what is the role of brand in management consulting? research highlights from industry study
TRANSCRIPT
The BIG Question
What is the role of branding in management consulting?
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An organization’s brand is reflected in its distinct values system, unique personality, and a clear vision of what it stands for.
Brand is embedded in the culture, and shapes and guides how the organization presents itself (both internally and externally) and carries out its mission.
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A shifting landscape, starting from the top.
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Overarching questions we set out to answer.
How is brand being used as a business asset? How can branding and marketing help firms achieve business goals? How does brand compare with partner reputation as a business
builder? Is the role/importance of brand related to firm size? What are the most effective channels for connecting with key internal
and external audiences?
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Methodology
Online surveys sent to AMCF membership and database.
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Who Responded: Functional Roles
Q/ Which of the following best describes the area of specialization of your position? (n=76)
Service line
Corporate strategy/head of practice
HR
Industry vertical
IT
Marketing
Operations/Finance
Other
18%
25%
5%
8%
3%
26%
7%
8%
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Who Responded: Geography
Q/ Which of the following best describes your firm's geographic focus? (n=76)
Regional
National (US) with little to no global reach
Primarily national (US) with some global reach
Global
Non-US with US office(s)
13%
12%
29%
45%
1%
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Who Responded: Organizational Structure
Q/ What is the ownership structure of your firm? (n=76)
Partnership
Privately held
Public
37%
43%
20%
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Who Responded: Titles
Q/ Which of the following titles best identifies the level of your position within the firm? (n=76)
Executive Management
Partner/Owner
Vice President
Director
Manager
Other, please specify
20%
36%
9%
14%
12%
9%
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Who Responded: Size
Q/ Approximately how many full-time employees are there at your firm? (n=76)
BIG & BIGGER
STRADDLERS
GAINING SCALE
BOUTIQUE
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Less than 50
50-1000
1001-5000
Over 5000
30%
31%
20%
19%
Page 12
The 6 BIG FindingsThe Six BIG Findings
/ How Do You Define Your Brand?1
You offered a plethora of words to describe your firms.
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert
Some themes emerged from the responses.
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert
You view yourselves as client-focused.
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert
You get results.
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert
Values were often mentioned.
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert
No surprises … until we segmented responses by firm size.
While large and small firms coalesced around a handful of attributes …
Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, collaborative, honest, data driven, fast paced, forward thinking, integrity, winning, dedicated, collaborative, evolving, striving, integrity, passion, flexible, premium, customer-centric, expert
… the mid-sized firms offered a very different list of attributes.
Collaborative, client-focused, growing, complex, insightful, ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, collaborative, honest, data driven, fast paced, forward thinking, integrity, winning, dedicated, collaborative, evolving, striving, integrity, passion, flexible, premium, customer-centric, expert
We asked respondents which management consulting brands they admire and why.
The words used to describe brands you admire suggest stability, vision and focus.
Strength of resources, global, focus, specialization, thought leader, corporate IQ, hardworking, the best, legacy, gold standard, pedigree, trend-setter, innovative, treat its people well, great place to work, ability to attract talent, a clear employer brand, well defined, tell their story well, brand consistency, ability to articulate who they are, well defined offering, pervasive, visibility
Page 25
Large and small firms align with admired brands …
Large and Small Firms
Quality
Intelligent
High-end
Expert
Winning
Premium
Admired Brands
High quality
Corporate IQ
Gold standard
Thought leader
Pedigree
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Page 26
…but mid-size firms feel differently.
Mid-size Firms
Evolving
Complex
Hungry
Active
Fast-paced
Growing
Adaptable
Continual Learning
Striving
Ambitious
Flexible
Admired Brands
Well defined
Ability to articulate who they are
Tell their story well
Brand consistency
Well defined offering
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Mid-size firms appear to see theirbrands – and their firms – in flux. While conveying a sense of change and flexibility can be positive, results suggest a lack of clarity and confidence.
/ What Are the Key Drivers of the Management Consulting Brand?2
Thought leadership is seen as a key driver by firms of all sizes.
BOUTIQUELess than 50 (n=24)
GAINING SCALE50–1,000 (n=23)
STRADDLERS1,001–5,000 (n=15)
BIG & BIGGERMore than 5,000 (n=14)
Strong leadership Distinct heritage Thought leadership Distinct heritage
Thought leadership Client portfolio Distinct heritage Client portfolio
Unique culture Thought leadership Unique culture Distinct position in the market
Client portfolio Strong leadership Distinct position in the market Thought leadership
Distinct position in the market Unique culture Proprietary methodology Strong leadership
‘Star' consultants Distinct position in the market Client portfolio Unique culture
Proprietary methodology Proprietary methodology ‘Star' consultants Proprietary methodology
Distinct heritage Corporate website Strong leadership ‘Star' consultants
Corporate website ‘Star' consultants Corporate website Corporate website
How strongly would you agree that the following elements shape your firm’s brand?
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Heritage grows in importance with firm size ...
BOUTIQUELess than 50 (n=24)
GAINING SCALE50–1,000 (n=23)
STRADDLERS1,001–5,000 (n=15)
BIG & BIGGERMore than 5,000 (n=14)
Strong leadership Distinct heritage Thought leadership Distinct heritage
Thought leadership Client portfolio Distinct heritage Client portfolio
Unique culture Thought leadership Unique culture Distinct position in the market
Client portfolio Strong leadership Distinct position in the market Thought leadership
Distinct position in the market Unique culture Proprietary methodology Strong leadership
‘Star' consultants Distinct position in the market Client portfolio Unique culture
Proprietary methodology Proprietary methodology ‘Star' consultants Proprietary methodology
Distinct heritage Corporate website Strong leadership ‘Star' consultants
Corporate website ‘Star' consultants Corporate website Corporate website
How strongly would you agree that the following elements shape your firm’s brand?
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...as does distinct position in the market.
BOUTIQUELess than 50 (n=24)
GAINING SCALE50–1,000 (n=23)
STRADDLERS1,001–5,000 (n=15)
BIG & BIGGERMore than 5,000 (n=14)
Strong leadership Distinct heritage Thought leadership Distinct heritage
Thought leadership Client portfolio Distinct heritage Client portfolio
Unique culture Thought leadership Unique culture Distinct position in the market
Client portfolio Strong leadership Distinct position in the market Thought leadership
Distinct position in the market Unique culture Proprietary methodology Strong leadership
‘Star' consultants Distinct position in the market Client portfolio Unique culture
Proprietary methodology Proprietary methodology ‘Star' consultants Proprietary methodology
Distinct heritage Corporate website Strong leadership ‘Star' consultants
Corporate website ‘Star' consultants Corporate website Corporate website
How strongly would you agree that the following elements shape your firm's brand?
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But strong leadership, as a brand driver, declines as firms grow in size.
BOUTIQUELess than 50 (n=24)
GAINING SCALE50–1,000 (n=23)
STRADDLERS1,001–5,000 (n=15)
BIG & BIGGERMore than 5,000 (n=14)
Strong leadership Distinct heritage Thought leadership Distinct heritage
Thought leadership Client portfolio Distinct heritage Client portfolio
Unique culture Thought leadership Unique culture Distinct position in the market
Client portfolio Strong leadership Distinct position in the market Thought leadership
Distinct position in the market Unique culture Proprietary methodology Strong leadership
‘Star' consultants Distinct position in the market Client portfolio Unique culture
Proprietary methodology Proprietary methodology ‘Star' consultants Proprietary methodology
Distinct heritage Corporate website Strong leadership ‘Star' consultants
Corporate website ‘Star' consultants Corporate website Corporate website
How strongly would you agree that the following elements shape your firm's brand?
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As firms grow, the importance of leadership in driving brand diminishes. The key is identifying what should take its place.
/ In Consulting, Do “Partners” = “Brand?” 3
At smaller firms, founding partners are still actively involved.
Are your founding partners still present and actively involved in your company?
N=43
YES / 80%NO / 20%
YES / 88%NO / 12%
BOUTIQUELess than 50
GAINING SCALE50–1,000
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As firms grow, partner reputation evolves from a driver of new business to a driver of relationships.
How important of a role do you think the reputation of a firm’s partners play in the following areas: (n=78)
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Not surprisingly, small firms fear a partner’s departure the most.
If the founding partners were to leave your firm, how much business do you estimate your firm would lose?
Less than 50
50-1000
45%
88%
55%
12%
N=43
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Less than 50% More than 50%
As firms grow, the importance of the firm’s reputation begins to trump the reputation of its leadership.
Would you say that the public perception of your firm is driven more by the reputation of the leadership or the reputation of the company itself?
0
10
20
30
40
50
60
70
80
Driven more by reputation company Driven more by reputation of leadership
BOUTIQUELess than 50
GAINING SCALE50–1,000
STRADDLERS1,001–5,000
BIG & BIGGERMore than 5,000
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Smaller firms are more dependent on the reputation of their founding partners. Given the risks, establishing a strong point of difference more broadly is a vital step toward sustainable growth.
/ Do Mid-Size Firms Have an Identity Problem?4
Firms of all sizes are generally lukewarm about their brands.
In your opinion how strong of a brand do you think your firm has?
Extremely Weak
1
2
3
4
5
6
7
8
9
Extremely Strong
0%
0%
3%
1%
4%
8%
16%
24%
21%
11%
13%
Weak
Moderate
Strong
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The mid-tier is particularly unenthusiastic.
How strong a brand do you think your firm has? N=78
Less than 50
50 to 1000
1001 to 5000
Over 5000
38%
22%
53%
14%
46%
56%
33%
36%
17%
22%
13%
50%
Strong Brand
Moderate
Weak Brand
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The middle’s lack of enthusiasm runs the gamut.
How strongly do you agree with the following statements about your firm’s brand?
5
5.5
6
6.5
7
7.5
8
8.5
BOUTIQUELess than 50
GAINING SCALE50–1,000
STRADDLERS1,001–5,000
BIG & BIGGERMore than 5,000
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Mid-sized firms experience greater disagreement around brand drivers.
How strongly would you agree that the following elements shape your firm's brand? (ranked)
BOUTIQUELess than 50 (n=24)
GAINING SCALE50–1,000 (n=23)
STRADDLERS1,001–5,000 (n=15)
BIG & BIGGERMore than 5,000 (n=14)
Strong leadership 1.53 Distinct heritage 1.62 Thought leadership 2.13 Distinct heritage 1.88
Thought leadership 1.82 Client portfolio 2.13 Distinct heritage 2.57 Client portfolio 1.31
Unique culture 2.08 Thought leadership 2.25 Unique culture 2.61Distinct position in the market 1.63
Client portfolio 1.53 Strong leadership 2.20Distinct position in the market 2.67 Thought leadership 2.51
Distinct position in the market 2.25 Unique culture 2.44 Proprietary methodology 2.70 Strong leadership 2.17
‘Star' consultants 2.19Distinct position in the market 2.05 Client portfolio 2.69 Unique culture 1.98
Proprietary methodology 2.86 Proprietary methodology 2.62 ‘Star' consultants 2.69 Proprietary methodology 2.05
Distinct heritage 2.52 Corporate website 2.01 Strong leadership 2.83 ‘Star' consultants 2.79
Corporate website 2.37 ‘Star' consultants 2.47 Corporate website 2.69 Corporate website 2.37
Strong agreement (low standard deviation) Weak agreement (high standard deviation)
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Mid-size firms have an identity issue. Perhaps it’s because they’ve grown as a collection of practice areas, or through acquisitions. They aren’t small enough to be boutiques or large enough to be global, full-service leaders.
/ What Is the Perceived Importance of Marketing in Management Consulting? 5
Brand behavior – rather than formal marketing – is seen as most effective.
How effectively does your firm express its brand: (Top 2 box)
Internally
Externally - through marketing
Externally - through product/service delivery
23.00%
20.50%
40.00%
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Mid-tier feel their brand is expressed the least effectively, especially through marketing.
How effectively does your firm express its brand?
Internal
External - through marketing
External - through product / service delivery
7.28
6.76
8.04
6.66
7.08
7.7
6.2
5.73
6.6
7.78
6.14
7.9
BOUTIQUELess than 50
GAINING SCALE50–1,000
STRADDLERS1,001–5,000
BIG & BIGGERMore than 5,000
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Marketing professionals are less positive about the impact of brand than others in the firm!
How important of a role do you think the brand of your company plays in the following areas:
Attracting new business Engaging clients Building long-term relationships Attracting talent6
6.5
7
7.5
8
8.5
9
Non-marketing executives Marketing executives
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Marketing respondents focused on attributes that are more outwardly focused.
Marketing
Collaborative
Client-focused
Results-oriented
Corporate Strategy
Trustworthy
Thoughtful
Professional
What three adjectives would you use to describe your firm?
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Marketing believes in the power of thought leadership; corporate strategy in the power of leadership.
How strongly would you agree that the following elements shape your firm’s brand?
Marketing (n=21) Corporate Strategy (n=20)
Thought leadership Strong leadership
Distinct heritage Distinct position in the market
Client portfolio Client portfolio
Unique culture Unique culture
Distinct position in the market Distinct heritage
Strong leadership Thought leadership
Corporate website Proprietary methodology
Proprietary methodology “Star” consultants
“Star” consultants Corporate website
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The power of brand is understood beyond the marketing department. This is an opportunity to step up and own the role – and importance – of you firm’s brand.
/ How Are Firms Deploying Their Brands?6
Most marketing respondents put their budgets at 2-5% of firm revenues.
How much of its overall budget does your firm allocate to marketing?
Less than 2%
2% - 5%
5% - 10%
10% - 15%
23.08%
57.69%
15.38%
4.00%
N=26 (marketers)
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Tradeshows and PR account for almost half.
What percentage of your marketing budget is allocated to the following areas?
Tradeshows and corp events
PR
Sponsorships
SEM
Social media
Online advertising
Offline advertising
Other
27.04
17.04
16.54
8.65
7.19
6.31
2.35
24.88
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Websites rule, inside and out. But what about mobile media?
How effective are the following channels in deploying your brand?
Your firm's website
Internal events
Intranet/employee portal
social media
Virtual events
environmental branding
Print collateral
Mobile media
6.81
6.62
6.52
6.19
5.62
5.14
5.1
4.81
3.38
Internal
Your firm's website
Digital publications
Branded events
Social media
Print collateral
SEO
Tradeshows/events
Print publications
Virtual events
Direct mail
PPC
Mobile media
Radio
7.1
6.95
6.29
6.14
6.1
5.9
5.86
5.71
5.62
5.43
4.05
3.48
3.43
1.95
External
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Tradeshows are the biggest budget item – but they’re not seen as most effective in deploying the brand.
Your firm's website
Digital publications
Branded events
Social media
Print collateral
SEO
Tradeshows/events
Print publications
Virtual events
Direct mail
PPC
Mobile media
Radio
7.1
6.95
6.29
6.14
6.1
5.9
5.86
5.71
5.62
5.43
4.05
3.48
3.43
1.95
External
Tradeshows and corp events
PR
Sponsorships
SEM
Social media
Online advertising
Offline advertising
27.04
17.04
16.54
8.65
7.19
6.31
2.35
Marketing budget allocation
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In a digital world, a firm’s websites is the hub of its digital brand experience. But tradeshows and events are still the #1 budget item. Does in-person engagement still deliver the highest return?
Mid-sized firms need to define themselves.
A constant squeeze: Mid-size firms have more resources, breadth and capabilities than small firms, yet less focus
and specialization … but they lack the presence and scale the large firms.
Caught between small firms – typically built around a focused strength – and large firms – guided by heritage, mid-size firms see themselves – and their brands – in a constant state of evolution.
Implication:
Branding around a strong, unified culture may be the mid-size firm’s best opportunity to create differentiation from larger firms.
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Your brand walks out the door every day.
As a group, you feel you communicate your brand more effectively through behavior than through formal marketing efforts or internal engagement.
This represents an opportunity to capture and codify the essence of your brand as it is expressed by your people and the services they deliver.
Implications: Rethink proposals, pitch books and thought leadership – do they
reflect the brand that your people are living? Demonstrate “behavior” in marketing by focusing on how your
brand is embodied in your people and services: let the market “hear” your people, see them at work, engage with their perspectives.
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Find out what drives your brand.
Where are you on the partner-firm spectrum?
Do the reputations of your partners drive your brand? Or is it the reputation of the firm itself?
Where do you want to be on the spectrum? Will a partner-driven brand scale with your firm’s growth?
How can you build thought capital into a brand without tying the brand too closely to any individual or group?
Implication:
Look to internal and external research to determine the core drivers or your brand.
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Questions?
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