Anybody in the management consulting business understands that today’s companies face a multitude of business challenges, a few age-old and a few brand new. In Hinge we wanted to construct a focused comprehension of the best problems which are occupying companies and what that means for your business at large. We got down investigating.
Diving to the research
The analysis covered a selection of business sizes and businesses. Additionally, we researched a subset of those firms (nearly a third of the complete sample) that provide consulting services to comprehend the drivers and challenges of success in this business.
In this informative article, our intent is to inspect the company challenges and priorities of management consulting companies. Thus, what are these priorities, and exactly what exactly do they imply to the business?
The top five overall company priorities for management consulting firms paint a dramatic picture of the market now.
Let us discuss these struggles one by one.
- Higher competition
The top concern cited by nearly 40 percent of companies was that the spectre of greater competition. Respondents from management consulting companies and all services responded similarly: they fear a great deal about competition coming from the new companies and bigger opponents, with a small advantage to the emerging-firm hazard.
- Changes in how buyers buy services
Nearly 38 percent of management consulting companies are concerned about the shifting ways buyers move about purchasing services (this contrasts to 30 percent — and 6th location — across all). While our data do not include certain details, we guess that this issue is driven by the greater use of internet research, social media and other unconventional stations to vet and find consulting companies.
The way that people get referrals has shifted. Many referrals nowadays are created by individuals who never hired your company, but they understand about you from different sources. Increasingly, companies are constructing their reputations on line — though complex content advertising applications and direct involvement in social networking. Without doubt, some companies feel ill equipped to accommodate those changes. However they need to if they would like to compete in this changing market.
- Unpredictability in the Market
Whether you’re talking politics or business, these are tumultuous times. The consulting market is growing rapidly by one that relied mostly on social contact to come up with new company (think media or private referrals) to some wide-open battlefield online. Increasingly, that’s where companies do conflict and buyers are picking the winners.
- Downward price pressure on services
As more economical alternatives and more effective technology emerge, much expertise-driven consulting providers are subject to charge erosion. However, this trend represents a chance, too. By way of instance, management consulting services that manage the power of advertising automation and artificial intelligence — and wed these technologies efficiencies using their specialist insights — will probably be positioned to distinguish themselves. This is particularly true given that almost half of management advisers are fighting to utilize technology efficiently.
- The requirement for new abilities
Noted by 35 percent of respondents, the demand for new skills is a frequent struggle for management consulting companies. As innovative technologies and techniques develop in the market, companies can sense an unrelenting strain to keep up with the continuous shift.