2. WEBINAR Selecting And Managing Your Management Consulting Firms Marc Cecere, Vice President, Principal Analyst September 8, 2015. Call in at 12:55 p.m. Eastern time

3. © 2015 Forrester Research, Inc. Reproduction Prohibited3 We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

4. © 2015 Forrester Research, Inc. Reproduction Prohibited4 Agenda › Definition and frequency of business transformations › Most important factors in selecting and managing consultancies › Biggest mistakes by consultancies

5. © 2015 Forrester Research, Inc. Reproduction Prohibited5 What is a business transformation? › A business transformation involves fundamental changes to major business processes, structure, models, and culture. › Most transformations require: Major system and/or technology changes. Changes in structure, incentives, and roles. Dedicated teams crossing organizational silos.

6. © 2015 Forrester Research, Inc. Reproduction Prohibited6 “Is your firm currently undergoing a business transformation? If not, has it recently completed one?” Source: Forrester’s Business Technographics ® Global Business And Technology Services Survey, 2014 Base: 1,532 global business and technology decision-makers Half have recently completed or are in a business transformation. See slide 9

7. © 2015 Forrester Research, Inc. Reproduction Prohibited7 “Is your firm currently undergoing a business transformation? If not, has it recently completed one?” Source: Forrester’s Business Technographics ® Global Business And Technology Services Survey, 2014

8. © 2015 Forrester Research, Inc. Reproduction Prohibited8 “Which of the following business objectives are or were the key drivers of your firm’s most recent business transformation project?” Source: Forrester’s Business Technographics ® Global Business And Technology Services Survey, 2014 Base: 841 global business and technology decision-makers See slide 9

9. © 2015 Forrester Research, Inc. Reproduction Prohibited9 “Which of the following business objectives are or were the key drivers of your firm’s most recent business transformation project?” Source: Forrester’s Business Technographics ® Global Business And Technology Services Survey, 2014 Base: 841 global business and technology decision-makers

10. © 2015 Forrester Research, Inc. Reproduction Prohibited10 “How do you expect your spending with third-party business/management consultants, digital agency, or technology services providers to change over the next 12 months?” IncreaseDecrease Source: Forrester’s Business Technographics ® Global Business And Technology Services Survey, 2014 Decrease more than 10% Decrease 5% to 10% Increase 5% to 10% Increase 10% to 20% Increase more than 20% About the same IT decision-makers (n = 454) Business decision-makers (n = 219)

11. © 2015 Forrester Research, Inc. Reproduction Prohibited11 “What do you see as the primary benefit of using business/management consultants, digital/interactive agencies, or technology services providers?” Source: Business Technographics Q3, 2014 Enterprise Services Survey NA, EU, and AU/NZ

12. © 2015 Forrester Research, Inc. Reproduction Prohibited12 “In which of the following areas do you expect to use management/business consultants over the next 12 months?” Source: Business Technographics Q3, 2014 Enterprise Services Survey NA, EU, and AU/NZ Base: 259 global decision-makers

13. © 2015 Forrester Research, Inc. Reproduction Prohibited13 “How satisfied are you with the management/business consultants that you have used over the last 12 months in each of the following areas?” (Showing rating of 4 and 5) Source: Business Technographics Q3, 2014 Enterprise Services Survey NA, EU, and AU/NZ

14. © 2015 Forrester Research, Inc. Reproduction Prohibited14 “Which of the following criteria are most important to you when selecting a third-party business/management consultant?” (Select up to 5) Source: Business Technographics Q3, 2014 Enterprise Services Survey NA, EU. and AU/NZ

15. © 2015 Forrester Research, Inc. Reproduction Prohibited15 “Which of the following criteria are most important to you when selecting a third-party business/management consultant?” (Select up to 5) Source: Business Technographics Q3, 2014 Enterprise services survey NA, EU, and AU/NZ Base: 482 global decision-makers

16. © 2015 Forrester Research, Inc. Reproduction Prohibited16 “Which of the following are your biggest challenges with your existing third-party business/management consultants, digital agency, or technology services providers?” (Select all that apply) Base: 673 global decision-makers Source: Business Technographics Q3, 2014 Enterprise services survey NA, EU and AU/NZ Cost savings are lower than expected. Inability to deliver the project as specified Insufficient business process expertise Lack of innovation Insufficient technical expertise Inflexible regarding changing, volume, scope, business needs, or pricing Insufficient industry expertise Can’t translate technical vision into a coherent business value proposition Uncertain which contracting/business model meets our needs Insufficient customer experience expertise

17. © 2015 Forrester Research, Inc. Reproduction Prohibited17 “Which of the following are your [business unit’s] [IT department’s] biggest challenges with your existing third-party business/management consultants, digital agency, or technology services providers?” (Select all that apply) Source: Business Technographics Q3, 2014 Enterprise Services Survey NA, EU, and AU/NZ

18. © 2015 Forrester Research, Inc. Reproduction Prohibited18 Most important factors from references › Previous history and brand › Trust › Attention from consultancy › Industry knowledge (both high level and for specific areas) › Value as the measure rather than cost “Attention from our consultant was stretched thin.” “Big gap between key stars and most of the people doing the work.” › Some areas of growing impact like change management and cloud › Getting the right level of assertiveness › Reusable assets and methodology are table stakes “Originally thought of Infosys as just Indian integrators. ” “They stepped it up, but had to be asked.”

19. forrester.com Thank you Marc Cecere +1.617.613.6083 mcecere@forrester.com