June 2013 The US management consulting market in 2013
The US management consulting market in 2013: Our research Clients Consultants 2 The Nordic consulting market in 2013
The US management consulting market in 2013: Agenda How did the market perform in 2012? 3 The US management consulting market in 2013
How did the market perform in 2012? 2012: The international context Global market: $92bn* * Includes firms with a minimum of 50 consultants % Change 2011-12: Up 7% 4 The US management consulting market in 2013
How did the market perform in 2012? Focusing in on the US US market: $39bn* * Includes firms with a minimum of 50 consultants % Change 2011-12: Up 9% 5 The US management consulting market in 2013
How did the market perform in 2012? Where has growth been coming from? Healthcare Energy and resources Pharma Technology, media and telecoms Financial services Marketing and selling Operational improvement Technology 6 The US management consulting market in 2013
How did the market perform in 2012? The view from (parts of) Europe Germany, Switzerland, Austria 7bn 4% UK 6bn 2.3% France 3.7bn -2.5% Nordics 2.2bn 2.5% Benelux 1.9bn -3.1% Spain 1.1bn -3.0% Italy 1.0bn -6.0% Russia 0.9bn 16.7% Eastern Europe 0.8bn 7.0% 7 The US management consulting market in 2013
How did the market perform in 2012? What s driving growth? The economy Labor market flexibility Digitization 8 The US management consulting market in 2013
How did the market perform in 2012? What s NOT driving growth? Client attitudes 9 The US management consulting market in 2013
The US management consulting market in 2013: Agenda The client perspective 10 The US management consulting market in 2013
The client perspective: Clients have plenty on their plate Costs Growth Technology 11 The US management consulting market in 2013
The client perspective: Will this turn into increased use of consultants? 12 The US management consulting market in 2013
The client perspective: Growth looks set to continue Going up Staying the same % of organizations Coming down US 42% 40% 18% Germany 55% 31% 14% UK 40% 37% 23% France 34% 38% 27% Scandinavia 41% 37% 23% GCC 67% 24% 9% 13 The US management consulting market in 2013
The client perspective: But digitization is critical Uncertainty around the economy Duration of post-crisis need for flexibility Links the efficiency and growth agenda Positive correlation between demand for technology and use of consultants Stepping stone to transformation 14 The US management consulting market in 2013
The US management consulting market in 2013: Agenda The impact on the consulting industry 15 The US management consulting market in 2013
The impact on the consulting industry: (1) Volatility 16 The US management consulting market in 2013
The impact on the consulting industry: (2) The rise of the mega-firm 17 The US management consulting market in 2013
The impact on the consulting industry: (3) Hyper-specialization 18 The US management consulting market in 2013
The impact on the consulting industry: (4) Fee rates Only 13% would buy a lot more from you if you cut your fees by 20% 59% would buy a lot more, but only if you halved your fees But 51% would buy a lot more if you tied fees to results 19 The US management consulting market in 2013
The US management consulting market in 2013: In conclusion It shouldn t be rocket science, but apparently it is Understand Listen Be honest Come with concrete propositions 20 The US management consulting market in 2013