1. Moscow February 2006 PS ICMCI The current status and trends of the Management Consultants’ Profession Presented by Peter Sorensen ICMCI Chairman

2. Moscow February 2006 PS ICMCI A presentation made for the Danish Management Board by Professor Flemming Poulfelt, Copenhagen Business School 11.januar 2006 Adapted by Peter Sorensen for National Institute of Certified Management Consultants Russia

3. Moscow February 2006 PS ICMCI Questions 1.What is current status for consultants’ profession in 2006? 2.In which direction are consultants moving? 3.What is important for clients when using consultants? 4.How to secure that cooperation creates values? 5.Which dilemmas do consultants face? 6.Which challenges are next?

4. Moscow February 2006 PS ICMCI

5. Consultants Profession 2006 - An actual picture 1 Expected Growth above 10% p.a. Focus on assignments and projects creating visible value Intensive price competition Development of new services such as real outsourcing IT heats up again, with tough competition Buzzwords not enough, classical services again necessary

6. Moscow February 2006 PS ICMCI Consultants Profession 2006 - An actual picture 2 Strategy is partially changing, focus on development of management, organisation and competency Operational Management is hot stuff (e.g. lean) Innovation delivered by consultants is not much wanted Knowledge of the specific business areas in higher demand Value based consulting is desired New fee structures offered?

7. Moscow February 2006 PS ICMCI Consultants Profession 2006 - An actual picture 3 Tougher competition for experienced and professional consultants Some street traders (”transitional consultants”) in the market Increased requirements for future consultants profile regarding professionalism, business acumen, communication and presentation Clients demand: Principles to make daily operations more efficient (and implemented) and to increase their competencies

8. Moscow February 2006 PS ICMCI Consultants Profession 2006 - An actual picture 4 Types of clients: Professionel clients with an explicit desire to outsource or insource The unhappy ones in despair over the complexity of management Those focused on modern trends wanting to join in The weak ones who want others to carry the burdens In general clients are satisfied with their consultants’ work The consultants themselves are rather selfcontent!

9. Moscow February 2006 PS ICMCI Clients’ demands from consultants Fulfil clients’ needs! Continued rapid change rate Reduce and optimise costs Accelerating product- and market development New competition Utilisation of possibilities with new technology Globalisation imperative! Value of outsourcing The arena of management

10. Moscow February 2006 PS ICMCI From a CEO: “I feel a little uncomfortable when consultants are presenting me major prepacked programmes on how to solve key problems in our company before knowing too much about the organization.”

11. Moscow February 2006 PS ICMCI What do clients expect from cooperation with consultants? Insight in clients situation and understanding Knowledge and experience Qualified play and counterplay Consultants able to handle processes Comprehensible communication Attacking the whole situation Match in personal relations Careful and timely actions and most of all: Long term sustainable solutions

12. Moscow February 2006 PS ICMCI A dilemma? Clients want consultants to work with them and not for them! – Consultants want to work for clients and not with them? Et dilemma?

13. Moscow February 2006 PS ICMCI  To sell without overselling  To be precise but on thin background  To inform about price without knowing problems  To deliver fast results and ensure client participation  To use experience without copying yourself  To solve problems actively without making client passive  To minimise resources spent and maximise value  To be critical and get agreement at the same time  To maintain a professional distance and be close  To be sharp and obtain clients’ confidence Ten typical consultant - client dilemmas

14. Moscow February 2006 PS ICMCI A question for reflection When using suppliers tendency is towards closer relations ►The goal is to obtain synergy and a win-win situation. When using consultants tendency is towards closer relations but at the same time keeping some distance ►The goal is to obtain synergy and an independent role Do these simultaneous tendencies sometimes prevent the optimal solutions??? What roles do the consultant and the client desire?

15. Moscow February 2006 PS ICMCI The roles of the consultant The consultant may be supplier or partner Supplier: Transaction based Partner: Relation based

16. Moscow February 2006 PS ICMCI The consultants’ challenges  Developing new models for cooperation between consultants and clients – towards partnership  Adapting some consultants’ deliverables according to new times and new clients’ needs  Recruiting of ”seasoned professionals”  Developing and consolidating simultanously  Continuing increase of professionalisation and the image of consulting