How to sustain consulting company growth amidst customer cutbacks
Petra Ranhem
May 22, 2023 8:49:42 PM
Contents
Adapting to the New Normal:
The ever-evolving economic landscape has profoundly impacted various industries, and consulting companies are no exception. As financial situations fluctuate, the behavior of customers has changed significantly, presenting new challenges and opportunities. In this blog post, we will explore the key shifts in the consulting industry and outline strategies for consulting companies to adapt and flourish in the face of adversity.
New Normal for consulting:
The current economic climate has resulted in longer decision-making processes and a greater need for consulting companies to demonstrate value to their customers. As a result, consulting firms are experiencing prolonged and parallel sales cycles. Additionally, consultants now find themselves working simultaneously on multiple upcoming assignments, maximizing their efficiency and productivity. However, this new reality also introduces uncertainty regarding the duration of assignments and the consultants' availability for future projects.
Back to Basics: Ensuring Stability and Growth
In order to maintain continued growth amidst customer cutbacks and slowdowns, consulting companies must prioritize getting back to basics while keeping a firm eye on the future. This involves focusing on essential aspects of consulting operations and minimizing risks and lost income. Here are some key areas to consider:
- Monitoring Key Performance Indicators: Tracking critical metrics such as occupancy rates, margins, and other KPIs is crucial for assessing performance and making informed decisions. By comparing these figures with previous years, different locations, or roles, consulting companies can identify trends and areas for improvement.
- Increased Sales Focus: To mitigate the impact of economic uncertainties, consultants need to maximize their time spent on sales activities. Minimizing internal meetings and gaining clarity on the number and stages of leads in the pipeline are vital for maintaining a steady flow of business.
- Risk Minimization: Keeping close tabs on consultants' assignments is essential, ensuring their progress aligns with client expectations. By actively managing risks associated with unplanned changes, consulting companies can minimize potential disruptions.
Working smarter, not just faster, is crucial for optimizing efficiency. Investing in system support can help streamline operations, save time, and provide real-time insights into critical areas of the business.
Right support systems needed 
Consider leveraging tools like the Bizz Planner, which integrates consulting and assignment planning, forecasting, and follow-up within a single platform, ensuring access to historical and up-to-date data.
Eye on the Future:
Staying Ahead in a Competence-Driven MarketCompetence-intensive businesses rely on providing fresh expertise to organizations for critical projects. Maintaining a forward-looking perspective is key to anticipating customer needs and identifying opportunities for growth. Here's what consulting companies should focus on:
- Understanding Customer Development Plans: Stay attuned to your customers' long-term goals and identify their future competence requirements. By aligning your services with their evolving needs, you can position your company as a valuable partner for the long haul.
- Exploring New Areas of Expertise: Continuously assess emerging trends and areas of specialization that align with your consultants' skillsets. Identify where your expertise can be leveraged, and consider recruiting new talent to complement your existing capabilities.
- Leveraging Unused Skills: Evaluate the skillsets of your consultants and identify untapped potential. By matching their competencies with new types of assignments, you can create opportunities for both your employees and your business.
Balancing Current and Future Competence:
Striking the right balance between immediate client demands and future competencies is critical. While it may be tempting to prioritize short-term gains, ensure your decision-making considers the long-term sustainability and success of your consulting company.
Keep track of your employees' skills with an Intelligent skills and planning platform like Bizz Profile.
Sustainable success:
In the face of economic challenges, consulting companies can thrive by embracing change, focusing on the basics, and preparing for the future. By monitoring key metrics, investing in system support, and staying ahead of customer needs, these companies can position themselves for sustained success.