Consulting inProcurementApril 2015

IntroductionsMeet the team

2

Leon Smith

Director

Mick Davies

Senior Manager

Shauna Gallagher

Manager

Chris Croisdale

Manager

Background & contextObjectives of the session

3

To give an overview of theUK consulting market

To discuss how best toapproach a consulting

project

Insights into building asuccessful career in

consulting

To provide opportunitiesfor question and challenge

To create an environmentfor networking

Anything else?

Background & contextQuick straw poll

Reasons for attending?

• It is a good opportunity to network

• To get a consultant’s view of buying consulting services

• To get an insight into a career in consulting

• To check out PwC’s offices

• I’ve heard there are free drinks afterwards

4

Poll

Background & contextWhy are we here?

5

Everyone’sexpectations

areunderstood

Choosing theright

consultingpartner

The bestprojects are

those that areset up right

Consultingprojects need

managing

Creating the most effective consulting projects

The Consulting MarketOverview

6

UK consulting market size 2014

£6bn

2013-2014 growth

6.6%

Fastest growing sectors 13/14

1. Technology (7.7%)

2. Strategy (7.0%)

3. Operations (5.1%)

Source: Source for Consulting, UK Territory Report 2015

The Consulting MarketWhat does it look like?

Market Structure

Source for Consulting

segments the

market as

follows:

7

People Consulting

General Management Consulting

Technology Consulting

Tier 1

Strategy

Market Share

StrategyTier 1TechnologyPeopleGeneral

Source: Source for Consulting, UK Territory Report 2015

SMEs and Contractors

Costing your consulting projectValue Based Pricing

8

Inputs Outcomes

Secondments

Time andMaterials

Fixed Fee

Benefits ShareonSavings/CostReduction

Benefits Shareon RevenueEnhancement

Outputs

The Consulting MarketTop 6 reasons for calling in the consultants

9

Cash culture and manage

Skills

Regulatory Delivery

Planning

Capacity

Independence

Responding toregulatory change

Independent inputor validation

Additional capacity at peak times

Consulting

Specialist skills not available in house

Help with theimplementation oflarge scale projects

Help with devisingand planning large

scale projects

Source: Source for Consulting, UK Territory Report 2015

The Consulting MarketYour use of consultants

For what reason have you used consultants in the past?

• Specialist skills not available in house

• Additional capacity at peak times

• Help in implementing large scale projects

• Help in devising/planning large scale projects

• Responding to regulatory change

• Independent input or validation

• No experience of using consultants

10

Poll

Setting out your requirementsWhat challenges exist in sourcing Consulting services?

11

StakeholderManagement

SupplierRelationships

OrganisationalRequirements

ProcurementInvolvement

Key challenges facing Procurement professionals whenbuying Consulting

What challenges are you facing?

Which of the challenges below presents the greatest obstaclein your organisation?

• Managing senior/multiple stakeholders

• Breaking down existing supplier relationships

• Understanding organisational requirements

• Timely involvement of procurement

• Budgetary constraints

12

Poll

Setting out your requirementsHow do you combat these challenges?

Why? What?

Who?When?Where?

How?

Develop an effective specification

Setting out your requirementsHow do you combat these challenges?

14

Just some of the questions we need to answer:

• Why are we engaging consultants?

• What is the business need?

• What is the deliverable of the business need?

• What resource do we need to deliver?

• What type of consultancy firm are we looking for?

• How will this service be delivered?

• Where is this going to take place?

• When is this going to happen?

• Who is going to deliver this?

14

Understanding the work typeSetting the tone for your procurement

15

Example Projects

16

Example 1: You are looking to outsource your Finance, HRand Procurement functions to create a global shared service

Where do you feel this project sits on the matrix?

• Tactical

• Commodity

• Security

• Strategic

Poll

Example Projects

17

Example 2: The CEO needs market research to develop theannual business plan and his best friend owns a marketresearch agency

Where do you feel this project sits on the matrix?

• Tactical

• Commodity

• Security

• Strategic

Poll

Example Projects

18

Example 3: A global bank requires a new ERP

Where do you feel this project sits on the matrix?

• Tactical

• Commodity

• Security

• Strategic

Poll

Getting the right resourceWhat do the different grades mean?

19

Partner Director SeniorManager

Manager SeniorAssociate

Associate

Industryequivalent:

Chief OperatingOfficer of aGlobal Company

Industryequivalent:

Global Head ofProcurement,reporting tothe Board ofDirectors

Industryequivalent:

ProcurementDirector, Headof Procurement

Industryequivalent:

Senior Buyer,SeniorCategoryManager

Industryequivalent:

Buyer,CategoryManager

Industryequivalent:

Analyst,Junior Buyer

Key TakeawaysIf you remember nothing else…

20

Getting the best out of a consulting project:

1. Get involved early

2. Manage your stakeholders

3. Understand the business requirements

4. Know the market and supplier capability

5. Set up and manage projects correctly

Thank you

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon theinformation contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to theaccuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members,employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining toact, in reliance on the information contained in this publication or for any decision based on it.

© 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwCnetwork. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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