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6 ways partnership can help Management Consulting firms

By Amara Zulfiqar 7 years ago
Partnership help Consulting Firms

Most of the large Management Consulting firms around the world have strategic partnership relationships that either supplement or compliment what they do. Larger firms can build divisions with strategic partnerships but smaller Management Consulting firms need to work actively on building partner programs that help their bottom line. Here are 6 ways partnerships can help

  1. Increase net new revenue: This can help in two ways:
    1. Referrals through your partners helps bring in new opportunities.
    2. In cases where partnerships are complimentary, both parties add to the portfolio of services being offered to the clients which opens up new revenue opportunities.
  2. Reduce Costs: Management firms can reduce their bench costs
  3. Extend the longevity of the relationships with clients: Client relationships are key assets of Consulting firms. Extending the duration of the engagements reduces the Cost of Client acquisition (as a percentage) and has an impact on the bottom line. Partnerships like those with IT firms can lead to
  4. Lock out the competition: Offering a wider range of services and being able to engage in projects longer means that competition can be kept at bay.
  5. Reduce Risks. Partnering with firms that compliment you will reduce the risk of an unsuccessful project execution. Hiring permanent staff for new practices generally introduces a high risk since work generally hasn’t developed into a consistent (profitable) stream.
  6. Expand aggressively: Consulting firms seems to either have too much work or too many resources on the bench. When work does come along, one of the most painful things can be to see it go because you are under-staffed to deliver it. Partnerships can help Management Consulting firm to deliver larger scopes of work than they are generally equipped to delivering.
  Management Consultants
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 Amara Zulfiqar

  (10 articles)

Ammara is a copywriter for allied Consultant. She works closely with technical teams to document their work and to ensure our potential is correctly portrayed on the web.