POSITIONING FOR GROWTH Buyer Needs & Market Strategies PREPARED BY: JONATHAN BALLANTINE
DATE: JANUARY 2012
A vendor guide for climate change & sustainability services and thought leadership research
Positioning for Growth: Buyer Needs & Market Strategies A vendor guide for climate change & sustainability services and thought leadership research
Executive Summary In late 2011, CR Vision conducted a series of interviews with sustainability executives to ascertain current perceptions and opinions on climate change business consulting services and thought leadership research offered by consulting firms. CR Vision conducted in-depth research with 31 industry practitioners from across 18 business sectors to assess the market landscape in order to provide a buyers´ perspective on climate change business consulting services and thought leadership research from 13 consulting firms. The responses also provide valuable insight into thought leadership design, marketing and 2012 investment priorities, as well as illustrating key decision factors (both internal and external) that drive vendor selection. Furthermore, this publication includes a report card for each of the consulting firms, ranking their performance across seven indicators. By combining competitive intelligence together with customer insights, this publication will assist consulting firms position for growth in 2012 and beyond, by providing unique guidance on business strategy & expansion programmes, service line development and go-to- market activities.
Ranked most important
Key selection factor
PwC & McKinsey
Sector Knowledge
Key CC&S progamme
Engage consulting firms
Energy Efficiency
3 out of 4
Least effective TL tool
Most effective TL tool
Surveys
Webinar
Spending plans 2012
External TL Partnerships
83% increase
84% state add value
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Private Use Only
1
Report Focus This publication is aimed at helping consulting firms understand buyers´ perceptions and attitudes towards hiring external consultants for climate change and sustainability engagements. The report has four main sections:
!
Profile – this introductory chapter provides an overview of the companies and participants involved during the research and development of this publication. It also examines industry practitioners’ areas of responsibility, current climate change and sustainability programmes, and the level of support (both internal and external) required for successful implementation.
!
Buyer Behaviour – summarises the opinions of 31 industry practitioners – identifying their perceptions and preferences of external consulting firms for the engagement of climate change and sustainability services (CC&S). Furthermore, this chapter provides insights into buying behaviour and spending plans for 2012 and beyond.
!
Does Thought Leadership Matter? - the publication outlines to what degree thought leadership influences spending decisions, identifies what sustainability executives consider to be the key fundamentals of Authoritative Thought Leadership and determines their channel preferences. This chapter also features a perception-based benchmark that assesses thought leadership by consulting firms across the two dimensions of familiarity and perceived quality.
•
Tell to Win – this concluding chapter highlights the happening across many industries, reflecting on opportunities this presents consulting firms with engagement, thought leadership research & collaboration and business development.
transformation that is the challenges and respect to delivery marketing, external
In addition, this publication includes a performance report card for 11 consulting firms. Following the interviews with sustainability executives a set of indicators was developed to assess consulting firms across two dimensions – performance & marketing.
AD Little
BCG
Deloitte
E&Y
ERM
KPMG
McKinsey
PwC
Indicators Performance Scorecard
SustainAbility
7
4
4
4
7
5
7
6
7
8
7
Market Share
2
1
1
1
2
1
2
1
2
2
2
Track Record
2
2
1
1
2
1
3
2
2
3
3
Geographic Presence
3
1
2
2
3
3
2
3
3
3
2
Marketing Scorecard
12
9
8
10
7
9
9
7
11
12
9
Website Utility
3
3
2
3
2
3
3
1
3
3
3
Content
3
2
2
2
2
2
2
2
3
3
2
External Collaborations
3
2
2
3
1
2
2
2
2
3
2
Thought Leadership Channels
3
2
2
2
2
2
2
2
3
3
2
Positioning for Growth: Buyer Needs & Market Strategies
Booz & Co.
Accenture
Consulting Firms
CR Vision
Private Use Only
2
Contents Executive Summary
2
Report Focus
3
Chapter 1 – Profile
5–9
…Demographic profile …Geographic coverage …Annual revenues & emissions …Survey participants - areas of responsibility …Climate change becomes a strategic issue for business …Internal support - enterprise-wide approach …External support Chapter 2 – Buyer Behaviour
10 – 14
…First impressions …2012 investment plans …Supplier categories – most likely to be hired …Why buyers´ buy Chapter 3 – Does Thought Leadership Matter?
15 – 20
... External thought leadership partnerships …Thought leadership & consulting firms Chapter 4 – Tell to Win
21 – 25
…Toward an open and collaborative process …Why buyers´ buy …Motives matter Thought Leadership for a New Era
26 – 33
…Practicing the art of thought leadership …PwC CEO Survey …Engaging with your audience …The rise of social media technologies …Developing a “Leadership of Thought” platform …Webinars …A war on content …Thought leadership fuelling demand creation Looking Ahead
34
References
35
Appendices
36 – 53
1 – Performance Benchmark
37
2 – Report Cards: 11 Consulting Firms
38 - 49
3 – Interview Questions
50 - 53
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List of Tables Table 1: Sector overview
6
Table 2: Area of responsibility
7
Table 3: Significant climate change programmes
7
Table 4: The role of business functions
8
Table 5: Supplier categories
9
Table 6: Consulting firms – first impressions
11
Table 7: Spending plans 2012
12
Table 8: Supplier categories – most likely to be hired
13
Table 9: Consulting firms most likely to be hired
13
Table 10: Reasons for hiring external consultants
14
Table 11: Key selection factors
14
Table 12: The fundamentals of thought leadership research
16
Table 13: Thought leadership delivery channels
17
Table 14: External partnerships – preferred organisations
18
Table 15: How to improve thought leadership research
18
Table 16: Thought leadership & consulting firms
19
List of Figures Figure 1: Thought leadership perception matrix
19
Figure 2: Consulting firms & thought leadership
32
Figure 3: Content development matrix
33
Figure 4: Consulting firms´ performance scorecard
38
Figure 5: Consulting firms´ performance benchmark
38
Legal Disclaimer Assertions made in this document reflect the opinions of survey respondents and / or the author. The author shall not be liable for any indirect or consequential loss, including loss of actual or anticipated revenue or impact to reputation or goodwill, whether arising from negligence or otherwise. This publication remains confidential and is for private use only.
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Chapter One Profile Demographic profile Geographic coverage Annual revenues & emissions Survey participants - areas of responsibility Climate change becomes a strategic issue for business Internal support - enterprise-wide approach External support
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Profile This introductory chapter provides an overview of the companies and participants involved during the research and development of this publication. It also examines industry practitioners’ areas of responsibility, current climate change and sustainability programmes, and the level of support required - both internal and external - for successful implementation. Demographic profile Over 30 industry practitioners, representing 18 industry sectors participated in this study. The largest number of respondents (3) represented Aviation, Construction, Retail & Leisure, Utilities and Transport & Logistics. Table 1 below highlights all the sectors that participated in this publication. Table 1: Sector profile
Sector
No. of Respondents
Aviation
3
Construction
3
Retail & Leisure
3
Transport & Logistics
3
Utilities
3
Food & Beverage
2
Metal & Mining
2
Telecommunications
2
Automotive
1
Banking
1
Chemicals
1
Health Care
1
High Tech
1
Insurance
1
Media
1
Oil & Gas
1
Pharmaceutical
1
Real Estate / Property
1
Geographic coverage
12
9
Europe
UK
3
7
Asia
US
Annual revenues & emissions
US $861 billion 2010 combined annual revenues
164 MMt CO2 Combined emissions (2010)*
* figure based on CDP 2010 disclosures / public information
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Survey participants - areas of responsibility The study was based on 31 interviews with leading multi-national companies representing 18 sectors across four geographic zones. Respondents interviewed were the most senior person responsible for climate change business programmes within their organisations and had roles such as Head/Director of Sustainability, Climate Change, Environment; or Corporate Responsibility. Table 2 below outlines their level of responsibility across eight categories. Table 2: Area of responsibility
Energy & Resource Efficiency Environmental Management Ethical Supply Chain Reporting & Assurance Primary ! Carbon Inventory Management
Secondary !
Implementation Plan Ethics & Integrity Management Design of CSR Strategy
0
20
40
60
80
100 120
Climate change becomes a strategic issue for business All respondents affirmed that climate change/sustainability was both an important business issue and a strategic issue within their business. This is reflected by the fact that 84 percent of respondents have board-level commitments for CC&S. Respondents were asked to outline their three most significant CC&S programmes. Unsurprisingly, given today´s economic conditions, Energy Efficiency was the most common activity receiving 21 nominations. Other programmes included the transition to Low-Carbon / Renewable Energy Systems, and Emission Reductions. Table 3 below highlights the most significant climate change programmes. Table 3: Significant climate change programmes
Can you describe your 3 most significant CC&S programmes?
Results
Energy Efficiency
21
Low Carbon / RES Energy
11
Emission Reduction
9
Clean Tech (finance & investment)
4
Technology Upgrades
4
Business Collaboration
3
CHP / Cogeneration
3
Efficient use of Resources
3
Innovation / Opportunity
3
CC Investment Strategy
2
Employee Engagement
1
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Internal support - enterprise-wide approach Climate change and sustainability programmes have become more strategic to business, represented by the increasing number of core business functions seen as playing a critical role in their successful implementation. From the survey responses Facilities Management & Energy was ranked ¨important ¨or ¨most important¨ by the most respondents (26 nominations) – although when weighted scoring was applied it averages out as third behind Corporate Responsibility and Health, Safety & Environment. Table 4 shows the importance of business functions in the implementation of CC&S programmes. Scoring has been weighted based on five levels. • • • • •
Totally unimportant Unimportant Neutral Important Very important
-2 -1 1 +2 +3
Table 4: The role of business functions
How important are the following business functions for the implementation of your CC&S programme? (1= totally unimportant to 5 = very important)
Total
Corporate Responsibility Health, Safety & Environment Facilities Management & Energy
67 64 61
Finance Human Resources IT / Telecoms Legal & Regulatory Affairs
56 46 42 25
Logistics / Distribution
24
Manufacturing Marketing
18 15
Procurement / Supply Chain Sales
13 10
Strategy
8
External support One of the core objectives of the study was to ascertain the level of external support required by multi-national companies to implement their CC&S programmes. From the responses, nearly 3 out of every 4 respondents have engaged external support during the design or implementation of their CC&S programmes. When asked which types of suppliers they felt were important for the success of their CC&S programmes, respondents scored Environmental Consultants, Energy Consultants, Not for Profits and Verification Companies positively. By contrast, Management Consultants, Big Four Accounting Firms were considered to be on average ¨neutral¨, whereas IT Consultants and Telecoms Companies were considered to be ¨unimportant¨.
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Table 5 below shows the perceived importance of external suppliers for the successful implementation of CC&S programmes. Scoring has been weighted based on six levels. • • • • • •
Totally unimportant Unimportant Neutral Important Very important No response
-2 -1 1 +2 +3 -1
Energy Consultants
5. very important
No response
7 8 6
5 2 5
3 6 11
1 2 2
3 2 2
-20 -12 15
Weighted Score
4. important
12 11 5
3. neutral
Management Consultants Big Four Accounting Firms Environmental Consultants
2. unimportant
How important are the following categories of suppliers for the success of your CC&S programme? (1 - totally unimportant to 5 = very important)
1. totally unimportant
Table 5: Supplier categories
3
3
9
10
3
3
26
Not for Profits IT Consultants
6 14
2 9
12 3
7 3
2 0
2 2
16 -30
Telecoms Service Providers
18
5
1
0
2
5
-39
6
7
7
5
4
2
8
Verification Companies
What is interesting here is that even the highest scoring consulting firms don’t score that favourably. Is this because a) the market is so fragmented? or b) that consultants aren’t actually valued that much? Based on the results in Table 9 (page 13) it appears to be a combination of both.
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Chapter Two Buyer Behaviour First impressions 2012 investment plans Supplier categories – most likely to be hired Why buyers´ buy
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Buyer Behaviour This chapter summarises the opinions of 31 industry practitioners – identifying their perceptions and preferences of external consulting firms for the engagement of climate change and sustainability services (CC&S). Furthermore, this chapter provides insights into buying behaviour and spending plans for 2012. First impressions Unprompted, respondents were asked to identify which consulting firms first came to mind when thinking of CC&S business programmes. Respondents were able to list up to three companies. The clear leader was PwC, which received 11 nominations, followed by McKinsey (7), with ERM & WSP scoring 6 & 5 respectively. Table 6 shows the consultant firms identified, together with the frequency of nominations. Table 6: Consulting firms – first impressions
When you think about climate change & sustainability which consulting firms come to mind first? PwC
Results
11
McKinsey
7
ERM WSP Accenture Deloitte
6 5 4 3
AD Little
2
Booz & Co. Forum for the Future SustainAbility ALTRAN ARUP BSR Bureau Veritas
2 2 2 1 1 1 1
Carbon Trust Climate Group Context eava
1 1 1 1
Ecorys
1
Ernst & Young
1
First Climate KPMG Siemens
1 1 1
The Carbon Neutral Company
1
UL Environment
1
URS
1
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The study shows a small contradiction in that Table 5 (page 9) shows that Management Consultants and Big Four Accounting Firms to be ¨unimportant¨ or ¨very unimportant¨ in terms of success for the delivery of CC&S programmes. However, what is interesting is that the first consultants people thought of were PwC and McKinsey. This suggests a few things from the audience: ! ! !
Survey participants tended to name the first consultancies they thought of, They are not really sure which consulting firms can offer practical guidance on these issues, and / or Illustrates that both PwC and McKinsey are benefiting from increased visibility in the marketplace based on their marketing activities.
2012 Investment Plans When asked to comment about 2012 spending plans, 83 percent of respondents stated that budgets would increase/remain the same as in 2011. Respondents were then asked to outline the business areas in which they were most likely to invest in during 2012. Approximately 40 percent stated that they would be investing further across four areas: Developing Strategy; Innovation/Opportunity; Supply Chain; and Green IT. Table 7 highlights the focus areas where sustainability executives plan to invest during 2012.
Develop Strategy
No Response
4. no further spend
3. will consider
1. will spend
How would you describe your spending plans for the following types of CC&S services in 2012? (1 – will spend to 4 – no further spend)
2. yes – next 12 months
Table 7: Spending plans 2012
11
7
4
7
2
Conduct Risk Assessment
5
8
6
9
3
Governance / Remuneration
3
3
5
17
3
Climate & Energy Strategy
5
10
6
5
5
Carbon Management Strategy
6
7
3
10
5
Stakeholder Engagement
5
12
4
5
5
To provide an Assurance Statement
9
6
6
5
5
Supply Chain and Operations Water Footprint
10 7
8 4
4 8
5 7
4 5
Green IT
10
8
5
5
3
Compliance / Regulation (REACH, ETS) Innovation / Opportunity
9 11
11 5
2 4
6 7
3 4
Supplier categories – most likely to be hired Given the current economic conditions it was no surprise to see Energy Consultants ranked the highest with 22 respondents stating that they are ¨likely¨ or ¨certain¨ to hire them in the next 18 months. Verification Companies were ranked second with 10 respondents stating that they are ¨likely¨ or ¨certain¨ to hire them in the next 18 months. Table 8 highlights their preferences regarding supplier categories.
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4. likely
5. certain
no response
3. neutral
2. unlikely
How likely are you to hire one of the following consultant firms in the next 18 months to deliver a CC&S engagement? (1= very unlikely, 5 = certain)
1. very unlikely
Table 8: Supplier categories – most likely to be hired
Management Consultants
14
8
1
2
2
4
Big Four Accounting Firms
12
7
1
3
3
5
Environmental Consultants
8
3
11
3
2
4
Energy Consultants
2
5
3
14
4
3
Not for Profits IT Consultants
8 13
5 4
7 6
3 1
2 0
6 7
Telecoms Service Providers
16
5
2
0
1
7
7
1
9
6
4
4
Verification Companies
Using a predefined list of 13 consulting firms, respondents were asked to identify the specific consulting firm they were most likely to engage with over the next 18 months. Based on ¨likely¨ and ¨certain¨ scores PwC and McKinsey scored most favourably with 6 & 4 nominations respectively. By contrast, based on ¨very unlikely¨ and ¨unlikely¨ scores, ICF and AD Little scored least favourably with 25 and 24 nominations respectively.
4. likely
5. certain
no response
Accenture
19
4
0
3
0
5
AD Little
21
3
1
1
0
5
BCG
19
2
3
0
0
7
Booz & Co.
21
4
0
0
0
6
Deloitte
15
6
1
2
1
6
Ernst & Young
17
4
1
2
2
5
ERM
10
9
3
2
1
6
ICF
21
4
0
1
0
5
KPMG
17
6
2
2
0
4
McKinsey
13
6
3
2
2
5
PwC
11
7
3
4
2
4
SustainAbility URS
17 19
2 2
2 1
2 1
1 1
7 7
2. unlikely
3. neutral
How likely are you to hire one of the following firms in the next 18 months to deliver a climate change engagement? (1= very unlikely, 5 = certain)
1. very unlikely
Table 9: Consulting firms most likely to be hired
Why buyers´ buy Responses provide valuable insights into why companies hire external consulting firms to support their CC&S programmes. The two most prominent responses were: Lack of Expertise/Resources; and Independent Advice (or Sounding Board). See Table 10 for additional responses.
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Table 10: Reasons for hiring external consultants
What are the top 3 reasons why your company would seek consulting help for your climate change initiatives?
Results
Lack of Expertise / Resources
17
Independent Advice / Sounding Board / Specialist Knowledge
13
Strategic Development / Global Action Plan
7
Risk Analysis
6
New Ideas / Innovation
4
Third-Party Certification
4
Build Internal Capacity
3
Staff Changes
2
Legislation Changes / Compliance
2
Bespoke Research
1
As a follow up, respondents were asked to explain their three key decision criteria or selection factors for hiring a consulting firm to support their CC&S programmes. Although Price was the most widespread response (11 nominations) it only featured once as the top answer. Respondents considered Sector / Business Knowledge (9 nominations) to be the key decision factor when selecting a consulting firm. Several respondents commented that as climate change and sustainability becomes more pervasive within their organisation – Sector / Business Knowledge would become increasingly more valuable – with some suggesting it would be more important than specific subject expertise. Although the ability to leverage both provides a unique point of differentiation between consulting firms. Table 11 highlights the key decision factors for supplier selection. Scoring has been weighted on three levels. • • •
First Second Third
3 2 1
Table 11: Key selection factors
What would be your top 3 decision criteria when hiring a consulting firm for climate change and sustainability initiatives?
Score
1st
2nd
3rd
Understanding of our business / sector knowledge Price
7
2
0
25
1
7
3
20
Subject Expertise
6
1
0
20
Track Record
1
2
3
10
Composition of Team
0 0
1
2
4
Reputation
0
3
3
Implementation Driven
0
2
0
4
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Chapter Three Does Thought Leadership Matter? External thought leadership partnerships Thought leadership & consulting firms
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Does Thought Leadership Matter? In this section, the publication tries to understand to what degree thought leadership influences spending decisions, outlines what sustainability executives consider to be the key fundamentals of Authoritative Thought Leadership and determines their channel preferences. This chapter also features a perception-based benchmark that assesses thought leadership by consulting firms across the two dimensions of familiarity and perceived quality. Respondents were asked to what extent can thought leadership research from consulting firms influence perception and ultimately spending decisions. The results are ambiguous in the sense that approximately 40 percent of respondents say it has no influence, whereas 45 percent state that the quality of thought leadership can influence behaviour change / spending decisions. During the interviews with practitioners they were asked what they considered to be the key fundamentals for high impact, authoritative research. Relevance was ranked as the key component in thought leadership research with 30 respondents rating it as either ¨important¨ or ¨very important¨. Practicality was rated second with 28 nominations. By contract, Novelty was considered to be the least important with 22 respondents rating it as either ¨neutral¨, ¨unimportant¨ or ¨totally unimportant¨. Table 12 highlights what practitioners considered as the key 1 components of authoritative thought leadership research.
0
0
1
12
18
Practicality
1
2
0
11
17
Clarity
1
0
4
10
16
Validity
2
0
6
5
18
Focus
0
0
8
13
10
Rigor
0
0
8
10
13
Novelty
6
6
10
8
1
4. important
3. neutral
Relevance
1. totally unimportant
2. unimportant
In your definition of what constitutes as ¨Authoritative Thought Leadership¨ - how important are the following components? (1 - totally unimportant to 5 = very important)
5. very important
Table 12: The fundamentals of thought leadership research
Thought leadership has existed in various forms for over 50 years, notably in the published form (publications, newsletters & surveys). However, during this time we have seen a rapid transformation in how people produce/consume content. The study wanted to ascertain buyers´ channel preferences in the face of an ever-changing media landscape.
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One 2 One meeting with a lead-partner was, not surprisingly, ranked the highest with 27 respondents rating it as either ¨important¨ or ¨very important¨. Within the more traditional realms of thought leadership publishing, Case Studies were ranked the highest with 21 nominations. One key finding was that Webinars scored more favourably than White Paper / Publication – with 16 nominations versus 12 nominations. However, the surprise finding was that the Survey, the cornerstone of consulting firms´ thought leadership research portfolio, was rated as ¨important¨ by only 8 respondents, or more bluntly was rated as ¨neutral¨, ¨unimportant¨ or ¨totally unimportant¨ by 3 out of every 4 respondents. Table 13 highlights buyers´ channel preferences.
5. very important
4. important
3. neutral
2. unimportant
What is your preferred channel for consuming Thought Leadership research? (1 - totally unimportant to 5 = very important)
1. totally unimportant
Table 13: Thought leadership delivery channels
One 2 One meeting
0
0
4
15
12
Case Studies
0
4
6
14
7
Hosted Event
0
3
11
13
4
Webinar
1
8
6
11
5
White Paper / Publication
1
7
10
9
4
Video
6
7
9
8
1
Survey
3
6
14
8
0
Social Media
4
10
10
5
2
External thought leadership partnerships More and more companies are turning to business partnerships or collaborations to support long-term business objectives. The very nature of thought leadership has resulted in consulting firms going alone – however, responses from the study provide new evidence that this model should evolve and that there are benefits for consulting firms to engage more collaboratively in the design, development and delivery of thought leadership. Survey respondents were asked their opinions on the value of partnering with different organisations. Eighty-four percent stated that external partnerships would add creditability. Table 14 shows their preferred choice of external organisation. Scoring has been weighted on five levels. • • • • •
First Second Third Fourth Fifth
5 4 3 2 1
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Table 14: External partnerships - preferred organisations
In priority order, please rank which organisations add the greatest value or creditability to a consulting firms thought leadership research? 1. Stakeholder Organisations (such as WBCSD, WEF) 2. Businesses
1st
2nd
3rd
4th
5th
6
11
1
5
104
8
Total
10
4
6
6
5
101
3. Academics / Business Schools
6
10
2
6
7
95
4. NGOs (such as WWF or Greenpeace)
3
7
5
12
4
86
5. Sector Focused Association
4
4
7
7
9
80
Respondents were asked what consulting firms could do in order to improve their thought leadership research. The responses from the interviews provide practical suggestions that consulting firms could embrace in order to improve their approach to thought leadership research (see Table 15). Table 15: How to improve thought leadership research
What 3 things can consulting firms do to improve their approach to Thought Leadership research? Make it relevant, practical and delivery focused Balance / Reality Check - understand timeframes and our constraints Work collaboratively with business to produce meaningful studies
Responses
16 6
Show better understanding of sector knowledge
5
More genuine / sincere
5
Greater transparency on assumptions and frameworks
5
Better Examples / Real Case Studies
5
Conclusions should not be linked to services offered
3
Look to have research published externally (business and sustainability publications
2
Be honest / admit failures or lack of knowledge
2
Stop Bragging
1
Thought leadership & consulting firms Respondents were asked to rate their familiarity / perceived quality of the thought leadership research from a predefined list of 13 consulting firms. Table 16 highlights mean scores based on the two dimensions of familiarity and perceived quality. Scoring has been based on six levels. • • • • • •
Totally Unfamiliar Unfamiliar Neutral Familiar Very Familiar No Response
-2 -1 1 +2 +3 -1
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Table 16: Thought leadership & consulting firms
How familiar are you with the CC&S Thought Leadership research offerings from the following 13 consulting firms? (1 = totally unfamiliar to 5 = very familiar).
Familiarity (mean score)
Perceived quality (mean score)
Please also rate its perceived quality (1= low quality to 5 = high quality) Accenture AD Little BCG Booz & Co. Deloitte Ernst & Young ERM ICF
8
8
-16
-14
-5
-9
-19
-20
14
5
5
4
14
8
-38
-38
KPMG
11
4
McKinsey
30
29
PwC
38
31
SustainAbility URS
20
21
-32
-35
The below matrix (figure 1) highlights mean scores based on the two dimensions of familiarity and perceived quality. Figure 1: Thought leadership perception matrix
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Figure 1 suggests that although certain organisations have high brand recognition both in general and, specifically, in terms of thought leadership – it doesn’t necessarily correlate with their perceived abilities/strengths in the CC&S area – if it did, then they would have scored more highly when respondents were asked to state who they were most likely to work with in the future. Combining this data with the results from Table 5 (Supplier categories) and Table 9 (Consulting firms most likely to be hired), the inference that can be made is that many consulting firms may be winning in terms of ¨presentation¨ in the sense of gaining recognition by getting well-presented thought leadership out there, but the general consensus from respondents was that for the majority of consulting firms their content lacks real penetration.
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Chapter Four Tell to Win Toward an open and collaborative process Why buyers´ buy Motives matter
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Tell to Win This concluding chapter highlights the transformation that is happening across many industries, reflecting on the opportunities this presents consulting firms with respect to delivery engagement, thought leadership research, marketing activities, external partnerships/collaborations and business development. Authoritative thought leadership research is the lifeblood of consulting firms. When conducted with a genuine interest in the subject and client´s need, the ideas and concepts can be very powerful, and can grab the hearts and minds of the target audience (think SWOT Analysis, BCG´s Growth-Share Matrix and, more recently, McKinsey´s Greenhouse Gas Abatement Cost Curve). Responses from the interviews provide practical suggestions on how consulting firms can redesign their approach to thought leadership research – where 1 out of every 2 respondents stated making it more ¨relevant¨ and ¨practical¨. One respondent from the Oil & Gas sector commented ¨ it must be practical / pragmatic – a real hands on approach¨. Other comments included:
knowledge of the industry they are talking to.¨
¨Focus on the hypothesis before getting stuck into the data. Have something to say.¨
Logistics
Utility
¨Make it relevant, practical and delivery focused.¨
¨Provide something new that isn't already out there.¨
Aviation
Metals & Mining
¨Try to get promoted through leading sustainability journals/ magazines.¨
¨Detailed thought leadership which talks about solutions and trade-offs not blue-sky thinking.¨
¨Show better technical
Publishing
Pharmaceutical
Toward an open and collaborative process A recurring theme from sustainability executives was the lack of practicality and depth on thought leadership combined with a desire to see what is in the "black box" which many felt was at odds with what the consulting firms were willing to show. Furthermore, several respondents commented that as environmental and social issues become more pervasive across their organisation, sector knowledge and experience would become increasingly more valuable, with some respondents suggesting that it would be more important than subject expertise.
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For many consulting firms where CC&S is a new service line there could be significant opportunities to collaborate with mainstream business lines to provide an integrated approach to thought leadership and delivery engagements.
This meeting point between functional and subject expertise will be critical in helping clients go beyond incremental improvements. According to Art Kleiner (of Booz & Co.) this is where the ¨magic happens¨.2 Responses from the survey provide valuable insight into the role of external partnerships for thought leadership design and delivery – where 84 percent of respondents believed that external partnerships would add creditability. One respondent from the automotive sector suggested that before publishing thought leadership, consulting firms should go to the trouble of ¨organising a trustable peer review process¨. Other comments included:
¨Draw on Academic research.¨ Retail & Leisure
¨Engage with businesses to develop case studies.¨ Food & Beverage
¨Engage with stakeholders.¨ Retail & Leisure Consulting firms such as Accenture, Booz, McKinsey and PwC have already established partnerships with ¨stakeholder organisations¨ such as the World Economic Forum or the World Business Council for Sustainable Development (WBCSD), and NGOs such as WWF or The Climate Group for their thought leadership programmes. Sixteen respondents also suggested that consulting firms work in collaboration with ¨business¨ or ¨academics¨ in order to produce ¨meaningful studies¨.
According to the White Space report ¨2010 was not a vintage year for thought leadership and that thought leadership is generally less well-researched than it used to be.¨ 3 The White Space report asserts that in the aftermath of the global financial crisis, consulting firms may have scaled back investments in thought leadership. The report argues that this may be ¨false economy¨ as uncertain times leave clients ¨hungry for new perspectives and ideas¨. Taking a collaborative approach to thought leadership could provide numerous benefits to consulting firms. Firstly, it provides additional resources and viewpoints – adding resilience and rigor. Secondly, it can support the dissemination of seminal ideas by opening up a new indirect target audience.
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Why buyers´ buy With 3 out of every 4 respondents engaging consultants, the demand for expertise is vital in resolving climate change and sustainability issues. Seventeen respondents acknowledged a lack of ¨internal expertise¨ or ¨resources¨ as the main reasons for engaging external support. Some of the comments from respondents included:
¨For a project roll-out.¨
¨Changes in Legislation¨
Food & Beverage
Retail & Leisure
¨To provide knowledge and experience where we lack it¨
¨Build internal skills / capacity¨
Real Estate / Property
Construction
¨External/independent assurances we are taking correct path¨
¨Innovation / opportunity focused goal¨ Insurance
Transport & Logistics
During the interviews, respondents specified the key qualities they look for in consulting firms prior to selection. When weighted scoring was applied Industry Knowledge was considered the top decision criteria when selecting a consulting firm - rated more important than Price. One respondent from the Retail & Leisure sector also commented ¨Responsiveness to customers¨. Other comments included:
¨They must possess a deep understanding of our business¨
¨Composition of the dedicated team, profiles of its members and confidence in their ability¨
Oil & Gas
Healthcare
¨Technical knowledge of our industry (hard to find)¨
¨True passion for sustainability¨
Logistics
Utility
¨Good cultural fit with our organisation – like the people¨
¨As sustainability matures sector knowledge will become increasingly more important for us¨
Aviation
¨Combination of sustainability and sector experience/insight¨
Pharmaceutical
Insurance
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Motives Matter In uncertain times consulting firms must continuously innovate to create new methods and services that enable clients to resolve complex issues. From a client standpoint selecting a consulting firm entails significant risks. Thought Leadership research that is centred on earning trust and creditability is essential for giving buyers confidence. Once trust has been established prospective clients will then turn to that company. A consulting firm´s commitment to thought leadership can reveal whether or not they are really passionate about what they do or are just simply in it for the money. Several respondents from the survey had questions about the underlying motives of a number of consulting firms – citing, for the majority, their lack of history in the CC&S space. A general consensus from the respondents was that given a lack of sector knowledge possessed by the majority of consulting firms a significant proportion of time was used teaching and training ¨MBAs with spreadsheets¨
¨Many big firms are only in this space for the marketing opportunity ... not many have a long-track record or for that matter a genuine interest or understanding in and of the issues. Typically smaller companies were founded by passionate leaders - and this comes across in our engagements with them.¨ Pharmaceutical When communicating to prospective clients either through thought leadership or other marketing activities, the end-user should be able to tell by themselves whether or not the consulting firm has the required expertise or the experience to serve them. In practice, prospective clients do not pay attention to what companies assert about themselves – many of the respondents believed that consulting firms are ¨always trying to be right¨ and ¨never admit failure¨ or ¨lack of knowledge¨.
¨Conclusions and recommendations should not be directed at their solutions/products¨ Real Estate / Property Thought leadership must be focused around the current needs and challenges of prospective clients. Conclusions that are aligned to service offerings reveal a consulting firm´s true underlying motives. Prospective clients want to learn how consulting firms will help them to achieve their goals or resolve a complex issue. Clients, just like people, make perception judgements based on motives more than on self-proclaimed expertise or extensive listings of service offerings. Many respondents cited ¨Global Capabilities¨ or ¨Global Rollout¨ as key reasons for engaging with major, international consulting firms. As these firms cast their eyes on emerging markets a strong portfolio of thought leadership, combined with a strong industry perception can increase exposure in these new economies where name recognition goes a long way.
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Suggestive Approaches Thought Leadership for a New Era Practicing the art of thought leadership PwC CEO Survey Engaging with your audience The rise of social media technologies Developing a “Leadership of Thought� platform A war on content Thought leadership fuelling demand creation Optimising thought leadership process to support lead nurturing
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Thought Leadership for a New Era The world is transforming, where several industries are facing major disruption from emerging technologies and changing consumer preferences. Over the last decade we have witnessed the dismantling of the music industry. The publishing industry wrestles with the challenge of going from print to digital while still maintaining revenues – and looks set to face a similar onslaught from Amazon & Co. Likewise the automotive industry is facing a similar transformation as it moves grudgingly from petrol to electronic engines. This section provides practical suggestions on how consulting firms can reposition themselves by embracing a new model of leadership.
It is almost fifty years ago since McKinsey launched its management journal, the McKinsey Quarterly – and by consequence created the birth of the thought leadership movement. The McKinsey Quarterly was a coffee-table style publication that enabled them to target executive readership. Other firms followed suit by creating their own publications and by the 90s consulting firms were beginning to resemble publishers. For many businesses, marketing has transformed from talking about yourself (advertising) to listening to your customers and creating content around their needs (publishing) - many of the new marketing techniques are actually publishing initiatives (blogs, e-newsletters). Joe Pulizzi, 4 author of Get Content Get Customers, states that ¨we are all publishers today¨. Consulting firms (as publishers) are perhaps one step ahead of this curve. However, the world of publishing is also transforming and demands consulting firms to embrace a new model of leadership.
Practicing The Art of Thought Leadership Transformation is creating a level playing field for all – the tools and technologies are available for a one-man consultant to produce and disseminate thought leadership. From a client perspective this creates advantages, as it should raise the bar for authoritative thought leadership; and secondly increase the number and presence of specialist providers. For large consulting firms they need to invest considerably more in the development and leadership of thought. Moving forward the art of thought leadership revolves around four key pillars: 1. 2. 3. 4.
Content – developing a strong point of view Audience – the power of the secondary target market Segmentation – aligning content to specific audiences Connecting - engaging with your audience
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Content
Historically, developing a proprietary argument or point of view was key to developing authoritative thought leadership. Although this is still true in today´s world, this study advocates that there are alternative ways in how consulting firms can develop their point of view, depending on the topic at hand and market forces. For certain issues it may be suitable for consulting firms to adopt a position of ¨Thought Leader¨ - where through extensive primary research they can earn themselves a leadership position. However, in a crowded market achieving this status will become increasingly more difficult. Perhaps, the alternative and requires a paradigm shift for many consulting firms is to become ¨leaders of thought¨ - given the complexity and scale of climate change subjects, there could be numerous opportunities to adopt a more open and transparent approach to content development one which means involving prospective clients into the process.
An OpenSource approach is being used in many industries where intellectual property is a key asset. Proctor & Gamble, IBM and GoldCorp are creating value to gain competitive advantage by 5 opening themselves up to the concept of mass collaboration. Audience
Typically thought leadership was a direct communication tool – sent directly to the primary target audience. Given the fragmentation in media channels – each creating silos of interest - there is an ever-growing secondary market which can help influence a consulting firm´s primary audience. There is an added advantage in that what people say about you has creditability than what you assert about yourself. Therefore, marketing programmes need to be expanded to include a secondary market.
Segmentation
Changing communication platforms together with a reprioritisation of the target audience requires greater flexibility or agility in content delivery. The challenge or opportunity moving forward is to realign or segment content to meet changing consumption trends and expanding target audiences. A broader audience suggests that marketing departments should segment and target specific parts of their content so that it engages different audiences. Consulting firms must assume that no one reader wants to read their research in its entirety – by arranging segments of content based on the readers´ interests and preferences, consulting firms can broaden both their reach and impact.
Connecting
How clients and prospective clients consume information should dictate how consulting firms engage with them.
Clients today are far better informed than at any time in history, thanks to the Internet, with analysts like Gartner reporting that 90% of all purchase decisions are now made based largely on internet 6 research. A review of the 13 consulting firms shows that the majority of thought leadership delivery channels to be publications (survey, newsletter, briefing, case-study), webinars or video. Some have adopted new social media technologies (Twitter, Blogs) – but like many companies they have not fully adapted their communication methods to utilize these emerging channels.
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PwC´s Global CEO Survey
How PwC segments its survey content Last year, for the first time, PwC began to offer the survey in multiple formats, including customised reports by industry and geography, as well as multimedia versions of specific 7 sections. • • • • • • •
Full Main Report 19 Sub-reports by industry and region Key issue data sets Video interviews of six global CEOs Video interview of PwC’s CEO Transcripts of full CEO interviews Various other customised reports
Resource Revolution: Climate Change Thought Leadership hits McKinsey´s homepage In December 2011, McKinsey devoted its opening homepage to its new report Resource Revolution. The new McKinsey report "Resource Revolution: Meeting the world’s energy, materials, food, and water needs" shows that the resource challenge can be met through a combination of expanding the supply of resources and a step change in resource productivity. The research was developed by the Sustainability & Resource Productivity practice and the McKinsey Global Institute, the business and economics research arm of the firm.
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The rise of social media technologies What is important to remember about social media it that it’s not about the technologies themselves, but rather the change in behaviour. This is not a mere trend; it is a new form of communication. This new way of communicating goes against the grain of what consulting firms have been typically doing – top down, broadcast-type communications with no interaction or dialogue with their audiences. What social media has done is to turn this model upside down, by creating a bottom-up, democratised communication platform. Incorporating social media effectively into traditional communication strategy presents numerous challenges to consulting firms, notably a change in posture from “push” to “pull”. Consulting firms entering this space need to realise that social media is not another advertising or media channel – even though it can facilitate business development and improve reputation. An effective starting position for consulting firms is to listen to what is being said about key issues.
Social media has been a quick success – and has caught many companies by surprise. In less than a decade we have seen a massive shift in the way content is being generated, distributed and consumed across global communities. Once a consulting firm (or any company) begins its approach it is imperative that it is done in a transparent, authentic and consistent way. There can be no dipping in and out – you have to make a full commitment and try to become part of the conversation and the community. Content needs to be kept fresh and relevant – although it does not necessarily have to be new or even proprietary. Content in this instance could be providing one half of a potential conversation.
Based on discussions with social media leaders the critical success factor for any social media marketing activity is for it to be genuine. If it seems or feels inauthentic, it will fail. A company’s communications team has a key role to play in the internal development of social media engagement, by incorporating key components of social media within the organisational communication strategy. However, if the two fundamental principles of social media engagement are authenticity and transparency, then social media cannot be the exclusive domain of the communications department in the longer term. To fully realise the potential of social media, consulting firms need to make it a part of their DNA by embedding social media across different business units – with all employees acting as ambassadors. In many cases, client-facing personnel are better placed to engage at the micro-level and convey a company’s message to their specific communities, rather than working through a centralised communicator. Marketing and subject experts can benefit immensely, and can go a long way towards humanising a company through their participation. All of this can generate significant upside in the form of brand equity, research data, and much more. Developing a “Leadership of Thought” platform Business executives want depth of information, but they donʼt want to dig through a lot of raw material to find what is relevant to them. Content must be designed as a collection of organised subtopics that lets the user quickly dial in on what is most important to them. Microsites provide this lightweight structure by offering a
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few simple, interrelated navigation choices without getting bogged down with the baggage of the main websiteʼs navigation structure. By breaking topics into subtopics, consulting firms can deliver deeper content while making it easier for users to consume. Microsites enable consulting firms to aggregate its collective expertise on an issue in one place to provide a platform for clients / prospects interested in that topic. PwC´s 13th Global CEO Survey provides an excellent example from the consulting industry. Another example from the consulting industry is McKinsey´s What Matters McKinsey´s What Matters microsite brings together researchers, academics, journalists, policy makers and executives to address ten big questions. Both PwC and McKinsey are leading the way in consulting firms’ use of microsites. The one area where PwC could improve is by incorporating interactive dialogue tools that foster exchange amongst the community. McKinsey´s What Matters features a Debate Zone that enables users to engage with McKinsey professionals and or with their peers.
Webinars A key finding from the study was the growing importance and value of webinars – perhaps a consequence from a reduction in conference attendance by industry professionals. Done well, webinars can help consulting firms engage with their audience around a particular business issue. The webinar presentation must be developed no differently from any high-level piece of thought leadership – centred around the current needs and challenges facing clients. Prospective clients will want to learn how the consulting firm will help them to solve a current problem.
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A war on content Poor thought leadership can erode reputation therefore deciding not what to do is perhaps as strategic as what should be done. Consulting firms should develop a process for thought leadership development based on a combination of internal and external factors to develop their sweet-spot. Thought leadership has become a competitive battleground for consulting firms. Figure 2 below highlights the competitive landscape for services and thought leadership activities of 11 consulting firms.*
SustainAbility
PWC
McKinsey
KPMG
ERM
Ernst & Young
Deloitte
BCG
Booz & Co.
Services / Thought Leadership Assurance Adaptation / Resilience Biodiversity Branding Carbon Cities Energy & Resource Efficiency Finance Green IT / Facilities / Buildings Lifecycle Assessment Opportunity / Innovation People / Talent Renewables / Clean Tech Risk / Governance & Compliance Sector Focus Smart Stakeholder Engagement Strategy Supply Chain / Procurement Trading Transport Transactions Waste Management Water
AD Little
Accenture
Figure 2: Consulting firms´ services & thought leadership
Key Low Presence / or No Activity Some Presence / Some Activity High Presence / Activity
*The analysis is not conclusive and merely serves as an illustration to help facilitate the thought leadership content process.
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The (imperfect) analysis in Figure 2 enables consulting firms to develop their thought leadership sweet-spot by identifying the green white space. From this a simple matrix can be developed to assist consulting firms plan their thought leadership strategy (see figure 3 below). Figure 3: Content development matrix
The matrix enables consulting firms to take a portfolio approach to developing thought leadership where, depending on internal expertise, they will want to publish a range of research within each of these quadrants. This matrix also assists in determining the appropriate delivery channel. For example, in the top right hand corner ¨Lead¨ - it would be viable for consulting firms to develop their own high-level platform such as a Microsite or Event. Consulting firms must understand that not all prospects are ready for thought leadership or have sufficient trust in their company / information. Instead, consulting firms must create multiple pieces of content relevant to the prospective client´s stage in the buying cycle. Thought Leadership fuelling demand creation The buying process is highly emotional, and requires consulting firms to make both an intellectual and personal connection. There are two emotions that will impact the prospective client – fear or greed. More often than not it is fear which presents itself in two forms: organisational; and personal. Consulting firms must do their best to minimise this fear by eliminating risk, best achieved by illustrating (not asserting) their capabilities, experience and services. A genuine, long-standing commitment to practical thought leadership helps consulting firms build trust and long-term engagement with prospective clients. Thought leadership that is well researched and delivered enables consulting firms to make both an intellectual connection and personal connection with prospective clients – helping to reduce any organisational / personal risk.
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Looking Ahead We are moving away from a world dominated by traditional printed media to one in which blogs, twitter etc predominates. This doesn’t just mean that individuals and organisations have to utilise these channels to communicate; they also have to adapt the content and tone to reflect this new reality. What is often overlooked is that the language and style of writing favoured by these new interactive channels is very different to that to be found in traditional publications. There is a much greater expectation that content has to be tailored to the needs of the individual – or, at least, the individual is free to select what interests him rather than be spoon-fed. This has enormous implications both in terms of design of/investment in “smarter” communication tools – the PwC CEO Survey serves as a great example of content segmentation to align to the specific needs and interests of a broadening target audience. More fundamentally, it requires a change in the corporate culture which, hitherto, has focused on controlling outgoing information in order to a) project clear and common messages (e.g. there is a McKinsey view of the world); and b) avoid the possibility that one part of the business says one thing while some other part says the complete opposite! What this requires is a willingness to “trust” employees to represent the organization’s views/positions consistently. This requires a much more holistic approach to managing knowledge within consulting firms to ensure that those who engage with the outside world have some basic understanding of the new research concepts their employees are articulating.
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References
Publication / Company
Number
Title
1
Alterra Group
2009
The Bloom Group
2011
2
Learning from Success: Survey reveals the keys to more effectively developing and marketing intellectual capital How Booz & Company Develops and Markets Consulting Concepts
3
White Space Report
Source for Consulting
2011
Joe Pulizzi
Online Marketing Summit
2009
Wikinomics: How Mass Collaboration Changes Everything.
Anthony D. Williams & Don Tapscott
2007
JOINED UP CUSTOMER SERVICE? DON'T MAKE ME LAUGH!
Peter Smith - How to trot marketing
2011
How PwC Repackages Content
Source: Claire McDermott – Content Marketing Institute 2010 Inbound Sales Network
2010
4 5 6
7 8
How the B2B Buying Process has changed
Date
Related Research
Title
Company
Green Quadrant Sustainability Business Consulting 2011 (UK)
Verdantix
2011
5 Growth Areas for Sustainability Spending 2012
Verdantix
2011
UK enviro consulting market assessment & competitor analysis
Environment Analyst
2011
White Space Report
Source for Consulting
2011
Global Environmental Consulting Strategies and Competitor Analysis 2011
Environment Analyst
2011
Corporate Social Media
Useful Social Media / Jonathan Ballantine
2010
Vendor Needs & Strategies
IDC
2009
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Date
35
Appendices 1. Performance Benchmark 2. Report Cards: 11 Consulting Firms 3. Interview Questions
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Appendix 1 Performance Benchmark Following interviews conducted with sustainability executives a set of indicators were developed to assess consulting firms across two dimensions – performance & marketing.
Performance Scorecard Market Share
based on ratings made by survey participants.
Track Record
based on relevance of core experience, proven expertise of leadership team and history in the delivery of climate change business consulting engagements.
Geographic Presence
It was important to identify the breath of reach consulting firms have in order to support global roll-outs or emerging market strategies.
Marketing Scorecard Website utility
rates the ease of navigation in finding relevant services, leadership and insights from sustainability sections. In addition it assess the ease in finding sustainability services from the main homepage.
Content
rating is based on the frequency of thought leadership produced and the perceived quality and familiarity as rated by survey participants.
Collaborations
the number of partnerships or external collaborations the consulting firm is engaged in for either thought leadership research or client service engagements.
Channels
rating based on innovation in content delivery – in terms of fostering engagement
Scoring has been based on three levels 3 = Leading 2 = Average 1 = Limited
The scorecard on the following page is based on opinions of survey respondents, and represents perceived findings in 2011.
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Figure 4: Consulting Firms´ Performance Scorecard
7 2 3 2 9 3 2 2 2
6 1 2 3 7 1 2 2 2
SustainAbility
5 1 1 3 9 3 2 2 2
PwC
KPMG
7 2 2 3 7 2 2 1 2
McKinsey
ERM
4 1 1 2 8 2 2 2 2
E&Y
BCG
4 1 2 1 9 3 2 2 2
Deloitte
AD Little
7 2 2 3 12 3 3 3 3
Booz & Co.
Accenture
Consulting Firms
8 2 3 3 12 3 3 3 3
7 2 3 2 9 3 2 2 2
Indicators Performance Scorecard Market Share Track Record Geographic Presence Marketing Scorecard Website Utility Content External Collaborations Thought Leadership Channels
4 1 1 2 10 3 2 3 2
7 2 2 3 11 3 3 2 3
Figure 5: Consulting Firms´ Performance Benchmark
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Appendix 2 Report Cards: 11 Consulting Firms !
PwC – Global Sustainability Services
!
Deloitte - Sustainability & Climate Change
!
Ernst & Young - Climate Change & Sustainability
!
Accenture Sustainability Services
!
AD Little – Sustainability / and Carbon Advisory
!
BCG – Sustainability
!
Booz & Co – Low Carbon & Sustainability
!
KPMG – Climate Change & Sustainability
!
McKinsey - Sustainability & Resource Productivity
!
SustainAbility
!
ERM - Sustainability and Climate Change
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Leadership Team Malcolm Preston Global Head of Sustainability Services
Alan McGlll Partner, Sustainability & Climate Change
Richard Gledhill Head of Climate Change Services
Key Services Climate change & carbon markets Financing solutions and M&A support Measuring, managing, reducing, reporting & assurance Strategy, support & engaging employees Sustainable supply chains Ground Breaking Projects Puma Environmental P&L Led by Alan McGill, Tom Beagent & Will Evison Carbon Disclosure Project 2011 Led by Alan McGill The Economics of Ecosystems and Biodiversity (TEEB) Led by Will Evison 100% Renewable Electricity Led by Richard Gledhill & Gus Schellekens The Climate Principles Progress Review Led by Jon Williams, Shami Nissan & Colin McKee Climate Impacts by the Insurance Sector Led by Jon Williams & Peter Collins
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Jon Williams Partner, Sustainability Finance, Biodiversity
Summary PwC has been engaged in a number of ground-breaking projects. These include developing the first environmental P&L for leading sports brand Puma to help them understand their exposure to natural risk, being appointed by DFID to set up and run a Climate Development Knowledge Network, and working with The Economics of Ecosystems and Biodiversity (TEEB) UNDP initiative to quantify the cost of eco-system and biodiversity loss. PwC also engages with leading organisations such as WBCSD, SAM, UNEP, WEF and The Climate Group.
40
Leadership Team Nick Main Global Leader Climate Change & Sustainability
Guy Battle Partner, Carbon & Sustainability
Eric Hespenheide Partner Deloitte (US)
Jessica Blume MD Research & Innovation
Key Services Cleantech Energy & resources management Human capital & stakeholder engagement IT for sustainability Sustainability & climate change strategy Sustainability governance & risk intelligence Sustainable operations & supply chain Sustainability reporting, assurance & compliance Ground Breaking Projects Sustainable Board Led by Nick Main & Dan Konigsburg Sustainable Finance Led by Nick Main, John Marry, Sanford Cockrell & Ajit Kambil Integrated Reporting Led by Nick Main and regional contacts CDP Water Disclosure Global Report Led by Nick Main & Will Sarni
Summary Deloitte has been engaged in a number of ground breaking projects such as Sustainable Finance – a publication produced in association with its between CFO program (and CFO Connect). Over the last 18 months Deloitte has acquired three consultancies, ClearCarbon Consulting, DOMANI and decarbon8. Deloitte believe these acquisitions will further strengthen their ability to help clients drive value, mitigate business risk, and boost growth, efficiency and innovation through improved environmental, social and financial performance.
Funding a transformation Led by Nick Main, Melissa Swift & Duane Newman
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Leadership Team Sarah Woodthorpe Global CCaSS
Juan Costa Climent Global CCaS
Stephen Starbuck Americas CCaSS
Philippe Aubain EMEA CCaS
K. Sadashiv Asia CCaS
Key Services Governance, risk management and strategic direction Program management Supply chain Regulation and tax efficiency Financial and non financial measurement and reporting Finance and transactions Clean technologies and CCaSS-focused services Ground Breaking Projects Durban dynamics Led by Juan Costa Climent et al Seven Questions CEOs and Board should ask about ´triple bottom line´ reporting Led by Stephen Starbuck & Ann Brockett & Brian Gilbert Cleantech Matters Led by Gil Forer, John de Yonge & Ben Warren
Summary Ernst & Young has been engaged in a number of ground breaking projects such as the fourth annual cleantech report which is published through its Global Cleantech Center, and recently published Durban dynamics – which surveyed business expectations of a climate change deal being agreed in Durban. E&Y also engages with leading organisations such as Innosight, Bloomberg New Energy Finance, The Climate Group and Environmental Defense Fund.
Action amid uncertainty Led by Nick Main, Melissa Swift & Duane Newman
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Leadership Team
Ground Breaking Projects
Bruno Berthon Global MD Sustainability Accenture Sustainability Services
Sustainability Performance Management: How CFOs can unlock value Led by Peter Lacy, Sonia Thimmiah & Shaun Richardson
Peter Lacy EALA MD Accenture Sustainability Services Dave Abood US MD Sustainability Accenture Sustainability Services Lay Lim Teo APAC MD Accenture Sustainability Services Key Services Sustainability Strategy Operational Excellence Emissions Management Intelligent Infrastructure
A New Era for Sustainability (UN Global Compact) Led by Peter Lacy, Tim Cooper, Rob Hayward & Lisa Neuberger UN Initiative – Sustainable Energy for All Bill Green Business at its Best: Driving Sustainable Value Creation Led by Bruno Berthon & Charles Moore (CECP) plus Nijma Khan & Dave Abood, Carbon Connections: Quantifying mobile’s role in tackling climate change Led by Peter Lacy and Justin Keeble Sustainability 24 (live 12 hour global broadcast) Led by Bill Green, Chairman of Accenture Vision 2050: New Agenda Business (WBCSD) Led by Bruno Berthon & Nijma Khan
Summary Accenture Sustainability Services (ASS) has been engaged in a number of ground-breaking projects such as the CEO Survey which is produced in association with the UN Global Compact. More recently ASS produced a study on How CFOs can unlock value through sustainability - which was supported by the Chartered Institute of Management Accountants. The study was developed collaboratively by Accenture´s sustainability and financial management practices. ASS also engages with leading organisations such as CECP, CIMA, CDP, has advised the World Economic Forum on the Slim City/Smart Grid initiative, and partners with the World Business Council for Sustainable Development (WBCSD) and the European Academy of Business in Society (EABIS). Bill Green, CEO, is a member of the UN´s Sustainable Energy for all initiative high level advisory group. Positioning for Growth: Buyer Needs & Market Strategies
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Leadership Team Martijn Eikelenboom Global Practice Leader Sustainability & Risk
Davide Vassallo Director Sustainability & Risk
Key Services Opportunities and risks and develop strategy Risk management into business processes Assure the safe performance of complex critical systems Safety and risk in high hazard industries Environmental and social risk in project financing Innovation Measure and report sustainability and risk performance Plus Global Carbon Advisory Service Ground Breaking Projects Ensuring Survival Led by David Lyon, Sam Grimshaw, Romeu Gaspar & Melissa Barrett Ensuring Survival Led by David Lyon, Sam Grimshaw, Romeu Gaspar & Melissa Barrett Water Margin Led by David Lyon & regional experts
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Richard Eagar Head of Technology & Innovation Management
Summary AD Little has been engaged in a number of ground breaking projects for a number years. In 1999 AD little partnered with the WBCSD to investigate how 80 companies were integrating sustainable development into their approach to innovation management. Interestingly AD Little separates Carbon or Climate Change from sustainability and has a dedicated practice focused advisory practice on carbon advisory. AD Little also engages with leading organisations such as UN CEO Water Mandate
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Leadership Team Knut Haanaes Global Leader (Geneva)
Douglas Woods Partner & MD Americas (Sao Paulo)
Marty Smits Partner EMEA (Amsterdam)
Key Services Corporate sustainability strategy Innovation and growth from sustainability Build competitive advantage, capture value from sustainability Transformation process Organization & governance for sustainability Resource Efficiency Sustainable supply chain Environmental Footprint Social advantage Ground Breaking Projects Sustainability Nears a Tipping Point Led by David Kiron, Nina Kruschwitz, Knut Haanæs, Martin Reeves & Ingrid von Streng Velken Redefining the Future of Growth Led by Knut Haanæs, David Michael, Eugene Goh, Diederik Vismans, Ming Teck Kong & Kim Wagnet
Rahul Jain Partner Asia Pacific (Mumbai) Summary BCG has been engaged in a number of projects such as the Sustainability & Innovation Survey in collaboration with MIT Sloan. BCG also engages with leading organisations such as the World Economic Forum and the Global e-Sustainability Initiative (GeSI). BCG is supporting clients across all regions and industries and has seen an extensive growth (>30% annual growth) in projects related to sustainably during the past three years.
Sustainability: The ‘Embracers’ Seize Advantage Led by Knut Haanæs et al The Second Annual Sustainability & Innovation Survey Led by Knut Haanæs et al
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Leadership Team Martha Turner Partner (US)
Dr Jurgen Ringbeck Senior Partner (Europe)
Key Services Cost and Footprint Management Business Model Enhancement Growth and Innovation Regulatory Change and New Industry Requirements
Peter Burns Partner (ANZSEA)
Summary Booz & Co has been engaged in ground-breaking thought leadership since the early 90s with the launch of strategy&business (s&b). They have taken this high quality approach to their sustainability offering, where s&b has begun publishing a number of sustainability articles. Typically Booz adopts a sector or issue specific approach to both thought leadership research and client delivery engagements. They also engage with leading organisations such as the World Economic Forum and WWF.
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Leadership Team Ted Senko
Yvo de Boer
Wim Bartels
John Hickox
Vincent Neate
Global CEO CC&S
Global Advisor CC&S
Global Audit Leader
US Leader CC&S
UK Leader CC&S
Key Services
Summary
Sustainability risk and opportunities assessment Regulatory frameworks, including tax and carbon emission regimes Assess and benchmark sustainability programs, including cost reduction targets Emissions Management Supply Chain Assurance
KPMG has been engaged in a number of ground breaking projects such as the seventh International Corporate Responsibility Reporting Survey which is published tri-annually.
Ground Breaking Projects International Corporate Responsibility Reporting Survey Led by Wim Bartels, John Hickox & Vincent Neate Designing sustainability strategies that attract investors Led by John Hickox, Vincent Neate and SAM´s Edoardo Gai
More recently has begun working with SAM (of Dow Jones Sustainability Index) to produce thought leadership around CFOs and investors´ interests. KPMG also engages with leading organisations such as EIU, ICC, UNFCCC, CDP and GRI.
Corporate Sustainability: A progress report Led by Ted Senko, Wim Bartels, Yvo de Boer & Barend van Bergen Sustainable Future. Sustained Advantage Led by Ted Senko, John Hickox, Wim Bartels, Yvo de Boer
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Leadership Team Jeremy Oppenheim Leader S&RP Practice
Scot Nyquist Global Co-Leader S&RP Practice
Key Services Biosystems Carbon & Energy Economics Clean Technologies Green Operations Sustainable Cities Sustainable Enterprise Water & Waste Ground Breaking Projects Resource Revolution: Meeting the world’s energy, materials, food, and water needs Led by Richard Dobbs & Jeremy Oppenheim Pathways to a low-carbon economy Led by Jeremy Oppenheim, Scott Nyquist & Tomas Naucler Charting our Water Future Led by Martin Stuchtey Climate Desk What Matters McKinsey Global Institute McKinsey Quarterly
Positioning for Growth: Buyer Needs & Market Strategies
Tomas Naucler Leader S&RP Practice
Martin Stuchtey Partner, Climate Change & Water Scarcity
Summary McKinsey has been engaged in a number of ground breaking projects such as the Pathways to a lowcarbon economy. In 2007, McKinsey first published its first version of a global GHG cost curve. This abatement investigation was both technology-bytechnology and comprehensive across sectors and regions. The new McKinsey report "Resource Revolution: Meeting the world’s energy, materials, food, and water needs" shows that the resource challenge can be met through a combination of expanding the supply of resources and a step change in resource productivity. The research was developed by the Sustainability & Resource Productivity practice and the McKinsey Global Institute. McKinsey also engages with leading organisations such as Economics of Climate Adaptation Working Group, a partnership between the Global Environment Facility, McKinsey & Company, Swiss Re, the Rockefeller Foundation, ClimateWorks Foundation, the European Commission, and Standard Chartered Bank. McKinsey was also a consortium member of the 2030 Water Resources Group – that included Nestlé, Coca Cola. SABMiller, Standard Chartered Bank and Syngenta.
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Leadership Team John Elkington Co-founder
Geoff Lye Executive Chairman
Mark Lee Executive Director
Key Services Intelligence - Helping companies to interpret key trends and events, to understand what is happening in the world today and how it may impact their business tomorrow. Stakeholder engagement - Stakeholder identification, assurance, expert surveys, and creating processes to bring external perspectives, insights and validation to a company's sustainability efforts. Strategic advisory - Helping companies to build a business case for sustainability, to set priorities, ambitions and goals, and to create effective sustainability strategies to realise them.
Ground Breaking Projects The Sustainability Survey Led by Jeff Erikson Appetite for Change Led by Jennifer Bringer Signed, Sealed‌ Delivered? Led by Patrin Watanatada Rate the Raters, Phase Four Led by Michael Sadowski
Positioning for Growth: Buyer Needs & Market Strategies
Jeff Erikson Senior Vice President
Summary SustainAbility is a hybrid think-thank and strategic advisory which has worked for more than two decades to inspire transformative business leadership on the sustainability agenda. Ground-breaking projects include The Sustainability Survey, Pharmafutures and Rate the Raters: all of SustainAbility's published research is available for free download. As well as traditional consulting services, SustainAbility runs Engaging Stakeholders, a network of global companies dedicated to advancing transparency and accountability in pursuit of a more sustainable world.
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Leadership Team Lee Solsbery Global Technical Director for Energy & Climate Change
Kevin Flowers Partner Sustainability & Climate Change
Simon Aum么nier Waste Management and Energy & Climate Change
Shawn Doherty Global Commercial Director
Key Services
Summary
Sustainable Business Strategies (SBS) Energy & Climate Change CDM Project Services GHG Measurement & Systems Energy and resource management Adaptation & Mitigation Strategy & Implementation Sustainable Cities & Green Buildings Life Cycle Assessment (LCA) & Life Cycle Management (LCM) Product/Service lifecycle & innovation Sustainable purchasing & supply chains Social strategies, stakeholder engagement & local communities Public Policy and Regulation Economic and Policy Analysis Ecosystem Services Valuation
ERM has been engaged in a number of projects in collaboration with the Carbon Disclosure Project for the ERM Client Alert.
Positioning for Growth: Buyer Needs & Market Strategies
ERM also profiles its insight through real-life case-studies with named clients such as Tesco, Konica Minolta, World Bank, BP, CIC Energy and The Ford Motor Company.
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Appendix 3 Interview Questions Chapter 1 - Profile Annual Revenue ($US BN) Annual Carbon Production (Tonnes) Sector Aviation Construction Retail & Leisure Utilities Transport & Logistics Metal & Mining Food & Beverage Telecommunications Oil & Gas
Chemicals Automotive Pharmaceutical Health Care Media Banking Insurance High Tech Real Estate / Property
Do you think climate change & sustainability (CC&S) is an important business issue? Is CC&S a strategic issue for your company? Who is the most senior person responsible for your company's CC&S strategy? Can you describe your 3 most significant CC&S programmes? How important are the following business functions for the implementation of your CC&S programme? (1= totally unimportant to 5 = very important) • • • • • • •
Corporate (Social) Responsibility Health, Safety & Environment Facilities Management & Energy Finance Human Resources IT / Telecoms Legal & Regulatory Affairs
• • • • • •
Logistics / Distribution Manufacturing Marketing Procurement / Supply Chain Sales Strategy
Have you worked with any consultant firms to help with your CC&S programme? How important are the following categories of suppliers for the success of your CC&S programme? (1 - totally unimportant to 5 = very important) • • • • • • • •
Management Consultants Big Four Accounting Firms Environmental Consultants Energy Consultants Not for Profits IT Consultants Telecoms Service Providers Verification Companies
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Chapter 2 – Buyer Behaviour: Perceptions, Preferences & Spending Plans When you think about climate change and sustainability which consulting firms come to mind first? (List up to 3 companies) In 2012, will your budget spend for climate change & sustainability services? (1= increase 2 = decrease or 3 = remain the same) How would you describe your spending plans for the following types of climate change & sustainability services in 2012? (1 – will spend to 4 – no further spend) • • • • • • • • • • • •
Develop Strategy Conduct Risk Assessment Governance / Remuneration Climate & Energy Strategy Carbon Management Strategy (CO2 Trading) Stakeholder Engagement To provide an Assurance Statement Supply Chain and Operations Water Footprint Green IT Compliance / Regulation (REACH, ETS, etc.) Innovation / Opportunity focused
How likely are you to hire the following type of consultant firm in the next 18 months to deliver a climate change/ sustainability engagement? (1= very unlikely, 5 = certain) • • • • • • • •
Management Consultants Big Four Accounting Firms Environmental Consultants Energy Consultants Not for Profits IT Consultants Telecoms Service Providers Verification Companies
How likely are you to hire one of the following consultant firms in the next 18 months to deliver a CC&S engagement? (1= very unlikely, 5 = certain) • • • • • • • • • • • • • •
Accenture AD Little BCG Booz & Co. Deloitte Ernst & Young ERM ICF KPMG McKinsey PWC SustainAbility URS Other (please specify)
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What are your 3 key decision factors when hiring a consultant to support your CC&S programme? What are the 3 key reasons why your company would seek external consulting to support your CC&S programme? Chapter 3 - Thought Leadership To what extent does the ¨thought leadership¨ credentials of consulting firms influence your spending decisions today? (1= no Influence to 5 = primary influence) In your definition of what constitutes as ¨Authoritative Thought Leadership¨ - how important are the following components? (1 - totally unimportant to 5 = very important) • • • • • • •
Focus Novelty Relevance Validity Practicality Rigor Clarity
What is your preferred channel for consuming Thought Leadership research? (1 totally unimportant to 5 = very important) • • • • • • • •
Video Survey Webinar White Paper Case Studies Hosted Event Social Media One 2 One meeting
Does it add value or credibility when consulting firms collaborate with external organisations on Thought Leadership? In priority order, please rank which external organisations would add the greatest creditability to a consulting firms thought leadership research? • • • • •
Stakeholder Organisations (such as WBCSD, WEF) Businesses Academics / Business Schools NGOs (such as WWF or Greenpeace) Sector Focused Association
What 3 things can consulting firms do to improve their approach to Thought Leadership research?
How familiar are you with the CC&S Thought Leadership research offerings from the following 13 consulting firms? (1 = totally unfamiliar of, 5 = very familiar).
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Please also rate its perceived quality (1= perceived low quality to 5 = perceived high quality) Recognition • • • • • • • • • • • • •
Quality
Accenture AD Little BCG Booz & Co. Deloitte Ernst & Young ERM ICF KPMG McKinsey PWC SustainAbility URS
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