How to analyze your consulting spend
- 1. ASK YOUR QUESTION HOW TO ANALYZE MY CONSULTING SPEND?
- 2. Data gathering is the most crucial part of category management.
- 3. Most companies don’t know how much they spend and how.
- 4. But the Consulting spend can represent up to 1% of your revenues.
- 5. And it is not always aligned with your strategy…
- 6. Regardless of how far you want to go, you need to analyze your consulting spend and establish your baseline .
- 7. The goal is to provide you with structured data to understand the trends and patterns of your consulting spend.
- 8. It will help you capture quick gains, get the buy-in of your employees, and embark on a self-funded journey.
- 9. SO HOW DO I START?
- 10. How much are you spending, who is spending, and on what?1.
- 11. What data do I need to collect? How much did we spend on consulting? Who bought consulting? What type of consulting did they buy? How long were the projects? Who did they buy from? You will need normalized data from your different business units to have a relevant analysis.
- 12. How are decisions about consulting made from inception to selection?2.
- 13. What data do I need to collect? Why did they buy consulting? How did they make the decision? What validations were required? Who is paying? Is it the same person? Was a competition organized? Was procurement involved? This data can only be collected by going through all the projects in detail.
- 14. What benefits are you getting from your projects and providers?3.
- 15. What data do I need to collect? Did the consulting team understand the business? Did the consulting team deliver in time, quality, and cost? Were the talent and expertise at the level expected? Was the posture of the consulting team adequate? Was the impact at the level expected? Would you recommend this consulting firm for another project? We recommend to collect this information at the partner and/or the project manager level.
- 16. You don't need to launch a huge project to get started. Once you have understood your consulting spend and assessed the performance of your suppliers, …you can start raking in the quick gains.
- 17. Hélène Laffitte Cofounder & CEO • Consulting Sourcing Expert • Author of Smart Consulting Sourcing • MBA Columbia Business School Want to learn more? Contact me & start creating more value. +1 (646) 477 5953 Follow us on the web CREDITS PHOTOS FROM UNSPLASH Slide 1 – Mr Cup / Fabien Barral Slide 2 – Geronimo Giqueqaux Slide 3 – Miguel Amutio Slide 5– Joshua Earle Slide 6 – Daniel Höhe Slide 7 – Braden Collum Slide 8 – Sharon McCutcheon Slide 15 – Vlad Tchompalov
Editor's Notes
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