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While one in three businesses (29%) feel that “external expertise” is essential to deliver success, less than half of businesses[2] believe it benefits forward-looking areas such as ‘driving innovation’ and ‘change management’. In stark contrast, a massive 71% of respondents agreed that internal areas – such as ‘improving processes’ and ‘implementing new technology’ – would benefit most from external consultants[3]. The study, entitled The value of consultancy to business growth, explores contemporary attitudes towards the use of external consultancy, from individual business partners through to multinational management consultancies, as the world economy continues to emerge from recession. While painful for many, the recession was transformational for businesses that are now ready to invest the savings they have made by recent cost cutting and austerity measures. “The financial pressures felt by all organisations over the past few years has resulted in the completion of painful but necessary internal reviews and cost cutting programmes. In this regard, the recession has had a transformational impact on modern day businesses, making them more streamlined and fit for future growth in 2011,” said Gary Horsfall, Head of Consultancy Services, Canon Europe. “The study found that organisations are alive to the value consultancy can bring, but aren’t using these expert third parties in the right way. The true value of consultancy is to answer questions you haven’t yet considered and to solve problems before they arise, or to identify new opportunities that weren’t previously visible to the business. Consultancy is most valuable when exploring the unknown. By focusing on internal issues, organisations will only limit the value that consultancy can bring to their business.” The study also found that businesses are lacking the skills needed to bring about change. Only 58% of businesses felt they had the necessary skills to implement effective change, while as many as one in five businesses lack the vision or ideas necessary for change[4]. “Of course consultants can address internal processes, but they should do so with future opportunities in mind. Consultancy can provide a fast track to growth if used in the right way, which means identifying and solving business challenges and capitalising on new business opportunities,” said Gary Horsfall. “The value of consultancy is not in doubt – with one in five[5] organisations feeling that outside consultancy would give them a competitive edge. Businesses simply need to employ consultants more effectively to maximise their return.” Achieving success in 2011
Looking a little deeper; 41% of decision makers believed building stronger customer relationships was the single most important factor that could help their business succeed in the next 12 months – ahead of cost cutting (36%), recruiting or retaining talent (28%) and improved business processes and updated technology (both 27%). This is more significant when considering that customer relationships are suffering as a result of fragmented communications technologies and an increase in digital content, as identified in Canon’s ‘Technology’s Role in Evolving Business Relationships’ study, from earlier this year. Gary Horsfall continues, “Organisations need to harness the power of this increasing flood of digital content and not only support the improvement of critical internal processes, but also look at external growth opportunities to help safeguard the future of their operations.” [1] The study, carried out by ICM on Canon’s behalf, conducted interviews with organisations across 8 European territories – the UK, Switzerland, Finland, Austria, France, Germany, The Netherlands and Norway. [2] 45% [3] INTERNAL factors defined as:
• Improving internal processes
• Implementing new technology
• Better understanding customer needs
• Applying experience of best practice
• Keeping on top of legislation / regulation
• Gaining confidence about strategy FORWARD looking factors defined as:
• Driving innovation
• Change management
• Achieving a competitive advantage [4] 22% of businesses disagreed or strongly disagreed with the statement - “Our business is never lacking in new ideas” [5] 19% of businesses would benefit from external expertise or consultancy to achieve a competitive edge
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