT DO YOU THINK CONSULTANCIES NEED TO DO TO THRIVE?
• Listen more & evolve to meet the customer and market.
• Align with your core competencies and only deliver high quality.
• Develop a niche and build these specialisms and expertise further.
• Be dedicated and structured, and always focusing on adding value.
• Look beyond the UK market.
Q: WHAT DO YOU THINK ABOUT STRATEGIC
ALLIANCES WITH OTHER CONSULTANCIES?
Eagle Partnerships has always worked and formed
strategic alliances with other consultancies. Winning 4 Wales operates the same policy.
Anne Morris
If knowledge and experience of the alliance business/personnel is known then it should be
explored in certain circumstances.David Beck
A positive opportunity. Key in my opinion is like- minded thinking, approach method and clear contractual arrangements.
John Atkinson
Why not. Consultants range from general business
to people like myself with very specific manufacturing skills. If you have similar shared
values then get in there and build on each others strengths. I have often thought of work as ‘adventures with my mates’ rather than something I
do to make money.Stephen Murphy
When right, fabulous! When wrong, catastrophic. We use a BS11000 approach to strategic partnership which facilitates clarity and a clear exit
strategy at the beginning of collaborative work.Martin Riddell
16/ 29
Depends on the scale and pedigree - the other
consultancy needs to deliver to your standard as a minimum.
Mark Davies
They don’t work because rarely 1+ 1 = 3Marco Busi
I truly believe that it is good and beneficial for all parties.
Ihsan Al-Zanki
Not convinced....ties yes, but alliances may sometimes work counter-productively. A better way
to see it would be looking at your USP and mapping which consultancies you need to have ties
in; which you need to have as allies; and which you are direct competition with. A bit of stress in the system is not a bad thing.
Anon
Great idea but the established ones are not that
interested unless you bring a client base and complimentary skill sets.George Ryder
I think this would be a beneficial thing in practice, as it leverages the experience and knowledge base
of a wider population. This allows for cross fertilisation of techniques and thinking across industry segments, and also leads to innovation.
The core skills in improvement and change management are common, but the application of
these cannot be a ‘one size fits all’ approach some of the ‘Big 4’ would suggest by the industry segment that they are working with. An example of this is
demonstrated by one of the recent engagements we had, where we worked with two external
consultancy services (one from the ‘Big 4’ - let’s call them ‘X’ . The other ‘Y’ has worked with them for years). The topic was regarding spans of control in
the operation, and X suggested an approach similar to what had been recommended with other FS
clients they had worked with. This was ‘sold’ to senior stakeholders on the credibility of X’s brand - whilst Y looked at the proposition, and having
insight of the business understood that the model simply can not be applied wholesale across a group
due to the nature of the work and systems requiring support. The pilot area was not successful with the
proposition X put forward, but with some minor
tweaks that X, Y and my team came up with, we demonstrated benefit to adopting a revised model.
Had X and Y worked together and leveraged each others strengths, it would have saved significant time and cost, and improved credibility as well as
relationships.
Another example of cross pollination of techniques
used in different industries can be seen in recent breakthroughs in the oil industry - as a direct result of the techniques used in medicine for a number of
years, thus proven and just requiring some adaptation.
Not only is this industry based, but there is also an element of learning from R&D in multiple areas that can be used in a segment other than where it is
being investigated.
Finally, I would question how well global
consultancy firms utilise best practices from around the world in tackling the challenges faced by their clients, and whether there is an opportunity to
leverage internal best practice as a stepping stone to strategic alliances.
Kit Patel
I am a fan of alliances but most of the market is not. It fails to recognise that the sum of all parts is often
better than the one whole. David Oldroyd
They can work, but informal tactical alliances are quick and easy to set up. More formal alliances are a bit of a challenge - size does matter here! In large
organisations systems will tend to be against them as it can take weeks to put together a memorandum
of understanding, which does not interfere or conflict with another persons project.Andrew Wilcock
We haven’t seen the value of partnering with other consultancies. We have seen value in partnering
with specialists in other related parts of the eco-system - for example, sales trainers, digital marketing agencies, and telemarketing companies.
They are all part of the ‘whole product’ and are all practitioners rather than consultants.
Bob Apollo
17/ 29
Only works if it is blind to the customer and is often
needed to meet a requirement.Stephen McComb
These are a good idea if they are genuinely complimentary, deliver a saleable package and a product that is of benefit to the client. Quality of
service must be equally as good from all parties in the alliance. If the reasons for the alliance are for
geographic or resource availability reasons then the need to ensure genuine quality of service from all parties is very important. For the clients sake, such
alliances need to be properly and legally set up even if the partners feel relaxed about the
relationship.
The reputation of a good consultant can be effected by who they team up with. An alliance that really
combines complimentary services under one banner can be a Godsend to a client who doesn’t
want the problem of interface management, if it is well delivered and properly managed.
Management of the alliance’s services needs to be
through one focal point to avoid conflicting messages to clients.
A genuine alliance will be more likely to succeed than those consultancies who sell a wider service but in truth can not deliver. They can enable
flexibility of operations to suit the market if managed correctly and thus more opportunities.
Ian Luke
Can be very useful, but it is vital that the value proposition is very clear and that ‘2 + 2 = 5’ !
Anon
If you are in a good niche, alliances are less
important. If you are in an alliance, it needs to be tightly formed.Bruce Lewin
M&A is the way for bigger organisations. Niche consulting firms do collaborate.
Anon
I have discussed this with several people over the past few years, but one of the biggest stumbling
blocks seems to be ‘who leads’ and ‘under whose brand’ and what the different levels of charging may
be. At the end of the day, it may be that it comes
down to trust - which can only come over time.
Maybe it depends on how you classify a
consultancy: is it someone who merely advises, or is it hands-on in development of projects or even in terms of providing a service through their expertise?
Rob Hines
We should see the emergence of virtual networks to
compete with the big boys.Peter Jones
All in favour - it’s what we thrive on.
Alasdair Robertson
18/ 29
SUMMARY
WHAT DO YOU THINK ABOUT STRATEGIC ALLIANCES WITH OTHER CONSULTANCIES?
• Above all, parties MUST deliver to the same standards & share values. Otherwise far from achieving enhancement, reputation will be diminished.
• Beneficial, especially in the emerging ‘niche’ marketplace, as it can leverage experience & knowledge.
• Clear contractual arrangements help it run smoothly and manage expectations. BS11000 supports collaborative working, and a clear exit strategy at the beginning of the collaborative work (excellent guidance can be found at www.bs1100.com).
• Bad experiences have put some off, whilst others create informal alliances as needed.
Q: WHAT TRENDS DO YOU FORESEE OVER THE
NEXT FEW YEARS?
I see a big need developing in my area as the
economy refocuses on manufacturing, and manufacturing is returned to the UK. There are more people as say, Head of Division nowadays,
who are just saying ‘continuous improvement - here’s the cash now just get on with it’ knowing
full well the cost benefits will be huge.
As manufacturing organisations have trimmed back on manpower, I think they will start to use good
quality, effective consultants rather than permanent staff to develop their organisations
Stephen Murphy
A further move from generalists to specialists with a
closer client focus upon measurable value delivery.John Atkinson
More emphasis on practices who can work abroad
and are adaptable. More risk sharing. More results based charging typically for defined pieces of work/
projects. George Ryder
Local business investment hubs, business skills hub,
practice leaders emerging.Peter Jones
20 / 29
I think organisations will need to become much
more flexible and speed up the route to delivery significantly to compete in the market place, where
customer expectations are shifting more rapidly than at any point in the past.
With more ‘kick starter’ organisations/enterprises
challenging the status quo; and more ’24/7’ always on; and instant gratification expectations - there
will be wholesale shifts in business models.
No one will be allowed to ‘rest’ on market share/successes of the past (e.g. significant negative press
and drop in share price for Apple for not pushing innovation enough with the iphone5; Microsoft
loosing global organisations from their client lists for Windows and Office support; Blackberry dip as a result of not meeting the speed of delivery of
competitors).
As such consultancy services will also need to help
organisations develop and change their approach and model. The key challenge for an organisation such as LBG (who are not early adopters and
relatively risk averse) is how to move forward and drive that change at a group level, given all the
challenges it faces. This is where astute consultancy services will be truly able to add value.Kit Patel
Given that HMRC get to a position that is equitable for all, then consultancy and interim usage should
increase as more and more businesses concentrate on their core skills and contract out change related costs.
David Oldroyd
The relative importance of the cost of labour will
decrease further and faster in comparison to the importance of the cost and availability of capital, which may mean less work for off-shoring
consultants and more work for manufacturing consultants. However, our manufacturing tends be
very productive (Nissan & Toyota for example) so the number of jobs returning will be a fraction of those needed to complete the same tasks in China
or India. As many companies now have Lean or Six Sigma as their process improvement systems, and
this is being forced down the supply chains, the next big leap will come with the growth in advanced manufacturing strategies. These will
include additive manufacturing, robotics and bio-
engineering which will produce models which are totally new.
Andrew Wilcock
Companies will move away from large consultancies and will use smaller contractors.
Ihsan Al-Zanki
Niche consultancies with a clear focus and
accumulated knowledge and best practice will thrive.Bob Apollo
Less cash to waste but money to invest in things that really make a difference.
Mark Davies
For STORM the future is clear. We will further develop our business in Australasia and continue to
deal with valued clients in the UK and elsewhere.Martin Riddell
An increase in company outsourcing, thus more opportunity for consultants. A wider range of possible functions that a consultant could provide.
A greater need for consultants to be wary of their clients from the point of view of professional
indemnity cover, even for the very best in the market as there is a growing trend for a more critical outlook to be taken by clients.
A lot more IT related consultancy products/services. An increase in corporate governance aspects of
consultancy. Solution based services will be more in demand. Greater competition between consultants.
Ian Luke
Ability to respond to the large gaps that will appear
as organisations realise they have lost a lot of staff but still need to deliver. Therefore efficiency and productivity of existing resources is going to be a
key skill and sales message.Stephen McComb
Increase in SaaS. Opportunities from globalisation and virtual working. Impact of disruptive technologies.
Anon
21 / 29
More of what I’ve written in response to the
question ‘what changes in the marketplace have you observed in the last few years?’
Anon
Potentially more consultants come into play, especially on the technology front. Admittedly,
advances in this field are great, but will it end up having a long term benefit if in the rush to get
ahead, management practices and customer experience are not taken into consideration or even ignored.
For example, I recently had some interaction with a content marketing company trying to get me
onboard as a customer OR form my point of view as a potential marketing solutions provider for my clients, as I had expressed a real interest in finding
out more about them from either point of view. Needless to say the whole experience was in the
main unprofessional and disappointing, as they failed to understand where I coming from and were disjointed in their approach. A business crying out
for some consultancy but do they care enough to do something about it.
Rob Hines
Big players becoming less relevant.Alasdair Robertson
There will definitely be a place for consultancies working with good practice and flexibility. We will
have to show the gain in productivity, profit, service etc therefore value for money.Anne Morris
More overseas contracts & huge reduction in skills base (all disciplines).
Dave Beck
Agile approach to customer demand, scalable solutions as more and more global companies
struggle to save on costs; doing more with less.Anon
22 / 29
SUMMARY WHAT TRENDS DO YOU FORESEE OVER THE NEXT FEW YEARS?
• Continuing move from generalist to specialist.
• Niche consultancies with clear focus.
• More focus on ‘value’ and consulting fees being tied to results delivered.
• Changing business models and creative billing propositions.
• Overseas opportunities.
• Opportunities as organisations move forward, and feel the gaps of previous staff loses - the space being filled by consultants.
• An increase in software/technology/SaaS.
Q: WHAT ARE YOUR BIGGEST CONSULTING
CHALLENGES?Growing my business in the next two years and
expanding my customer base. I am planning to evolve my specialisation to serve the market.
Ihsan Al-Zanki
Being in the right place at the right time. Resisting the temptation to undertake work at which we do
not excel.Martin Riddell
The next role; job; introduction - and the huge footprint of the big players who try to be all things to all men and their dog!
Mark Davies
Cash flow, work acquisition, technical (digital/
mobility) refreshment.George Ryder
Enough hours in the day to deliver all the work we
are being asked for - long may it continue!Alasdair Robertson
Fee structure.Neil Morecraft
Balancing time working in the business as opposed
to on the buiness.John Atkinson
Finding the money - investors or corporates.Peter Jones
Convincing the clients of the need to change to
achieve their objectives.Stephen McComb
24 / 29
Making sure we continue to generate more revenue
from our expertise - and creating sources of long-tail revenue.
Bob Apollo
Growing profitability, but quickly. Comes down to striking the balance between capacity and demand.
Anon
Consistent service quality. As the big guys expand
and acquire they use their name to edge out the smaller competitors, putting pressure on the smaller guys to be more innovative and economic. Finding
the niche market/getting the ‘edge’. Getting in the door as the number of consultancies grows and
grows.Ian Luke
Time is the biggest challenge, and balancing this
resource between selling, enabling and delivering projects. In theory it would be simpler just to
concentrate on selling, but that would mean I wouldn’t add value to the client (and it wouldn’t be interesting).
Andrew Wilcock
Find ways to get a foot in the door. Getting clients
to focus on value. Transferring skills into new markets. Keeping up with change and selecting where and how to develop USPs. Finding alliance
partners with a desire to play a different game. Most tend toward initially accepting work together
and then try to undermine the relationship by abusing it.David Oldroyd
Getting the right people.Anon
The single biggest challenge is how to transform business processes on shoe-string budgets, after many years of Lean and Sigma based improvement.
There are ways to do this, but it requires the ability to clearly articulate a vision and strategy,
communicate effectively at all levels, and manage conflicting priorities on a scale not previously experienced. This has to be combined with the
ability to inspire and lead with trust and confidence as well as suggest/sell the ‘radical’ in a way that it
does not feel daunting to the audience. In addition to this, having the right mix of skills, knowledge
and expertise within the team to execute and
deliver on the plans is a challenge - when there is a finite resource pool internally and cost pressures to
limit external spend (learning from the external consultants, and sharing the learning where possible is a must). Ensuring that you drive
improvement in the consultancy team, up skill, and share best practice/learning across a diverse remote
workforce is also a key focus area. Kit Patel
Growth
Marco Busi
Getting leads in Scotland and developing business
here. I find the business environment very very conservative.Stephen Murphy
Ensuring the results of consultancy shows true improvements and value and the consultancy is
prepared to be evaluated.Anne Morris
Easy - always client culture and behavioural
change.David Beck
Building enough credibility and network presence to be noticed or offering a number of services to underpin consultancy, either internally or though an
umbrella approach involving carefully selected suppliers.
Rob Hines
Simple. Very few projects.Len Todd
Obtaining the number of high quality Lean consultants. I have found using the associate
network a far better way of selecting the capabilities I need. This can also be 50% more cost effective than using a well known consulting partner, who
also pull from the same pool. Marc Roberts
Managing the pipeline.Anon
25 / 29
SUMMARY
WHAT ARE YOUR BIGGEST CONSULTING CHALLENGES?
• Work acquisition and growth.
• Balancing time between developing business and servicing existing business.
• Managing the pipeline and cash flow.
• When the market is short on projects, resisting the temptation to do work that you don’t excel at.
• Fee structure.
SO, IN CONCLUSION...
• The market place is crowded and competitive, and those thriving will stand out by quality, expertise and capacity to
show ‘value‘.
• That ‘value‘ and the measurable results delivered will be tied to fees.
• Increasingly, knowledge transfer will become part of the consulting service, as will software.
• Technology will advance speed and process, enhance the client offering, and become part of the extended value-
package that includes knowledge transfer & software as a commodity to sell on.
• As the consultants ‘niche’ more and more, strategic alliances will grow if standards and values match.
• Natural worldwide market convergence - brought about by technologies - may see many more companies looking
beyond the UK.
• All sole practitioners and consultancies share common challenges with fewer and shorter projects, and balancing
time between developing business and delivering to clients.
• Growth was a challenge shared by all.
• Growth would seem to depend on all of the elements above.
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