CGN Edge Blog

Quantifying the Value of Consulting Services

Mar 25, 2019 4:02:53 PM Posted by: Catherine Powell
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Articulating the value of consulting services to a client is a critical part of each phase of a project’s lifecycle.  There needs to be a clear picture of the value a client will receive by using consulting services for business improvements.  Not articulating the value could damage a relationship with the client and the consultant's credibility.  CGN’s ability to provide end-to-end solutions will set up a client for success, ability to sustain change, and communicate the value to internal and external stakeholders.

“We see ourselves as performance partners in transformation.” ~ Harsh Koppula CEO CGN Global

CGN assists its clients by unleashing hidden potential, transforming businesses globally, and delivering the unexpected to guarantee client competitiveness, within the global marketplace. 

Our approach focuses on end-to-end solutions, analyzing how best to help a business with their current challenges across the different areas of markets and strategy, supply chain and operations, technology, and sourcing and procurement.  These are the typical steps in initiating, maintaining a change, and quantifying the value of consulting services.

  • Walk in your shoes
    • Understand market structure, landscape, current business challenges and pain points
  • Work with your people and your customers
    • Understand operation, distribution, outbound structure, and end customer
  • Look with a fresh pair of eyes
    • New solvers to an old problem, evaluate the challenges with a different mindset
  • Sustain a change
    • Implement a project with results that will stay after project completion

Taking this approach to demonstrate the value of consulting services to a business begins with the initial concept.  CGN internally creates a CEO Agenda, which includes an assessment of the potential client’s major challenges and pain points.  A crucial part entails matching the client's pain points to CGN’s solutions and expertise.  The next step involves, demonstrating a proven track record through case studies and leadership materials.  This documentation may show similar challenges to the client’s current issue that CGN has tackled in the past and the value the business gained by implementing CGN’s services.

Once there has been an established client engagement the statement of work (SOW) is built.  This clearly defines the business problem, CGN’s approach to resolve the issue, timing and resources for implementation, and value deliverables.  Another crucial step to quantifying consultant value is the definition of success metrics to track and measure value outputs.  This can be done during the SOW and continued to modify throughout a project based on changes with the project lifecycle.

During an engagement with a business CGN will establish weekly or milestone report sessions, to guarantee the team’s success metrics are being met.  A flexible team must be available to account for any needed changes throughout the project.  Having this flexibility guarantees the clients’ needs are being met and that both the consult and the business have a successful outcome.

Lastly, upon completion of a client engagement CGN will meet with the client to review success metrics and sustainability factors.  To further demonstrate the value of implemented services, CGN will calculate the clients’ ROI and any savings the business has gained.  If the team has observed other challenges or issues outside the original SOW, they will articulate to the client at this time.  Successful projects are a multiplier, that let CGN help clients with issues going beyond the current problem and continue to enhance CGN’s winners profile.

Here is an example of how CGN clearly articulated the value of consulting services to the client.  Project M&A – PMI Parts Conversion’s primary business objective was to accelerate the growth of aftermarket parts and services.  The business had completed a multi-billion-dollar acquisition that after several years of acquiring continued to have challenges in service parts availability, quality, and market share.  CGN demonstrated expertise in the business’s industry and engaged the client in an end-to-end solution to sell aftermarket parts while concurrently reducing costs.  CGN established success metrics in the key areas of Quality, Cycle Time, and Integration Process.  CGN’s services provided the client with the following roles; Process Design & Deployment, Prioritization/Grouping & Service Strategy, Part Integration Waves & Schedule, Project Monitoring & Execution, Project Governance/Communication & Issue Resolution, and Analytics Support.

profitThe end-to-end solution achieved dramatic results on all key metrics in a 6-12 month timeframe

  • Quality increased from 88% to 99%
  • Cycle Time decreased from 14 months to less than 6 months
  • Integration Progress increased from 20% to 66%

To demonstrate the ROI value, the team calculated the costs saved for the fiscal year through significant reduction of part costs.  CGN helped the business to create a competitive edge by reinvigorating their delivery on Brand Promise and minimizing customer lifecycle costs.  CGN established sustainable factors by eliminating redundant network and building standards of quality.  The client is now stronger in the areas of world class dealer support and enterprise synergy savings. 

Articulating the value of consulting services to a client is a critical part of pre-project, during, and post project life cycle.  CGN and its clients reach an understanding of value early on, to gain the support of stakeholders and execute projects successfully.  Throughout the project, CGN clarifies its value with the client, to enhance collaboration and ensure project success with final stakeholders.  After project completion, CGN provides input on other areas of opportunity to continue enhancing the clients competitive edge.  These are the critical steps CGN has developed from over 20 years of repeat client business and will persist to always demonstrate the value of consulting services in the ever-changing global market.