Presentation on theme: "How Much Value Do Consultants Add to Their Clients? Analyses suggest that consultants add value in three ways: – They provide specialist knowledge that."— Presentation transcript:
How Much Value Do Consultants Add to Their Clients? Analyses suggest that consultants add value in three ways: – They provide specialist knowledge that helps clients take better decisions. – Their experience in project delivery helps clients execute their plans more effectively and efficiently. – The skills of individual consultants improve the capability and team work of managers in client organizations. A UK analysis (from 2010) shows that the average value consultants add to their clients is ten times the fees paid!
The Need for Innovation & Renewal -Increased focus on innovation and new services as a parameter for differentiation -Co-creation as a key vehicle with clients and other knowledge partner -Consulting services for innovation seems to be lacking
Global Touch - The Mindset of Globalization -Global mindset as a minimum -Increased globalization also among tier-2 firms -Reverse consulting as a driver
Pricing as a Competitive Parameter -Fee rates are dropping substantially -A breakthrough for new fee structures (more value based fees and new incentive models - Pay performance) – Clients articulate the need, but are they willing to embark on new models?
The Technology Chain -Don’t expect internet based consulting to increase but the internet has substituted some consulting -Technology as a key driver for the consulting demand -The cloud as driver for IT consulting
Renewal of Marketing & Sales -80 % of the staff (in most firms) cannot sell – new modes needed -Towards more value based marketing -From ‘best practice’ to ‘next practice
Modes of Managing the Firm – More focus on the value of ‘decent’ leadership – Attracting, developing and retaining talents as a key – New modes of expertise seems needed – A new speed of change is also needed within the consulting firms – Keep track
What Motivates Professionals? The top motivator of performance is: Progress! “On days when workers have the sense they are making headway in their jobs, or when they receive support to overcome obstacles, their emotions are most positive and their drive to succeed is at its peak. On days when they feel they are spinning their wheels or encountering roadblocks to meaningful accomplishment, their mood and motivation are lowest.” HBR 2010
A Myth in PSFs: Professionals Don’t Want to be Led! ”Clever people have one characteristic, it is that they do not want to be led. This clearly creates a problem for you as a leader.” Goffee & Jones, 2007 This can be challenged. It’s more a question of what type of management the professionals are exposed to………………….
Ability of leaders to create and sustain enthusiasm (not just compliance) in others Lesson: To obtain superior returns you don’t watch the money. You watch (and manage) the things that produce the money! Energy, excitement, enthusiasm among all providers Consistent excellence in quality and client relationships Financial success What Produces Superior Profit?
Towards the Future: Keep an Eye on…….. Clients Competitors Cooperation Changes Competencies Communication Conduct Cash Crew Commitment