Strategy consulting, also known as strategy consulting, strategic advice or boardroom consulting, is seen by the majority of consultants as the most high-end and prestigious segment within business services.
A strategy is defined as “a plan with the aim of realizing long-term objectives”, and organizations regularly hire strategy consultants to support the drafting and implementation of business strategies. The strategy consulting domain focuses on supporting clients in the private sector in the development of corporate, organizational or functional strategies and helping public institutions and organizations to draw up their economic policy.
Strategy consulting market:
In 2011, the value of the market for strategy consultancy services was estimated at $ 26.5 billion. The recovery of the American and European markets – the most important and largest markets in the global consulting industry –
In the aftermath of the financial crisis caused slow global growth in market value. From 2014, however, growth picked up again, with a growth of 4.7% in 2015 and forecast growth of 5.8% for 2016, which means that the market will reach a value of just over $ 30 billion by the end of 2016. Strategy consulting represents about 12% of the total consultancy market and is therefore comparable in size to the HR consulting segment.
The strategy consulting segment is more dependent than other segments for its development on general economic growth, with high growth ratios in times of prosperity, and declining growth in times of recession and economic contraction.
Strategy consulting services:
The market for strategy consulting services consistency of eight disciplines: Corporate Strategy, Business Model Transformation, Economic Policy, Mergers & Acquisitions, Organizational Strategy, Functional Strategy, Strategy & Operations, and Digital Strategy.
Corporate strategy, also known as strategic management, concerns the formulation of strategies and goals for entire companies and separate business units. Strategy consultants are regularly called on to support the design of their vision and mission, the development of strategic plans and the implementation of implementation roadmaps, which provide an outline of the activities and resources needed to implement the plans.
Common examples of strategic advisory projects include assessing strategic options, supporting business planning processes and developing growth plans, such as strategies for market entry (when companies want to expand into new regions or bring new products to the market).
Just like corporate strategy, Business Model Transformation (BMT) focuses on the design and development of future-proof strategies, with the main difference that BMT concerns fundamental changes in the way business is done, often as a result of major changes in the external market.
circumstances. Moreover, BMT has a broader definition of strategy, because it also considers a range of organizational and operational elements and their mutual relationships for achieving a common goal, such as value propositions, customer segments, cost structures, and organizational structures. Due to the disruptive, disruptive nature of technology in recent years, BMT consultants often work at the intersection of IT and strategy.
The Economic Policy discipline consists of a collection of economic advisory services to support governments and international institutions in policy formulation. The range of services generally consists of fiscal policy, government policy in the field of taxes, budgets, and expenditures, monetary policy, for the actions of central banks in the field of money supply and interest rates, and government interventions in the labor market, national property, housing, and many other topics.
Other components of the service offerings within this segment include impact assessments (such as socio-economic benefit research), financial valuation analyzes in economic disputes, economic investigations for antitrust cases, or competition investigation and merger procedures,
Strategy consultants are also active in the M & A domain, together with corporate finance advisors, M & A lawyers and investment bankers. The strategy consultants focus on the strategic and commercial activities in the phase before the agreement can be closed, although they are often hired to manage the first period of post-merger integration.
For example, strategy consulting firms serve companies and investors to build business cases to provide insight into the economic drivers behind mergers or acquisitions, and later in the process, supporting clients with due diligence work for potential acquisition targets. Other areas where M & A strategy consultants can play a role include setting up alliances and joint ventures, carve-outs and divestments,
Organizational strategy is concerned with the buttons that organizations have to run in order to fulfill their business strategies in time. The service offering in this area generally includes designing organizational structures and corporate governance, assessing competitiveness, developing human capital strategies and supporting strategic change management programs. Functional Strategy involves the development of strategic plans and roadmaps for departments within organizations, such as sales & marketing, finance, HR, supply chain, R & D and purchasing.
Over the past decade, the boundaries between strategic management and operational management have become increasingly blurred, partly due to the growing importance of process management, operations, and technology as elements of the implementation of strategies.
As a result, the range of services that originally ran on strategic advice was expanded with operational considerations, making the Strategy & Operations domain increasingly important. In this segment, not only strategy consultancy firms are active that have expanded their range of services with operations services, but also operations specialists who have developed their strategic skills and large technology consultancy firms that use their technological expertise to distinguish themselves.
With the advent of technological development and digitization, digital strategies have also become increasingly important in the work of strategy consultants. Not only do digital strategies enable companies to realize their digital ambitions, but more than ever they are the determining factor between the success and failure of strategies.
As a result, the growth in the Digital Strategy market has never been as high as in recent years. The discipline combines elements of strategy with IT organization and includes services such as developing strategies for digital business operations, designing a business IT or online strategy, developing transition approach to analytics and cloud technology, as well as high-quality technological services in the field. area of architecture,