{"id":57444,"date":"2023-03-25T13:00:23","date_gmt":"2023-03-25T17:00:23","guid":{"rendered":"https:\/\/consource.io\/?p=57444"},"modified":"2025-04-08T04:46:18","modified_gmt":"2025-04-08T08:46:18","slug":"categorie-gestion-pour-le-consulting-4-bonnes-pratiques","status":"publish","type":"post","link":"https:\/\/consource.io\/fr\/category-management-for-consulting-4-best-practices\/","title":{"rendered":"Vous envisagez de recourir \u00e0 la gestion par cat\u00e9gorie pour vos activit\u00e9s de conseil ? 4 bonnes pratiques \u00e0 adopter"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Category management is a tried-and-true staple in the procurement toolkit. What about category management for consulting?<\/p>\n

Curiously, when it comes to consulting, this revered tool seems to be left in the toolbox more often than not. Why the hesitation? Is there something inherently different about consulting that makes it resistant to the usual charm of category management?<\/p>\n

As we explore this space, we aim to decipher why this established method isn\u2019t commonly applied to consulting and whether it should be. Time to navigate this intriguing divergence in the business landscape.<\/p>\n

What is Category Management?<\/strong><\/h2>\n

Category management is one of the most popular procurement methodologies, along with strategic sourcing. It aims to reduce the overall costs of your procurement capability and, more importantly, to maximize value creation.<\/p>\n

\"Understanding<\/p>\n

Moreover, category management has a lot of benefits, such as giving you more useful information for making decisions and helping your suppliers do a better job and get along with you better.<\/p>\n

\n

\u201cErrors using inadequate data are much less than those using no data at all.\u201d Charles Babbage, inventor, and mathematician<\/p>\n<\/blockquote>\n

Can You Leverage Category Management for Consulting? Does This Tool Fully Apply to Consulting?<\/strong><\/h2>\n

Consulting is seldom handled as a separate category, but rather as part of indirect procurement alongside Travel and Insurance. Consulting is sometimes included in the professional services category as well.<\/p>\n

However, professional services also include legal, engineering, executive search, and real estate services, which are vastly distinct from Consulting Services in terms of what they accomplish and with whom they collaborate.<\/p>\n

Hence, the first step in figuring out how to get the most out of your consulting spend is to see consulting as a strategic category.<\/p>\n

In fact, the size of the spend (0.5% to 3% of revenues) and the fact that it could have a big effect on the business make it a key part of the strategy.<\/p>\n

No offense to Travel Management, but even if savings are big, they rarely make a difference to the share price or the enterprise value.<\/p>\n

4 Best Practices of Category Management<\/strong><\/h2>\n

The main principles of category management are: implementing a continuous analysis of the spend, the market, the performance of the suppliers to identify opportunities for improvement, and the human factor. Now let\u2019s get into those in a bit more detail.<\/p>\n

#1. Analyzing Your Spend<\/strong><\/h3>\n

Performing a spend analysis\u00a0<\/a>is often the first step in aligning the consulting procurement strategy with the company strategy. To look at all the outsourced projects and make plans for the future, you need to add up the consulting expenses from all parts of the organization.<\/p>\n

The main goal of the spend analysis is to find out how much the company has spent on consulting services in the past, and how much it will spend in the future.<\/p>\n

#2. Knowing Your Market<\/strong><\/h3>\n

To acquire consulting services, it is essential to\u00a0understand the consulting market<\/a>. You can examine the consulting market for the key competencies of your organization by leveraging your current consulting spending.<\/p>\n

The second stage will be to look at the market for the services you could be using to accelerate your goals and add more value, which is frequently more difficult given the lack of expertise with the topic.<\/p>\n

The result of the consulting market analysis should be a deeper understanding of the supplier market and your position within it. You are aware of your worth as a customer and have identified possible suppliers.<\/p>\n

You cannot, however, restrict your supplier analysis to just the top players, unlike in other categories. It is vital to go deeper into the consulting industry due to the market\u2019s complexity, the variety of offers, and the specificity of your future needs.<\/p>\n

#3. Evaluating the Performance of Your Suppliers<\/strong><\/h3>\n

The Supplier Performance Analysis should provide you with a comprehensive perspective of your Consulting Providers\u2019 Performance, segmented by capability, organizational division, and project.<\/p>\n

It is frequently based on measurable performance indicators, such as on-time delivery, budget compliance, and quality of deliverables.<\/p>\n

Moreover, when your shortlist is ready, contact your suppliers and check their interest by sending\u00a0your RFP.<\/a><\/p>\n

#4. Managing the Human Factor<\/strong><\/h3>\n

Consulting services naturally have a human element that directly affects output. The consultant\u2019s interactions with the various stakeholders, his capacity to foster trust or impart knowledge, and his demeanor all play a role in the delivery.<\/p>\n

Especially for large companies, it is advised to evaluate the effectiveness of consulting companies at the partner level. Indeed, it is not uncommon to observe significant performance variation at the firm level. Nonetheless, performance is highly connected with individuals.<\/p>\n

In other words, individuals overpower brands, and not all businesses excel at everything. Learn to find the sweet spot of each of your potential providers and the partner you want to collaborate with based on your requirements.<\/p>\n

\"Best<\/p>\n

And last but not least,<\/strong> even if it\u2019s intangible, the anticipated influence of the project must also be considered.<\/p>\n

A consulting firm may produce flawless action plans, but will not assist you in their implementation or transfer sufficient knowledge for you to take over when they go.<\/p>\n

Closing Thoughts<\/strong><\/h2>\n

In wrapping up our exploration, one thing becomes clear: category management isn’t an exclusive club; it’s open to consulting too. In fact, not only is it applicable, but it also has the potential to deliver substantial value to the table.<\/p>\n

Yet, here lies the rub \u2013 category management for consulting demands dedication, time, and energy for effective execution. Obviously, managing a category, especially one as diverse, scattered, and intangible as consulting, is no casual affair.<\/p>\n

It\u2019s a challenge that requires a nuanced approach, an understanding of the intricacies, and a readiness to embrace the uniqueness of consulting within the realm of category management.<\/p>\n

While it might be a bumpy ride, the rewards of streamlined processes, enhanced supplier relationships, and optimized spend are certainly worth the effort.<\/p>\n

So, as we sign off, remember: while consulting may not be the easiest puzzle to solve within the category management landscape, it’s certainly one that can yield some of the most gratifying pieces of value when put together thoughtfully.<\/p>\n

[\/et_pb_text][et_pb_text admin_label=”Keywords” _builder_version=”4.22.1″ _module_preset=”default” text_text_color=”RGBA(255,255,255,0)” text_font_size=”0px” custom_margin=”0px|0px|0px|0px|true|true” custom_padding=”0px|0px|0px|0px|true|true” global_colors_info=”{}”]<\/p>\n

category management for consulting category management for consulting category management for consulting
category management for consulting category management for consulting category management for consulting
category management for consulting category management for consulting category management for consulting<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”how-conpulse” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#e1e1e1″ custom_padding=”0px||0px||true|true” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”How Consource Can Help?” image=”https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/lightbulb.png” image_icon_width=”60px” module_class=”b3_blurb_3″ _builder_version=”4.22.1″ _module_preset=”default” header_font=”|||on|||||” background_color=”#e1e1e1″ custom_padding=”40px|40px||40px|false|false” border_color_right=”#ff7700″ global_colors_info=”{}”]<\/p>\n

\n
\n
\n
\n

Imagine having all four best practices \u2013 spend analysis, market exploration, performance evaluation, and stakeholder\/supplier management \u2013 united within a single dedicated platform. That’s\u00a0Consource<\/a> \u2013 your one-stop destination to elevate your consulting category management game.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

[\/et_pb_blurb][et_pb_button button_text=”Book a demo” button_alignment=”center” admin_label=”Book a demo” module_class=”btn-primary btn-icon” _builder_version=”4.21.0″ _module_preset=”default” button_use_icon=”on” button_icon=”||fa||400″ button_icon_color=”#FFFFFF” button_icon_placement=”left” custom_margin=”||40px||false|false” custom_padding=”10px|10px||10px|false|false” custom_css_main_element=”width:280px;” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Explorez le domaine de la gestion des cat\u00e9gories dans le paysage du conseil. Cet article pr\u00e9sente quatre bonnes pratiques essentielles qui peuvent r\u00e9volutionner votre approche du conseil. D\u00e9couvrez des strat\u00e9gies perspicaces pour am\u00e9liorer la collaboration avec les clients, rationaliser les processus et obtenir des r\u00e9sultats remarquables.<\/p>","protected":false},"author":4,"featured_media":58926,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"

[et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"4.16\" global_colors_info=\"{}\"][et_pb_row admin_label=\"row\" _builder_version=\"4.16\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.16\" custom_padding=\"|||\" global_colors_info=\"{}\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.22.1\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<\/p>

Managing consulting spend is a daunting task - challenging and occasionally bewildering! It\u2019s hardly surprising given that consulting, much like herding very knowledgeable cats, can be a tad elusive.<\/p>

It's got this stubborn streak to resist full centralization, just for the fun of it. Now, while intangible categories want the business lines to play captain, procurement's main job is to keep everyone in line and whistle when they step out.<\/p>

It's a tango, really, where both operational entities and procurement must dance in sync for that glorious final dip of impact and savings.<\/p>

Benjamin Franklin once said, \u201cBeware of little expenses, a small leak will sink a great ship.\u201d Perhaps he was pre-emptively talking about consulting spend?<\/p>

Either way, annual scans of your projects to track those sneaky patterns and improvements is essential. But be prepared, because here's a quick snapshot of the usual suspects you might encounter:<\/p>

One Part of the Organization Is Spending More Than Others<\/strong><\/h2>

One part of your organization spends 20% more than other entities of similar size. What could be the root causes of this situation?<\/p>

The Scope of Responsibilities Determines Spending & Value Created<\/strong><\/h3>

All parts of the organization are not equal in their scope of responsibilities. Since Consulting is roughly proportional to revenues, a large Business Unit, for instance, is prone to higher Consulting Spend than a small one.<\/p>

Looking at the ratio of spending vs. revenues can be a good way to look at a situation. Conversely, in a turnaround situation, you might be spending more on smaller GBUs to bring them back to value creation.<\/p>

The corporate can also be a good client of Consulting Services. For a company with an integrated Corporate in charge of Strategic decisions and Excellence programs, the Corporate can have the larger Consulting Spend.<\/p>

In contrast, a decentralized Company with a light Corporate should expect a small spend for the Corporate functions.<\/p>

If you have spent large amounts in consulting with questionable results or strategic purpose, you may want to question your governance model or your demand management system.<\/p>

How\u00a0the Context and the Strategy Affect Consulting Spend<\/strong><\/h3>

A regulatory change, a reorganization, or an acquisition and the associated PMI can inflate the Consulting spending. If a part of the organization has launched a major transformation or has an ambitious strategy, it can increase its expenses for Consulting to accelerate the process.<\/p>

It can make sense to capture value faster. However, make sure that you don\u2019t end up overspending with luxury consultants. And put in place a monthly reporting of consulting costs. It will avoid unpleasant surprises.<\/p>

Sometimes Executives use Consulting as a workaround for strict HR policies since the rules on Consulting are often looser. They end up with an unexpected bump on Consulting Spend in the middle of a recruitment freeze.<\/p>

The cost reduction objective for wages was then perfectly achieved at the expense of the consulting spend.<\/p>

Consulting Fees Vs. Consulting Expenses \u2013\u00a0the Footprint<\/strong><\/h3>

Keep in mind that most Consulting Projects separate the Consulting Fees from the Expenses of the Consulting Teams during work on the projects. If you are not cautious, you might end up paying up to an additional 30% of the total cost of your project only on expenses.<\/p>

If Consulting fees<\/a> are really tight, this ratio can end up being quite high. In this case, mostly make sure consultants are respecting your travel policies. There is nothing worse than consultants flying business while the rest of the company is in a travel ban.<\/p>

If the entity selecting the Consulting Firms is based in Europe and tends to shop locally, every North America or Asia project will have a premium attached to it. And don\u2019t think that you are safe because you work with a large global Consulting Firm.<\/p>

Because most of them are set up with local P&Ls and are pressured to optimize their local resources, they would rather send their unstaffed European resources than find local resources for your project.<\/p>

A Consulting Firm is Charging More Than Others<\/strong><\/h2>

When looking at the numbers, you realize that John Doe Consulting is charging 40% more than your other Consulting Suppliers on similar projects. Or maybe they are charging more only when working with Business Unit B, the most profitable of your BUs.<\/p>

The Scope and Deliverables<\/strong><\/h3>

Look closely at the scope and the deliverables of the projects. For broad projects with several phases, you can either contract in one large project or several small projects following the phases. Another point you want to look at is the range of the projects.<\/p>

For instance, for a Lean Manufacturing project, one Business Unit might have decided to work on all the factories simultaneously, when another one works on a small pilot group, and then implement in the rest of the organization.<\/p>

The Complexity<\/strong><\/h3>

The complexity of the project can also have an impact on the price. Maybe you are using John Doe Consulting only on more complex projects because they are knowledgeable and can mobilize a huge volume of expert resources in a short period.<\/p>

Obviously, this often comes at a premium. In the same way, if only a handful of companies can complete a given strategic project, supply and demand rules prevail.<\/p>

The Footprint<\/strong><\/h3>

The organization\u2019s footprint can also impact the price of the projects through the expenses, as mentioned earlier.<\/p>

A business unit heavily centralized and solely based in one region will probably face lower Consulting Expenses than a Company based in several regions.<\/p>

The Price\u2013Value Dilemma<\/strong><\/h3>

Some Consulting Firms are just more expensive than others. The real question that you should ask yourself is: \u201cWhat is worth the investment?\u201d.<\/p>

Spending more is not always wrong if the return on investment is excellent. What matters most is the fit and the impact.<\/p>

The Culture<\/strong><\/h3>

If your teams are culturally homogeneous, or on the contrary, extremely diverse, the performance evaluation will probably not be impacted by individual cultural differences.<\/p>

However, if your Business Units have different cultural structures, then it might not make sense to compare the performance results from one with the other.<\/p>

In other words, your Brazil Headquartered BU will probably have better scores, independently of the latest results of the soccer team.<\/p>

The Quality of Their Suppliers<\/strong><\/h3>

Lower-Performance scores can come from the quality of the suppliers. It can be linked to the quality of the local Consulting Market. When you are sourcing the best suppliers for your direct business, the logic behind your direct business should also apply to your consulting expenses.<\/p>

The probability of finding them in a 5-mile radius is fairly poor. Having been classmates with one of the partners or belonging to the same baseball fan club is not much better.<\/p>

One Department Works Almost Exclusively With One Consulting Firm<\/strong><\/h2>

Working with familiar consultants is comfortable. The Consultants know very well your business, its complexity, and even internal politics. However, we are always amazed to see the same senior partner morphing from a pricing specialist to a lean expert or a digital guru.<\/p>

And if it was only the senior partner teaming with other qualified partners, but you see the same phenomenon at the principal and consultant level. Or simply put, always the same team, different color jerseys.<\/p>

What to Do Next?<\/strong><\/h2>

After sifting through the treasure trove of your spending and spotting the pesky outliers, it's action time. Think of it as spring cleaning, but for your consulting budget. There's a plethora of ways to tackle these head-scratchers.<\/p>

But remember, the pace at which you proceed depends largely on how quickly you want (or need) to stop scratching your head. Let's delve into four methods, ranging from 'a casual chat over tea' to 'a full-blown intervention':<\/p>