The consulting industry was built on the premise that consultants deliver distinctive value and experience. And, yet, there isn’t a cohesive, standardized method of delivering or measuring value.
At Sirius Solutions, we decided to create a value-based consulting model by borrowing concepts from the sweeping changes in delivering value-based healthcare, which hospitals are being regulated to deploy. Although healthcare and consulting industries are markedly different, one common factor is that neither industry has traditionally been forced to measure or ‘make known’ value.
Using Michael Porter’s analogy of value, “customer outcomes per dollar spent”, we are drawing from the extensive work and research specific to value-based healthcare to hold ourselves accountable. It’s that simple. To deliver value, our value-based model engages the following:
- Integrated Practice Units: We deploy dynamic teams to focus on quality and serve complex needs of our clients by looking at the customer as a whole, and not as a sum of projects in which we engage. Our goals are tied to the overall value created for either a department or organization.
- Measure Outcomes: We measure outcomes for every customer by measuring key economic or operational levers. We have a defined economic impact model tied to the top line and bottom line figures. Similarly, we have an operations impact model tied to efficiencies and capacities.
- Measure Costs: We have always been effective at understanding our inherent costs for a project. We now check ourselves for discipline to understand the total end-to-end actual cost of a project. Our goal is to manage costs – showcase impact for every project in which we engage.
- Bundled Prices: While this area is not yet a reality for us, our hope is to be able to offer our capabilities and consulting solutions in new frameworks and models.
- Enable Technology: The use of and value from technology can no longer be in question for consultants. As a result, we focus on technology to deliver our services such that we are able to maximize the use of standard templates and platforms, the value from data, and deliver quality for every engagement.
The consulting industry is served by over 700,000 firms generating over $250 billion in revenue. Yet, there is no understanding of the impact generated or the value created by this industry. From Sirius’ standpoint, the future of consulting lies on being able to deliver transformational services to our customers. Our hope is to look at transformative, scalable problems and deliver value through collaborative networks, standardized models, tools, and resources, and our dynamic teams of thought leaders, thinkers, and rainmakers.
Rakhee Das – Innovation Practice Leader at Sirius Solutions, LLLP.