what is the role of brand in management consulting? research highlights from industry study

The BIG Question

What is the role of branding in management consulting?

See more study results at: BIGMgmtConsulting.com

An organization’s brand is reflected in its distinct values system, unique personality, and a clear vision of what it stands for.

Brand is embedded in the culture, and shapes and guides how the organization presents itself (both internally and externally) and carries out its mission.


A shifting landscape, starting from the top.


Overarching questions we set out to answer.

How is brand being used as a business asset? How can branding and marketing help firms achieve business goals? How does brand compare with partner reputation as a business

builder? Is the role/importance of brand related to firm size? What are the most effective channels for connecting with key internal

and external audiences?


Methodology

Online surveys sent to AMCF membership and database.


Who Responded: Functional Roles

Q/ Which of the following best describes the area of specialization of your position? (n=76)

Service line

Corporate strategy/head of practice

HR

Industry vertical

IT

Marketing

Operations/Finance

Other

18%

25%

5%

8%

3%

26%

7%

8%


Who Responded: Geography

Q/ Which of the following best describes your firm's geographic focus? (n=76)

Regional

National (US) with little to no global reach

Primarily national (US) with some global reach

Global

Non-US with US office(s)

13%

12%

29%

45%

1%


Who Responded: Organizational Structure

Q/ What is the ownership structure of your firm? (n=76)

Partnership

Privately held

Public

37%

43%

20%


Who Responded: Titles

Q/ Which of the following titles best identifies the level of your position within the firm? (n=76)

Executive Management

Partner/Owner

Vice President

Director

Manager

Other, please specify

20%

36%

9%

14%

12%

9%


Who Responded: Size

Q/ Approximately how many full-time employees are there at your firm? (n=76)

BIG & BIGGER

STRADDLERS

GAINING SCALE

BOUTIQUE


Less than 50

50-1000

1001-5000

Over 5000

30%

31%

20%

19%

The 6 BIG FindingsThe Six BIG Findings

/ How Do You Define Your Brand?1

You offered a plethora of words to describe your firms.

Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, winning, collaborative, honest, data driven, fast paced, forward thinking, integrity, dedicated, collaborative, evolving, striving, integrity, passion, flexible, customer-centric, premium, expert

Some themes emerged from the responses.


You view yourselves as client-focused.


You get results.


Values were often mentioned.


No surprises … until we segmented responses by firm size.

While large and small firms coalesced around a handful of attributes …

Collaborative, client-focused, Growing, complex, insightful, Ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, collaborative, honest, data driven, fast paced, forward thinking, integrity, winning, dedicated, collaborative, evolving, striving, integrity, passion, flexible, premium, customer-centric, expert

… the mid-sized firms offered a very different list of attributes.

Collaborative, client-focused, growing, complex, insightful, ambitious, innovative, good listener, hungry, integrity, high-end, decision-oriented, collaborative, active, ethical, dynamic, intelligent, progressive, nimble, collaborative, intelligent, results-oriented, innovative, adaptable, silo’d, high quality, continual learning, quality, service-oriented, collaborative, honest, data driven, fast paced, forward thinking, integrity, winning, dedicated, collaborative, evolving, striving, integrity, passion, flexible, premium, customer-centric, expert

We asked respondents which management consulting brands they admire and why.

The words used to describe brands you admire suggest stability, vision and focus.

Strength of resources, global, focus, specialization, thought leader, corporate IQ, hardworking, the best, legacy, gold standard, pedigree, trend-setter, innovative, treat its people well, great place to work, ability to attract talent, a clear employer brand, well defined, tell their story well, brand consistency, ability to articulate who they are, well defined offering, pervasive, visibility

Large and small firms align with admired brands …

Large and Small Firms

Quality

Intelligent

High-end

Expert

Winning

Premium

Admired Brands

High quality

Corporate IQ

Gold standard

Thought leader

Pedigree


…but mid-size firms feel differently.

Mid-size Firms

Evolving

Complex

Hungry

Active

Fast-paced

Growing

Adaptable

Continual Learning

Striving

Ambitious

Flexible

Admired Brands

Well defined

Ability to articulate who they are

Tell their story well

Brand consistency

Well defined offering


Mid-size firms appear to see theirbrands – and their firms – in flux. While conveying a sense of change and flexibility can be positive, results suggest a lack of clarity and confidence.

/ What Are the Key Drivers of the Management Consulting Brand?2

Thought leadership is seen as a key driver by firms of all sizes.

BOUTIQUELess than 50 (n=24)

GAINING SCALE50–1,000 (n=23)

STRADDLERS1,001–5,000 (n=15)

BIG & BIGGERMore than 5,000 (n=14)

Strong leadership Distinct heritage Thought leadership Distinct heritage

Thought leadership Client portfolio Distinct heritage Client portfolio

Unique culture Thought leadership Unique culture Distinct position in the market

Client portfolio Strong leadership Distinct position in the market Thought leadership

Distinct position in the market Unique culture Proprietary methodology Strong leadership

‘Star' consultants Distinct position in the market Client portfolio Unique culture

Proprietary methodology Proprietary methodology ‘Star' consultants Proprietary methodology

Distinct heritage Corporate website Strong leadership ‘Star' consultants

Corporate website ‘Star' consultants Corporate website Corporate website

How strongly would you agree that the following elements shape your firm’s brand?


Heritage grows in importance with firm size ...



STRADDLERS1,001–5,000 (n=15)













...as does distinct position in the market.



STRADDLERS1,001–5,000 (n=15)











How strongly would you agree that the following elements shape your firm's brand?


But strong leadership, as a brand driver, declines as firms grow in size.



STRADDLERS1,001–5,000 (n=15)











How strongly would you agree that the following elements shape your firm's brand?


As firms grow, the importance of leadership in driving brand diminishes. The key is identifying what should take its place.

/ In Consulting, Do “Partners” = “Brand?” 3

At smaller firms, founding partners are still actively involved.

Are your founding partners still present and actively involved in your company?

N=43

YES / 80%NO / 20%

YES / 88%NO / 12%

BOUTIQUELess than 50

GAINING SCALE50–1,000


As firms grow, partner reputation evolves from a driver of new business to a driver of relationships.

How important of a role do you think the reputation of a firm’s partners play in the following areas: (n=78)


Not surprisingly, small firms fear a partner’s departure the most.

If the founding partners were to leave your firm, how much business do you estimate your firm would lose?

Less than 50

50-1000

45%

88%

55%

12%

N=43


Less than 50% More than 50%

As firms grow, the importance of the firm’s reputation begins to trump the reputation of its leadership.

Would you say that the public perception of your firm is driven more by the reputation of the leadership or the reputation of the company itself?

0

10

20

30

40

50

60

70

80

Driven more by reputation company Driven more by reputation of leadership



STRADDLERS1,001–5,000

BIG & BIGGERMore than 5,000


Smaller firms are more dependent on the reputation of their founding partners. Given the risks, establishing a strong point of difference more broadly is a vital step toward sustainable growth.

/ Do Mid-Size Firms Have an Identity Problem?4

Firms of all sizes are generally lukewarm about their brands.

In your opinion how strong of a brand do you think your firm has?

Extremely Weak

1

2

3

4

5

6

7

8

9

Extremely Strong

0%

0%

3%

1%

4%

8%

16%

24%

21%

11%

13%

Weak

Moderate

Strong


The mid-tier is particularly unenthusiastic.

How strong a brand do you think your firm has? N=78

Less than 50

50 to 1000

1001 to 5000

Over 5000

38%

22%

53%

14%

46%

56%

33%

36%

17%

22%

13%

50%

Strong Brand

Moderate

Weak Brand


The middle’s lack of enthusiasm runs the gamut.

How strongly do you agree with the following statements about your firm’s brand?

5

5.5

6

6.5

7

7.5

8

8.5






Mid-sized firms experience greater disagreement around brand drivers.

How strongly would you agree that the following elements shape your firm's brand? (ranked)



STRADDLERS1,001–5,000 (n=15)


Strong leadership 1.53 Distinct heritage 1.62 Thought leadership 2.13 Distinct heritage 1.88

Thought leadership 1.82 Client portfolio 2.13 Distinct heritage 2.57 Client portfolio 1.31

Unique culture 2.08 Thought leadership 2.25 Unique culture 2.61Distinct position in the market 1.63

Client portfolio 1.53 Strong leadership 2.20Distinct position in the market 2.67 Thought leadership 2.51

Distinct position in the market 2.25 Unique culture 2.44 Proprietary methodology 2.70 Strong leadership 2.17

‘Star' consultants 2.19Distinct position in the market 2.05 Client portfolio 2.69 Unique culture 1.98

Proprietary methodology 2.86 Proprietary methodology 2.62 ‘Star' consultants 2.69 Proprietary methodology 2.05

Distinct heritage 2.52 Corporate website 2.01 Strong leadership 2.83 ‘Star' consultants 2.79

Corporate website 2.37 ‘Star' consultants 2.47 Corporate website 2.69 Corporate website 2.37

Strong agreement (low standard deviation) Weak agreement (high standard deviation)


Mid-size firms have an identity issue. Perhaps it’s because they’ve grown as a collection of practice areas, or through acquisitions. They aren’t small enough to be boutiques or large enough to be global, full-service leaders.

/ What Is the Perceived Importance of Marketing in Management Consulting? 5

Brand behavior – rather than formal marketing – is seen as most effective.

How effectively does your firm express its brand: (Top 2 box)

Internally

Externally - through marketing

Externally - through product/service delivery

23.00%

20.50%

40.00%


Mid-tier feel their brand is expressed the least effectively, especially through marketing.

How effectively does your firm express its brand?

Internal

External - through marketing

External - through product / service delivery

7.28

6.76

8.04

6.66

7.08

7.7

6.2

5.73

6.6

7.78

6.14

7.9






Marketing professionals are less positive about the impact of brand than others in the firm!

How important of a role do you think the brand of your company plays in the following areas:

Attracting new business Engaging clients Building long-term relationships Attracting talent6

6.5

7

7.5

8

8.5

9

Non-marketing executives Marketing executives


Marketing respondents focused on attributes that are more outwardly focused.

Marketing

Collaborative

Client-focused

Results-oriented

Corporate Strategy

Trustworthy

Thoughtful

Professional

What three adjectives would you use to describe your firm?


Marketing believes in the power of thought leadership; corporate strategy in the power of leadership.


Marketing (n=21) Corporate Strategy (n=20)

Thought leadership Strong leadership

Distinct heritage Distinct position in the market

Client portfolio Client portfolio

Unique culture Unique culture

Distinct position in the market Distinct heritage

Strong leadership Thought leadership

Corporate website Proprietary methodology

Proprietary methodology “Star” consultants

“Star” consultants Corporate website


The power of brand is understood beyond the marketing department. This is an opportunity to step up and own the role – and importance – of you firm’s brand.

/ How Are Firms Deploying Their Brands?6

Most marketing respondents put their budgets at 2-5% of firm revenues.

How much of its overall budget does your firm allocate to marketing?

Less than 2%

2% - 5%

5% - 10%

10% - 15%

23.08%

57.69%

15.38%

4.00%

N=26 (marketers)


Tradeshows and PR account for almost half.

What percentage of your marketing budget is allocated to the following areas?

Tradeshows and corp events

PR

Sponsorships

SEM

Social media

Online advertising

Offline advertising

Other

27.04

17.04

16.54

8.65

7.19

6.31

2.35

24.88


Websites rule, inside and out. But what about mobile media?

How effective are the following channels in deploying your brand?

Your firm's website

Internal events

Email

Intranet/employee portal

social media

Virtual events

environmental branding

Print collateral

Mobile media

6.81

6.62

6.52

6.19

5.62

5.14

5.1

4.81

3.38

Internal

Your firm's website

Email

Digital publications

Branded events

Social media

Print collateral

SEO

Tradeshows/events

Print publications

Virtual events

Direct mail

PPC

Mobile media

Radio

7.1

6.95

6.29

6.14

6.1

5.9

5.86

5.71

5.62

5.43

4.05

3.48

3.43

1.95

External


Tradeshows are the biggest budget item – but they’re not seen as most effective in deploying the brand.

Your firm's website

Email

Digital publications

Branded events

Social media

Print collateral

SEO

Tradeshows/events

Print publications

Virtual events

Direct mail

PPC

Mobile media

Radio

7.1

6.95

6.29

6.14

6.1

5.9

5.86

5.71

5.62

5.43

4.05

3.48

3.43

1.95

External

Tradeshows and corp events

PR

Sponsorships

SEM

Social media

Online advertising

Offline advertising

27.04

17.04

16.54

8.65

7.19

6.31

2.35

Marketing budget allocation


In a digital world, a firm’s websites is the hub of its digital brand experience. But tradeshows and events are still the #1 budget item. Does in-person engagement still deliver the highest return?

Mid-sized firms need to define themselves.

A constant squeeze: Mid-size firms have more resources, breadth and capabilities than small firms, yet less focus

and specialization … but they lack the presence and scale the large firms.

Caught between small firms – typically built around a focused strength – and large firms – guided by heritage, mid-size firms see themselves – and their brands – in a constant state of evolution.

Implication:

Branding around a strong, unified culture may be the mid-size firm’s best opportunity to create differentiation from larger firms.


Your brand walks out the door every day.

As a group, you feel you communicate your brand more effectively through behavior than through formal marketing efforts or internal engagement.

This represents an opportunity to capture and codify the essence of your brand as it is expressed by your people and the services they deliver.

Implications: Rethink proposals, pitch books and thought leadership – do they

reflect the brand that your people are living? Demonstrate “behavior” in marketing by focusing on how your

brand is embodied in your people and services: let the market “hear” your people, see them at work, engage with their perspectives.


Find out what drives your brand.

Where are you on the partner-firm spectrum?

Do the reputations of your partners drive your brand? Or is it the reputation of the firm itself?

Where do you want to be on the spectrum? Will a partner-driven brand scale with your firm’s growth?

How can you build thought capital into a brand without tying the brand too closely to any individual or group?

Implication:

Look to internal and external research to determine the core drivers or your brand.


Questions?

See more study results at:

BIGMgmtConsulting.com