management consulting – challenges for the future flemming poulfelt january 2012 [email protected]
TRANSCRIPT
1. Management Consulting in Brief2. The M&A model3. Ten Challenges4. Towards the Future
Management Consulting
2002 2012 2022Post-IT bobble Post-financial crisis Pre-
recession Mid-economic crisis Mid-
recession
Post-recession
M&AM&
M: Mindset
A: Action
Mindset?
“The world has changed but the mindset of managers (and consultants??) has survived in a world that no longer exists.”
From Funky Business
Mindset
”There is no reason for any individual to have a computer in their home”
Ken Olsen, CEO of DEC
”All the best things that I did at Apple came from (a) not having any money and (b) not having done it before”
Steve Wozniak, former CEO of Apple
What Is the Key to Nokia’s Success?“Why have we been a successful company? If youwant a very simple answer, it is getting the balanceright between innovation and execution.In a technology business, you need a tremendousinnovation but with these volumes andamount of innovation, growth, you need to execute orit will kill you. So it is balance. I think we have done that better than anybody else.”
Jorma Ollila, CEO of Nokia
Huawei is a leading global telecommunications solutions provider with long-term partnerships with operators around the world.
However,New Competitors Appear
The Recession Wave – Drivers in the Market
- Still a bumpy road but complexity, changes, and efficiency fuel the need for consulting
– Towards growth (again) and back to X-digit numbers?
– Increased competition and co-optition (as a client request) national as well as international
– Preferred supplier lists (in big companies)
– Increasing use of multinational purchasing models/tenders – will impact relationships
Towards Rules & Regulations?
- Rule changes in Europe (separation of audit from consulting and mandatory rotation?)
- European Standard of Management Consultancy Services (EN 16114)?
- Certification?- Responsibilities and risks
– more law suit cases?
The Reputation Profile?
- Clients are satisfied although still room for improvement
- The consulting industry could do more to promote its value as a business
- New ways of focusing on consulting in the public (ex consultants behavior, Showtime – ‘House of Lies’…..)
Client Reactions• “Very disappointing – it was too much of an off-the-
peg solution• “The firm ended up telling us what we already
knew.”• “What we valued most was the consultants’ good
knowledge of the market and their flexibility.”• “A bad firm is one who either doesn’t listen or
appears to listen but who comes up with a prepackaged solution.”
• “I have never developed so fast.”• “Strangely they often forget to follow up.”Czerniawska &Poulfelt
Client Reactions
The Client-Consultant Collaboration – Clients articulate more: The
quest for understanding, empathy, industry insights, edge, holistic approaches, outstanding competencies ……….. but more professional clients?
– Co-creation as the cooperative model and delivery
– Fixing the dilemma?– Measuring the value of
consulting (‘the ten times model’)
The Insider - Outsider“The collaboration with consultants is most valuable when consultants are able to behave, relate and know as insiders, but without losing the perceived “magic” of an outsider’s fresh perspective and challenging edge. Clearly an ambiguous position and a fine balancing act not easy to achieve, but it is precisely in this insider-outsider position that consultants have the greatest opportunities for being part of creating learning and change in client organizations.”