WIP CIM Marketing Plan (5)

CIM Membership No.40001231

Organisation Name: BPS World Ltd. (BPS World)Type of OrganisationBPS World is a RPO provider with a brand promise of Rethinking Resourcing™ that aims to service customers as an extension of their own Human Resources function. By understanding the core value and culture of the organisation they work with, they hire employees who underpin the technical knowledge, the value and ethos of that company. The loyalties of any RPO provider like BPS, sit totally on the side of the organisation.

Size of OrganisationHeaded by MD Simon Conington, BPS has 60 employees with the head office in Maidenhead and other offices in Warrington (U.K), Miami (USA), Prague (Czech Republic) and Poland (Planned).

Products and ServicesWhile the RPO solution is the biggest offering in the portfolio, BPS also provides other services like Brand Performance Studio (marketing services for clients) and Business Intelligence services.

Customer BaseBPS World’s target markets are companies located in Europe and Asia with a focus in the Technology, Engineering and Professional Services Skills. Customer segmentation includes companies with employee in the range of 50-5000 in the Technology, Facilities, Engineering, Financial and Re-location services.

Market share is not formally measured but it is estimated not be more than 0.75% of all RPO business in the UK. BPS World is growing approximately at a rate of 10% p.a. (revenue and YOY contract signed) in the past 2 years.

The Competitive Advantages (CA) of BPS include strong client relationships, diverse staff and leadership composition, unique brand positioning and the application of advanced technology. This allows BPS World to offer a customised and professional services to clients who are moving into the strategy of outsourcing recruitment at a competitive price.

CompetitionBPS World is uniquely placed in the market of recruitment and RPO business. They are not in competition with the big consulting firms or the ‘high street’ agencies that provide RPO offerings. Due to BPS’s growing global presence they are able to differentiate from other private boutique RPO companies of similar size and market characteristics (revenue, market share, market sector).

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Strategic Audit: Situation AnalysisMacro EnvironmentPESTEL Analysis brings to light several macro factors to consider for the marketing plan.

The Political implications of global change are enormous. Migration pattern across countries could change, thus transforming the talent market. Britain’s decision to leave the EU will have ramification on the composition and supply of the labour market. The world economy is rapidly changing and by 2020 counties like India and China, for example, are predicted to produce 41% of the world’s graduates. Skills shortages are having a knock on effect in the wider economy – hampering productivity, exacerbating Britain’s housing crisis, and may be costing the UK £10bn in lost GDP a year.

The fabric of Social and educational structures has created shortages in some key skills. Businesses and governments face challenges to create young people’s interest in STEM subjects at school. Developed economies are struggling with recruiting appropriately experienced and qualified workforce in the post as baby-boomer age.

The rapid advancement of Technology offers massive advantages to organisations allowing them to leverage digital tools to increase the effectiveness of global recruitment processes.

Legal accountability calls to account for the immigration rules that have become a hot political issue. This also extends to legal issues around data and privacy laws as well as online frauds These are key to business continuity.

To summarise, in the current ecosystem of factors, the immediate need for BPS would be to evaluate the marketing strategy for the post Brexit environment. This should include an assessment of the impacts of the emerging changes to labour mobility, labour costs, regulations related to international operations.

Micro environmentCustomer analysis: The customer base for BPS comprises of small and medium size organisations who are seeking to outsource their current recruitment or HR function to a specialist agency. These customers are looking for services in:

Talent Acquisition Learning and Development (L&D) HR Consulting Business Process Management Branding Customised HR Services

Approximately 90% of the demand is for ‘Talent Acquisition’ in which the top three business drivers are a desire to reduce:

Reduction in the cost to hire talent Reduced Attrition Increased quality of hires

Competitor analysis: BPS World’s immediate competition are small RPO’s (11-50 employees) having a turnover of £ 6-10 million. Whilst there are numerous RPO’s in the UK, some with similar market share, they tend to operate as part of a larger entity having multinational presence (HAYS PLC, Alexander Mann Solution, Hudson etc.).

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An analysis of secondary data shows that BPS is a small player in the overall market having a market share less than 1%. BPS can be categorised as a ‘market follower’.

Resource Analysis

Figure 1

Mapping the firm’s resources and capabilities helps to identify similar resources. An analysis of the internal marketing assets is shown below (Figure 1):

Figure 2

The VIRO analysis for BPS is shown below (Figure 2):

The 5 key resources work in a complex interplay to create the CA for BPS. The analysis shows elements of ‘causal ambiguity’ and thus will be a barrier to immitation by similar sized competitors. Potential competitors will need to pursue their strategy over

time, by going down a a specific plan (path dependency) to achive the CA in the long run. With the dynamic nature of the market (micro and macro environment)the sector is likely to have shifted to newer processes, models, technology etc. The demands of the customer are also likely to change as the current world economy also impacts UK’s labour market.

Conclusion Resource Analysis: BPS should focus on the causal ambiguity created by the interplay of resources and maintain the unique market positioning. They are not a market leader or even a market challenger, but they definitely are placed strategically, and should focus to move to a niche market as a follower. The low cost model will translate to re-investment of gains, and they can strive to dig their heels into the rapidly growing RPO business opportunities available.

TOWS AnalysisThe TOWS analysis conducted on the assets identify the low lying fruits/strengths and the threats for BPS to be aware of in its’ strategy planning and implementation. The option for contingency planning must be factored in the case of unplanned scenarios impacting the plan.

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External Opportunities External Threats

RPO model surged in recent years Skilled workforce migration creating

‘world’ of talent pool.

Brexit: Political & Economic upheavals Loss of free movement of workers New laws may govern recruitment

Internal Strengths

Historic business partnership Company’s brand value Workforce composition Leadership IP Exclusive Relations-Client Existing RPO functions are

unsuccessful-market share

Strengths-Opportunities strategy Nurture and maintain status quo; Leverage brand value and attract

quality employees to build a strong delivery culture;

Work with talent to retain and grow skills;

Create and high performance culture across sites based on company values;

Gather periodic feedback to ensure exclusivity from clients;

Attain Sales targets- 3-year plan; Further global expansion to be co-

located with talent and clients and leverage local market knowledge to take share of potential business opportunity.

Strengths-Threats strategy

Wait and watch to have an ‘emergent’ strategy for global expansion as still in planning stage.

Use strong relations with clients to define path forward for movement and staffing plans where workers need to travel/migrate.

Proactive Commercial team to plan for legal changes and factor in to plan for contingencies.

Internal Weaknesses

Integration within departments

Technical implementation uncertainty

Absence -formal SOP New Supplier & Partner

Relationship Unpredictability of new office

opening

Weakness-Opportunities strategy

Use McKinsey’s 7S model effectively to build a strong team.

Recruit PM to implement Technology and this could be the beginning of a TCM team

Create a team to document SOP and best practices -enhance L&D

Manage and maintain Supplier /Partner relationship as a strategic initiative with attractive partnership benefits; Encourage postings in different locations and harness expertise of local partners.

Weaknesses-Threats strategy Use current economic unpredictability

to consolidate local UK business Capitalise on altered laws to BPS’s

benefits where possible. Proactively publish content and reach

customers on possible impact on business and alternate work around solutions.

Summarising this analysis, it must be noted that the RBV is not the sole basis on which to plan the strategy. BPS needs to be market oriented and have an outside in view and match the changes to customer and market shifts. This will call for developing dynamic capabilities for long term strategy.

Strategic Objectives-Planning

Vision, Mission, Corporate Goals and Marketing ObjectivesThe vision statement for BPS is “To build a unique culture which empowers our people to create a successful business for our benefits and the organisations we serve” putting people at the heart of the business. The values governing the strategy are commitment, delivery, excellence and passion and the employees are expected to deliver success for BPS and benefit to their customers through the business strategy. The mission is to be leader in serving a bespoke blend of product and services to suit every business. Aligning with the vision and mission and by applying the values, each employee is encouraged to be committed to deliver excellent results with passion. The marketing strategy would be a strategic outlook to enhance the branding; “Rethinking Resourcing” for the next generation - an innovative outlook towards resourcing and create that image of bespoke offering for customers. The objectives for BPS’s marketing would stem from these vision, mission and organisational strategy to form key objectives:

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1. Create and expand brand awareness for the firm to be one that delivers customised high value to customers in the managed services recruitment space, doing so at a competitive cost by building a strong work culture that delivers with the BPS values better than others.

2. Acquire & retain skilled talent, retaining <85% (=15% Yearly attrition) on an average till 2020.

3. Maintain and grow client base to get to £20 million turnover by 2020

Strategic decisionsFrom the audit finding, it is evident that the resources that have a CA is an interplay of experienced+ apprentice workforce, the low cost office and infrastructure, leaders wearing multiple hats to serve and support delivery team, who in turn are trained to offer world class service with advanced use of technology. They have the expertise of 3 key specialisation on a global level they are able to serve a niche market of customers (Engineering, Professional services and IT). Cost Differentiation is not suitable as BPS cannot compete with larger organisations who can conduct business on much larger scale and lower cost of delivery. Treading on a Differentiation Strategy is not advised as they lack any defining USP that can be positioned as a Sustainable CA. (worldwide coverage, numerous office locations, brand etc.)

Figure 3

The strategy to be followed is shown in the bottom left quadrant of Figure 3. This is the Cost Focus strategy based on Porters’ Generic Strategy. This will be achieved by planting repeatable successful values and culture of the UK Head Office in all new offices. An outcome focussed model delivered by a motivated workforce (strong technology, team culture, management talent used to create the Competitive Advantage) at a very competitive cost.

Figure 4

Figure 4 shows the stakeholder mapping based on the Mendelow’s matrix. It identifies the companies that are yet to explore RPO solution (decision makers in the procurement department, CEO’s) and the ‘skilled labour’ market as the key stakeholders with highest interest and highest decision making power. These would be the target customers to sell services to – the Competitive Advantage of working with ‘late adopters’ and show them the proven benefits of a RPO service like

BPS.While business in the UK would be the prime target, the localised offices across the world could be the lateral expansion for BPS to take the wallet share from the same firms in different locations. This will be woven into the expansion and growth of the workforce. Careful employee motivation and training and development practice should be implemented.

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Strategic Initiatives: Implementation

Figure 5

Consolidation and growth- Based on the analysis and Ansoff Matrix strategy, BPS is well suited to adopt a combination of market penetration (1-2 years) and market development (3-5 years). Keeping a close watch on the environment and matching customer requirements and industry trends during this period, a decision to add other service(s) may be an option (product development) as a dynamic strategy (partnership with clients to deliver visa and relocation services is an option.). At this point, BPS cannot plan for a Diversification Strategy even in the long term as it is a privately held company with limited funding.

The Marketing mix for BPSThe Marketing mix to gain Strategic Competitive Advantage will be an interrelation of tactics. Considering the analysis of the external environment and the Organisational strategy, recommendation is that BPS follows a combination of messages and tactics to increase visibility and grow Brand Equity:

Product: Stay focussed on core competency of recruiting the 3 type of professionals and utilise IP and knowledge to offer competitive service at lower cost of delivery to niche market. Watch market trends for potential quick wins and move swiftly to capitalise on opportunities where possible.

Place: Making UK SMB and other firms as target, capitalise on the success of existing business in various countries to augment further growth. Utilise country specific partners and vendors to establish control in local markets.

Price: Be a cost differentiator. Operate on a lean basis, and pass on cost savings to customers. Price lock for long term contracts so revenue is forecasted accurately. New contracts should be agreed based on investments and new functions /offerings.

Promotion: Launch online presence project with targeted content on website and social media. Brand and reputation strategy should be a combination of participating in events, seminars and engaging with key stakeholders. For new customers, user-trials could be extended at discounted rates to win business.

People: Taking the ‘people first’ culture a notch up in the next 3 years. Establish a strong mentoring and nurturing relationship between the management and employees. The employee Rewards & Recognition program to be reinforced in line with customer satisfaction and the BPS values.

Process: The current operational process would be evaluated and optimised for efficiency and impact on delivery. SOP should be documented within the delivery team. (Training manuals, change management, CI, Quality systems to be structured, tested and measured for success with the delivery team)

Physical evidence: BPS would benefit in creating a brand recollection strategy. The colour and branding scheme will be driven on company stationery and documents, signatures on emails. Co-

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branding on the job boards with clients will be done. The customer experience of both candidates and clients will be a focus of this strategy-to be monitored and measured for impact.

ControlsBudget (on Gantt chart table 1) of £53,000 will be required to deliver the plan. This budget has been factored into the Organisational budget and will be reviewed annually.

Figure 6

Organisational implementation issues: The barriers to a successful implementation would be to bring together all the departments to embrace and own the objectives. BPS should focus as an organisation to follow the Mckinsey’s 7 S model that would re-align and re-inforce to enhance organisational performance. Identifies weaknesses to be improved and eliminated in this process. The management style to be culturally integrated with the Staff, the Strategy to be in line with the organisation structure (move to a more matrix

organisation), Skills matched to the requirements & systems. The shared value will then be catapulted in a much stronger and impactful implementation of the strategic marketing plan. ().

Critical path analysis to be undertaken to gear the delivery team towards the priority tasks and the Stakeholder analysis (Fig 1.5) closely adhered to with timely and accurate communication and updates so that any unplanned situation can be addressed before it impacts the critical path and ultimately the success of the plan.

Resources: The 12 Q strategy will need to be implemented by marketing team, client services organisation, HR & internal recruitment, the L&D staff, regional partners, recruitment agencies and PR agency. Other resources include: Social Media content, marketing collaterals, office layout and online subscription for Digital initiatives and new Application Tracking System roll out and implementation in the first 2 quarters of this marketing plan.

The Gantt chart (Table 1) below shows how each task will be delivered, with £53,000 budget. It will be the guidance for the marketing project to monitor and control the progress. In short, it will address the questions; what will be done, who will do it, when will it be done, how will it be done.

Tools: Use of tools to measure the various operational & financial health of the business will be undertaken. The profitability ratio, the liquidity ratio, the sales pipeline and operational performance (KPI) will be tracked. (CSAT, cost reduction, quality). Data analysis and actionable from them have to be a part of the implementation and control.

The risks analysis findings will also be a part of this phase. Potential risks that impact CSF mentioned on page 8 below to have mitigation plan (B) in case of unplanned incidents.

The marketing team has to use own discretion and judgement that will underpin any decision to fine tune the plan. It is recommended that the changing ecosystem be closely watched to prioritise high impact low efforts, and high impact high effort actions with judgement & agility.

Together with this and the Balanced scorecard Table 2 , will serve as a mechanism for the team to ensure that the various aspects and contributors of the marketing plan is on track, and the objectives for Competitive Advantage is kept in line with the plan.

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Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

Activity Responsibility Budget

Sector Review-B&P/Engg./Tech

BizStart/Client Services £0.00

Regional Office Review BizStart Team £0.00Social Media Engagement Marketing £0.00Review Price strategy BizStrat £0.00PR Marketing £12,000.00New Customer- Trial offer Conversion

Client Services /Finance £20,000.00

ATS Implementation PMO £0.00Rewards & Recognition All £16,000.00Customer Survey Marketing/BI £5,000.00

SOP & Quality ReviewClient Services /L&D £0.00

AAR Review All £0.00Final Review Total £53,000.00

Open Miami & Prague. Planned start in

2016-2017 2017-2018 2018-2019 2019-2020

Table 1

Critical Success Factors The three critical success factors (CSFs) for this marketing plan are:

PR and Brand strategy – BPS will have to manage the PR and Branding carefully to build an identity and meaning of the Brand as a different service provider- Cost focus with outcome based delivery. This was uncovered in the audit as a key area of focus to improve market share.

Employee Satisfaction – The retention and continuity of a string work force will be crucial for BPS ‘s plan to be successful. As identified earlier in the audit, the stickiness of the workforce and the combination of matured vs apprentices will deliver the cost effective plan. The higher retention rate and safe guarding of skills and IP of leaders-ultimately underpinning the whole strategy for the Strategic Competitive Advantage.

Customer Relation and loyalty– will be key to get the penetration and growth strategy to work for BPS to move from a market follower to a market challenger. While there will be a focus to retain the existing business, the use case scenario and testimonials will help BPS to get in the Market Development stage.The BPS will need to project manage all the factors closely and the Gantt chart above shows how the tactics to improve and communicate these CSFs will be delivered.

Measurement: The measurement and success factor of the plan will be evaluated based on results from various sources and some on the net increase in market share and penetration (new client acquisition, increase in current wallet share) and the Brand equity built in the period. The financial measurement used will be the balance sheet and P&L statement. The measurement of the market share will have to dependent on secondary data for the period in terms of the turnover of the RPO sector against what BPS achieves YOY.The tools that the team will use to measure the effectiveness of the various channels of the Promotion tactics and spend will be the Channel Performance Matrix.

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BPS marketing Strategy’s progress will be measured using the balanced scorecard to track the goals (SMART) and objective attainment and these would be reviewed as per the Gantt Chart. This is another key tool that will be used for the control phase.

Management Control Activities

Balanced Scorecard Dimensions

Objectives Measures Targets Financial Initiatives Contingencies

PR & Brand

Be known a firm that offers RPO solution to SMB who are looking for recruitment solutions

Increase awareness of BPS as a brand to reckon with in the RPO market

Increase LinkedIn, Twitter and Facebook followers by 25%. Improve SEO and website visit by 30%. Increase lead generation via bps.com by 10%

More Business leads and easier sell to new customers

Social media engagement, PR activities, Content creation by experts within BPS.

Engage a PR firm and or a Marketing Agency for the project.

Employee Retention

To retain trained staff and reduce the churn

Low staff turnover

Less than 25% attrition

Reduce cost of talent acquisition, training

Rewards & Recognition. Employee pulse surveys/Frequent check in and timely feedback.

Planned hiring to mitigate high attrition.

Client Satisfaction

To grow client accounts and add new clients

Increase wallet share

Incremental increase of 5-10% in each account

Increase revenue by 5-10%

Timely survey and analysis of customer complaints and pre-empting customer needs. Excellent service delivery

Acquire new clients, create new offering.

Table 2

Continuous Improvement: The management has to conduct Quarterly review (AAR) to make sure that the plan put in place is on track (scope, timelines and budget) These meetings are mapped out in the Gantt Chart.

The ‘Plan, Do, Check, and Act’ model will identify any problems, issues and solutions such as:

Any changes to the macro, micro and internal environment of the RPO industry Any developments or issues in the staff retention and client portfolio Changes to scope/cost/time to be re-adjusted to uncontrolled changes.

There will be a close check on the data, and the BI team to create a Management Dashboard. This will include key statistics and trends through the quarters for CSAT, Operating Cost, Quality, Recruitment Consultant data (Monthly Action Plans to be put in place to track performance and attainment of gaols) and Employee retention amongst others.

All project meetings will review progress and compile a risk and issues log which should be actioned and reviewed regularly. This will be a continuous cycle through the time this strategy is being implemented.

The project will be subject to an interim evaluation report, the KPIs revisited and revised if required as per progress. Qualitative feedback from customers and the project team, at the end of each year, with be the focus for the following year’s improvement plan and changes to strategic objectives and the marketing objectives and plan.

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Documents

WIP CIM Marketing Plan (5)