Management Consultancy Comes Of Age (Version 2)

transcript

Presented by Dennis Strong CMC supremeservices@caribsurf.com

Management Consultancy Comes of Age:

How Global Trends Affect You

Who is a management consultant?

Converging forces at play in the Caribbean

Standards, accreditation, certification

Technical expert vs. management consultant

Self-assessment: how ready are you?

Continuous professional development strategy

Agenda

Management consultants are those who provide services that involve:” a set of multidisciplinary activities of intellectual work, within the field of management activities, which aim to create value or promote changes, by providing advice or solutions, by taking actions or producing deliverables.”

(FprEN 16114:2011) European Standard

What is a Management Consultant ?

• Has a ripple effect in all aspects of any economy

• Estimated that 1 person per 1000 population in developed nations and 1 person per 2000 in developing nations is a consultant

• Estimated global market of $1,000,000,000,000 (one trillion) annually

The Scope of Management Consultancy

Firm Specialty Employs Offices Annual Revenues

IBM Global

Mgmt & tech

190,000 300 – 52 countries

US$48.3 billion

Accenture IT, Mgmt. Outsource

178,000 110 – 49 countries

US$ 19.9 billion

Capgemini

IT, Consult,Outsource

80,000 36 countries

US$ 12 billion

Deloitte Audit, Tax, Advisory

16,500 150 countries

US$ 23.1 billion

Booz Allen Hamilton

Mgmt & Strategy

18,400 100 – 6 continents

US$ 4 billion

Bearing Point

Mgmt & Technology

17,000 170 – 60 countries

US$ 3.4 billion

Mercer HR HR strategy

16,500 150 – 42 countries

US$ 2.7 billion

Global Consulting Revenues(2007 Vault survey, Wikipedia)

92.5% of consulting fees in the region go to

“foreign” consultants

Fee structures accord “international”

consultants higher rates than local consultants

Eligibility to bid on and lead large “IFI” projects

is confined to international consultants

They Are Eating Our Lunch

CENEPA

Dynamic Convergences

CEN: Defines MC for 1st timeAligned globally with ISO, ILO, IAFEPA: contains provisions for mutual

recognitionOpens the door to new marketsCARICOM/CARIFORUM: will require

registration and licensing to practiceCICMC: prepares regional MCs to meet

global standards and requirements

Implications of trends

Guidelines for effective delivery of management consultancy services

Applies to all MCSPs: public and private companies, government entities, NFP orgs and internal consultancy units regardless of their ownership, structure, size or specialism.

Applies to any type of assignment for any type of client. It does not place any obligation on the client.

European Standard for Management Consultancy Services (CEN)

In EPA, emphasis moved for first time to developing the capacity to export high-end services – a perfect proposition for management consultancy

Caribbean policy-makers, practitioners and public only now recognize that management consultancy represents very substantial global and regional market

Need to promote regional integration, economic cooperation and good governance

Competent regional management consultants are a necessary component to transforming the region’s model for economic development – export vs import

Maximize EPA components re capacity building – where MC adds significant value

EPA and Management Consultancy (MC) …

Management Consulting: The Caribbean Market

CICMC/CE commissioned 1st Caribbean MC study in 2009 Objective: provide information on industry, identify

strategic framework for development , establish database Coverage: 7 Countries - Bahamas, Barbados, DR,

Jamaica, Martinique, St Lucia, Trinidad & Tobago, Survey: Firms (supply) 115, Market (demand) 100 Key Findings:

◦ Spend distributed in 2-tiered market with weak middle◦ Industry dominated by small firms with varying expertise◦ >90% fees go to extra-regional consultants◦ Consulting demand is varied and broad in terms of practice areas◦ Repeat work and referrals are key procurement channels◦ Profitability still a major issue for majority of industry practitioners

Management Consulting (MC) Industry Regionally

Productivity critical indicator of profitability Productivity benchmarks: 2xsalary min, 3x good, 4x very

profitable 2 groups exist: 1-new/struggling firms, 2-mature firms

Management Consulting Industry Profile Source: CEDA/CICMC market study

Revenue in 1- 4 Employee Group (Average of 1.45 professional staff)

Revenue Bracket% in Revenue

Bracket MidpointRevenue per

Employee$10,000 - $19,999 30% $15,000 $10,323

$20,000 - $49,999 26% $35,000 $24,086

$50,000 - $99,999 26% $75,000 $51,613

$100,000 - $249,999 13% $175,000 $120,430

$250,000 - $499,999 5% $375,000 $258,065

$500,000 or more 0% - -

Figure 5: Importance of Factors in Consultant Selection

Internationally recognised mark of excellence in management consultancy

Unique, worldwide, international benchmark and competence standard for individual management consultants

Ensures certified management consultants serve clients with high level competence & professionalism

Portable internationally recognized professional qualification

Lasting formal recognition of training, development and experience

Mandates discipline of continued professional development

Certified Management Consultant (CMC) Designation

ICMCI – A Global Network

CICMC – A Regional Institute

Countries with CICMC members

Countries also in CICMC territory

Bermuda

Clusters4

Clusters

12 Sections12 Sections

36 Dimensions36 Dimensions

108 Facets108 Facets

Adapting Approaches

Delivering Results

Influencing People

Evaluating Problems

Investigating Issues

Creating Innovation

Building Relationships

Communicating Information

Providing Leadership

Processing Details

Structuring Tasks

Driving Success

Showing Resilience

Adjusting to Change

Giving Support

Saville Consulting Wave® Competency Model Solving Problems

Globally recognized standards Accreditation and training to achieve the standards Certification to confirm the appropriate application

of competencies Enforceable accountability to protect users Periodic renewal of certification

ALL of these are provided by ICMCI and the CMC !

Requirements for competitiveness and Mutual Recognition

Developing your Consulting

Competencies

Management Consultancy Comes Of Age (Version 2)

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