| | By Mick James
What’s exciting about
the marketplace at the
moment is the number of
firms aggressively
building or rebuilding
their consultancy
brands. Whether they are
new entrants or
regrouping older
entities it’s creating
an exciting tier of
medium-large consultancy
firms and both clients
and potential recruits
are appreciating the new
vitality and choice in
the market.
One of the most
intriguing of the newer
arrivals is Serco. A
well-established player
in outsourcing,
primarily to the public
sector, the firm has
been steadily building
up its consulting
ability over the last 18
months under the banner
of Serco Government
Consulting, led by Doug
Johnson-Poensgen and
Peter Illsley, both
formerly of PA
Consulting.
“The first thing a
lot of people ask when
they hear the Serco name
is ‘Don’t you empty our
bins?’” says
Johnson-Poensgen. “The
rationale is for Serco
to operate at a
different level, to
‘climb the value food
chain’. What Serco wants
from this consulting
business is brand
recognition at board
level.”
In its first full
year of operation Serco
Government Consulting
grew to 55 consultants,
recruiting from other
consultancy firms. | |
|
| | Serco’s recent
acquisition of local
authority IT specialists
ITNet has boosted its
consulting capability
with another 40
consultants from its
consultancy subsidiary
French Thornton. In the
States it has also
acquired IT services
company Resource
Consultants Inc, which
focuses on defence
work.
The priority for 2005
will be integrating
French Thornton, and
from May the combined
practice will probably
go to market as Serco
French Thornton to
reflect the widening of
its scope into both
retail and financial
services:
“Integration was the
sensible option, but
it’s also a challenge,”
says Johnson-Poensgen.
“Currently we’re
creating a truly global
bid and assignment
management structure;
the next stage will be
to create a global brand
for consultancy under
the Serco brand.”
Johnson-Poensgen says
that Serco will offer
“consultancy grounded in
reality”
“We’re bringing
people out of the main
business into
consultancy assignments,
so we cover the
conceptual stuff right
down to the nitty-gritty
of equipment
procurement,” he says.
“Most of my consultants
won’t know much about,
say asset tracking, but
I can take people out of
a 45,000 field force and | |
| |
| | Serco has with its
clients to develop
consultancy:
“We’re the icing on
the cake,” he says.
“It’s how the
accountants originally
sold consulting -- they
already had an audit
relationship, we already
have a service
relationship.”
It’s not all one way:
Serco consultants are
forging new business
relationships in
developing areas, such
as advising the fire
service on terrorism,
and theyalso taking the
Serco brand into new
regions.
“We’re using
consultancy for brand
market entry,” he says.
“We’re not selling
outsourcing, but aiming
the Serco brand at a
particular kind of
opportunity where we
already have a track
record.”
Examples include
advising the fire
service in Japan,
talking to the ministry
of Justice in Japan
about outsourcing
prisons and the State of
Florida about
outsourcing services.
“I’m not compromising
my consultancy
independence because
we’re doing client side
consultancy work, and
also we hope they would
recognise the brand,”
says Johnson-Poensgen,
“It’s also a chance for
government consultants
to do some international
travelling for once —
people jump at the
opportunity.”
Johnson-Poensgen says | |
|
| | he currently has
clearance to increase
consultancy numbers up
to 150 but there are no
limits.
“We need people who
can go and develop
business, we’re looking
for undervalued stars,
partner candidates who
see that it’s a bit
crowded at the top,” he
says. Most of the more
senior people we’ve
recruited say that it’s
been a liberating
experience.”
Can the Serco brand
translate into
consultancy?
Johnson-Poensgen is
confident that it can.
“Our entire business
is about assured
delivery” he says. “What
are clients buying from
consultants, why are
they buying? It’s about
trying to reduce the
risks around something
that’s outside their
normal comfort zone.
“We’re not into
fluffy concepts, we’re
not looking for people
with large foreheads but
consultants who are
grounded in reality who
make stuff happen. Our
IP is lessons learned —
that’s what’s
important.”
All views expressed
in this article are
those of Mick James and
do not necessarily
reflect the views of
Top-Consultant.com and
Consulting-Times.com
Contact Mick with
your views or
suggestions at:
mick.james@top-consultan
t.com | |
|
| | bring them into a
consulting team.”
The fact that the
Serco brand is better
known in other areas is
not a problem:
“I use the Serco
brand,” says
Johnson-Poensgen. “We
are a company that
delivers services in the
public sector; you don’t
have to have an
outsourcing contract to
access that IP. Take
consultancy in financial
services: a lot of is
around IT systems
integration, relocating
offices, back office
work — that’s our bread
and butter.”
In fact he believes
Serco’s track record —
which stretches from
park management to
ballistic missile early
warning systems — stands
it in good stead with
consultancy clients.
“Lots of consultancy
firms grew their
outsourcing businesses
to provide surety of
turnover, but Serco’s
already got all the
annuity income in the
world,” he says. “For
other consultancy firms
many of their people are
IT consultants, so it’s
easy for people to
imagine that they are
pre-sales. But we’re not
going to sell them grass
cutting — the nature of
the outsourcing business
is quite different.”
In fact, he hopes to
exploit the extremely
long-term relationships | |
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