Brave New World or Grave New World?
“Zest for Enlightenment”
“Adding value in the credit crunch”
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© Z/Yen Group
2009
Z/Yen Group Limited
Risk/Reward Managers
5-7 St Helen’s Place
London EC3A 6AU
United Kingdom
tel: +44 (20) 7562-9562
Content
Understanding what is happening
What to do - marketing mix
Adding value as a marketer
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2009
Part 1 – Understanding what is happening
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2009
US Recessions
Duration in Years
10
9
8
7
6
5
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2009
4
3
2
1
0
Knickerbocker Trust 1908
Great Depression 1929
Recession 1956
Recession of 1960
Oil Crisis 1973-5
Early 1980's recession
Early 1990's recession
Tech/Enron/911 2000/1
Credit Crunch 2007?
Which scenario?
1. All over by
Christmas…
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A quick recovery – impact
largely on financial and highly
leveraged businesses with
additional work for regulatory
advisers – SOX 2?
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2009
2. Forest Fire
3. Apocalypse Now…
Effects many sectors and
Global depression impacts all
markets/sectors, reduce overall
economies but some still grow…
demand for professional services
What happened last time?
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2009
Cancellation, truncation or postponement
of work
Emphasis on “essential” work
Many marginal clients disappear
Certain work types hit hard…transactions
and real-estate related work
Restructuring and litigation flourished
Some strategic work – e.g. change
management
Changes in Decision-making & DMU…
THREATS
Pressure to justify fees and
use of external advisers
Reduction of numbers of
advisers - shrinking panels
Poverty…
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2009
OPPORTUNITY
More time to think…more
opportunities to add value
Downsizing…fewer people to do
more…external advisers fill gaps
Need for external perspective expertise
ALL CHANGE!
Drivers for both individuals and companies
Shift of power possible…
Less powerful people become powerful…
Old friends depart…
New players…
Effects on headcount to date
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2009
No change
Headcount
increased
Headcount
reduced
Not allowed
to replace
leavers
Net
permission
Marketing experts
48.8
21.9
29.3
-7.4
27.2
31.6
-4.4
BD Experts
57.9
28.3
13.8
+14.5
28.3
16.6
+11.7
Advertising
89.4
0.7
9.9
-9.2
5.9
16.3
-10.4
Databases/CRM
73.4
15.4
11.2
+4.2
18.1
14.5
+3.6
Direct mail
92.1
2.2
5.7
-3.5
7.4
15.4
-8.0
Event organisers
72.8
7.4
19.8
-12.8
14.3
23.6
-9.3
Market researchers
81.1
9.8
9.1
-0.7
8.8
15.4
-6.6
PR Experts
71.8
16.2
12.0
+4.2
14.3
15.7
-1.4
Sales experts
82.3
9.2
8.5
+0.7
9.7
13.4
-3.7
Sponsorship experts
90.1
1.4
8.5
-7.1
4.4
16.2
-11.8
Website experts
76.4
13.2
10.4
+2.8
10.2
15.3
Source – PM Forum Survey 2008
Net
Change
Allowed to
replace
leavers
-5.1
Changes to original marketing budget in %:
Increase
Reduction
Net
No change
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2009
Salaries and other remuneration
61,2 %
19.0
19.8
-0.8
Other internal spend (excluding salaries)
53,1 %
6.2
41.7
-35.5
Advertising
43,0 %
4.7
52.3
-47.6
Attending industry conference
52,7 %
2.6
44.7
-42.1
Corporate hospitality
44,7 %
1.7
53.6
-51.9
Databases/CRM programmes
64,4 %
16.5
19.1
-2.6
Direct mail (Print/brochures/postage)
57,2 %
5.9
36.9
-31.0
Directory entries
59,7 %
3.4
36.9
-33.5
Events at firm puts on (seminars)
46,0 %
18.6
35.4
-16.8
Extranet client services
78,1 %
6.2
21.7
-15.5
Market research
70,7 %
6.7
22.6
-15.9
Marketing consultancy
68,2 %
6.0
25.8
-19.8
Marketing staff training
62,3 %
9.9
27.8
-17.9
Memberships/subscriptions
60,4 %
6.6
33.0
-26.4
PR/press
55,0 %
5.9
39.1
-33.2
Sponsorship
48,3 %
5.9
45.8
-39.9
Website/e-marketing
55,0 %
21.5
23.5
-2.0
Source – PM Forum Survey 2008
Part 2 – Adding Value & Marketing Mix
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2009
Know what to look out for (and avoid)!
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2009
“Own-desking” – specialist work not
always referred on…
Erosion of leverage – partners do
associates’ work
Pressure to “sell something” undermines
strategy and positioning
Dinosaurs and “big hitters” rampant, and
collegiate partnership ethos under
pressure
Creating a recessionary product portfolio…
Not always the obvious services – where
is the value added?
New services/repackaged services…
Refocus…flex resources…
Cross-disciplinary groups…solutions
oriented not just shifting hours
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2009
1. Mining the Collective Insights
Let client priorities be central to service
offerings…
Possible Practice Area Menu
Identify: likely issues by sector/client and how to exploit them…
Select: areas and clients have potential…
New services or repackaged services for a downturn
Pricing:
Identify defensible premium areas
Ideas on negotiating strategies
Areas where the firm could be proactive
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Be creative first and worry about deliverability second!
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2009
2. Market Intelligence
Look outside – use others to guide you!
Business Media
Other professionals
Information providers that clients respect
Competitors
Clients
Trade Associations
Commission third parties to help!
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2009
3. Client Focus & Communications
Listen aggressively to clients
Time for a real key account program?
Test and develop your issues menu with clients
Identify mutually beneficial connections between clients…
Understand what changes are happening in decision-making
as people perhaps leave…
Market effectively – resist the urge to cut
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2009
Focus on the issues that keep clients up at night…
A real premium for insights…
Partners may be less busy – no excuses!
Marketing budget goes further…
Need to think about the future and firm positioning…
Ruthless on waste…
Recycle ideas in different channels
Look Who’s Talking
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2009
Compared to Accounting
& Consulting, Law Firm
communications on the
Crisis are not being
sustained. This reflects a
law firm tendency for
“what” alerts rather than
“so what” analysis and
insight.
Source: Muzeview LLC: Analysis of Marketing Communications Activity of Leading Professional Services Firms
Industry Focus - Untapped Opportunity
Major opportunity for firms to address the industry specific impacts of the crisis
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Aggregate Totals may exceed 100% as some activities relate to multiple topic or industry areas
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2009
Source: Muzeview LLC: Analysis of Marketing Communications Activity of Leading Professional Services Firms
Improving Message Delivery
Consulting Firm “analysis” delivers
stronger media coverage
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2009
Source: Muzeview LLC: Analysis of Marketing Communications Activity of Leading Professional Services Firms
Checklist of potential actions
Positioning and profile are key and clients are
information hungry:
White papers, surveys and other research
E-communications tailored
Pick up discounted sponsorships and advertising
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2009
Form (or re-launch) groups for attractive
sectors
Consider cross-disciplinary initiatives with other
professionals
Create forums/events where you can introduce
clients to other advisers
Track executives on the move and stay in touch
Part 3 – Adding Value and Performance
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2009
A Place at the Top Table
Opportunity to demonstrate “C-Suite”
credentials…Trusted adviser to management…
Cross-disciplinary cooperation is required:
Profitability of clients in key account programs…
BD related goals for partners…
Marketing mix changes…
Move from lag to lead indicators…
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2009
Scary times require supportive environment to
get best performance…
Add to Others’ Performance
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Source: Bersin & Associates, top talent management practices in terms of impact ROI
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2009
Getting measured…getting valued
Bring in efficiencies:
use of technology
centralize what can be centralized
recycle
Market reputation measures
Metrics not just a professional services problem
– The Conference Board report:
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2009
problems with data integrity/availability
technology infrastructure
key is senior management support and integration
into performance objectives
Discussion
?
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2009
Winners and Losers
Time
Taxpayers!
Renewable Energy…
Luxury
Goods
Infrastructure Project Businesses…
Retail/Consumer
Businesses
Major Brand Automotive
Companies
and suppliers
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Leveraged Banks and
Property Companies
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2009
Public Sector
Fire sale investors
and acquirers
Businesses with compelling
Value propositions and/or cash
Winning
Advisers – the winners
Time
Regulatory/
Government
advisers
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Change consultants
Renewable Energy…
Public Sector
Consultants
Projects, Technology
& Energy advisers
Luxury
Goods
Retail ConsumerInfrastructure Project Businesses…
Businesses
Corporate
Fire sale investors
Major Brand Automotive
Finance & IP and acquirers
Companies
and suppliers
Insolvency
Businesses with compelling
Leveraged Banks and
Value propositions and/or cash!
Property Companies
Litigators
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2009
Winning
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2009