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Financial Consulting
September 09, 2015
Page 2
Contents Introduction to Consulting
Global Consulting Industry
Indian Consulting Industry
Service Offerings
Ethics in Consulting
Understanding & Managing Competition
Identification of target clients, strategies and actions for business development
Account Management
Page 3
Introduction to Consulting
Page 4 Financial consulting – An industry overview
Consulting perceptions
Page 5
Consulting
Financial consulting – An industry overview
“The business of giving expert advice to other professionals.”
- Oxford Dictionary
“The provision to businesses of objective advice and assistance relating to the
strategy, structure, management and operations of an organisation in pursuit of its
long-term purposes and objectives. Such assistance may include the identification of
options with recommendations; the provision of additional resources; and/or the
implementation of solutions.”
- Institute of Consulting, U.K.
Finance
Security
Engineering
Law
Education
HR
Strategy Branding Medical
Page 6
Financial Consulting – What is it about?
Financial consulting – An industry overview
• Financial consulting is a service in which a consultant provides an independent expert opinion related to financial domain.
• Works with CFOs, CEOs, Treasurers, etc in order to
ensure compliances and introduce process efficiencies and finance optimization.
• Provide advice on financing options, restructuring,
valuations, investments, functional organization, financial reporting, risk management, compliance, etc
Or much more….
Page 7
How it fits in business
Financial consulting – An industry overview
Business performance
Enterprise- wide strategy
Enterprise-wide systems integration and outsourcing market
Consulting landscape
► Enterprise-wide business strategy;
► Business performance consulting;
► System integration and outsourcing.
• Client agenda drives the consulting business.
• Boundaries separating the different regions of consulting space continue to get blurred and are interrelated.
The Global consulting industry
Page 9
At a glance: The Global consulting market in 2013
Market size
Growth +5%
$101bn
Market size
2
1
3
Market size Geographic breakdown
North America $47bn
4 Latin America
EMEA
Asia Pacific
$3bn
$40bn
$11bn
Financial consulting – An industry overview
Source: Source one report
Page 10
The Top 3 sectors and services
Financial Services
Publicly-funded organizations
Services
$26 bn
$15 bn
$13 bn
► The Financial Services sector is the
single biggest market for consultants,
with regulation being the primary driver
(Sarbanes-Oxley (SOX), Basel III etc. )
Services
Technology Performance Improvement Financial Mgmt.
and Risk
1 2 3
Sectors
Financial consulting – An industry overview
Source: Source one report
Page 11
Looking ahead: Global consulting in 2015
Fastest growing
markets..
Pharma and
Biotech
Retail
Technology, media and
telecom
Mo
st lik
ely
to
use
co
nsu
lta
nts
fo
r..
Improving existing technology
Increasing productivity/ improving process efficiency
Transformation
Financial consulting – An industry overview
Mergers & Acquisitions
Source: Source one report
The Indian consulting industry
Page 13
At a glance: The Indian consulting market in 2013
Market size Consulting Landscape
Strategy Consultants
’Big Four’ Firms
Technology Consultants
Financial consulting – An industry overview
Market size
Market size
Growth +3%
$1.4bn
Future growth prospects
+ 5-6% in 2015
Source: Source one report
Page 14
The Top 3 sectors and services
Financial Services
Pharma and Biotech
Healthcare
$412 mn
$42 mn
$34 mn
► Regulation is the strongest driver in the
Financial Services sector even in India
(Companies Act, 2013, Clause 49 etc. )
Services
Performance Improvement
Financial Mgmt. and Risk
Technology 1 2 3
Sectors
► Changes in the health care system are
resulting in more consumers expecting
higher standards of health care
Financial consulting – An industry overview
Source: Source one report
Page 15
Challenges facing the Indian consulting industry
Scarcity / retention of top
talent
Increasingly demanding clients
Competition and differentiation
Business Insights and not only technology
Finding the best pricing
strategy
Financial consulting – An industry overview
Page 16
Evolving trends in Indian consulting An outcome based model
► Premium is now on outcomes vis-à-vis ideas and insights
► Explicit preference for a results based pricing model with minimal risk implications
A focus on digitization
► Exploring opportunities to change products, processes and business models by leveraging digital information (Cloud etc.)
► In Indian, opportunities exist to help businesses make most of mobile platforms as more Indians access the internet via mobiles
From cost cutting to simplification
► Company’s want to improve productivity vis-à-vis cut costs
► Demand for consultants who adopt best practices, own proprietary data and use innovative methods
$15 bn market globally (per year)
Consolidation through acquisitions
► Consolidation in the consulting industry through acquisitions of industry peers (Approx. 2700 deals in 2013 globally)
Financial consulting – An industry overview
Source: Source one report
Page 17
Service Offerings
Financial consulting – An industry overview
Page 18
Need for these services
Financial consulting – An industry overview
Changing role of CFO
http://bcove.me/vhyrzd8b - EY perspective
http://bcove.me/kwcg3nck - CFO perspective
Page 19
Types of services
Financial consulting – An industry overview
► Performance improvement builds competitive
advantage
► Do more with less
► Innovate, adapt, and sustain performance over
time
Pe
rfo
rma
nce
Im
pro
ve
me
nt
► Addresses one of the major concerns of every
business across different field and geographies
► Increased focus due to regulatory
requirements & laws
► Companies are shifting from their traditional
governance framework Fin
an
cia
l Mg
mt.
&
Ris
k
Knowledge management Supply Chain Optimisation Business Continuity and
Recovery Quality and performance
management Innovation & Engineering Procurement/purchasing Business performance
improvement M&A Integration
Illustrative Services include
Finance Function transformation
IT Risk management Financial Risk management Operation Risk management Budgeting / Financial planning Programme risk management Credit Risk management Responding to regulation Reputation risk
Page 20
Types of services
Financial consulting – An industry overview
► Digital transformation to business analytics
► Online channels
► Improve business performance through
innovative business technology and product
engineering services
► Consultancy firms have started recommending
solutions and assisting in implementation
Tech
no
log
y
Se
rvic
es
► HR and change management services help
organizations to use analytics and behavioural
science to:
► Identify best talent;
► deepen employee engagement; and
► manage transformational change to
provide differentiated customer
experiences.
HR
& C
ha
ng
e
Ma
na
ge
me
nt
IT Training Application of new technology Technology and security risk
services Project and programme
management Business Intelligence IT strategy, planning and review ERP consulting IT designing and building
Illustrative Services include
HR strategy and effectiveness Internal communications Stakeholder management Leadership and governance Talent management/training
and development Change management Performance management Team effectiveness and
collaboration
Page 21
Activity
Financial consulting – An industry overview
► Mr. Ravi, CFO of ABC company has approached Mr. Anand, a Partner with a
consultancy firm for their services. You may now go through the
conversation between the CFO and the consultant to understand the CFO’s
concerns. Based on this dialogue, suggest which services should the
consultancy firm offer in order to address the CFO’s concerns.
Page 22
Ethics in Consulting
Financial consulting – An industry overview
Page 23
Why the concern?
Financial consulting – An industry overview
Protection of client data
Professional malpractices
such as bribery
Insider trading
Confidential client information
Sensitive consulting firm knowledge
Conflict of interest
Competitive
Pressure
Regulations
Page 24
Ethical conduct
Financial consulting – An industry overview
The general code of conduct aims to provide guiding principles which should be used by each consultant across all areas of activity, these are broadly covered below:
Safeguard confidential information
Maintain integrity and objectivity at all times
Accept only those client engagements which they are qualified to perform
Render impartial, factual, independent advice
Agree with the client in advance on the basis for their professional fees
Develop realistic and practical solutions to client problems
Act in the clients best interests at all times
Page 25
Ethical dilemma :
Financial consulting – An industry overview
What would you do…?
Page 26
Understanding and managing competition
Financial consulting – An industry overview
Page 27
Relationship building
Financial consulting – An industry overview
► Continuously providing exceptional client service
► Understanding and addressing client concerns through all the phases of the project
► Anticipating client requirements and approaching with relevant solutions
► Solutions should be tailored to client needs. One size fits all doesn’t work.
Consistency
Proactively share ideas
► Real value addition to the business
► Being the trusted advisor by focusing on client needs first, instead of sales
Sounding board, not sales
► Approachability for the client
► More listening and less talking
► Understanding and respecting the internal processes and building cross-functional relationships
Two-way communication
Respect for internal processes
► Thought leadership / insight
► Business/industry expertise
► Brand credibility
Sharing relevant insights and right vs available talent
Page 28
Identification of target clients, strategies and actions for business development
Financial consulting – An industry overview
Page 29
Identifying target clients
Financial consulting – An industry overview
Answer/outcome
YES
YES
YES
YES
Question
Do we want to work with the client?
Do we fully understand the client requirements?
Are we capable to deliver on those requirements?
Will the company be able to afford our efforts?
Win new clients
Mine existing clients
Page 30
Agree on
commercials and
sign-off
Engage with
client to
agree with
expectations
Opportunity
identified
Pursuit Management Pursue Qualify Deliver Close
Ph
ase
Independence
assessment
clearances
Develop value
proposition for
client
Proposal management and response
(client discussions, business outcomes, solution approach, orals, staffing, pricing, etc.)
Financial consulting – An industry overview
Page 31
Typical pursuit management roles Clear roles and responsibilities are critical to ensuring a well prepared proposal and that all team members have active and meaningful participation
Global Client Service Partner
Detailed client insight
Final authority on strategic direction; Leads key internal and
external meetings; Brings the right people into the pursuit
Account Director / Account Manager
Wider business development perspective
On the ground BD leadership and strategic direction; Participates in all key internal and external meeting; Key point of contact for day to day matters
Pursuit Leader
Aligns response with client goals
Lead pursuit effort by actively defining strategy and execution; Works closely with
team to use best practice tools and processes; Participates in key internal
meetings
Engagement Manager / Senior Manager
Arms and legs to build the response
Provides technical content and insight; Helps draft the
proposal; Manages proposal support resources and
activities
Pursuit Team, including SMRs, members, Seniors, etc.
Page 32
Funnel Management
Financial consulting – An industry overview
► Funnel Management provides an organization a method for analyzing opportunities within the sales funnel and identify ideal selling behaviors that will enhance sales performances.
► Prospecting and qualifying occurs at the top of the funnel. By putting the right opportunities at the top of your funnel, you set up to pursue only those that have the best chance of closing.
► Managing a swift funnel requires a rigorous understanding of customer’s decision-making process. This means that you got to get inside the prospects’ head to understand their underlying needs and interests in the sale.
Page 33
Funnel Management Process
Financial consulting – An industry overview
Source: www.z3live.com/sales
Page 34
Strategic Selling - Video
Financial consulting – An industry overview
Source: www.z3live.com/sales
https://www.youtube.com/watch?v=5yek6yLR6lw
Page 35
Miller Heiman Strategic Selling
Financial consulting – An industry overview
Key Focus of Strategic Selling:
► Create Single Sales Objective
► Identify Red Flags
► Identify All Buying Influences, Role, Influence, Mode and Rating
► Develop a Strategy for Each Buying Influence
► Gauge Your Competitive Position
► Create a Coach for the Sales Process
► Insure Access to the Economic Buyer
► Brainstorm an Action Plan
► Create a “Best Action Plan”
Page 36
Miller Heiman Strategic Selling- Blue sheet
Financial consulting – An industry overview
What are we
proposing to sell?
Buying influences, their roles,
level of influence?
Strengths and
concerns which
need to be
addressed What does each buying influence
get out of my proposition?
Possible actions to strengthen
our position?
What is our
current position?
Is the prospect a
good match for what we offer?
Rating each
buying influence, accurately.
Plan of action with targets and
accountability
Page 37
Miller Heiman – Activity
Financial consulting – An industry overview
Fill in the Miller Heiman blue-sheet provided to you based on the conversation between Mr Anand and CFO.
Practice blue sheet
Page 38 Financial consulting – An industry overview
Account Management
Page 39
Why account management is important?
Financial consulting – An industry overview
Account management is critical for an organization as:
► Clients value personal contact
► Consultants win businesses from it
► It’s a way to side-step organization barriers in the consulting firm
► Helps consultant firms to genuinely differentiate themselves
Page 40
Account management framework
Financial consulting – An industry overview
► Account Management Framework (AMF) refers to five behaviors that help teams to stay connected, responsive and insightful towards clients:
► Understanding company strategies and issues
► Building high-impact relationships
► Investing in accounts for success
► Developing longer term revenue plans
► Developing well-coordinated action plans
► Everyone has a role in understanding the company, strategically maintaining company contacts, and executing the applicable account management action plans
Page 41
Account management roadmap
Financial consulting – An industry overview
Understanding company strategies and issues
►Annual account planning team workshop to refresh account plan with new opportunities
►Identifying and understanding the initiatives/programs a client is driving to implement its business strategies and aligning the service offerings accordingly
►Including the client in the account planning process
Building high-impact relationships
►Develop a relationship map as well as individual client calendars for all key executives & buyers across service lines
►Relationship managers to be aligned to the client and their diverse background(s)
►Advancing relationships within the C-suite
Page 42
Account management roadmap
Financial consulting – An industry overview
Investing in accounts for success
►Understanding the accounts exposure/dependency on all service providers
►Developing a business plan outlining resources needed to become the dominant services provider at the account
Developing longer term revenue plans
►Accuracy in revenue planning & forecasting resource needs
►Having a longer-term revenue forecast that is aligned with the account’s total services spend & our investment plan
Developing well-coordinated action plans
►Have a rolling 90 day action plan for the account team with monthly update and monitoring by leadership
►Evaluating the track record at managing and closing top opportunities in pipeline
Page 43
Building blocks for Account management
Financial consulting – An industry overview
• Pro-actively pursue with client on key issues
• Innovative commercial support
• Frequent formal & informal contact points
• Ability to have people working on client sites
• Tapping into Global knowledge network
• Relevant Thought Leadership is reached to the client
• Frequent formal Contact Point
• Providing Internal Support
• Account Monitoring & support
Investment Insight
Initiative Informal
Interaction
Source: Source Information Services
Page 44
Account management diagnostic
Financial consulting – An industry overview
Process Current state evaluation Improvement plan
1.Understand client strategies and issues
o o o 1.
o o o 2.
o o o 3.
2.Build high-impact relationships
o o o 1.
o o o 2.
o o o 3.
3.Invest in accounts for success
o o o 1.
o o o 2.
o o o 3.
4.Develop longer-term revenue plans
o o o 1.
o o o 2.
o o o 3.
5.Develop well-coordinated action plans
o o o 1.
o o o 2.
o o o 3.
Page 45
Recap Introduction to Consulting
Global Consulting Industry
Indian Consulting Industry
Service Offerings
Ethics in Consulting
Understanding & Managing Competition
Identification of target clients, strategies and actions for business development
Account Management
Page 46 Financial consulting – An industry overview
Thanks !
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