Staying Alive: Succeeding in a difficult climate

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Staying AliveSucceeding in a difficult climate

• Charles Watson MIPR
• Chief Executive
• Financial Dynamics

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The Consultancy in 2003Threats Challenges Opp
ortunities
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Boom-Bust The late 80s
Performance
Year
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History repeats itself..
Performance
Year
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Worldwide Revenues of top 50 firms (m)
Source Council of Public Relations Firms
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What are the clients saying?
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Corporate Affairs Director Research Study 2003

• Communications departments subject to severe
  cost pressures
• 73 of respondents flat or reduced budgets
• 63 headcount freezes
• No improvement next year

Source Watson Helsby
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Corporate Affairs Director Research Study 2003

• The consultancy is probably one of the biggest
  sources of reduction in the budget.
• I have kept the financial PR agency, but halved
  the fee. I have let go the public affairs
  consultancy.
• The days of retaining a large agency for a
  blanket task have long gone you just dont get
  the quality.

Source Watson Helsby
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Corporate Affairs Director Research Study

• Clients have become increasingly more
  sophisticated, resourceful and confident in their
  in-house capabilities
• Their external requirements are increasingly for
  specialist services rather than for blanket
  advice
• Value-for-money and ROI paramount

Source Watson Helsby
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What are the consultants saying?
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Ability to cost PR activities

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Ability to deliver on time and to budget
Excellent
Poor

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So what happens next?
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Five Basic Principles for the 00s

• Value
• Evaluation
• Risk/Reward
• Expertise
• Talent

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Talent The winning commodity

• Recruitment, development, retention of talent
  No 1 task for consultancy management
• Incentivisation a key tool for service delivery
• Clients should scrutinise consultancy staff
  motivation

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The Consultancy in 2003Threats Challenges Opp
ortunities