business sharks

Strategic gameplan for SPG

Business Sharks Team

12 December 2011

Strategic gameplan for SPG growth 2

Our team is chosen and trusted among others because of strong

personalities, diverse experience and portfolio of projects

Business

Sharks

Alex

MSU ‘12

Applied math

Denis

MSTU ‘11

Engineering & Mgmt

Sergey

MIREA ‘11

Cybernetics

Alex

RBS, London ‘11

Global Mgmt

Provide tailored

solutions

Find real

drivers

Clearly understand

business situation

Generate

bright ideas

Education

Experience

Executed

projects

Intern, BIG4 Audit

2Y of teaching IT

2Y of software dev.

Coached a winner of

All-Russia applied

research competition

Intern, project-mgmt.

Organized logistics

of Formula1 events

1.5Y IT consulting

2Y accounting

0.5Y retail sales

2.5Y IT consulting

1Y Mentoring in IT

1Y IT Support

McKinsey case

championship

semifinalist

Team leader of

Russian student’s

society at Science-Po

Participated in

logistics startup

launch & growth

http://vkontakte.ru/photo862996_267641826



Agenda

Executive Summary

Our Approach

Detailed Recommendations

Human capital

Client relations

Focus on practices

Brand promotion

Process excellence

Geo expanding

Partnership synergies

Implementation Plan & Risks

The Bonus


Several interview sessions were conducted with SPG

employees, competitors & experts to collect essential facts

Interviewee PositionCompany

Idrisov Alexander SPG Managing partner

Modiano Philip SPG Partner

Chumak Sergey SPG Principal

Kudinova Veronika

Elena Chizhenkova

SPG

SPG

Training specialist

HR specialist

Evgeniy Top 3 Manager

Andrey Top 3 SBA

Alexander Top 3 Manager

Petr Top 3 SBA

Andrey Recruitment

consultingManager

Lev Vilyaev PwC Partner


SPG should raise human capital, dive into attractive industries,

promote brand actively, develop processes excellence, build

long-term client relations

To have the right people on the right projects

Target hiring of experience staff

Significant increase of graduate hiring

Raise

Human

Capital

To increase brand awareness & value

Actively use promotion mix such as direct sales,

publications, pro-bono, events and advertising

Promote

brand

actively

To gain new projects & market reputation

Strong future focus on Operations practices

Retain current industry focus, develop Media and

Consumer Goods

Dive into

attractive

industries

To increase client satisfaction and retention

Deliver superior client service

Focus on repeatable clients

Build long-

term client

relations

To deliver services in a highly efficient manner

Develop internal methodologies

Conduct internal optimization projects

Develop

processes

excellence

Management goals Recommendations

4Business

value

Leading

national

strategist

By 2016 SPG plans to

3Professional

staff


Process of finding right paths for growth is composed of 3

phases: problem analysis, initiatives development, synthesis

Current

situation

analysis

Build up

future visionUnderstand

gaps

Develop

success

matrix

Deep

analysis of

each area

Develop

growth

programs

Conduct

risk

analysis

Develop

implementation

plan

Create

monitoring

activities

I. Problem

Analysis

II. Initiatives development III. Recommendations

* team analysis


SPG success matrix helps to determine high value actions

in key areas of improvement

Human

capitalClients Practices

Brand

power

Process

excellenceGeo Synergies

# of teams

in firm

Team cost

per year

Utilization

rate

Costs

Find

experienced

people

Hire whole

teams

Offer trainings &

MBA

Hire brand name

people

Increase client

satisfaction and

retention rate

Attract large

clients

Receive

feedback from

clients

Improve long-

term relations

building

Expand into

cons.goods,

media,

strengthen

positions in

current

industries

Strong focus on

Operations

Involve experts

with

multinational

experience

Increase brand

awareness via

high effective

promo activities:

direct sales, pro

bono, events,

insights &

publishing, ads.

Develop

corporate culture

to attract staff

Develop existing &

create new

methodologies

Expand knowledge

database

Run internal

projects focused on

process

optimization

Get projects in

RB & Ukraine

Consider

opening local

offices

Develop

Kazakhstan

office

Compete for

large projects in

East

Attract new

clients focusing

on further

retention

Establish PE

fund with

support of

SBRF & TD

SPG

success

formula

* Case data, team analysis, interviews with partners & competitors


SPG should pay extra attention to its talent supply chain

processes

People Clients Practices Brand Processes Synergies Geography

24

27

6

90

60

10

62

Hiring enough qualified personnel is a

challenging task

There is tough competition for staff between

consultancies

SPG plans 3x bigger than now what means

bigger than McKinsey

SPG should review its hiring

approach

SPG needs a few senior staff

SPG will experience high demand in

junior staff

Partner level

Consultants

Analysts

Manager level

30 40 45 55 65

125

160

75

150

Mon Booz Bain ATK RB BCG McK SPG


Staff to hire100 125

+40%

2012-2013 2014-2015

Role Focus

Selected practices

Efficient delivery track

Proven experience

Selected practices

Structured mindset

Fit into profession

Enthusiasm

Motivation

Current staff in Russia, 2010


SPG should actively attract & develop graduate hires to

support strategic growth

Brand Perception

Recruiting

Development

Faster promotion

Lower salary than Top3

Less prestigious than Top3

Communicate through the web

(e.g. Futuretoday.ru)

Help & support case clubs in top

universities(e.g. MSTU Bauman)

Popularize consulting in regional

universities

Conduct workshops at office site

Weekend trainings

Qualified professional trainers

Connect with promotion




To grow repeatable business SPG should increase client

satisfaction and retention by delivering superior client service


Try to engage every

single client

Focus on long-

term relations

AS IS 2011 TO BE 2016

Repeatable contracts mean ↑margin

More important & valuable projects

Easier to staff with recent hires

Satisfied clients

Lower risk exposure

Why to

focus?

More money

+ Reputation

Developed employees

References, leads

If done well..

Focus on clients with higher chance to return

Interact with client at their site more often

Improve partner's & manager's skills

in client-relations building

Use project feedback

How to?

• Spreading between clients

• Low activity in building long-

term client relations

• Focus on loyal clients

• High retention rate



Since last economic crisis SPG has changed its revenue

streams. It has focused on: manufacturing, gov., energy

Total

revenue12 18 11 13 18

1,9 2,71,2 1,4 1,8

2,3

3,4

1 1,31,8

1,8

2,5

1,11,4

2

1,2

1,6

1,31,7

3,42,2

3,6

4,23,9

4,32,6

4,1

2,2

3,3

4,7

0

2

4

6

8

10

12

14

16

18

2007 2008 2009 2010 2011

$, MM

SPG industry revenue decomposition

Manufact.

Gov.

Energy

&Mining

FMCG

Financial

Services

TMT

Practice

+ 15%

+ 19%

+ 112%

- 20%

- 47%

- 33%

3Y diff.

SPG revenue came back to

pre-crisis level

Only 3 industries have grown

more than pre-crisis level

SPG restored losses by

Gov. & energy practices




While retaining its current focus on manufacturing, gov. and

energy sectors, SPG should develop consumer goods & media

SPG should set up target mix of industries & practices to develop

Att

racti

ven

ess f

or

SP

G

Competition

Low

High

High

Insurance

Airlines &

Transportation

Gov.Manufacturing

MiningMedia

Telecom/

Infocom

Energy

Healthcare

New customers should be targeted in selected industries.

Experienced staff should be hired with selected industries background

Utilities


Banking

Consumer

Goods



To meet client’s needs SPG should develop operations

practice & build strong expertise in this field


Low focus on Ops

projects

Significant

revenue stream

AS IS 2011 TO BE 2016

Logically continue strategy project

Projects are more standardized

Close collaboration with client

Results easy to be judged

More popular in crisis times

Why to

expand

practice?

Chance to sell to current clients

Chance to develop recent hires

Build relations and knowledge base

Client satisfaction, market reputation

If done well..

Sell project to current clients proactively

Develop & spread around methodology

Involve PROs with multinational experience

Show deep knowledge of Russian specifics

How to?

• Over demanded on market

• Add-on for classic products

• Competitive product

• Standalone product



Direct

sales

To increase brand awareness among clients & potential hires

SPG should use balanced mix of direct sales, pro-bono,

publications, targeted events and Ads.


Covers target

audience

Assists in

collaboration

Proves the

expertise

Main focus for partners

Industry forums, conferences

Workshops, case competitions

Career fairs

Targeted

events

High business concentrated areas

Top universities

Case clubs

Ads

Social impact consulting

Public health improvement

Higher education development

Pro

bono

Industry’ pain-point reports

Interactive web solutions

Release business books

Insights

Publications

1

2

3

4

5

&



SPG should constantly continue optimizing overall internal

processes to deliver services In highly efficient manner

Finance, Human Resources, IT, Subcontractor management, Procurement Support

Processes

Core Lead-

-to-cash

Processes

Talent supply

chain

Processes

Strategy

Processes

Strategic

workforce

management

Recruiting &

On-boarding

Training &

Development

Operational

workforce

management

Performance &

Compensation

Strategy

management

Business

planning

Corporate

Performance

Management

Service

Portfolio

Management

Risk &

Compliance

Business

Development

Account

management

& Sales

Service Delivery Billing

Business Development, Client

& Opportunity Management Project & Engagement Management

Business & Service Management




SPG should use its capabilities in synergies with SBRF and

Troika to establish and develop PE fund and attract new clients


Sberbank

Retail

banking

IBD

products

Corporate

bank

Troika Dialog

Asset

management

IBD

products

Personal &

alternative

investments

Attract new clients IPO pretenders

Financing pretenders

Target companies


Private Equity

Fund

Invest &

SellPre-IPO

Strategy

Partners Group

Corporate

financeOperations Strategy


SPG can manage projects in RF from Moscow office while

developing Kazakhstan & considering expansion to UA & RB


KazakhstanUkraine

RB

Growing economies

Get projects

Consider new offices

Moscow

Growing consulting market

Develop existing business

Expand office

Russia

Eastern

part of RF

Attractive native market

Compete for large-value projects

Manage projects from Moscow office



Strategic initiatives in key areas should be aligned

between each other through the implementation roadmap

2012 2013 2014 2015

Actively focus on recruiting experienced staff

Develop the plan of

graduate recruitmentActively recruit graduate staff

Determine prospective clients

(current & future) Build strong client relations to grow project retention

Publications, Insights & Ads

Special events, pro-bono

Develop Kazakhstan Try RB&UA expansion

Build Operations practice experience Grow number of Operations projects

Constantly work on internal process optimization



During the strategic transformation SPG can face to numerous

risks and should provide risk mitigation activities

Risk Mitigation activitiesExposure

Loss of staff due to competitive

response

Speed of changes will be not

enough to achieve goals

After the growth SPG will be

destabilized

Unacceptably low margins after

turnaround

Significant loss in Gov. sector

due to political crisis

Risk of new losses due to new

economic crisis

Constant monitoring of project KPI

Regular feedback collection from

staff. Adaptive project booking.

Strategy reactions adaptive to

situation

Not hesitate to shift people to

other practices/projects

Insure support from Sberbank.

Repositioning of services

Focus on repeatable clients and

high-marginal products



Valuable information for consulting companies who want

to engage effectively with graduate students

Consulting-

related

activities

Details

Contacts

Case-interview

practice

Workshops, case-

studies

Web

discussions

5-20 experienced

students gather &

practice cases in

1-1 sessions

Ilya Fomin, Partner,

HSE Case Club Initiative

• Koffein Café “Chekhovskaya”,

Strastnoy Boulevard, 6

(very experienced, on

weekends)

Anton Domakhin,

Founder,

MSU Open Case Club

www.Yuptalk.ru

Multinational career

discussions in

consulting, internship,

IB, audit

Active discussions

about career

opportunities

10-30+ motivated

students share

their experience

& crack live

cases together

* team analysis

http://www.yuptalk.ru/


Our team is chosen and trusted among others because of strong

personalities, diverse experience and portfolio of projects

Business

Sharks

Alex

MSU ‘12

Applied math

Denis

MSTU ‘11

Engineering & Mgmt

Sergey

MIREA ‘11

Cybernetics

Alex

RBS, London ‘11

Global Mgmt

Provide tailored

solutions

Find real

drivers

Clearly understand

business situation

Generate

bright ideas

Education

Experience

Executed

projects

Intern, BIG4 Audit

2Y of teaching IT

2Y of software dev.

Coached a winner of

All-Russia applied

research competition

Intern, project-mgmt.

Organized logistics

of Formula1 events

1.5Y IT consulting

2Y accounting

0.5Y retail sales

2.5Y IT consulting

1Y Mentoring in IT

1Y IT Support

McKinsey case

championship

semifinalist

Team leader of

Russian student’s

society at Science-Po

Participated in

logistics startup

launch & growth



business sharks

Business

competitors

direct sales

diverse experience

partners amp

competitorsstrategic

insights amp

software dev

1y mentoring