The Relentless Pursuit of Profitability
By: Andy Jordan, President of Roffensian Consulting S.A.
It finally looks, in North America at least, as though there’s a light at the end of the tunnel. The economy is bouncing back, various elements of society are returning to normal, even if it’s a slightly different normal, and management consulting firms supporting multiple industries are turning their attention back to what really matters – making money.
That’s not a cynical perspective, it’s true. Let’s not pretend it isn’t. Regardless of what industries or clients you support, if you run a consulting firm it has to make money. If it isn’t profitable then you can’t survive. And if you don’t survive, you can’t provide your valuable products and services to new and existing clients, you can’t provide employment for your staff, and you can’t drive your industry forward with innovation, leadership and value. Profitability is essential!
Profitability is more important than ever. Virtually every industry has suffered through the economic downturn triggered by the pandemic and now they need to not just return to profitability they need to optimize that profitability, delivering the best possible performance in the least possible time. Only then will you be able to accelerate your recovery and position your firm to take advantage of the potential opportunities while also embracing evolved ways of working and emerging trends like digital transformation. So how exactly do you become more profitable? One characteristic of highly profitable consulting firms is their ability to differentiate their services and offerings. Deltek’s “How Consulting Firms Win Playbook” identifies 6 ways to set your firm apart:
1. Have Your Process Quality Stand Out. In this industry, consulting firms must be innovative. Chances are, you will really stand out if it is easy to do business with your firm. But that is just the beginning. Make the way that your clients experience your processes and solutions memorable and appreciated.
2. Create the Best Customer Service. Many consultants focus on delivering the solution—but once the final product is delivered, they move on to the next shiny object. Yet, superior customer service, especially after project delivery, will differentiate a firm, increase new business through word of mouth and improve client lifetime value.
6 Ways Consulting Firms Can Achieve Greater Profitability
3. Focus on one thing. Solve a specific problem OR specialize in an industry. Learn what common problems your clients face, pick one that you can solve and develop a reputation for being the best at solving that problem. Try to turn your solution into a recurring services model that can solve the problem faster than others.
And Speaking of Profitability
So what are the other 3 ways to set your firm apart? Check out the on-demand webinar discussing additional ways to make your firm more profitable including a six-point actionable checklist you can implement to help your firm become more profitable right now.
About the Author
Andy JordanPresident of Roffensian Consulting S.A.
Andy Jordan is President of Roffensian Consulting S.A., a Roatan, Honduras based management consulting firm with a strong emphasis on organizational transformation, portfolio management and PMOs. Andy is an in-demand speaker and author who has for many years delivered thought provoking content in an engaging and entertaining style, and is also an instructor in project management related disciplines including PMO and portfolio management courses on LinkedIn Learning. Andy is a frequent speaker and author for ProjectManagement.com (part of Project Management Institute (PMI).
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