Consulting in Procurement April 2015

Consulting in Procurement April 2015

Introductions Meet the team Leon Smith Director Shauna Gallagher Manager Mick Davies Senior Manager Chris Croisdale Manager 2

Background & context Objectives of the session To give an overview of the UK consulting market To provide opportunities for question and challenge To discuss how best to approach a consulting project To create an environment for networking Insights into building a successful career in consulting Anything else? 3

Background & context Quick straw poll Reasons for attending? It is a good opportunity to network To get a consultant s view of buying consulting services To get an insight into a career in consulting To check out PwC s offices I ve heard there are free drinks afterwards Poll 4

Background & context Why are we here? The best projects are those that are set up right Everyone s expectations are understood Creating the most effective consulting projects Consulting projects need managing Choosing the right consulting partner 5

The Consulting Market Overview UK consulting market size 2014 6bn 2013-2014 growth 6.6% Fastest growing sectors 13/14 1. Technology (7.7%) 2. Strategy (7.0%) 3. Operations (5.1%) Source: Source for Consulting, UK Territory Report 2015 6

The Consulting Market What does it look like? Market Structure Source for Consulting segments the market as follows: Strategy Tier 1 Technology Consulting Market Share People Consulting General Management Consulting SMEs and Contractors Strategy Tier 1 Technology People General Source: Source for Consulting, UK Territory Report 2015 7

Costing your consulting project Value Based Pricing Inputs Outputs Outcomes Secondments Time and Materials Fixed Fee Benefits Share on Savings/Cost Reduction Benefits Share on Revenue Enhancement 8

The Consulting Market Top 6 reasons for calling in the consultants Skills Specialist skills not available in house Responding to regulatory change Regulatory Delivery Help with the implementation of large scale projects Consulting Independent input or validation Cash culture and manage Independence Planning Help with devising and planning large scale projects Additional capacity at peak times Capacity Source: Source for Consulting, UK Territory Report 2015 9

The Consulting Market Your use of consultants For what reason have you used consultants in the past? Specialist skills not available in house Additional capacity at peak times Help in implementing large scale projects Help in devising/planning large scale projects Responding to regulatory change Independent input or validation No experience of using consultants Poll 10

Setting out your requirements What challenges exist in sourcing Consulting services? Key challenges facing Procurement professionals when buying Consulting Stakeholder Management Supplier Relationships Organisational Requirements Procurement Involvement 11

What challenges are you facing? Which of the challenges below presents the greatest obstacle in your organisation? Managing senior/multiple stakeholders Breaking down existing supplier relationships Understanding organisational requirements Timely involvement of procurement Budgetary constraints Poll 12

Setting out your requirements How do you combat these challenges? Develop an effective specification Why? What? How? Where? When? Who?

Setting out your requirements How do you combat these challenges? Just some of the questions we need to answer: Why are we engaging consultants? What is the business need? What is the deliverable of the business need? What resource do we need to deliver? What type of consultancy firm are we looking for? How will this service be delivered? Where is this going to take place? When is this going to happen? Who is going to deliver this? 14

Understanding the work type Setting the tone for your procurement 15

Example Projects Example 1: You are looking to outsource your Finance, HR and Procurement functions to create a global shared service Where do you feel this project sits on the matrix? Tactical Commodity Security Strategic Poll 16

Example Projects Example 2: The CEO needs market research to develop the annual business plan and his best friend owns a market research agency Where do you feel this project sits on the matrix? Tactical Commodity Security Strategic Poll 17

Example Projects Poll Example 3: A global bank requires a new ERP Where do you feel this project sits on the matrix? Tactical Commodity Security Strategic 18

Getting the right resource What do the different grades mean? Partner Director Senior Manager Manager Senior Associate Associate Industry equivalent: Industry equivalent: Industry equivalent: Industry equivalent: Industry equivalent: Industry equivalent: Chief Operating Global Head of Officer of a Procurement, Global Company reporting to the Board of Directors Procurement Director, Head of Procurement Senior Buyer, Senior Category Manager Buyer, Category Manager Analyst, Junior Buyer 19

Key Takeaways If you remember nothing else Getting the best out of a consulting project: 1. Get involved early 2. Manage your stakeholders 3. Understand the business requirements 4. Know the market and supplier capability 5. Set up and manage projects correctly 20

Thank you Please join us for drinks! This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.