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Brave New World or Grave New World?

Brave New World or Grave New World?. “Adding value in the credit crunch”. Content. Understanding what is happening What to do - marketing mix Adding value as a marketer. Part 1 – Understanding what is happening. US Recessions. Duration in Years. 2. Forest Fire

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Brave New World or Grave New World?

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  1. Brave New World or Grave New World? “Adding value in the credit crunch”

  2. Content • Understanding what is happening • What to do - marketing mix • Adding value as a marketer

  3. Part 1 – Understanding what is happening

  4. US Recessions Duration in Years

  5. 2. Forest Fire Effects many sectors and economies but some still grow… 1. All over by Christmas… A quick recovery – impact largely on financial and highly leveraged businesses with additional work for regulatory advisers – SOX 2? Which scenario? 3. Apocalypse Now… Global depression impacts all markets/sectors, reduce overall demand for professional services

  6. What happened last time? • 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

  7. THREATS Pressure to justify fees and use of external advisers Reduction of numbers of advisers - shrinking panels Poverty… 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 Changes in Decision-making & DMU… ALL CHANGE! Drivers for both individuals and companies Shift of power possible… Less powerful people become powerful… Old friends depart… New players…

  8. Effects on headcount to date Source – PM Forum Survey 2008

  9. Changes to original marketing budget in %: Source – PM Forum Survey 2008

  10. Part 2 – Adding Value & Marketing Mix

  11. Know what to look out for (and avoid)! • “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

  12. 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

  13. 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 Be creative first and worry about deliverability second!

  14. 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!

  15. 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 • 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

  16. Look Who’s Talking 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

  17. Industry Focus - Untapped Opportunity Major opportunity for firms to address the industry specific impacts of the crisis Aggregate Totals may exceed 100% as some activities relate to multiple topic or industry areas Source: Muzeview LLC: Analysis of Marketing Communications Activity of Leading Professional Services Firms

  18. Improving Message Delivery Consulting Firm “analysis” delivers stronger media coverage Source: Muzeview LLC: Analysis of Marketing Communications Activity of Leading Professional Services Firms

  19. 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 • 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

  20. Part 3 – Adding Value and Performance

  21. 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… • Scary times require supportive environment to get best performance…

  22. Add to Others’ Performance Source: Bersin & Associates, top talent management practices in terms of impact ROI

  23. 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: • problems with data integrity/availability • technology infrastructure • key is senior management support and integration into performance objectives

  24. Discussion ?

  25. Winners and Losers Taxpayers! Renewable Energy… Luxury Goods Time Infrastructure Project Businesses… Retail/Consumer Businesses Public Sector Fire sale investors and acquirers Major Brand Automotive Companies and suppliers Businesses with compelling Value propositions and/or cash Leveraged Banks and Property Companies Winning

  26. Advisers – the winners Regulatory/ Government advisers Change consultants Renewable Energy… Public Sector Consultants Projects, Technology & Energy advisers Time Luxury Goods Infrastructure Project Businesses… Retail Consumer Businesses Corporate Finance & IP Fire sale investors and acquirers Major Brand Automotive Companies and suppliers Insolvency Businesses with compelling Value propositions and/or cash! Leveraged Banks and Property Companies Litigators Winning

  27. Subject: Logos for 2009 DUE TO THE ECONOMIC SITUATION, MANY COMPANIES HAVE DECIDED TO MAKE SOME CHANGES IN THEIR LOGOS FOR 2009:                                    =

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