Strategic gameplan for SPG
Business Sharks Team
12 December 2011
Strategic gameplan for SPG growth 2
Our team is chosen and trusted among others because of strong
personalities, diverse experience and portfolio of projects
Business
Sharks
Alex
MSU ‘12
Applied math
Denis
MSTU ‘11
Engineering & Mgmt
Sergey
MIREA ‘11
Cybernetics
Alex
RBS, London ‘11
Global Mgmt
Provide tailored
solutions
Find real
drivers
Clearly understand
business situation
Generate
bright ideas
Education
Experience
Executed
projects
Intern, BIG4 Audit
2Y of teaching IT
2Y of software dev.
Coached a winner of
All-Russia applied
research competition
Intern, project-mgmt.
Organized logistics
of Formula1 events
1.5Y IT consulting
2Y accounting
0.5Y retail sales
2.5Y IT consulting
1Y Mentoring in IT
1Y IT Support
McKinsey case
championship
semifinalist
Team leader of
Russian student’s
society at Science-Po
Participated in
logistics startup
launch & growth
Strategic gameplan for SPG growth 3
Agenda
Executive Summary
Our Approach
Detailed Recommendations
Human capital
Client relations
Focus on practices
Brand promotion
Process excellence
Geo expanding
Partnership synergies
Implementation Plan & Risks
The Bonus
Strategic gameplan for SPG growth 4
Several interview sessions were conducted with SPG
employees, competitors & experts to collect essential facts
Interviewee PositionCompany
Idrisov Alexander SPG Managing partner
Modiano Philip SPG Partner
Chumak Sergey SPG Principal
Kudinova Veronika
Elena Chizhenkova
SPG
SPG
Training specialist
HR specialist
Evgeniy Top 3 Manager
Andrey Top 3 SBA
Alexander Top 3 Manager
Petr Top 3 SBA
Andrey Recruitment
consultingManager
Lev Vilyaev PwC Partner
Strategic gameplan for SPG growth 5
SPG should raise human capital, dive into attractive industries,
promote brand actively, develop processes excellence, build
long-term client relations
To have the right people on the right projects
Target hiring of experience staff
Significant increase of graduate hiring
Raise
Human
Capital
To increase brand awareness & value
Actively use promotion mix such as direct sales,
publications, pro-bono, events and advertising
Promote
brand
actively
To gain new projects & market reputation
Strong future focus on Operations practices
Retain current industry focus, develop Media and
Consumer Goods
Dive into
attractive
industries
To increase client satisfaction and retention
Deliver superior client service
Focus on repeatable clients
Build long-
term client
relations
To deliver services in a highly efficient manner
Develop internal methodologies
Conduct internal optimization projects
Develop
processes
excellence
Management goals Recommendations
4Business
value
Leading
national
strategist
By 2016 SPG plans to
3Professional
staff
Strategic gameplan for SPG growth 6
Process of finding right paths for growth is composed of 3
phases: problem analysis, initiatives development, synthesis
Current
situation
analysis
Build up
future visionUnderstand
gaps
Develop
success
matrix
Deep
analysis of
each area
Develop
growth
programs
Conduct
risk
analysis
Develop
implementation
plan
Create
monitoring
activities
I. Problem
Analysis
II. Initiatives development III. Recommendations
* team analysis
Strategic gameplan for SPG growth 7
SPG success matrix helps to determine high value actions
in key areas of improvement
Human
capitalClients Practices
Brand
power
Process
excellenceGeo Synergies
# of teams
in firm
Team cost
per year
Utilization
rate
Costs
Find
experienced
people
Hire whole
teams
Offer trainings &
MBA
Hire brand name
people
Increase client
satisfaction and
retention rate
Attract large
clients
Receive
feedback from
clients
Improve long-
term relations
building
Expand into
cons.goods,
media,
strengthen
positions in
current
industries
Strong focus on
Operations
Involve experts
with
multinational
experience
Increase brand
awareness via
high effective
promo activities:
direct sales, pro
bono, events,
insights &
publishing, ads.
Develop
corporate culture
to attract staff
Develop existing &
create new
methodologies
Expand knowledge
database
Run internal
projects focused on
process
optimization
Get projects in
RB & Ukraine
Consider
opening local
offices
Develop
Kazakhstan
office
Compete for
large projects in
East
Attract new
clients focusing
on further
retention
Establish PE
fund with
support of
SBRF & TD
SPG
success
formula
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 8
SPG should pay extra attention to its talent supply chain
processes
People Clients Practices Brand Processes Synergies Geography
24
27
6
90
60
10
62
Hiring enough qualified personnel is a
challenging task
There is tough competition for staff between
consultancies
SPG plans 3x bigger than now what means
bigger than McKinsey
SPG should review its hiring
approach
SPG needs a few senior staff
SPG will experience high demand in
junior staff
Partner level
Consultants
Analysts
Manager level
30 40 45 55 65
125
160
75
150
Mon Booz Bain ATK RB BCG McK SPG
* Case data, team analysis, interviews with partners & competitors
Staff to hire100 125
+40%
2012-2013 2014-2015
Role Focus
Selected practices
Efficient delivery track
Proven experience
Selected practices
Structured mindset
Fit into profession
Enthusiasm
Motivation
Current staff in Russia, 2010
Strategic gameplan for SPG growth 9
SPG should actively attract & develop graduate hires to
support strategic growth
Brand Perception
Recruiting
Development
Faster promotion
Lower salary than Top3
Less prestigious than Top3
Communicate through the web
(e.g. Futuretoday.ru)
Help & support case clubs in top
universities(e.g. MSTU Bauman)
Popularize consulting in regional
universities
Conduct workshops at office site
Weekend trainings
Qualified professional trainers
Connect with promotion
People Clients Practices Brand Processes Synergies Geography
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 10
To grow repeatable business SPG should increase client
satisfaction and retention by delivering superior client service
People Clients Practices Brand Processes Synergies Geography
Try to engage every
single client
Focus on long-
term relations
AS IS 2011 TO BE 2016
Repeatable contracts mean ↑margin
More important & valuable projects
Easier to staff with recent hires
Satisfied clients
Lower risk exposure
Why to
focus?
More money
+ Reputation
Developed employees
References, leads
If done well..
Focus on clients with higher chance to return
Interact with client at their site more often
Improve partner's & manager's skills
in client-relations building
Use project feedback
How to?
• Spreading between clients
• Low activity in building long-
term client relations
• Focus on loyal clients
• High retention rate
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 11
Since last economic crisis SPG has changed its revenue
streams. It has focused on: manufacturing, gov., energy
Total
revenue12 18 11 13 18
1,9 2,71,2 1,4 1,8
2,3
3,4
1 1,31,8
1,8
2,5
1,11,4
2
1,2
1,6
1,31,7
3,42,2
3,6
4,23,9
4,32,6
4,1
2,2
3,3
4,7
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011
$, MM
SPG industry revenue decomposition
Manufact.
Gov.
Energy
&Mining
FMCG
Financial
Services
TMT
Practice
+ 15%
+ 19%
+ 112%
- 20%
- 47%
- 33%
3Y diff.
SPG revenue came back to
pre-crisis level
Only 3 industries have grown
more than pre-crisis level
SPG restored losses by
Gov. & energy practices
* Case data, team analysis, interviews with partners & competitors
People Clients Practices Brand Processes Synergies Geography
Strategic gameplan for SPG growth 12
While retaining its current focus on manufacturing, gov. and
energy sectors, SPG should develop consumer goods & media
SPG should set up target mix of industries & practices to develop
Att
racti
ven
ess f
or
SP
G
Competition
Low
High
High
Insurance
Airlines &
Transportation
Gov.Manufacturing
MiningMedia
Telecom/
Infocom
Energy
Healthcare
New customers should be targeted in selected industries.
Experienced staff should be hired with selected industries background
Utilities
* Case data, team analysis, interviews with partners & competitors
Banking
Consumer
Goods
People Clients Practices Brand Processes Synergies Geography
Strategic gameplan for SPG growth 13
To meet client’s needs SPG should develop operations
practice & build strong expertise in this field
People Clients Practices Brand Processes Synergies Geography
Low focus on Ops
projects
Significant
revenue stream
AS IS 2011 TO BE 2016
Logically continue strategy project
Projects are more standardized
Close collaboration with client
Results easy to be judged
More popular in crisis times
Why to
expand
practice?
Chance to sell to current clients
Chance to develop recent hires
Build relations and knowledge base
Client satisfaction, market reputation
If done well..
Sell project to current clients proactively
Develop & spread around methodology
Involve PROs with multinational experience
Show deep knowledge of Russian specifics
How to?
• Over demanded on market
• Add-on for classic products
• Competitive product
• Standalone product
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 14
Direct
sales
To increase brand awareness among clients & potential hires
SPG should use balanced mix of direct sales, pro-bono,
publications, targeted events and Ads.
People Clients Practices Brand Processes Synergies Geography
Covers target
audience
Assists in
collaboration
Proves the
expertise
Main focus for partners
Industry forums, conferences
Workshops, case competitions
Career fairs
Targeted
events
High business concentrated areas
Top universities
Case clubs
Ads
Social impact consulting
Public health improvement
Higher education development
Pro
bono
Industry’ pain-point reports
Interactive web solutions
Release business books
Insights
Publications
1
2
3
4
5
&
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 15
SPG should constantly continue optimizing overall internal
processes to deliver services In highly efficient manner
Finance, Human Resources, IT, Subcontractor management, Procurement Support
Processes
Core Lead-
-to-cash
Processes
Talent supply
chain
Processes
Strategy
Processes
Strategic
workforce
management
Recruiting &
On-boarding
Training &
Development
Operational
workforce
management
Performance &
Compensation
Strategy
management
Business
planning
Corporate
Performance
Management
Service
Portfolio
Management
Risk &
Compliance
Business
Development
Account
management
& Sales
Service Delivery Billing
Business Development, Client
& Opportunity Management Project & Engagement Management
Business & Service Management
People Clients Practices Brand Processes Synergies Geography
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 16
SPG should use its capabilities in synergies with SBRF and
Troika to establish and develop PE fund and attract new clients
People Clients Practices Brand Processes Synergies Geography
Sberbank
Retail
banking
IBD
products
Corporate
bank
Troika Dialog
Asset
management
IBD
products
Personal &
alternative
investments
Attract new clients IPO pretenders
Financing pretenders
Target companies
* Case data, team analysis, interviews with partners & competitors
Private Equity
Fund
Invest &
SellPre-IPO
Strategy
Partners Group
Corporate
financeOperations Strategy
Strategic gameplan for SPG growth 17
SPG can manage projects in RF from Moscow office while
developing Kazakhstan & considering expansion to UA & RB
People Clients Practices Brand Processes Synergies Geography
KazakhstanUkraine
RB
Growing economies
Get projects
Consider new offices
Moscow
Growing consulting market
Develop existing business
Expand office
Russia
Eastern
part of RF
Attractive native market
Compete for large-value projects
Manage projects from Moscow office
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 18
Strategic initiatives in key areas should be aligned
between each other through the implementation roadmap
2012 2013 2014 2015
Actively focus on recruiting experienced staff
Develop the plan of
graduate recruitmentActively recruit graduate staff
Determine prospective clients
(current & future) Build strong client relations to grow project retention
Publications, Insights & Ads
Special events, pro-bono
Develop Kazakhstan Try RB&UA expansion
Build Operations practice experience Grow number of Operations projects
Constantly work on internal process optimization
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 19
During the strategic transformation SPG can face to numerous
risks and should provide risk mitigation activities
Risk Mitigation activitiesExposure
Loss of staff due to competitive
response
Speed of changes will be not
enough to achieve goals
After the growth SPG will be
destabilized
Unacceptably low margins after
turnaround
Significant loss in Gov. sector
due to political crisis
Risk of new losses due to new
economic crisis
Constant monitoring of project KPI
Regular feedback collection from
staff. Adaptive project booking.
Strategy reactions adaptive to
situation
Not hesitate to shift people to
other practices/projects
Insure support from Sberbank.
Repositioning of services
Focus on repeatable clients and
high-marginal products
* Case data, team analysis, interviews with partners & competitors
Strategic gameplan for SPG growth 20
Valuable information for consulting companies who want
to engage effectively with graduate students
Consulting-
related
activities
Details
Contacts
Case-interview
practice
Workshops, case-
studies
Web
discussions
5-20 experienced
students gather &
practice cases in
1-1 sessions
Ilya Fomin, Partner,
HSE Case Club Initiative
• Koffein Café “Chekhovskaya”,
Strastnoy Boulevard, 6
(very experienced, on
weekends)
Anton Domakhin,
Founder,
MSU Open Case Club
www.Yuptalk.ru
Multinational career
discussions in
consulting, internship,
IB, audit
Active discussions
about career
opportunities
10-30+ motivated
students share
their experience
& crack live
cases together
* team analysis
Strategic gameplan for SPG growth 21
Our team is chosen and trusted among others because of strong
personalities, diverse experience and portfolio of projects
Business
Sharks
Alex
MSU ‘12
Applied math
Denis
MSTU ‘11
Engineering & Mgmt
Sergey
MIREA ‘11
Cybernetics
Alex
RBS, London ‘11
Global Mgmt
Provide tailored
solutions
Find real
drivers
Clearly understand
business situation
Generate
bright ideas
Education
Experience
Executed
projects
Intern, BIG4 Audit
2Y of teaching IT
2Y of software dev.
Coached a winner of
All-Russia applied
research competition
Intern, project-mgmt.
Organized logistics
of Formula1 events
1.5Y IT consulting
2Y accounting
0.5Y retail sales
2.5Y IT consulting
1Y Mentoring in IT
1Y IT Support
McKinsey case
championship
semifinalist
Team leader of
Russian student’s
society at Science-Po
Participated in
logistics startup
launch & growth