1. Caribbean Export/CICMC: Management Consulting Industry Report Management Consulting Business Symposium 2 St. Kitts & Nevis 29 June 2010

2. Project Description Aims Profile management consulting industry Strategy for development of the industry Goals Help local consultants access regional/external markets Stronger industry to support development of region Process Local surveys of suppliers and purchasers of services in: 1.The Bahamas 2.Barbados 3.The Dominican Republic 4.Jamaica 5.The OECS (Antigua and St. Lucia) 6.Trinidad & Tobago 7.Martinique Draft report based on supply/demand gaps

3. The Market: Spending Amount Spent Yearly (US$) Percentage of Respondents Mid-point Value (US$) Share of Market Value $10,000 - $19,99936%$15,0003% $20,000 - $49,99918%$35,0003% $50,000 - $99,99913%$75,0005% $100,000 - $249,99914%$175,00012% $250,000 - $499,9996%$375,00012% $500,000 or more13%$1,000,00065%

4. The Market: Approach to Consulting Few projects: consulting valuable add-on, not part of business model High value spend on strategy or systems, smaller amounts on process-type services Although small/young businesses need strategy, most spend on process services: need to show benefits to develop this market

5. The Market: Performance Satisfied + very satisfied: ▫ Locals: 82% ▫ Regional: 82% ▫ Extra-regional: 72%

6. Management Consulting Industry Profile 64% 1-4 employees, 82% 9 or fewer

7. Management Consulting Industry Profile Productivity critical indicator of profitability Productivity benchmarks: 2xsalary min, 3x good, 4x very profitable 2 groups exist: 1-new/struggling firms, 2-mature firms Revenue in 1-4 Employee Group (Average of 1.45 professional staff) Revenue Bracket % in Revenue BracketMidpoint Revenue per Employee $10,000 - $19,99930%$15,000$10,323 $20,000 - $49,99926%$35,000$24,086 $50,000 - $99,99926%$75,000$51,613 $100,000 - $249,99913%$175,000$120,430 $250,000 - $499,9995%$375,000$258,065 $500,000 or more0%--

8. Supply/Demand Implications 65% of market value in large assignments, but only 13% of number of clients 54% of clients spend under US$50K annually ▫ Two-tiered market, weak middle Quality issues thrown up by Group 1 firms ▫ Need for skills development Flight to safety: big names on big value projects, small local firms pushed out ▫ Need for quality assurance-CMC Still hard for Group 2 firms to tap top segment ▫ Need for market development/intelligence, alliances

9. Demand Side Recommendations Develop market for higher value consulting, particularly strategy consulting ▫ Focus on MSME market to help small consulting firms ▫ Will help fill in weak middle Need to educate customers on benefits of consulting, process and reasonable outcomes ▫ To do this use active (workshops, newsletters) and passive (information packages) techniques ▫ CICMC could provide consulting services to BSOs serving MSMEs; act as business cases and learning opportunities

10. Supply Side Recommendations Marketing BDS: Benefit all firms ▫ Opportunity identification: Centralise gathering of market intelligence, advise on market trends ▫ Improve positioning in key marketing channels: Alliances between Caribbean firms, partnering with extra-regional firms (member directory) ▫ Guidance in preparing marketing material ▫ Guidance in responding to tenders Professional BDS: Benefit Group 1 firms ▫ Develop technical and consulting competency, CMC and advisory services ▫ Advice on defining service offering, consulting operations (setting fee rates, management systems) ▫ Provide quality assurance supplementing CMC

11. Implementation CICMC to lead implementation, support from CE, form strategic alliances with national industry associations where they exist ▫ Appoint a Strategy Director to act as point person, draft implementation plan based on Strategy ▫ Lobby on behalf of industry in ongoing initiative to regulate management consulting Goal is sustainability: Need for CICMC to become service driven industry association, eventually decrease role of CE ▫ Self-reliant associations: membership fees, fee-based services, professional/promotional events

12. Thank you