Maximizing the return on investment (ROI) from consulting expenditures can have a significant impact on a company’s overall financial performance. When a company carefully assesses the costs and benefits associated with consulting services, it ensures that it receives the greatest value for its investment.
To achieve this, a company needs to employ the 6-levers approach in order to attain both improved financial results and the accomplishment of strategic objectives. This approach enables companies to enhance their bottom line by making informed decisions regarding consulting investments, driving greater efficiency, and maximizing the overall value obtained.
So, what are the benefits of using the 6-levers?
#1. The first thing to consider is what projects you should invest in. It is all about investing in the right projects, right? It is crucial to identify the strategic initiatives that will yield the maximum impact.
These initiatives may include projects that align with your overall strategy, serve as enablers for launching strategic projects, or possess a high return on investment (ROI) that generates additional resources for further strategic endeavors.
By focusing your efforts and capital on these crucial projects, you can ensure the effective advancement of your organization’s goals.
#2. The 6-levers will help you get more organized and structured in the way you use, buy, and manage consulting. By organized and structured, it means that you need to have a structured RFP process.
This is essential because it lets the consultants know that you have a clear vision and everyone is on board in the organization. And then you have a list of preferred suppliers that you can choose from as a first intention.
And if you are able to have a dynamic preferred suppliers list that covers more than 80% of your needs, it means that you can build relationships with your suppliers. And this can help you get prices.
#3. Collaboration between procurement and business lines is a crucial aspect that needs to be catered to. However, it’s important to acknowledge that establishing effective collaboration doesn’t happen instantly but rather requires time and consistent effort.
With continuous dedication, this collaboration will gradually develop and yield improvements over time. There is no way you can maximize the ROI on your consulting spend unless you have business lines and procurement working together very closely.
To know more about the benefits of using the 6-levers to optimize the ROI of your consulting spend, you can listen to this podcast. And for more information on the 6-levers, hop over to Consulting Quest and listen to the podcast series on the 6-levers.
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