6. Why Use Advisors? High leverage Low margin Low leverage High margin Based on David Maister’s Spectrum of Practice Model Efficiency Experience Expertise November 5, 2009 Procedures and Practices Grey hair Rocket Science Client Problem Efficient Solution to common problems Customized solutions to generic problems Unique or first time solutions to complex problems Application Skills and quantitative analytics Judgment based on accumulated experience Creativity, imagination, innovation Critical Success Factors Established “infrastructure” Models, methods and practices Efficient delivery Experience Body of knowledge Technical depth “ First of type” analytics Creativity State of the art knowledge Pioneering concepts Selling Proposition Faster, better, cheaper Capital efficiency Demonstrable track record Relevant references Reputation Cognitive authority Leverage Outsourcing and managed services “ Core” management consulting and niche optimization skills Emerging skills, research commercialization and innovation
7. Market positioning Based on work by R. Lees and J. Gabarro Low differentiation Multiple providers Execution guarantees High Leverage Low margin High differentiation Limited providers Diagnostic focus Low Leverage High margin Efficiency Experience Expertise November 5, 2009 Applying the body of knowledge Customizing the body of knowledge Extending the body of knowledge Creating a new body of knowledge Client Problem: Efficient solutions to common problems Client Problem: Help in making an informed choice from a variety if options and guidance through the process Client Problem: A major, complex and ill defined issue where the client has little or no experience Client Problem: A major “bet the company” issue that the client has no similar experience of Key skill : Efficient low cost delivery of established methods, models and processes Key skill Providing confident, user friendly advice that reduces anxiety and uncertainty in the selection process and during implementation Key skill: Real time diagnosis, judgment and decision support Key skill: Providing innovative first of type solutions Critical Success Factors: Established methodologies, models and processes Efficient low cost delivery systems CSFs: Established methodologies, models and processes Efficient low cost delivery systems Relationship skills SG&A cost management CSFs: Knowledge management in the problem domain In depth technical and functional knowledge CSFs: Highest level of diagnostic and synthetic skills State of the art knowledge Pioneering concepts Profit Drivers: Repeatability High Volume; high leverage Profit Drivers: Above average fees Good leverage Profit Drivers: High fees, low leverage Profit Drivers: Premium fees Very low leverage Ecosystem referrals Selling proposition: Better, faster, cheaper Capital efficiency Selling proposition: Use us. We’ll help you make a better choice and support your decision until it works Selling proposition: We’ve been there, done that, made it work Relevant references Reputation Selling proposition: Smartest people around Leverage Outsourcing and managed services Orchestration “ Core” management consulting and niche optimization skills Emerging skills, research commercialization and innovation
8. Why advisors remain important Efficiency Inside the Business Competition in Global Markets We are here Uncertainty Planning Trajectory Reality Expectation Gap Early adopters shorten the expectation gap by switching curves ahead of the market… We must avoid being trapped between ‘S’ curves as families of enabling ideas and practices evolve Based on work by Geoffrey Moore and Clayton Christiansen Disruptive Innovation November 5, 2009 85 95 00 05 10 15