Overview 1
Introduction 1
About the co-author 1
Summary 1
Methodology 1
Executive Summary 2
Growth in third-party management consulting 2
Pressure on third-party management consulting spend 2
Management of third-party management consulting spend 3
Importance of third-party management consulting performance 3
Table of Contents 4
Table of Figures 5
Market Analysis 6
Use of consulting among enterprises 6
Budget overruns a significant issue 9
Weak value realization 10
Mixed pricing methods 11
Procurement organization headcount 13
Spend decisions not led by procurement 15
Business planning is patchy 16
Procurement often not standardized 17
Scope of work not always pre-agreed 18
A balance of standard contracts prevails 19
Competitive tendering not common enough 20
Good levels of market intelligence 21
Limited knowledge-sharing 22
Weak supplier performance management 24
APPENDIX 25
Methodology 25
Further reading 25
Ask the analyst 25
Orbys consulting 25
Disclaimer 25
List of Figures
Figure 1: Annual spend on consultancy services 6
Figure 2: Annual consulting engagements 7
Figure 3: Number of consultancies used 8
Figure 4: Engagements overrunning the original agreed budget 9
Figure 5: Engagements of which the value is measured 10
Figure 6: Pricing basis for over half of total spend 12
Figure 7: Number of consulting procurement staff 13
Figure 8: Consultancy procurement staff levels as a function of spend 14
Figure 9: Overall responsibility for consultancy spend 15
Figure 10: Approaches to planning consultancy spend 16
Figure 11: Engagements utilizing a standard process 17
Figure 12: Engagements with pre-agreed scope of work 18
Figure 13: Use of a standard contract format 19
Figure 14: Engagements that have underdone competitive tendering 20
Figure 15: Use of market intelligence in consultancy procurement 21
Figure 16: Information- and knowledge-sharing 22
Figure 17: Use of standard information systems 23
Figure 18: Use of a standard process for managing supplier performance 24
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