Prioritizing Client Needs

Finding the proper balance between Internal and External Consultants

Steven A. Clark

Strategy, Policy & Analysis

NJ TRANSIT

AIMC 2003 2

Take Care of Your Customers

Managing a successful internal consulting organization means taking care of your customers.

Or someone else will!

AIMC 2003 3

Take Care of Your Customers

Customer needs change over time.

Your business offerings must adapt to meet new needs.

Or your group may become obsolete!

AIMC 2003 4

Competition / Cooperation

It’s not about Internal versus External Consultants.

It’s about blending Internal and External Consultant roles.

To achieve maximum results!

AIMC 2003 5

Core Business Functions

Find the right balance between internal and external consulting resources in your business development strategy to be sure you are prepared to meet changing customer needs.

AIMC 2003 6

NJ TRANSIT

Statewide public transit agency$1.3 bil. operating / $2 bil. capital budget10,000 employeesBus, Rail, and Light Rail transit servicesMore than 400,000 daily ridersAssist private carriers, county and local

governments, and mobility disadvantaged clients as well

AIMC 2003 7

Strategy, Policy & Analysis

Management Engineering & Analysis created in 1992 within Engineering Dept.

Early projects focused on operations staffing – train crews, bridge operators, classic IE reviews

Added Energy Conservation Program in 1995 Demand Side / Supply Side

AIMC 2003 8

Strategy, Policy & Analysis

Program expanded to ad hoc projects dealing with organizational design and operations analysis in 1997

Customer satisfaction added in 1998Management Analysis to COO in 1999 Led corporate wide business process

improvement program in 2000 (AP, njtransit.com, maintenance systems)

AIMC 2003 9

Strategy, Policy & Analysis

New ED in 2002 tasked group to staff Efficiency Task Force & McKinsey review - $30 million

Involved in Customer Service & Technology Task Forces

Reorganized in 2003 into Strategy, Policy & Analysis Department

AIMC 2003 10

Survival

Our internal consulting group has survived four Executive Directors in as many years

We have contributed more than $100 million in direct budget savings

Demand for our services is at an all time high

AIMC 2003 11

Strategy, Policy & Analysis

Current Responsibilities:Strategic PlanEconomic ForecastingRates & RidershipMarket ResearchPolicyGISManagement Analysis

AIMC 2003 12

Why?

Flexible consulting capabilitiesOffer internal & external resources

Ability to address company needs quickly“On Call” service contractsInternal staff development

Strong focus on corporate missionChange managementPerformance improvement

AIMC 2003 13

Business Direction

Factors to consider for specific business situations:

Leading / Lagging Business

Short Term / Long Term

Relationship / Trust / Independence

Organizational Knowledge

AIMC 2003 14

Business Direction

Leading / Lagging Businesses

Six Sigma TQM

eCommerce Legacy Systems

Customer Satisfaction Downsizing

AIMC 2003 15

Business Direction

Short Term / Long Term

Support Function Core Business

Project Based Process Based

Mature Market Emerging Market

AIMC 2003 16

Business Direction

Relationship / Trust / Independence

Intimate business knowledge

Reaping, not raping

Fair and in the company’s interest

Focused – relevant, realistic solutions

AIMC 2003 17

Business Direction

Industry Intelligence

Outside perspective

Out of the box solutions

Best practices

Innovations

AIMC 2003 18

External Resources

Understand when external consultants are the perfect fit for your business needs.

Special projectsExpertisePeak demandInternal staff development

AIMC 2003 19

Core Business

And when they’re not.

Core competenciesLong term business supportIn house expertiseAnchor stores

AIMC 2003 20

Selection Criteria

Factors to consider in selecting internal and external consultants:

CostRamp up timeDurationDirection (emerging business)

AIMC 2003 21

Partnerships

Strategies for success when working with external consultants.

Knowledge transferProfessional service managementReadiness to assist - nimble

AIMC 2003 22

Consulting Engagements

Governor’s Management Review Commission

18 Departmental Reviews

Big 6 Firms

29 Cross Cut Issue Task Forces

Government Managers

Private Sector Loaned Executives

AIMC 2003 23

Consulting Engagements

External Energy Consulting Roles

Audits

Strategic Plan

Commodity Trading

External Energy Consulting Roles

Procurement

Administration

Project Delivery

R & D

AIMC 2003 24

Consulting Engagements

On Call Consulting

Process Improvement (AP)

Technology (Web)

Business Requirements (HR)

Operations Analysis (LRT)

AIMC 2003 25

Consulting Engagements

McKinsey Review

Short term duration / fixed priceCost reduction, not strategic engagement30,000 foot perspectiveKnowledge transfer = one way streetFratricide

AIMC 2003 26

Summary

Internal and External Consultants both serve important roles

Find emerging business needs and become involved

Use externals to help develop staff capabilities in new practice areas

AIMC 2003 27

Summary

Don’t let past successes make you too comfortable

Take advantage of the AIMC and other professional groups to identify emerging consulting trends and develop skills

Constantly evolve your service offerings – phase out old horses, ride the strong ones, and nurture new practice areas