GROUP 6

Group Work 1

1) Based on the company/organization you work with/used to work with, identify its
VMGO and assess/tie this up with the concept of economic and non-economic goals.
To which goals do you think does your firm adhere to and why?

Members of the group have experience in many areas such as banking,

manufacturing, consulting, and academia. The group chose to focus on the consulting
industry since it is continuously evolving and has become increasingly important,
particularly after the pandemic. The group will assess ScaleNorth Advisors, LLC, a US-
based consultancy firm.

ScaleNorth Advisors, a company that originated during the pandemic, commenced

operations in 2019. Its primary focus is delivering cloud-based ERP systems to clients
through comprehensive NetSuite services, including sales, licensing, implementation,
optimization, and integration. In its second year of business, the company offers Business
Process Outsourcing (BPO) services focused on managing clients' accounting processes.

Below are the company's Mission, Vision, Goals, and Objectives:

Vision: A business leader in consulting services by cultivating a team of reliable and

committed advisors who utilize their skills to propel customers' businesses and
guarantee long-term viability

Mission: As a leading NetSuite Solutions Provider, we are dedicated to assisting our

clients in utilizing the top cloud-based ERP system. We provide comprehensive
NetSuite services covering sales & licensing, implementation, optimization, and
integration. Furthermore, our NetSuite-certified CPAs oversee clients' accounting
tasks to ensure efficiency and accuracy in their financial operations through our
Business Processing Outsourcing (BPO) service.

Strategic Goals & Objectives:

(a) Global leader for NetSuite solutions
(b) Target of $35mio revenue by 2024 with 25% increment year on year
(c) 100% NetSuite certified consultants
(d) 98% Consultants and Clients retention
 The company prioritizes its VMGO, focusing specifically on economic aims. The
corporation operates with the goal of producing revenue and using it for business expansion
as a profit-oriented enterprise. Over 5 years, the company broadened its offerings to include
professional accounting among the services provided to clients. The company had 11
clients during its initial offering and now has 288 active clients as of January 2024. It
currently has 304 people worldwide, all working in sales, marketing, implementation,
innovation, and BPO services. The team originally consisted of 4 members.

2) Based on your institution’s VMGO, how would you assess or classify its goals? (e.g.,
profit, economic or non-economic).

The company’s strategic goals and objectives are as follows including the group’s
assessment:

(a) Global leader for NetSuite solutions – Economic Goal

Mastering dynamic leadership in a global economy is crucial for companies seeking to
expand their influence, drive great outcomes in a diverse environment, and motivate
people to collaborate effectively and productively across international boundaries
(Singla, 2018). It is an economic goal since explore the global environment, establish
intercultural relationships, and promote development for enterprises and communities
worldwide.

(b) Target of $35mio revenue by 2024 with 25% increment year on year – Profit Goal
The company functions as a profit-driven organization, setting revenue targets based
on tiers and historical performance. Tier-based revenue management enables flexibility
in management by establishing a range of profitability targets for the firm. It will fall
as a profit goal as it pertains to the economic value generated by the business after
subtracting the costs of all inputs, including the capital invested.

(c) 100% NetSuite certified consultants – Non-economic Goal

Personnel development is now a crucial strategy for all companies to enhance
competitive advantage, boost performance, and increase organizational productivity
(Laffitte, 2023). This objective may be classified as a non-economic goal as it does not
immediately relate to trade and income generating. While this objective may not be
financially driven, accomplishing it could draw in customers.

(d) 98% Consultants and Clients retention – Non-economic Goal and Profit Goal
High employee retention rate reflects a robust retention strategy and low turnover
within a firm. An organization should aim for an average personnel turnover rate of
10% or fewer to achieve a retention rate of 90% or higher (Tenney, 2024). This might
 be seen as a non-economic objective focused on societal impact, specifically
employment.

Client retention is a profit goal that results in financial advantages for the organization.
3. Discuss the changing economics in a specific industry or business using the following
matrix:

Consulting Industry Competition Technology Customers

20 years ago Limited competition Emergence of data- In-house and

driven insights organization maintained

At present Increase in number Data Revolution Increase dependence on

of players 3rd party services

In terms of competition,
20 years ago: Competition in the consulting sector during the last two decades has
been primarily among established consulting firms offering services such as
assurance, attestation, and management services. Typically, these services were
requested for conformity with current laws.
At present: Competition is intense due to the variety of services available, such as
IT support, customer relations, supply chain, accounting, auditing, and more. The
emergence of new competitors in this industry is a clear indication of its
competitiveness.

In terms of technology,
20 years ago: In this period, consulting businesses started to realize the benefits of
using data-driven insights to improve decision-making and offer more valuable
services to clients (Negi, 2023). Despite the company's efforts to adapt to
technological changes, there is still plenty to learn at this age.
At present: Consulting businesses have experienced significant changes
particularly in data analytics, characterized by technological developments, more
data accessibility, and a greater emphasis on ethical and privacy concerns (Negi,
2023). The consulting sector has entered a new phase due to the increased emphasis
on digital transformation and job flexibility, notably during the peak of the
pandemic.
 In terms of customers,
20 years ago: Companies spend in establishing specialized departments to perform
necessary activities. It establishes its own IT team and accounting team, only
requiring third-party services for functions mandated by legislation to be
outsourced.

At present: Both large and medium-scale companies utilize third-party services

mainly to reduce costs and enhance accuracy and confidence.

4. Determine, describe, and justify the current stage or level your company, firm or
institution is currently in. (e.g., Stage 1 – Cost Plus, 2 – Cost Management, 3 – Revenue
Management or 4 – Revenue Plus)

ScaleNorth Advisors, LLC, a recently established consulting firm, aligns with the
Stage III Change Model due to its current emphasis on increasing revenue and growth. The
firm has solidified its position in the market by being recognized as the 2022 Top NetSuite
Partner by Oracle and has implemented strategies for cost control. Despite originating from
a significant economic transformation, it has not been impacted by any substantial
economic shifts since its inception.

The classification was determined by the evidence that the firm consistently meets
its revenue targets and well manages costs, enabling the distribution of attractive incentives
to staff.
REFERENCES:
Laffitte, H. (2023, September 11). History Of Consulting: The 8 Important Stages. Consulting
Quest. https://consultingquest.com/insights/8-stages-history-of-consulting/
Negi, H. (2023, August 29). The Evolution of Analytics in Consulting Firms: A Three-Decade
Journey. https://www.linkedin.com/pulse/evolution-analytics-consulting-firms-three-decade-
journey-negi/
Singla, M. (2018, March 9). Consulting Industry – Brief history and current challenges.
https://www.linkedin.com/pulse/consulting-industry-brief-history-current-challenges-manav-
singla/
Tenney, M., Tenney, M., Tenney, M., & Tenney, M. (2024, February 22). What Is A Good
Employee Retention Rate? Business Leadership Today - the Resource for Leaders Working to
Build and Sustain World-class Teams and Organizations in Today’s Business Environment.
https://businessleadershiptoday.com/what-is-a-good-employee-retention-
rate/#:~:text=A%20retention%20rate%20of%2090,rate%20of%2010%25%20or%20less.

Submitted by:
Alisbo, Geraldine
Camilan, Lorie Mae
Garganian, Ronil John
Maceda, Vanessa
Ortega, Cermae