[Webcast recap] Balancing growth objectives with operational efficiency: Unleashing partner productivity

July 22, 2024

In an era where agility and efficiency are not just buzzwords but the pillars of growth, consulting firms are redefining the landscape of productivity. This transformative approach goes beyond traditional cost-cutting measures, paving the way for groundbreaking innovations.

Williams Lea, in partnership with Consulting Magazine, assembled a panel of industry experts for an exclusive webinar on July 11th to explore the dynamic equilibrium between strategic growth and operational efficiency. The discussion, moderated by Consulting Magazine’s Micahel Webb, evaluated innovative strategies being used by firms to supercharge the performance of professionals dedicated to generating billable work, from harnessing the right technology, such as GenAI, to utilizing strategic third-party collaborations. Our esteemed panel consisted of John Norkus, Managing Director, Pricing & Commercial Excellence at KPMG; Aaron Shagrin, Head of AI Strategy for Communications, Media and Technology Clients at Cognizant; Brittany Sipos, Chief Operations Officer at Halloran Consulting Group, and Clare Hart, CEO at Williams Lea.

The cornerstone of the discussion were the results of the recent survey carried out by Consulting Magazine and Williams Lea, The consultant’s advantage: Maximizing efficiency and productivity in a tech-driven era. We asked over 75 C-suite executives from mid- and large-size consulting firms in the US and UK how they are adapting to change, improving client service delivery, and redefining the standards of operational excellence.

You can view the webcast and read the key takeaways.

Key takeaways

Our panelists explored key factors shaping budget and spending decisions for firms over the next year and discussed strategies to boost fee-earner productivity, create operational efficiencies, and gain competitive advantages. According to Clare Hart, Williams Lea CEO, “A commitment to life-long learning is essential to professional growth and success. This program was a great opportunity to learn what our peers and others in the consulting industry are doing to balance growth and operational excellence and it is clear that AI and smart tech investing are foundational to finding that successful balance.”

Budgeting priorities

• Strategic investment in AI is crucial, especially in sales, marketing, retention strategies, and technology for efficiency and scalability
• AI will enhance and complement rather than replace roles, underscoring the importance the relationships in consulting

“Where AI is concerned, it’s unlikely that it will lead to replacing the bulk of firm resources,” said John Norkus of KPMG. “Relationships are, and will remain, the coin of the realm when we think about consulting in the near and even in the long term. It is people that are ultimately going to be making the difference here.”

Technology’s impact

• Firm leaders see AI playing a crucial role in generating insights, automating processes, and creating marketing materials
• Tech investments are essential for competitive advantage, but guardrails must be set in place via governance models and cybersecurity. Firms must also balance the pace and amount of investment to avoid getting too far ahead of current trends

Productivity and innovation

• In any human capital business, the pricing challenge is whether to charge per project or per person. Some choose a fixed project cost, with AI potentially accelerating delivery. However, inefficiencies can impact profitability, and a definitive solution hasn’t been found yet
• Investing in people, especially when it comes to upskilling in the AI field, enhances firm appeal and shifts focus from hours to value added
• Marketing and thought leadership initiatives significantly impact productivity; challenges arise with billing saved time due to efficiency improvements
• A challenge arises when saved hours, once billed for tasks like information collection, prompt questions about the value delivered. Will clients pay for this saved time? Will they value the shorter turnaround time and higher quality? The value proposition then shifts: Focus on investing in better products and services, emphasizing collective value over hours spent, supported by strategic infrastructure adjustments

Efficiency and data management

• Utilizing AI for data cleansing boosts productivity by analyzing unstructured data for insights and operational optimization
• Outsourcing presentations, PowerPoint production, and creative projects frees consultants to focus on high-value tasks such as growth and collaboration
• Administrative support and expense accounting are also strategic areas for outsourcing. While they may not directly save consultants’ time, they streamline operations, reducing day-to-day involvement