mmicc 2009 - 1st place - usc
TRANSCRIPT
Value Proposition Short Term ImplementationLong Term
Exeter: Engage, Enhance and Expand
Jeff Hassan | Pradyumna Kejriwal | Xiaolin Gong | Seiyonne Suriyakumar
Conquest Consulting
Team 3
Value Proposition Short Term ImplementationLong Term
Address Current Projects
Ensure FutureGrowth
NewTeam Policy
ProjectRankings
Short TermObjectives Long Term Value Add
Employee Development
DomesticExpansion
InternationalExpansion
Annual Sales(2013)$124M
CumulativeProfits (2013)
$47M
Value Proposition Short Term ImplementationLong Term
Address Current Projects
Ensure FutureGrowth
NewTeam Policy
ProjectRankings
Short TermObjectives Long Term Value Add
Employee Development
DomesticExpansion
InternationalExpansion
Annual Sales(2013)$124M
CumulativeProfits (2013)
$47M
“Engage”
“Enhance”
“Expand”
Value Proposition Short Term ImplementationLong Term
“Engage” “Enhance”
Address Current Projects
Ensure FutureGrowth
NewTeam Policy
ProjectRankings
Short TermObjectives Long Term Value Add
Employee Development
DomesticExpansion
InternationalExpansion
NPV
ROI
USAExpand
Healthcare
IndiaEnter into Education
and Healthcare
“Expand”
Value Proposition Short Term ImplementationLong Term
Core Competencies
Exeter
TopUniversity
Recruitment
Value Added Focus
for Clients
Quality overPrice
Niche Playerwith
Flexibility
Value Proposition Short Term ImplementationLong Term
Address Current Projects
Ensure FutureGrowth
NewTeam Policy
ProjectRankings
Short TermObjectives Long Term Value Add
Employee Development
DomesticExpansion
InternationalExpansion
“Engage” “Enhance” “Expand”
Annual Sales(2013)$124M
CumulativeProfits (2013)
$47M
Value Proposition Short Term ImplementationLong Term
Potential Short Term Projects
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
FamiliarityLeadershipAvailability
In-HouseTeam
Project SizeFuture
Potential (x2)Approval
Potential (x3)
Favorable Unfavorable
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Potential Short Term Projects
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
RankingTotal Points
21
18
15
20
1
3
4
2
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Tulane University
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
FamiliarityLeadershipAvailability
In-HouseTeam
Project SizeFuture
Potential (x2)Approval
Potential (x3)
Favorable Unfavorable
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Tulane University
Project SizeFuture
Potential (x2)Approval
Potential (x3)
•1previousproject
•Deep trustfrom Katrina
•Deny specificrequest
•Grant differentsr. manager,
familiarmid-level
manager & 15 consultants
•Great clientreference•Attract
vendor clients•Tie up
resources
•$5M over two years
•Tulane ITdepartment
•Requestedsr. manager w/ another large client
In-House Team
LeadershipAvailability
Familiarity
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Negotiation: Tulane
Deny specific manager request
Trust our judgment based on past success
Exhaust 2 departments’ resources
Client
Exeter Concerns
Compensate with expertise of familiar middle-level
manager
High investment nowfor high future return
MitigationConcerns
Client
Exeter Concerns
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Large University
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
FamiliarityLeadershipAvailability
In-HouseTeam
Project SizeFuture
Potential (x2)Approval
Potential (x3)
Favorable Unfavorable
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Large University
Project SizeFuture
Potential (x2)Approval
Potential (x3)
•1 previoussmall project
•Will not work with competitor
•Offer 1 Sr. manager, 1mid-level manager
& 20 consultants
•Synergy with Tulane project•Larger
projects with University
•$10M contract over
1-2 years
•Bad &ineffective•“not going
well”
•No specific request for
manager
In-House Team
LeadershipAvailability
Familiarity
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Private University
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
FamiliarityLeadershipAvailability
In-HouseTeam
Project SizeFuture
Potential (x2)Approval
Potential (x3)
Favorable Unfavorable
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Private University
Project SizeFuture
Potential (x2)Approval
Potential (x3)
•2 previous projects of
$1M and $2M
•Will not compromise on manager•Send back mid manager& resumes of
top 20 consultants
•Leveragebrand
•Larger project w/ client
•Low margin•Compromise Exeter model
•Most likelysmall
•Top university with
IT division
•Specific consultant is unavailable
In-House Team
LeadershipAvailability
Familiarity
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Strategic Consulting Company
Potential Projects
Tulane
Large University
Private University
ConsultingCompany
FamiliarityLeadershipAvailability
In-HouseTeam
Project SizeFuture
Potential (x2)Approval
Potential (x3)
Favorable Unfavorable
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Strategic Consulting Company
Project SizeFuture
Potential (x2)Approval
Potential (x3)
•New sector•New client
•Exeter COO worked w/
client’s IT exec.
•Clarify Exeter has final authority
•1 mid-level manager
& 4 consultants
•New sector•Potential
client referrals•Conflict w/
client’sIT team
•Described as “Cheap”
•Growing IT division
•New, youngmanager whois perfect for
the job
In-House Team
LeadershipAvailability
Familiarity
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
New Team Structuring Policy
Capacity Constraints
Prevent UnleveragedSenior Managers
Senior Mgr $25M project revenues
Decreased utilization due to schedule conflicts
Drive Mid-Level manager andyoung consultant development
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
New Team Structuring Policy
Capacity Constraints
Prevent UnleveragedSenior Managers
Senior Mgr $25M project revenues
Decreased utilization due to schedule conflicts
Drive Mid-Level manager andyoung consultant development
Client
1 Senior Manager
1 Mid-Level Manager
‘X number’ Consultants (min 2:1 ratio)
New Team Structure
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
New Team Structuring Policy
Capacity Constraints
Prevent UnleveragedSenior Managers
Senior Mgr $25M project revenues
Decreased utilization due to schedule conflicts
Drive Mid-Level manager andyoung consultant development
Client
1 Senior Manager
1 Mid-Level Manager
‘X number’ Consultants (min 2:1 ratio)
New Team Structure
Key TakeawaysKey Takeaways
Need to resolve capacity constraint in order to grow
Prevent Unleveraged Senior Managers
Use new team structure to ensure senior managers can work on
multiple projects at a time
Stimulate Internal ManagerialPromotions
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Recruitment: Consultants
Internal
Professional Development Incentives
•Rotational Programs•Blended Teams
External
Target Client Universities
•Periodic Career Presentations•IT Case Competition
YoungConsultants
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Recruitment: Consultants
Internal
Professional Development Incentives
•Rotational Programs•Blended Teams
External
Target Client Universities
•Periodic Career Presentations•IT Case Competition
External
Recruitment Agencies
•Utilize independent recruitment agencies
Internal
Employee Recommendations
•Promotion through peerrecommendations
YoungConsultants
Senior Managers
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
Recruitment: Consultants
Internal
Professional Development Incentives
•Rotational Programs•Blended Teams
External
Target Client Universities
•Periodic Career Presentations•IT Case Competition
External
Recruitment Agencies
•Utilize independent recruitment agencies
Internal
Employee Recommendations
•Promotion through peerrecommendations
YoungConsultants
Senior Managers
Key Takeaways
Aggressive expansionrequires aggressive
recruitment
Need internal and external recruiting
RecruitingNew TeamRanking
Value Proposition Short Term ImplementationLong Term
“Engage” “Enhance” “Expand”
Address Current Projects
Ensure FutureGrowth
NewTeam Policy
ProjectRankings
Short TermObjectives Long Term Value Add
Employee Development
DomesticExpansion
InternationalExpansion
Annual Sales(2013)$124M
CumulativeProfits (2013)
$47M
Value Proposition Short Term ImplementationLong Term
Domestic Expansion: Offices
Location of Top 100 US Universities
0
2
4
6
8
10
12
14
AL AZ CA CO CT DC DE FL GA IA IL IN KS LA MA
MD
MD
MN
MO NC NE NH NJ NY OH
OK PA RI SC TN TX VA VT WA W
I
State
Num
ber o
f Uni
vers
ities
Leverage strong background in Higher Education
Open new office in San Francisco
Domestic International
Value Proposition Short Term ImplementationLong Term
Domestic Expansion: Healthcare
Revenue Potential
Healthcare Consulting fees
are leastvolatile
Hospitals looking to lower costs through IT
Government gives
$10 billion a yearfor healthcare
IT
Over 7% growthexpected in
Info Systems& EMRs
Domestic International
Value Proposition Short Term ImplementationLong Term
Domestic Expansion: Healthcare
Capturing Market Share
Cross Sell
Leverage higher educationclients for university hospital
Leverage EGS department toget public health contracts
Advertise in Trade MagazinesAttend major trade shows
“Modern Healthcare”“Asian Healthcare”
MedTradeEMS Today
Annual Six Sigma
Domestic International
Value Proposition Short Term ImplementationLong Term
International Expansion: India
Why India
•30% annual growth in IT consulting customers
•15 years of experience incountry
Where in India
•Mumbai•Complements Bangalore
office•Major financial and
healthcare hub
BangaloreMumbai
Key
Domestic International
Value Proposition Short Term ImplementationLong Term
India: Healthcare
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2009 2012 2015 2018
Healthcare ITSpending
Market Potential
IT can reduce length of hospital stay
by 39%
Healthcare IT expendituregrowing at 22% annually
Over 75% of industry spendingfrom private players
No current dominant player
Domestic International
Value Proposition Short Term ImplementationLong Term
India: Higher Education
a basic diagram showing a transition arrow between a book or paper sheets to a computer or laptop
Market Potential
Centralized E-Library
Universities looking to go digital for easy archival and retrieval
Improved Training Resources
Industry has grown almost300% in last 10 years
Domestic International
Value Proposition Short Term ImplementationLong Term
1. Young Consultant2. Senior Consultant
Implementation Timeline
Q1,2 2009
Q3,4 2009
Q1,2 2010
Q3,4 2010
Phase I
Recruitment Initiatives
Value Proposition Short Term ImplementationLong Term
1. Tulane2. Large University3. Private University4. Consulting Company
Implementation Timeline
Q1,2 2009
Q3,4 2009
Q1,2 2010
Phase II
Current Projects
Q3,4 2010
1
2
3
4
Value Proposition Short Term ImplementationLong Term
Expansion-USA
Expansion-India
3. Healthcare4. Offices-Bombay
1. Healthcare2. Offices- San Francisco
Implementation Timeline
Q1,2 2009
Q3,4 2009
Q1,2 2010
Q3,4 2010
Phase III
1
2
3
4
Value Proposition Short Term ImplementationLong Term
Financial Summary
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2008 2009 2010 2011 2012 2013
Year
US
Do
llars
Total Sales
Net Income
Value Proposition Short Term ImplementationLong Term
4 Projects’ Revenues & Profits
Current Project Revenues
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Best Case BaseCase
WorstCase
Best Case BaseCase
WorstCase
2009 2010
Year
US
Do
llars
Total Revenues
Net Income
Scenario Project
Best All 4
Conservative Tulane, Large University, Consulting Firm
Worst Tulane, Consulting Firm
Value Proposition Short Term ImplementationLong Term
4 Projects’ Revenues & Profits
Current Project Revenues
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Best Case Base Case Worst Case Best Case Base Case Worst Case
2009 2010
Year
US
Do
llars
Total Revenues
Net Income
Key Assumptions (in $ U.S)
Hourly Bill Rate of Young Consultant $60
Hourly Bill Rate of Associate Consultant $200
Hourly Bill Rate of Senior Consultant $300
Average # of Hours per Week Billed 40
Average # of Weeks Worked per Year 48
Hourly Wage Paid to Young Consultant $45
Hourly Wage Paid to Associate $160
Hourly Wage Paid to Senior Consultant $255
Coding Costs Per As Percent of Project Bid 1.50%
Managerial Overhead (Flat + Variable) 50,000 +1.50%
Annual Salary of Young Consultant $86,400
Annual Salary of Associate Consultant $307,200
Annual Salary of Senior Consultant $489,600
Effective Tax Rate 35%
Value Proposition Short Term ImplementationLong Term
Domestic Long-Term Growth
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2009E 2010E 2011E 2012E 2013E
Year
US
Do
llars
Sales
Net Income
Healthcare CAGR 2006-2011 7.30%Capture Rate 0.10%Healthcare Initiative in Stimulus $10 BillionPercent Available for Initiatives 50%Marketing Expense 5% of SalesTax Rate 35%
Offices in San Francisico, CA 1Cost Per Office 500,000
Key Assumptions
Value Proposition Short Term ImplementationLong Term
International Education
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2010H-2E 2011E 2012E 2013E
Year
US
Do
llars
Sales Net Income
India Education IT CAGR 2006-2011 32.00%Capture Rate 1.50%Marketing Expense 5% of SalesTax Rate (India) 33%
Offices in India 0Cost Per Office 50,000
Key Assumptions
Value Proposition Short Term ImplementationLong Term
India Healthcare Growth
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2010H-2E 2011E 2012E 2013E
Year
US
Do
llars
Sales Net Income
India Healthcare CAGR 2006-2011 22.00%Capture Rate 2.50%Marketing Expense 5% of Sales
Tax Rate (India) 33%Offices in India 1Cost Per Office 500,000
Key Assumptions
Value Proposition Short Term ImplementationLong Term
Exeter: Engage, Enhance and Expand
Jeff Hassan | Pradyumna Kejriwal | Xiaolin Gong | Seiyonne Suriyakumar
Conquest Consulting
Team 3
Value Proposition Short Term ImplementationLong Term
Outline: Presentation
Presentation Outline• Value Proposition• Core Competencies• Decision Matrix• Project Ranking• Tulane University• Large University• Private University• Consulting Company• New Team Policy• New Team Structure• Recruitment: Young Consultants• Recruitment: Senior Managers• Domestic Expansion: Offices• Domestic Expansion: Healthcare• International Expansion: India• International Expansion: Higher
Education• Implementation Timeline: Overview
Financials Outline• Financials: Overview• Financials: Immediate Initiative• Financials: Domestic Long-Term
Growth• Financials: International
Education• Financials: International
Healthcare• Excel Model
Appendix Outline1. New Consultant Hierarchy2. Risk Mitigation
1. Large University2. Private University3. Consulting Company
3. Success Drivers for India4. Recruitment: Headhunters
Value Proposition Short Term ImplementationLong Term
Consultant Hierarchy
Senior Managers
Mid-Level Managers
Consultants,Young Consultants
Value Proposition Short Term ImplementationLong Term
Risk Mitigation: Large University
New Team Policy Project Ranking
Project Cost of $10 Million
Client Concerns
Detailed assessment & roadmap identifying true project scope
Mitigation
Breaking implementation contract with vendor
Negotiate bid price & pay termination fee with vendor if resulting margin is satisfactory
Emphasize importance of Exeter methodology & better efficiency
Value Proposition Short Term ImplementationLong Term
Risk Mitigation: Private University
New Team Policy Project Ranking
Quality of work
Client Concerns
Previous recommendation produced star liaison
Mitigation
No room for negotiation. Drop client if necessary.
Implicit intent to hire Exeter consultant
Value Proposition Short Term ImplementationLong Term
Risk Mitigation: Consulting Firm
New Team Policy Project Ranking
IT team conflict
Client Concerns
Successful track record shows value of Exeter approach
Mitigation
New Delhi team may be less stringent about consulting
firm’s methods
Value Proposition Short Term ImplementationLong Term
India: Why We Will Succeed
• We have 15+ years of experience in the country
• We are the best at healthcare and higher education
• Our clients include the most prestigious names in America including Harvard, UC Berkeley and MIT
• Since most spending is private, there is no significant bias for indigenous providers (IBM is a perfect example of this)
Value Proposition Short Term ImplementationLong Term
Recruitment: Headhunters
Over 1 million resumes
Office in Boston
International Presence
Exclusive provider
for American Hospital
Association
Career Builder Inc.