My organization is a large management consulting firm. Currently, I work within Federal Government Health care Services, where growth has been high. My firm entered this market and gained a foothold primarily through the acquisition of another large management consulting firm. This company’s bankruptcy enabled my firm to buy its greatest asset – a large federal practice. We have since leveraged the existing relationships to become one of the most distinguished firms in this sector.
While the acquisition was key to entering the federal market, my firm has since relied on organic growth; utilizing its name and reputation gained in the commercial markets to the federal government. This is evidenced by double-digit growth, year over year. The current state of the federal government has yielded many opportunities to obtain business. Furthermore, the typical contract mechanism utilized by the government, specifically the Department of Defense, is beneficial in ensuring business relationships for several years (through contract options).
One of biggest boons to the business has been health care. This is seen both via health care reform due to shifting demographics and increased costs; as well as the increasing need for improvements to care for Service Members and Veterans. My firm positions itself by hiring an array of individuals; from administrators to clinicians to security-cleared personnel to IT specialists, etc. This enables us to migrate within the entire federal health care marketplace seamlessly.
The firm also has a unique strategy that differentiates it from competitors. Within the federal arena, many consulting firms offer staff augmentation at a discounted rate. Given certain contracting requirements, there are few firms that can offer high-end services. Many smaller firms are not designed to run a full-service strategic platform, where as my firm runs the gamut from strategy through implementation. As a result, there is limited competition to be awarded as the prime on big contracts (there are only a handful of large firms offering similar services). However, we are able to fulfill contracting requirement by subcontracting work to smaller firms. Due to my firm’s eminence, we have the ability to charge higher fees. The client understands that while the price point may be higher, we are a one-stop shop with vast resources.
Our market penetration makes us more attractive than competitors. As opposed to top boutique firms, who have a niche area in which they are very competent, my firm attempts to be well-rounded in all areas. Even if unfamiliar with our services, clients know the name. The other side of our business is as the largest of the Big Four audit firms. While the audit and consulting sides are kept separate, the name goes far. While this may only appear important for the commercial business, this is actually far from the truth. Often, government personnel are not familiar with large consulting firms. However, almost everyone knows my firm (many know someone who work for my firm). All things considered equal, this give us an advantage when the contract award takes place.
In addition, my firm is well aware of trends going on domestically and internationally. With international business becoming increasingly important, our footprint has grown in various countries. When issues such as health care or banking become prominent, we are first to get in the game. While this is made capable due to our breadth and depth in the industry, it is also how we remain a leader.
Despite these positives, in order to maintain this positioning, my firm needs to better integrate its federal and commercial practices; standardizing internal processes. As a fairly new entrant into this market, there are growing pains. The internal strategy has not been adequately designed. As long as this remains an issue, competing firms can enter and gain market share by developing a federal program slowly, building it over time.
No comments:
Post a Comment