INSTITUTE OF MANAGEMENT CONSULTANTS
New England Chapter

News and Views

In this issue:

Upcoming Events

Member Spotlights

CMC Corner

Welcome New Members

Member Feature Articles
Earning Client Loyalty in a Commodity World
by Edward Bond
M&A's On the Rise: Why and How
by Michael Kayat

Breakfast Brainstorms Calendar

Book and Article Reviews

emerson consulting
group inc.
"We turn consultants into thought leaders!"

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News From Committees

Looking For Articles

The Newsletter Committee is looking for articles. Please contact Mike Kayat at if you have an article you'd like to submit.

From the Editor's Desk

The new consulting year has started and 2005 looks like it could bring new opportunities in many consulting areas. Various forecasts call for a steady and sustained growth in management consulting this year. Clients in the commercial sector will continue to innovate in response to global competition and economic uncertainties. Venture capital investments are up after several years of decline. Public sector clients will continue spending in response to government initiatives.

In this month's issue we have included two member feature articles. The first by Edward Bond, discusses the topic of developing and maintaining client loyalty. Loyal clients provide the basis for a steady consulting practice together with possibilities for additional same client engagements in other areas. The second article, by yours truly, discusses the increasing trend in merger and acquisitions as growth strategies as the economy picks up. The chances are that in 2005 you will have clients who will be acquiring other companies, or you may have clients who will be acquired.

The newsletter is an opportunity for you to provide news on your achievements and learn about your fellow consultant's activities. Please send your news, articles, book reviews and commentary for the February 2005 issue. Also, we are interested to hear about any instances of where you have received project leads from other IMCNE consultants, or opportunities to provide articles or make presentations. Have you teamed up with other IMCNE consultants on projects?

Good consulting!
Michael Kayat

Upcoming Events

Monday, January 31, 2005
"Leaderful" Development:
Creating Leadership at All Levels of Business
5:30 - 8:00 PM
Holiday Inn, Newton, MA

Wednesday, February 9, 2005
The Thriving Consultant Seminar Series
Selling the Invisible - Overcoming our biggest challenge
6:30 - 8:30 PM
Center for Entrepreneurial Growth, Bedford, MA

Member Spotlights

Fifi Ball (Squared Away) spoke on "Practicing Peak Productivity" for Tufts University Advancement Department in Medford. MA. She presented three evening classes for the Rhode Island School of Design. Her business partner, Sally Bricknell was featured in an article on holiday gift lists in the Boston Herald.

Jane Hilburt-Davis (Key Resources) is the designated president-elect as of January 1, 2005 for the Family Firm Institute, an international professional organization. At the October annual meeting, the Nominating Committee will recommend that Jane be elected for a two year term as FFI president. Jane also had an article "What Really Makes the Difference" published in Families in Business, for the "Letter from the US" in this UK publication. At the FFI New England Chapter quarterly meeting on February 10, Jane will give a talk on "Stress Management: Good for You and Good for Your Clients."

Brooks Fenno, CMC (SALESMARK) is the recipient of the IMCNE Lifetime Contribution Award for his many years of active volunteer service to the New England Chapter. In addition to serving two terms as IMCNE President, Brooks has served IMCNE in various other capacities including Program Chair and Chapter Representative to IMC's National Board of Directors. He joins Alan Weiss, CMC as the only other recipient of this prestigious honor.

Stephen Lipka, Ph.D. (Avatar Strategic Partners, LLC) had an article entitled "Restraining Mindsets Hold Some Companies Back" published in the December 2004 issue of IndUS Business Journal. He also has an article in a January 2005 issue of Mass High Tech entitled "ROI at the Core of CRM Isn't What You Think It is."

Ken Lizotte, CMC (emerson consulting group inc.) spoke at the New England Women Business Owners in January on how employing a thought leader marketing strategy can set consultants and businesses ahead of their competition.

Helen Osborne, M. Ed., OTR/L (Health Literacy Consulting) is a panelist on the upcoming TV show "Caucus New Jersey" to be broadcast on PBS and affiliated stations in NY, NJ, PA, DE and CT during the week of February 19. In addition, Steve Abudato (the host) asked Helen to return as the only guest on another half-hour show "One-on-One," which airs up and down the East coast.

Jim Simons (Compensation & Benefits Solutions) has developed and is teaching the course, "Compensation and Benefits Management" at the Boston College Carroll School of Management this spring.

Mark Swartz (Accretive Consulting Group, LLC) had an article entitled "Value of client relations often greater than contractual terms," published in the December 13, 2004 issue of the Providence Business News.

Bert Welling (MedTech Capital, Inc.) reports that the investment banking firm for Life Sciences was busy in 2004. MedTech closed a private placement for SuturTek, a safety suturing device company, in December. MedTech also has an agreement for OEM Concepts, a monoclonal antibody diagnostic company, to be acquired by Meridian Bioscience, scheduled for closing in January 2005.

Isn't it your turn to be in the spotlight? Send your name, your business name and 1) recent awards/distinctions/professional certifications you've received; 2) public speaking engagements; and 3) published articles. (Be sure to include key facts, such as when, where and for whom.) You must be an IMC member or affiliate to be featured. Email them to Mike Kayat at , Subject: IMCNE spotlight.

The CMC Corner

For all of you who have been contemplating becoming CMCs but haven't known where to start, IMCNE will soon begin a 6-month mentoring program aimed at helping you not only get started but also get finished! With the help of an established CMC as your guide, you will complete all CMC requirements and finally get your goal of CMC status off the back burner. For details on this program, contact Bill von Achen, CMC at 978-440-8022 or .

An invitation to IMCNE CMC members — This section is dedicated to you. If you have commentary you'd like to share, here is a forum for you. Send your commentary to our Editor, Mike Kayat, for consideration. Email Mike at , Subject: CMC Commentary.

Welcome New Members

Kim Lucas
Equity Corporate Housing

Thomas Sowell
Sowell Manufacturing Consulting

Larry Sanford
PTCFO

Ann Latham
Uncommon Clarity, Inc.

Stephen Denny, CMC
The Phronesis Group

Member Feature Articles

Earning Client Loyalty in a Commodity World
by Edward Bond

Today's consulting firm needs to look closely at which key clients are the ones that make them successful. These are the loyal clients, the repeat customers. When a consulting firm pursues a new client, they can spend three to six times the cost of retaining an existing client. Customer acquisition is expensive. Focusing on and strengthening the relationships with these key clients can turn them into high profit assets on your balance sheet.

Here are some guidelines:

1. Evaluate your existing clients.
Review your top clients from your company's financial statements. Recalling the 80/20 "Pareto's Law" model, focus your time and efforts on the top 20%.

2. Invest in the right clients.
Review your relationship with these key clients and understand their needs and concerns.

3. Map the client organization.
It is important for you to understand and work the hierarchy of decision-making within the client's organization. This means developing a relationship beyond the project and looking for broader program needs of the client.

4. Distribute client relationship duties.
Increase opportunities to develop relationships with the client through all levels of the organization, such as field, project management and executive levels. Look for common concerns and needs. Nurture these relationships by seeking to be active with the client outside the project.

5. Create internal systems to support loyalty.
The relationships with your clients need to be supported by the relationship with your employees and partners. The message you send to your employees should help to reinforce the client relationships. In the end, it comes down to the fact that loyalty is a two way street. You have to take care of the client or else you should not expect that the client will take care of you!

Edward Bond is CEO and fourth generation owner and manager of Bond Brothers, Inc., a professional construction management firm for the built environment.

If your practice includes clients at private or public companies then sooner or later you may be involved in a merger and acquisition (M&A). Established organizations with cash reserves that have accumulated over the last few years of cost reductions are now looking to execute growth strategies as the US economy expands. These companies are increasingly acquiring smaller target companies through planned-for synergistic M&A's to gain access to new technology and product lines, new market channels, and expertise. Companies with innovative, proprietary technology, market leadership and competitive advantages are valuable. In addition, combining administrative, sales, IT and manufacturing operations would be expected to lead to efficiencies and cost savings. All in order to increase corporate economic value, competitive positioning and market share.

For the successful and growing target company, an M&A provides an opportunity for investors and vested shareholders to realize capital gains without the delay, risk and dilution involved with an IPO. In fact, for each IPO there are hundreds of small companies who go through an M&A. With emerging technology companies there are about five times as many that are acquired for each one that has an IPO. If a company is struggling, burning through capital and lacking revenue growth then an M&A is an opportune (and timely) exit strategy for impatient or anxious investors. In each case, the target companies benefit by gaining access to expanded manufacturing and R&D facilities, established marketing resources and sales channels, access to a larger customer base and working capital.

It is a fact that many M&A's fail to achieve their full potential benefits. A failing M&A leads to high operating costs for the combined entity, business disruption, employee and customer attrition for both parties. In general, the key factors for a successful M&A include: (1) aligning the M&A strategy and corporate strategy with clear objectives for both the acquiring and target companies: (2) executing a detailed financial and strategic due diligence on the target company; (3) executing on a clear post-M&A integration plan (for example, management structure, subsidiary or divisional infrastructure) with established clear post-M&A milestones, including earn out goals and timelines. If any of these factors are missing or incomplete, particularly the first two, you can accurately predict that the M&A will fail. Usually large reductions in force are symptomatic of a poor M&A strategy.

Consultants can play important roles in an M&A by assisting with each of the success factors, from strategic recommendations, product and market analysis, to organizational development and employee benefit packages. M&A's are on the rise in the US and you should be aware of this as you work with your clients. You may find additional opportunities to provide valuable services or team up with other IMC consultants.

Michael Kayat is Managing Partner of Metrisys, LLC, a strategy, sales, marketing and business development consulting services firm focused on emerging technology companies.

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Breakfast Brainstorms Calendar
Free to IMCNE members and affiliates, $10 for nonmembers

Monday, February 7, 2005
7:45 a.m. - 9:15 a.m.
Radisson Hotel, Manchester, NH

Monday, February 14, 2005
7:45 a.m. - 9:15 a.m.
Rebecca's Café, Burlington, MA

Want to host a Breakfast Brainstorm in your area? Contact for details.

Strategic Partner Events — Check out our Calendar of Strategic Partner and Other Events on our web site for more information on events of interest. Click www.imcne.org/spcalendar.html, then click on the appropriate link for detailed information that could save you money.

Book and Article Reviews

Leading Change
By John Kotter
Harvard Business School Press, 1996

In this increasing global, volatile economy, small and large companies have to compete on new ideas, product innovations, manufacturing efficiencies, quality and low costs. The key issue: how to best utilize organizational resources to meet the corporate equivalent of survival of the fittest while providing the best possible employee working conditions to maintain morale, creativity and loyalty ?

Leading Change is about how organizations can design and implement effective change to increase competitiveness and take advantage of new opportunities. Effective and strong leadership is the key enabling element. Kotter presents a list of common mistakes that organizations make that produce only minimal, short term change or fail completely. He then provides an eight stage process for creating and establishing change: (1) establishing a sense of urgency (without high anxiety); (2) creating a guiding coalition with active senior management support; (3) developing a vision and strategy for directing, aligning and inspiring actions; (4) communicating the change vision; (5) removing real or imagined roadblocks through empowerment and organizational flexibility; (6) generating short-term milestones and wins; (7) consolidating gains and building more change with people and projects and (8) changing the corporate culture to embrace change through a focus on customers and productivity, along with more and better leadership & management.

Reviewed by Michael Kayat (Metrisys, LLC)

The McKinsey Mind
By Ethan Rasiel and Paul Friga
McGraw-Hill, 2002

Rasiel and Friga reveal the ways on which McKinsey consultants consistently deliver their unique services and how these methods achieve results. They present insights and brainstorming exercises to help in establishing the McKinsey mindset.

The authors, two former McKinsey consultants, discuss some of the methodical approaches that need to be taken if a consulting project is to be a winner. They explain in depth the various methods consultants should be using when they delivering a project. A few of them include:

(1) Frame the Problem. In a generic approach to "framing a problem" they discuss how to break the problem down into component elements. Separating the individual pieces of the problem into manageable elements is one of the early key drivers in a project;

(2) Design the Analysis. When they talk about "designing the analysis" they are really talking about developing a "working plan." and some of the techniques they have developed to make that process cost efficient;

(3) Gather the Data. When they discuss "gathering the data" they are talking about moving past the hypothesis phase and moving into developing specific research tips;

(4) Interpret the Results. In their approach to "interpreting the results" they explain how to draw on the insights of what you have learned about the data to this point, how to perform sanity checks, and to do a scenario analysis and

(5) Manage the Team, the Client and Yourself. They discuss how you should maintain morale on the team, have high expectations, benchmark client involvement, control the process, respect your personal time and strike a balance between your personal and work life.

Reviewed by Tom Sowell (Sowell Manufacturing Consulting)

Please send book reviews to Mike Kayat at
If you come across any interesting articles, please send those in.

Some sage advice:

"The purpose of business has always been satisfying customers."

- Peter Drucker