how to buy consulting services - chartered institute of ... speaker...background & context...
TRANSCRIPT
How to buy Consultingservices
4th July 2016
CIPS Northumbria Event
Background & contextObjectives of the session
2
To give an overview of theUK consulting market
To discuss how best toapproach a consulting
project
Insights into building asuccessful career in
consulting
To provide opportunitiesfor question and challenge
To create an environmentfor networking
Anything else?
Background & contextQuick straw poll
Reasons for attending?
• It is a good opportunity to network
• To get a consultant’s view of buying consulting services
• To get an insight into a career in consulting
• To check out PwC’s offices
• I’ve heard there are free drinks
3
Poll
Background & contextWhy are we here?
4
Everyone’sexpectations
areunderstood
Choosing theright
consultingpartner
The bestprojects are
those that areset up right
Consultingprojects need
managing
Creating the most effective consulting projects
The Consulting MarketOverview
5
UK consulting market size 2014
£6bn
2013-2014 growth
6.6%
Fastest growing sectors 13/14
1. Technology (7.7%)
2. Strategy (7.0%)
3. Operations (5.1%)
Source: Source for Consulting, UK Territory Report 2015
The Consulting MarketWhat does it look like?
Market Structure
Source for Consulting
segments the
market as
follows:
6
People Consulting
General Management Consulting
Technology Consulting
Tier 1
Strategy
Market Share
StrategyTier 1TechnologyPeopleGeneral
Source: Source for Consulting, UK Territory Report 2015
SMEs and Contractors
Costing your consulting projectValue Based Pricing
7
Inputs Outcomes
Secondments
Time andMaterials
Fixed Fee
Benefits Shareon
Savings/CostReduction
Benefits Shareon Revenue
Enhancement
Outputs
The Consulting MarketTop 6 reasons for calling in the consultants
8
Cash culture and manage
Skills
Regulatory Delivery
Planning
Capacity
Independence
Responding toregulatory change
Independent inputor validation
Additional capacity at peak times
Consulting
Specialist skills not available in house
Help with theimplementation oflarge scale projects
Help with devisingand planning large
scale projects
Source: Source for Consulting, UK Territory Report 2015
The Consulting MarketYour use of consultants
For what reason have you used consultants in the past?
• Specialist skills not available in house
• Additional capacity at peak times
• Help in implementing large scale projects
• Help in devising/planning large scale projects
• Responding to regulatory change
• Independent input or validation
• No experience of using consultants
9
Poll
Setting out your requirementsWhat challenges exist in sourcing Consulting services?
10
StakeholderManagement
SupplierRelationships
OrganisationalRequirements
ProcurementInvolvement
Key challenges facing Procurement professionals whenbuying Consulting
What challenges are you facing?
Which of the challenges below presents the greatest obstaclein your organisation?
• Managing senior/multiple stakeholders
• Breaking down existing supplier relationships
• Understanding organisational requirements
• Timely involvement of procurement
• Budgetary constraints
11
Poll
Setting out your requirementsHow do you combat these challenges?
12
Why? What?
Who?When?Where?
How?
Develop an effective specification
Setting out your requirementsHow do you combat these challenges?
Just some of the questions we need to answer:
• Why are we engaging consultants?
• What is the business need?
• What is the deliverable of the business need?
• What resource do we need to deliver?
• What type of consultancy firm are we looking for?
• How will this service be delivered?
• Where is this going to take place?
• When is this going to happen?
• Who is going to deliver this?
13
Understanding the work typeSetting the tone for your procurement
14
Example Projects
15
Example 1: You are looking to outsource your Finance, HRand Procurement functions to create a global shared service
Where do you feel this project sits on the matrix
• Tactical
• Commodity
• Security
• Strategic
Poll
Example Projects
16
Example 2: The CEO needs market research to develop theannual business plan and his best friend owns a marketresearch agency
Where do you feel this project sits on the matrix
• Tactical
• Commodity
• Security
• Strategic
Poll
Example Projects
17
Example 3: A global bank requires a new ERP
Where do you feel this project sits on the matrix
• Tactical
• Commodity
• Security
• Strategic
Poll
Getting the right resourceWhat do the different grades mean?
18
Partner Director SeniorManager
Manager SeniorAssociate
Associate
Industryequivalent:
Chief OperatingOfficer of aGlobal Company
Industryequivalent:
Global Head ofProcurement,reporting tothe Board ofDirectors
Industryequivalent:
ProcurementDirector, Headof Procurement
Industryequivalent:
Senior Buyer,SeniorCategoryManager
Industryequivalent:
Buyer,CategoryManager
Industryequivalent:
Analyst,Junior Buyer
Key TakeawaysIf you remember nothing else…
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Getting the best out of a consulting project:
1. Get involved early
2. Manage your stakeholders
3. Understand the business requirements
4. Know the market and supplier capability
5. Set up and manage projects correctly
Thank you
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon theinformation contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to theaccuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members,employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining toact, in reliance on the information contained in this publication or for any decision based on it.
© 2016 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwCnetwork. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Please join us for drinks
in the Collaboration Space
Tom Woodham
Director, Consulting
+44 (0)7709 441851