financial consulting overview

Financial Consulting

September 09, 2015

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

Introduction to Consulting

Financial consulting – An industry overview

Consulting perceptions

Consulting


“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

Financial Consulting – What is it about?


• 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….

How it fits in business


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

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


Source: Source one report

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



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


Mergers & Acquisitions


The Indian consulting industry

At a glance: The Indian consulting market in 2013

Market size Consulting Landscape

Strategy Consultants

’Big Four’ Firms

Technology Consultants


Market size

Market size

Growth +3%

$1.4bn

Future growth prospects

+ 5-6% in 2015


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



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


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)



Service Offerings


Need for these services


Changing role of CFO

http://bcove.me/vhyrzd8b - EY perspective

http://bcove.me/kwcg3nck - CFO perspective

http://bcove.me/vhyrzd8b

http://bcove.me/vhyrzd8b

http://bcove.me/kwcg3nck

http://bcove.me/kwcg3nck

Types of services


► 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

Types of services


► 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

Activity


► 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.

Why the concern?


Protection of client data

Professional malpractices

such as bribery

Insider trading

Confidential client information

Sensitive consulting firm knowledge

Conflict of interest

Competitive

Pressure

Regulations

Ethical conduct


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

Ethical dilemma :


What would you do…?

Understanding and managing competition


Relationship building


► 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

Identifying target clients


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

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.)


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.

Funnel Management


► 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.

Funnel Management Process


Source: www.z3live.com/sales

Strategic Selling - Video


Source: www.z3live.com/sales

https://www.youtube.com/watch?v=5yek6yLR6lw

https://www.youtube.com/watch?v=5yek6yLR6lw

Miller Heiman Strategic Selling


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”

Miller Heiman Strategic Selling- Blue sheet


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

Miller Heiman – Activity


Fill in the Miller Heiman blue-sheet provided to you based on the conversation between Mr Anand and CFO.

Practice blue sheet


Account Management

Why account management is important?


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

Account management framework


► 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

Account management roadmap


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

Account management roadmap


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

Building blocks for Account management


• 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

Account management diagnostic


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.

Recap Introduction to Consulting

Global Consulting Industry

Indian Consulting Industry

Service Offerings


Understanding & Managing Competition


Account Management


Thanks !

Ernst & Young LLP

EY | Assurance | Tax | Transactions | Advisory

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financial consulting overview

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sectors financial consulting

institute of consulting

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indian consulting market