Presentation on theme: "Strategic Planning And Organizational Design For Management Consulting Firm In Vietnam Nguyen Anh Tuan (EHM029431) Dr. Fredric William Swierczek (Chairman)"— Presentation transcript:
Strategic Planning And Organizational Design For Management Consulting Firm In Vietnam Nguyen Anh Tuan (EHM029431) Dr. Fredric William Swierczek (Chairman) Dr. Shingha Chiamsiri Dr. Willi Zimmermann Student: Committee:
Slide 2 Problems Supply-side problems Firms are new and small in sizes Few thoughtful services provided, majority of business supporting services Lack strategic direction, consulting skills, experience and specialization, poor marketing Demand-side problems Low usage or demand Low awareness and understanding of consulting service value Regulation problems Information control Complicated procedures in hiring foreign consultants Forbid individual consultants Unclear regulation for consulting market
Slide 3 Objectives Overall objective To improve performance of local consulting firms Specific objectives To review literature on international practice in managing consulting firm To review literature on strategic planning and organizational designs applicable to consulting firm To review international management consulting market To review Vietnam consulting market To develop a framework for strategic planning and organizational design for consulting firms in Vietnam Method Secondary and primary researches (much on qualitative)
Slide 4 Vietnam Consulting Market Firm’s profile –Over 100 firms including FDI, SOE, SME: Small in size, majority below 15 staff –Individual consultants from universities, research institutions, government agencies, etc. Service lines –Strategic management and functional strategy consulting services (low usage; often bought by FDI, donors, large SOE) –Business support services (higher usage) Challenges –Demand-side, supply-side and regulation challenges (presented as problems above)
Slide 8 Mission, Objectives Mission: “Our mission: KPMG is the global network of professional services firms whose aim is to turn knowledge into value for the benefit of its clients, its people and its communities.” (KPMG) “Our mission: To help our clients make distinctive, lasting, and substantial improvements in their performance and to build a great firm that attracts, develops, excites, and retains exceptional people.” (McKinsey&Company) Objectives: Should be targeted to the three goals of a consulting firm: (i) client services, (ii) staff satisfaction, and (iii) profitability.
Slide 9 Corporate Strategy Diversification Vertical integration Single business Consulting firms Single business Mix of service lines and industries Strategic alliance, networking Leverage or select specific service group to focus (portfolio)
Slide 10 Business Strategy Cost leadership strategy Low price, low level of differentiation, easy to imitate by competitors, ignore clients’ taste. Majority of local firms in Vietnam follows this strategy by providing supporting consulting services. Differentiation strategy Unique service satisfying clients’ need (foreign clients, donor projects) which could not be easily offered by competitors. Be able to charge premium price considerably above industry’s average. Little firms in Vietnam follow this strategy, except some foreign firms. Focus strategy Serve a limited client group or segment by geography, by type of clients, or by service lines or industries. Focus on differentiation or cost-leadership after choosing market segment.
Slide 13 Other Strategic Issues Global strategy, strategy in embryonic market Operations in other underdeveloped countries (Laos, Cambodia). Pioneers and innovators could earn high profits in embryonic market. Policies, procedures, guidelines Practice management manuals/ Client service policies and procedures/ Quality management policies/ HRM (Recruiting, retaining, promotion, compensation, training, etc.) policies and procedures, etc. Evaluation and control systems To measure efficiency, quality, innovation and client responsiveness. Consulting firms should develop measures with focus on three goals under concrete procedures.
Slide 14 Strategy In Action (1/2) oImage and reputation building Through engagements with efficiency, quality, innovation and client responsiveness oEffective marketing and sales Market intelligence Client planning and segmentation Selected initiatives (seminar, speech, writing, etc.) to generate leads or interests Push or direct marketing tactics through engagement teams, relationships, partnerships, etc. Business development with accountabilities, responsibilities and rewards
Slide 15 Strategy In Action (2/2) oLeverage Right people Right work Right incentives and fee oCapability Build up core competencies