Prioritizing Client Needs Finding the proper balance between Internal and External Consultants Steven A. Clark Strategy, Policy & Analysis NJ TRANSIT

AIMC Take Care of Your Customers Managing a successful internal consulting organization means taking care of your customers. Or someone else will!

AIMC Take Care of Your Customers Customer needs change over time. Your business offerings must adapt to meet new needs. Or your group may become obsolete!

AIMC Competition / Cooperation It’s not about Internal versus External Consultants. It’s about blending Internal and External Consultant roles. To achieve maximum results!

AIMC Core Business Functions Find the right balance between internal and external consulting resources in your business development strategy to be sure you are prepared to meet changing customer needs.

AIMC NJ TRANSIT Statewide public transit agency $1.3 bil. operating / $2 bil. capital budget 10,000 employees Bus, Rail, and Light Rail transit services More than 400,000 daily riders Assist private carriers, county and local governments, and mobility disadvantaged clients as well

AIMC Strategy, Policy & Analysis Management Engineering & Analysis created in 1992 within Engineering Dept. Early projects focused on operations staffing – train crews, bridge operators, classic IE reviews Added Energy Conservation Program in 1995 Demand Side / Supply Side

AIMC Strategy, Policy & Analysis Program expanded to ad hoc projects dealing with organizational design and operations analysis in 1997 Customer satisfaction added in 1998 Management Analysis to COO in 1999 Led corporate wide business process improvement program in 2000 (AP, njtransit.com, maintenance systems)

AIMC Strategy, Policy & Analysis New ED in 2002 tasked group to staff Efficiency Task Force & McKinsey review - $30 million Involved in Customer Service & Technology Task Forces Reorganized in 2003 into Strategy, Policy & Analysis Department

AIMC Survival Our internal consulting group has survived four Executive Directors in as many years We have contributed more than $100 million in direct budget savings Demand for our services is at an all time high

AIMC Strategy, Policy & Analysis Current Responsibilities: Strategic Plan Economic Forecasting Rates & Ridership Market Research Policy GIS Management Analysis

AIMC Why? Flexible consulting capabilities Offer internal & external resources Ability to address company needs quickly “On Call” service contracts Internal staff development Strong focus on corporate mission Change management Performance improvement

AIMC Business Direction Factors to consider for specific business situations: Leading / Lagging Business Short Term / Long Term Relationship / Trust / Independence Organizational Knowledge

AIMC Business Direction Leading / Lagging Businesses Six SigmaTQM eCommerceLegacy Systems Customer SatisfactionDownsizing

AIMC Business Direction Short Term / Long Term Support Function Core Business Project BasedProcess Based Mature Market Emerging Market

AIMC Business Direction Relationship / Trust / Independence Intimate business knowledge Reaping, not raping Fair and in the company’s interest Focused – relevant, realistic solutions

AIMC Business Direction Industry Intelligence Outside perspective Out of the box solutions Best practices Innovations

AIMC External Resources Understand when external consultants are the perfect fit for your business needs. Special projects Expertise Peak demand Internal staff development

AIMC Core Business And when they’re not. Core competencies Long term business support In house expertise Anchor stores

AIMC Selection Criteria Factors to consider in selecting internal and external consultants: Cost Ramp up time Duration Direction (emerging business)

AIMC Partnerships Strategies for success when working with external consultants. Knowledge transfer Professional service management Readiness to assist - nimble

AIMC Consulting Engagements Governor’s Management Review Commission 18 Departmental Reviews Big 6 Firms 29 Cross Cut Issue Task Forces Government Managers Private Sector Loaned Executives

AIMC Consulting Engagements External Energy Consulting Roles Audits Strategic Plan Commodity Trading External Energy Consulting Roles Procurement Administration Project Delivery R & D

AIMC Consulting Engagements On Call Consulting Process Improvement (AP) Technology (Web) Business Requirements (HR) Operations Analysis (LRT)

AIMC Consulting Engagements McKinsey Review Short term duration / fixed price Cost reduction, not strategic engagement 30,000 foot perspective Knowledge transfer = one way street Fratricide

AIMC Summary Internal and External Consultants both serve important roles Find emerging business needs and become involved Use externals to help develop staff capabilities in new practice areas

AIMC Summary Don’t let past successes make you too comfortable Take advantage of the AIMC and other professional groups to identify emerging consulting trends and develop skills Constantly evolve your service offerings – phase out old horses, ride the strong ones, and nurture new practice areas