In-house Management Inversus Management Outsourced

Module III

Why a Sense of Skepticism and Unease Towards Management Consultants 
5 Pros and Cons Pros: 1. Specialized - you can get the best 2. Personal attention from a senior practitioner 3. Each campaign treated uniquely 4. Holistic view - consultant is intimately aware of all aspects of the campaign 5. Relationship - it¶s easier to form a long term relationship with the owner/operator than an account rep that may change jobs

 Cons:
Specialized - yet another vendor to manage Has to wear many hats (eat what they kill) Physical limitations on number of clients that can be serviced Can be more expensive per hour Limited in the number of things that can be done well

Hire an in house search specialist or project manager. and make sure to follow up and stay current.Cost versus Value of Advice: What can big companies do today? Organize. Lastly. understanding of SEO . who should be a strong communicator along with a strong  Establish an internal team may include Person from technology Marketing Editorial/content production Product development Strategic planning Sales Then analyze the data and the roles. educate.the goal is to not become beholden consultants..

a ³buy in from the top. If you do not have the time and resources.´ it is not worth the time to bring in a consultant or imbedded There has to be a strong commitment from leadership to perform.When to seek outside help?  For a core competency outside your department. .

. ³All outsourced´ (what most people do)  ³Hybrid.´  People have started to think along the lines of ³I can build a great team for the $2 million that I am spending on Project Management  This is a growing problem for agencies that need to provide value  Another question to consider: ³is the current model working?´ There are 3 options that should be considered to be the best model for the company.´ and ³all in house.

especially for the low-hanging fruit .  You can do well completely in house. ask ³what is the labor resource required? What are customized tools«do we ³need something custom?´  For cost efficiency. and how are they managed? For the execution.. he feels that in the end some form of hybrid marketing will rule. What is the total cost of each program? What are the barriers to implementation and what will the costs be to overcome them? In measuring/predicting time and success. What is the culture? Will vendors fit in.

understand you market share. especially for keyword selection and copywriting. as well as link building.  Completely outsourced: It is nice to have someone to assign the work to. in order to not go in the wrong directions. if you are going with completely in house: spend time at conferences. . but you still need to remain educated. Remember that you will also have to guide the consultant.  So. Then there are more advanced things that may require help such as architectural issues and more advanced coding problems. What are you getting versus what your competitors are getting.

client ratio?´ ³What is the employee turnover rate?´  ³What is the level of customization?´ What is the standard deliverable. usually. and what will cost extra? How does process. At the end of the day it is about the people who are working with your business. training. and on boarding work? Lastly: Meet your team. .  What are the questions to figure out before hiring someone? ³What is the staff t. The larger the company the more complex the politics.

 Share data. It may take longer to become comfortable with sharing sensitive data. . Reward success structure something in the contract to give agency extra based on performance. and plan for long term gains. Invest in learning. it will improve performance. Push for innovation and exceptional results. but when you can.

etc. including: marketing. merchandising. IT. Pros: Strong connection to the product / service offering and in depth understanding of the industry and top competitors. sales data.  Concentrated focus on servicing just one client instead of balancing the needs of multiple clients. and finance. Summary of the pros and cons of being in-house: .  It may be less expensive to maintain internal resources.  Better integration and coordination with other internal departments. depending on the size and experience of the team.  Timely and complete access to forecasts. inventory.

Cons to being in house:  Many of the best consultants are extremely competitive individuals.  As part of a small internal team there is often a lack of informal learning opportunities which inhibits professional growth and the ability to deliver in a rapidly changing environment. you will be constrained to a single set of strategies. . as opposed to best of breed solutions that result from an integrated team approach.  With a single in house resource. yet internal positions do not usually foster this competitive spirit.  There is often a sense of boredom and eventual lack of motivation that comes with continually working on the same site as opposed to new challenges and opportunities.

 Professionals are rarely equally trained or experienced in both organic optimization and paid search marketing  You may be sacrificing by relying on one resource or investing in a larger team. It is often difficult to drive organizational change from within. directional change.  External resources are needed to justify priorities. . and budgets.

some work done in-house but most of the work done by individual outside Consultants or via one of the larger web analytics consulting Companies. We have a whole bunch that are sort of a hybrid. We have some web analytics teams in companies that are all in-house. At the moment across the ecosystem there does not seem to be a single model that is totally dominant. There are fewer completely out-sourced models for some reason. .

So here is a framework to think through stages of the journey and some characteristics of each stage. .

Stage One: Birth What does it look like?  You have nothing.  What do you need?  1) Web analytics tools implementation. 2) Show promise from data and convert the masses. no web analytics implementation or a really new one. . You are just getting started but have some support from management.

3) Ask to speak to a client that the consultant has recently lost. . What is your role?  1) Find the most senior person who owns your company policies and assign them the accountability for deliverables. 2) Don t expect perfection and don t pick the most expensive tool and don t pay the consultant lots and lots of money upfront (you ll do that later).

 What is the consultant s expected role?  1) Talk to the client owner a lot and some data consumers. . 4) Do lots of training sessions and dog and pony shows around your company (makes you look good and shows promise of what s possible). 2) Help you find and implement the best fit first tool fast. (Suggested vendor selection process.) 3) Teach you not to make mistakes all their other clients make.

and it is ok. more frequently. As your first phase targets choose people who have data affinity and your friends (so they ll stick with you through the birthing pains). What should you be careful about?  Most of what will be done in this stage will be thrown away later. .  What do you pay consultants?  Small dollars. Make sure you set that expectation with your internal company customers / partners. most definitely don t over-stretch and give 500 people login accounts to your new web analytics application.

some people have started to complain about the fact that they don t know what action to take. the consultants are pumping in reports that people are using and you are drowning in questions.Stage Two: Toddler to Early Teens  What does it look like?  You have won over a few converts. . the VP of Marketing is wondering why we keep changing the site but the analytics tool is not telling them why conversion rate is tanking.

2) Customized solutions for your business (because you have realized you are unique and standardized KPI s from books don t apply to you). 3) You will find lots of data is missing and the tags are not right so you will need a massive effort to update your tags and collect new data (say site structure. What do you need?  1) Consider hiring a Web Analyst to be the in-house resident expert. campaign meta data etc). new cookies/parameters. . someone who ll collect tribal knowledge and be on the beck and call of the VP. site outcome details.

3) Find out what the financial goals are for the project or problem. look for benchmarks. 2) Have the consultant spend a lot of time on the problem talking to the people who run your businesses. . curiosity and simple web smarts). find out how the success of others channels is being measured . What is your role?  1) Help fill the Analyst position as soon as you can (look for acumen.

tool expertise in Stage 1). What is the consultant s expected role?  1) Really understand your business and your business success criteria and bring their business acumen to the table (vs. 2) Create those aforementioned customized solutions that incorporate core financial or other goals for key metrics to show real success. .

4) Teach you how to do reporting for yourself. 3) Help you put standards in place to capture meta-data that you need to do optimal analysis (meta data round campaigns. products. website customers etc). . The consultant has to help you nail all the data problems (either missing data or bad data) in this stage.

 What should you be careful about?  This is a very painful stage for you. the client. There is more data than you can digest and yet it means little. Be patient. You very deliberately want to bring reporting in-house now mostly because it will be cheaper for you to do (and a great way to train your Analyst) and you really want to focus the consultant on doing true and powerful analysis (and teaching you that as you move from toddler to a teen). less frequently. practice zen. .  What do you pay consultants?  Medium sized dollars.

Your conversion rate (or Problem Resolution Rate for support sites) has doubled from 1% to 2%.Stage Three: The Wild Youth  What does it look like?  Problems and analysis rule the roost.  You have extracted all you can from your data Analytics tool. . Your decision makers have realized that Path Analysis is a waste of time.

to realize you are wrong about what your customers want. 3) Help creating a strategy that would integrate all the new pieces of data you will capture. What do you need?  1) Experimentation and Testing expertise. 2) You need to start moving into collecting Qualitative data (for example surveys). .

. 2) Identify decision makers who get Customer Centric Decision Making and cozy up to them (you ll need their sponsorship / air cover / money). What is your role?  1) Expand your team in the company to get other bright people involved on problem and solution analysis.

 What is the consultant s expected role?  1) Bring tools and expertise to the table for these new things you know nothing about. 2) Knowledge transfer (because soon the general ideas won t bear huge fruits and you ll have to bring business expertise to the table) and implementing best practices. .

It is very hard for companies to truly have a customer centric mindset and at very step you should be prepared to massage egos and re-frame things so that they let you bring customer voice to the table and not just kill it because of their opinions.  What should you be careful about?  Start with modest goals and don t underestimate the immense resistance you ll get from your company culture. . 3) Help you integrate your various data sources so that you can do analysis for survey responses or figure our multi-channel impact of your experiments/tests.

.(it will pay you back big). a bit initially and then only periodically.  What do you pay consultants?  Big sized dollars. Create case studies when you do a great test or find out a huge nugget of information via the Research work.

. You don t have enough people to do the analysis work.Stage Four: Maturity  What does it look like?  You have truly implemented something akin to the Trinity.

. 2) Find the right talent. 3) Find Insights from Six Sigma and Process Excellence (books maybe). 4) Maybe another challenge! : )  What is your role?  1) Chief Cheerleader. 2) More people. 3) Create self sustaining processes that feed active decision making. 4) Truly consultants who really don t do much work except come talk to you and give you ideas. What do you need?  1) New and different ways to capture data.

2) Bring truly radical outside perspectives (that a select few consultants in the world have) that will both energize you but also help influence strategy (vs. . What is the consultant s expected role?  1) For the new technologies you are trying you will need help in understanding them and instrumenting new ways of capturing data. KPI s or page design).

Ensure that you don t go so process crazy that people have meetings and do graphs just for the sake of process meetings (this happens all the time). make sure your organization has the appetite for risk and they back you. . be prepared for it and make sure that that is ok. You will make more mistakes here (but you will also win big). What should you be careful about?  You are going to be in very rarefied air. Your personal job is to motivate your team (analytics/research/web/whatever) and keep the organization on the right track time and people evolve.

 There are many great consultants / consulting companies.  It s that simple.Some of them have different sizes and specialties but they all know what they are doing . infrequently. What do you pay consultants?  Huge sized dollars.

this is somewhat surprising. Considering how this number had steadily declined. or new activities altogether.  An interesting uptick in the number of those "not employed" in Induvidual advisers(IA¶s). broader work. but many respondents indicated that they'd move into management. IA ain't the end-all-be all . this drop will be partially countered by growth in selfemployed consultants.Future trends y The numbers of both in-house and agency will decline. This is supported by predictions in what portion of our jobs will be dedicated to IA in the future.

Thank you .

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