Reengineering Practice in Reengineering Practice in WTO RegimeWTO Regime

S. Gopalakrishnan

WTO and the Services Sector

Opportunities in the WTO Regime

Government Level

Revenue Authorities Level

Business Unit Level

Way Forward

Agenda

WTO and International Services

Exports Statistics

Annual percentage

Exporters Value Share Exporters Value United States 287.7 16.0 United Kingdom 143.4 8.0Germany 115.6 6.4 France 98.9 5.5Spain 76.3 4.2 Italy 72.7 4.0Japan a 70.6 3.9 Netherlands 63.0 3.5China 46.4 2.6 Hong Kong, China 44.6 2.5Austria 43.0 2.4 Belgium 42.4 2.4Canada 41.9 2.3 Ireland 35.7 2.0Denmark 32.1 1.8 Switzerland 32.0 1.8Korea, Republic of 31.3 1.7 Singapore 30.4 1.7Sweden 30.3 1.7 Luxembourg 25.2 1.4India 25.0 1.4 Greece 24.9 1.4Taipei, Chinese 23.0 1.3 Norway 21.6 1.2Australia 20.7 1.2 Turkey 18.9 1.1Russian Federation 15.9 0.9 Thailand 15.7 0.9Malaysia 13.5 0.7 Mexico 12.6 0.7Poland 12.3 0.7 Israel 12.2 0.7Portugal 11.7 0.7 Egypt 10.8 0.6Brazil 9.6 0.5 Croatia 8.6 0.5Hungary 7.9 0.4 Czech Republic 7.8 0.4Finland 7.7 0.4 Indonesia b 6.4 0.4Total of above 1650.0 91.9 World 1795.0 100.0

US$ Billions

Services Sectors in WTO

• Business services

• Communication services

• Construction & related engineering services

• Distribution services

• Educational services

• Environmental services

• Financial services

• Health and social services

• Tourism and travel related services

• Recreational, cultural and sporting services

• Transport services and

• Other services not included elsewhere

Accounting and Auditing Services (CPC 8621)

o Financial auditing services (CPC 86211)

o Accounting review services (CPC 86212)

o Compilation of financial statements services (CPC 86213)

o Other accounting services (CPC 86219)

Book- keeping services, except tax returns (CPC 8622)

Opportunities in the WTO Regime

GovernmentRevenue

Authorities’

Business Units’

Opportunities

Policies & Framework

Claims Verification

Information Systems

Administrative Structures

Investigation under Competition Laws

Regulation of Dominant Position

Government

Role of Chartered Accountants

Role of Chartered Accountants

Audit & Verifications

Link to Industry

Grievance Redressal

Revenue Authorities’

The Business Units’ Level

International Dimension

Specific areas of WTO Agreements at international level in complying with their procedural and other aspects

Provide services abroad by accessing foreign markets due to commitments undertaken by other countries under professional services with the opening up of service sector under GATS through:

Cross-border (electronically) Consumption Abroad Commercial Presence Movement of natural persons

Provide services to enterprises from abroad desirous of accessing Indian market

Work with foreign enterprises facing action under different provisions of WTO agreements

Provide consultancy services for cross-border investment

Provide services by analysis of domestic legislations of different countries in order to take advantage of various WTO Agreements for domestic industry

Work with international agencies during investigations

Increased networking possibilities

The Business Units’ Level

International Dimension

Summary Anti-dumping Investigations Anti-subsidy Investigations Trade Related Intellectual Property Rights

(TRIPS) Trade Related Investment Measures (TRIMS) Procedural aspects of Safeguards Agreement Procedural aspects in Dispute Settlement Agreements on Customs valuation, Financial

Services and Basic Telecommunications Competition Policy

Anti-competitive Agreements Regulation of combinations Certification

Way Forward Knowledge

Practices re-orientation

Practice Development

Strategy for Success

Practice Development Strategies

Managing Human Resources

Evolution of Consulting Practice

Client Service Approach

Recognise the changes in Economy / Business Environment

Recognise the path to success by adapting to changes, knowledge and continuing professional Education

Recognise the opportunities in the emerging areas

Recognise the need to be proactive, innovative and flexible

Recognise the need to be known as world class advisor

Power of Knowledge

Types of Practices

Expertise Based

Practice

Experience Based

Practice

Efficiency Based

Practice

Client

People

PeoplePeop

le

Lessons for Practice Development

◘ Continual Professional Education

◘ Managing professional development practice

◘ Asset building, not just asset milking

◘ Take charge of asset building

◘ Specialize and continue to learn

◘ Marketing to existing clientele

Strategy for Success

◙ Networking

◙ Specialization

◙ Quality

◙ Value Addition

How They are Managed

Contract – Long Term RelationshipsContract - Right to Retrieve Key StaffContract – License, Usage, RightsStandard Operating ProceduresContract – Service Levels, Convergent Objectives, IncentivesTarget Cost Setting, Process Reengineering, Sharing Risks & RewardsContract – Formal Change ProceduresHR Methodologies, Policies, Procedure & CultureOutsourcing Methodologies, Joint Risk ManagementContract – Exit Strategy

Perceived Risks

Networking

The Perceived Risks

Loss of ControlLoss of Skilled StaffLoss of Intellectual PropertyLoss of SecurityService Quality Drops

Increase in Cost

Change ManagementHR Issues

Transition Problems

Exit

Broadcasting

Courting

Super pleasing

Nurturing

Listening

Practice Development Strategies

Stages

Broadcasting

“Marketing is an art of seduction not assault”

The First Team• Seminars • Speeches at Industry meets• Articles in client oriented press• Proprietary Research

The Second Team• Community/Civic Activities• Networking with referral sources• Newsletters

Clutching at straws• Publicity• Brochures• Advertising• Direct Mail etc.

Courting

We don’t “sell”, We “Court”

When a client hires a professional firm it enters into a relationship, the process is best described as “Courtship”

Courting starts after Identification of Business Prospects

The firm no longer addresses a group of potentials but a single, specific prospect

Super pleasing

Super pleasing is the process of gaining the client’s delight instead of satisfaction

Beyond technical work and providing satisfactory services

SATISFACTION equals PERCEPTION minus EXPECTATION

Understanding the above three factors coupled with qualitative execution is key to Super pleasing

Trivial matters may not be so trivial

Nurturing

Consulting is all about building relations with the clients not selling products/services

Nurturing is the process of Marketing to existing clients

Existing clients represent higher probability prospects

New opportunities at existing client’s are usually non competitive

Lower Marketing Costs

Follow on engagements from existing clients are more profitable than first time engagements

Listening to the Market

The better the firm’s understanding about how clients think the more effectively it will be able to market itself

The questions, what do our clients want and how are their needs changing must be addressed continuously

The various means of listening to clients

٭ User Groups

٭ Reverse Seminars

٭ Industry Meetings (to listen not talk)

٭ Systematic Client feedback etc

Listening to the MarketCompanies are operating in a transformed and dynamic business environment

Business Drivers Positioning

Globalization

Convergence

Consolidation

Innovation

Technology

People

● Understand your Human Capital

● Competency Mapping (firm vs. competitors & industry)

● Sustaining the Assets

● Building the Human Capital

● Ensuring Returns on all the investment

In the next decade and beyond the ability to attract, develop, In the next decade and beyond the ability to attract, develop, retrain, and deploy people will be the single largest retrain, and deploy people will be the single largest determinant of a professional service firm’s competitive determinant of a professional service firm’s competitive success.success.

“They just don’t matter…

they are everything”

PeopleEffective H R System - Effective People

Recruiting

Promotion

Compensation Performance

Training & Development

Work Assignments

People

“Feel that I belong and am part of something good”• Reliable network of people• Appreciation of unique talents• Communicate ATK’s direction and strategy to all

employees• Explaining how to get

problems resolved• Respect employees by

providing timely and intelligent information

“Constantly grow, learn and develop”• Interesting mix of work• Good project experiences• Constructive feedback• Understanding the measurement process• Opportunities to develop • Upward feedback initiatives

“Be able to balance work and life”

• Provide a more balanced quality of life

• Tailor work requirements to individual needs

• Services to help balance work and personal life

“Work hard; be rewarded well”• Provide appropriate compensations• Acknowledges the demands of the business• Being recognized for

outstanding performance• Provide input into compensation initiatives• Salary increases for mid-year promotions• Service incentive programs

Wealth

Growth Pride

Teaming

The four key points to hire and retain good people

Evolution of Consulting Practice

Audit and Legal

Entrepreneurial Advisory/ Entry Strategy

Disinvestment/ Privatization Consulting

Strategic Consulting

The Indian Consulting Industry has evolved over the years

Technology Consulting

CLIENT SERVICE APPROACH

THREE BASIC SKILLS OF AN ADVISOR

Earning TrustEarning Trust

Giving advice effectivelyGiving advice effectively

Building relationshipsBuilding relationships

THANK YOU