| | Utilisation and fee rates are both on the road to recovery in today's rebounding market.
But structural changes within both consultancies and client firms mean we must adapt in order to thrive.
These were the key messages to emerge from the enlightening session "The 5 key steps to winning more consulting fees in less time", attended by senior consulting figures from firms like Marakon Associates, Aon Consulting, Motorola and Atkins Management Consultants.
Opening the event, John Niland stressed the importance of building | |
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| | health of just a few key rainmakers.
Later in the day Fiona Czerniawska, author of The Economist's new book Business Consulting, revealed benchmark data that demonstrated just how much the industry has changed in recent years. For example the ratio of consultants to partners within the industry has grown over 25% since the beginning of the downturn in 2001, whilst the ratio of support staff to consultants has fallen by a similar percentage over the same period.
Over the same period, firms have greatly increased their reliance on associate or | |
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| | freelance consultants, permitting growth without tying the firm into long-term employee costs. This was, of course, during a period spanning the downturn. With the market rebounding and the risk of making permanent hires now declining, many firms are expected to reverse this dependence on external consultants over the next months, bringing more consultants in-house to streamline costs.
Aside from resourcing, the next big development Czerniawska expects us to be talking about is the growth of collaborative arrangements between | |
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| | consultancies - whereby the firm to win a piece of work is not necessarily the firm that provides all the resources to carry out the assignment.
Possibly the most eagerly awaited speaker was Alan Gotto, Chair of the IMC's Consultancy Purchasing Group. It was fascinating to hear his insights into the evolving client - firm relationship. Representing prolific purchasers of consultants' services such as Shell, Barclays, Royal Mail and the Office of Government Commerce, his views were certainly attention grabbing.
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