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| Focus |
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A client once asked me to help salvage a project that had failed due to a scary lack of focus. The problem started with the project team.
Its efforts were dedicated to task completion, which doesn't sound like such a bad idea. But the team lost its focus on the end result. The predictable outcome was that a lot of work got done, but it wasn't the right work.
The simple principle of focus drives the outcome of almost everything we do, whether it's client project work or our own marketing strategy, professional development, or careers. And, when things get crazed, which is often the case in this business, it's easy to lose focus.
Like that troubled project, dropping the ball on your professional focus has a similar outcome. So, it never hurts to revisit your thinking about the clients you want to serve, what you're offering, and how you're doing in reaching your career goals.
If you've lost a bit of focus, the easiest way to regain traction is to take the advice you'd give your clients: zero in on what's truly important and watch the desired results roll in.
Too many people only address these issues when they're not busy, or when a new year is approaching. Those aren't bad times to reflect on your business, but shouldn't be the only times either. Where is your focus?
Enjoy this month's issue.
And send me an email if you have comments.
Mike
McLaughlin
Editor
Management Consulting News is a publication of MindShare
Consulting.
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| MCNews 12 Index of Professional Services |
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In spite of gloomy news on the US economy, the MCNews 12 Index reached its highest level of the year, buoyed by strong earnings reports from IBM and Accenture. IBM's first quarter net income surged 26 percent, causing investors some relief that the professional services industry was weathering the sluggish US economy.
IBM's revenue from the US is roughly 35 percent of its total, which has positioned the company well in the current economic environment.
EDS posted a 62 percent plunge in first quarter profits, but new contract signings in the same period rose to $5.6 billion, up 66 percent from the same time last year. The news pushed EDS shares up by 4.77 percent for the year to date.
Executives from the leading India-based services firms remain guarded about their performance. Unlike IBM, these firms rely heavily on US clients, who are behaving cautiously in this unpredictable economy.
The result: Wipro posted its slowest quarterly earnings growth in the past five years. Infosys and Satyam also experienced a drop in historic growth rates.
Infosys reported a 10 percent rise in profit and Satyam had an 18 percent rise in quarterly profit. The results are respectable, but far below historic levels, leading some analysts to wonder how much of a slowdown to expect in the outsourcing industry.
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MCNews 12 Index |
Monthly
Change |
S+P 500
Change |
| April 2008 |
990.59 |
11.51% |
5.13% |
| March 2008 |
888.27 |
-4.87% |
-1.74% |
| Feb 2008 |
933.75 |
4.48% |
1.08% |
The MCNews 12 Index reflects general investor sentiment about the state of the global professional services industry.
The twelve publicly-traded companies included in the MCNews 12 Index account for roughly $80 billion in combined annual revenue, and serve clients around the world.
Learn more about the MCNews 12 Index 
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| Interview:
Thomas DeLong |
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 "Too often, firm leaders set a good strategy, but they blink when they don't hit their target numbers."
Thomas DeLong is coauthor of When Professionals Have to Lead: A New Model for High Performance, and a Professor at the Harvard Business School
DeLong believes that current marketplace dynamics demand new models for leading professional service firms. We talked to DeLong about his research and his ideas about a leadership framework that can help firm leaders balance the conflicting demands of managing modern professional service organizations.
Read
our interview with Thomas DeLong
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| Flying Solo, by Alan Weiss |
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 Knowing the Currents
Chickens can't fly because they are shaped poorly, have no aerodynamics to speak of, possess insufficient wings, and through generations have evolved into ground creatures.
Chickens can't change themselves. But we can.
Read
the article
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| The Sad State of Customer Satisfaction |
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For the third year, customer service ratings are taking a beating. According to researchers at Accenture, almost half of the 3,500 consumers surveyed found their service experience with companies to be fair, poor, or terrible.
Making matters worse, consumers aren't just complaining about poor service. Most respondents (59 percent) reported that they switched to a new provider in the past year, specifically due to service failures.
The results shouldn't be too surprising given that many organizations are handing over their customer service functions to outsourcers, who promise lower costs and improved service. Instead, what consumers are finding is longer waits, clueless service reps, and growing frustration.
Today's consumers expect more from their service experience than in years past, according to Accenture. And most companies are missing an opportunity to grow relationships with customers, preferring instead to push service costs down. But, let's remind our clients that the quality of service outweighs price as a reason why customers switch providers.
For every organization with a customer service function, there is a balance between service and cost. The trick is to help each client find that balance. The payoff is worth the effort.
A positive customer service experience is a powerful source of differentiation, not just a cost of doing business.
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| The Power of Firm Branding |
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Few would argue against the point that personal relationships fuel sales success in the consulting business. But some firm leaders remain wary of the ROI of branding programs.
In their recent study, Fees and Pricing Benchmark Report: Consulting Industry 2008, RainToday.com researchers uncovered a compelling argument for branding the professional services firm.
Firms with strong brands in their markets experience better fee realization, stronger growth rates, and higher profitability than lesser known firms. Granted, many factors contribute to the performance of consulting firms, but with this extensive survey of almost 700 respondents, the case for branding gains strength.
The report offers analyses of current pricing challenges, strategies, and tactics used by every size of consulting firm.
The sections on fee structures, discounting, and pricing models will give most any consultant an excellent benchmark for making strategic pricing decisions.
This report is the strongest one yet from RainToday.com.
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| From the Bookshelf |
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Here are four recent books that you might want to have a look at:
The Back of the Napkin: Solving Problems and Selling Ideas with Pictures, by Dan Roam
Roam's book offers the simple, yet powerful idea that anyone with a pen and a napkin can use visual thinking techniques to tackle any problem.
Total Alignment: Integrating Vision, Strategy, and Execution for Organizational Success, by Riaz Khadem, Ph.D.
Riaz Khadem outlines the essential organizational strategies that lead complex organizations to a more unified workforce, smoother operations, and greater profitability.
Rules to Break and Laws to Follow: How Your Business Can Beat the Crisis of Short-Termism, by Don Peppers and Martha Rogers
Peppers and Rogers are back with some compelling ideas for achieving long-term, lasting business success in a world that is hardwired for short-term results.
The New Age of Innovation: Driving Cocreated Value through Global Networks, by C.K Prahalad and M.S. Krishnan
Prahalad and Krishnan suggest that the key to creating value and future growth for any business depends on accessing a global network of resources to co-create unique experiences with customers, one at a time.
It may sound far-fetched, but the underlying message of integrating IT infrastructure with an organization's management architecture is a powerful concept that any organization can benefit from hearing.
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| Coming
Attractions |
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 "...meaningful strategic differentiation depends not on competitors, but on the needs of the company's customers."
Next month we'll talk with Jim Champy, Chairman of the Perot Systems consulting practice, and recognized throughout the world for his work on leadership and management issues. His first book, Reengineering the Corporation: A Manifesto for Business Revolution, upended traditional thinking about managing an organization.
Champy's latest book, Outsmart!: How to Do What Your Competitors Can't, illustrates six ways that "smart" organizations achieve breakthrough growth in the toughest markets--while others don't. We'll ask Champy how consultants can apply these ideas to their clients and practices.
Look for the next issue of Management Consulting News on June 3, 2008.
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