BAHAMAS
MANAGEMENT
CONSULTANCY INDUSTRY
2010
REPORT
Prepared
by:
Mark A.
Turnquest
Outreach
Sales & Marketing Management Ltd
July 21,
2010
1.0 Introduction
Outreach
Sales & Marketing Management Ltd. is appreciative to Caribbean Export` (CEDA)
and The Caribbean Institute of Certified Management Consultants (CICMC) for
extending the opportunity to conduct a
research on the Management Consultancy Industry in The Bahamas.
2.0
Purpose of Research
The main purpose of the research was to
determine the necessary strategies
required to develop the management consultancy industries in The Bahamas and other Caribbean countries: Barbados, Dominican Republic, Jamaica, Martinique, St Lucia and
Trinidad and Tobago.
Nathan Associates Inc. developed the
final report consisting of all individual researches of countries that participated
in the Caribbean. The report entitled: “Strategy for development of the Caribbean
Management Consultancy Industry” can be viewed online at:
3.0 Research Sample Unit
& Size
There were 25
respondents who fully completed the survey. The breakdown is as follows:
- 14
Management Consultants
(“Firms”)
- 11 Businesses /Organizations
(“Markets”)
The identity of participants
will not be disclosed because of a confidentially agreement.
4.0 Research Time Period
Respondents completed
the survey during the following periods:
·
There
have been 9 completed questionnaires
from management consultancy firms (“Firms”) and 3 completed questionnaires from businesses /organizations (“Markets”)
from March 30th, 2009 – June 19th, 2009.
·
There
have been 5 completed surveys from management
consultancy firms (“Firms”) and 8 completed
questionnaires from client organizations (“Markets”) from June 20th, 2009 - July 20th, 2009.
5.0 Research Data
Collection Methods
The questionnaires were completed
in the following manner:
- Email
- One - on
– one interviews (the majority)
- Drop –
off /Pick-up
6.0 Research Data Analysis
Please note that the
operational definition for:
- “Most” is 60% - 79%
- “Majority” is 80% & above.
6.1 Data Analysis- Management
Consultants (“Firms”):
§
The majority of management consultants
surveyed were business strategists
§
The
majority of management consultants operate in a “company”
business structure
§
The
majority of the management consultants only
operate in The Bahamas
§
None
of the management consultants have a branch outside The Bahamas
§
The
majority of the management consultants
have direct access to other professionals (for employment and strategic
partnership purposes)
§
The
most important client base to management consultants who were surveyed were micro, small & medium sized enterprises
§
Most
management consultants have agreed that the
Bahamas is too small and they must seek growth opportunities in The
Caribbean and especially in Europe, USA
and Asia
§
The
majority of management consultants were very
reluctant to give their income and pricing
§
The
majority of management consultants have difficulties
to obtain debt financing and access to 3rd party finance
6.2 Data Analysis: Client
Organizations (“Markets”):
§
The majority of client organizations
were micro, small and medium sized enterprises(SMEs)
§
Most
of SMEs sold products
§
The
majority of SMEs hired 1-4 employees
§
Most of SMEs procure business planning and marketing services within the last three years and
would need some type of planning,
finance and marketing services in the future
§
The
majority of SMEs in the past spent less than $50,000 (US Dollar) a year on external
consulting services and there were
indications that it would either remain the same or decrease in 2010 and 2011 (mainly
due to the recession)
§
Most
of SMEs do not procure more than 2
external consulting assignments annually
§
Most
of SMEs use local consultants and indicated that Regional (Caribbean ) and Extra-Regional Consultants services were
never procured
§
The Majority of SMEs have indicated that consultants
either did a good (satisfied) or
excellent (very satisfied) job when they were hired
§
Most
SMEs indicated that local consultants
would be used more if their services
were fast, cheap and have “competency in areas of demand”
§
Most
SMEs think that having a Bachelors Degree and beyond is “not/somewhat important”
when procuring consulting services, however, having past experience performing the assignment, will almost guarantee
the job
§
Most
SMEs want to select consultants based on past
engagements and will procure their services only when needed
§
The
majority of SMEs would select consultants based on previous experience, quality of personal available for
assignment, competitive costing and if they had an established tract record
§
Most
SMEs would rather work with consultants that
they had procured in the past
§
Most
SMEs would hire new consultants based on
competency in areas of demand, faster service, better quality of service
and cheaper service.
§
The
Majority of SMEs have indicated that technical
expertise, achievement of objectives, knowledge transfer , effective
communication, adherence to budget,
on-time completion, accountability and professionalism are very important (3-5
rating) factors to the success of a consulting assignment.
7.0 Conclusion and
Recommendations
7.1 Conclusion
The research was properly marketed. Over 150 management consultants where identified in The Bahamas, However, only 14 participated in the survey. The researcher has no conclusive reasons why they wish not to participate in the survey.
However,
the majority of management consultants have indicated that they did not want to
participate in the research for the following reasons:
§
did
not want to give secretive information
§
felt
that the survey was too long
§
had
“confidentially” concerns
§
cannot
benefit from the research
§
felt
that a local firm should have conducted the entire research
§
information
might be used for “competitive reasons”
On
the other hand, the main reasons why many owners of client organizations
indicated that they wish not to participate in the survey are as follows:
§
could
not see how this survey could benefit their businesses
§
had
participated in past surveys and did not receive a report on “findings”
§
do
not have the time to fill out the survey and do not want to give the information
over the telephone or in person
There were little / no
support from the following organizations: Large National Companies, Multinationals, Government,
Utilities / Infrastructure Firms/Non-Profits, Academic Institutions, Donor
Agents and Commercial Banks, Therefore,
it was difficult to submit an analysis on these market sectors.
7.2 Recommendations
The
Researcher would like for the information that was submitted to be used to
address the following:
§
Establish a grant to be awarded to
Management Consultancy Firms
to assist them in reducing prices on necessary business services: e.g. Entrepreneurship
Training (for start-ups), Marketing Plans, Business Plans, QuickBooks Accounting
Set-up.
§
Develop programs to change the
uncooperative behavior of Management Consultants when it comes to participating in
valuable research/other initiatives to improve the conditions of their industry.
8.0 Limitation and
Future Research
8.1
Limitation
The obvious limitation of the research
was the small sample size. The
researcher had hoped to survey 150 management
consultants and 250 client organizations. The Researcher assured both
consultants and client organizations that the research’s overarching focus was
to develop the Caribbean management and marketing consultancy industry, but it
was still not well received.
As a result of the negative perception of the
purpose of the survey only 14 (9%)
management consultant and 11 (4%) client organizations in The Bahamas
participated in the Survey.
8.2 Future Research
Both
qualitative and quantitative research approaches should be performed in the
future because the management consultancy industry in The Bahamas need. more quality
information so that growth initiatives
be properly formulated and implemented.
However,
in order for the research to be significant there must be more participation from
both management consultants and client organizations.
9.0 Appendix (pages
8-10)
- Summary of Management Consultancy Industry Research
in The Bahamas
- Summary of Management Consultancy Industry Research
in The Caribbean
- Summary of Management Consultancy Industry Research in The Bahamas and Caribbean (combined)
SUMMARY OF MANAGEMENT
CONSULTANCY INDUSTRY
RESEARCH IN THE
BAHAMAS
Bahamas
Sample Size:
14
Consultancy Firms (Industry) 11 Client Organizations (Market)
Particular
|
Bahamas Survey Results
(Value In US Dollars)
|
Client Organizations Expenditure on
Consulting Services
|
85
% of Respondents: $10,000 - $49,999
15
% of Respondents: $50,000 - $499,999
|
Management Consulting Firms’ Employee Level
|
1-19: 100 %
|
Top 3 Consulting Services Client
Organizations Procured by segments
between 2006- 2008
|
1. Business Strategy
2. Human Resources
3. Information Technology
|
Selection Factors by Client Organizations
in order of importance
|
1. Previous Experience
2, Good Tract Record
3, Personal Qualities
4. Cost Competitiveness
|
Credentials Importance by Client
Organizations in order of importance
|
1 Previous Experience
2. Professional Accreditations
3. Master of Business Administration
4. PhD
|
Annual Consulting Spending by Client
Organizations based on Consultant Location
|
1. Local ( National)
2. Extra-Regional (Out side Caribbean /
international )
3. Regional (The Caribbean)
|
Client Organizations Satisfaction of
Consultant based on Consultant Location
|
1. Local:
2.
Extra- Regional
3. Regional
|
Consultant ‘s Average Hourly Rate of Pay
|
$156.00 Hourly Rate
|
SUMMARY OF MANAGEMENT
CONSULTANCY INDUSTRY
RESEARCH IN THE
CARIBBEAN
Caribbean Sample Size:
155 Consultancy Firms (Industry), 100 Client
Organizations (Market)
Particular
|
Caribbean Survey Results
(Value In US Dollars)
|
Client Organizations Expenditure on
Consulting Services
|
51%
of Respondents : $10,000 - $49,999
36%
of Respondents: $50,000 - $499,999
13%
of Respondents: $500,000 & over
|
Management Consulting Firms’ Employee Level
|
1-19: 86%
20 or more: 14%
|
Top 3 Consulting Services Client
Organizations Procured by segments
between 2006- 2008
|
1. Human Resources
2. Organizational Development:
3. Information Technology
|
Selection Factors by Client Organizations
in order of importance
|
1.
Previous Experience
2.
Good Tract Record
3.
Personal Qualities
4.
Cost Competitiveness
|
Credentials Importance by Client
Organizations in order of importance
|
1. Previous Experience
2. Professional Accreditations
3. Master of Business Administration
4. PhD
|
Annual Consulting Spending by Client
Organizations based on Consultant Location
|
1.
Regional (The Caribbean)
2.
Extra-Regional ( Out side Caribbean / international )
3.
Local (National)
|
Client Organizations Satisfaction of
Consultant based on Consultant Location
|
1.
Extra- Regional
2.
Local:
3.
Regional
|
Consultant ‘s Average Hourly Rate of Pay
|
$125.00
Hourly Rate
|
SUMMARY OF MANAGEMENT CONSULTANCY INDUSTRY
RESEARCH IN THE
BAHAMAS & CARIBBEAN
The Caribbean Sample Size:
155
Consultancy Firms (Industry), 100 Client Organizations (Market)
The Bahamas Sample Size:
14 Consultancy Firms (Industry), 11 Client
Organizations (Market)
Particular
|
Caribbean Survey Results
(Value In US Dollars)
|
Bahamas Survey Results
(Value In US Dollars)
|
Client Organizations Expenditure on
Consulting Services
|
51%
of Respondents : $10,000 - $49,999
36%
of Respondents: $50,000 - $499,999
13%
of Respondents: $500,000 & over
|
85
% of Respondents: $10,000 - $49,999
15
% of Respondents: $50,000 - $499,999
|
Management Consulting Firms’ Employee Level
|
1-19: 86%
20 or more: 14%
|
1-19: 100 %
|
Top 3 Consulting Services Client
Organizations Procured by segments
between 2006- 2008
|
1. Human Resources
2. Organizational Development:
3. Information Technology
|
1. Business Strategy
2. Human Resources
3. Information Technology
|
Selection Factors by Client Organizations
in order of importance
|
5.
Previous Experience
6.
Good Tract Record
7.
Personal Qualities
8.
Cost Competitiveness
|
1. Previous Experience
2, Good Tract Record
3, Personal Qualities
4. Cost Competitiveness
|
Credentials Importance by Client
Organizations in order of importance
|
1. Previous Experience
2. Professional
3. Master of Business Administration
4. PhD
|
1 Previous Experience
2. Professional
3. Master of Business Administration
4. PhD
|
Annual Consulting Spending by Client
Organizations based on Consultant Location
|
4.
Regional (The Caribbean)
5.
Extra-Regional ( Out side Caribbean / international )
6.
Local (National)
|
1. Local ( National)
2. Extra-Regional (Out side Caribbean /
international )
3. Regional (The Caribbean)
|
Client Organizations Satisfaction of
Consultant based on Consultant Location
|
4.
Extra- Regional
5.
Local:
6.
Regional
|
1. Local:
2.
Extra- Regional
3. Regional
|
Consultant ‘s Average Hourly Rate of Pay
|
$125.00
Hourly Rate
|
$156.00 Hourly Rate
|
