51076484 in house management versus management outsourced (1)
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InIn--house Managementhouse Management
versus Managementversus Management
OutsourcedOutsourced
Module III
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Why a Sense of Skepticism and Unease
Towards Management Consultants
5 Pros and Cons
Pros:
1. Specialized - you can get the best
2. Personal attention from a senior practitioner
3. Each campaign treated uniquely
4. Holistic view - consultant is intimately aware of all
aspects of the campaign5. Relationship - its easier to form a long term
relationship with the owner/operator than anaccount rep that may change jobs
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Cons:
Specialized - yet another vendor to manage
Has to wear many hats (eat what they kill)
Physical limitations on number of clients that can
be serviced Can be more expensive per hour
Limited in the number of things that can be donewell
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Cost versus Value of Advice: What can big
companies do today? Organize. Hire an in house
search specialist or project manager, who should be
a strong communicator along with a strong
understanding of SEO Establish an internal team may include
Person from technology
Marketing
Editorial/content production
Product development
Strategic planning
Sales
Then analyze the data and the roles,- the goal is tonot
become beholden consultants. Lastly, educate,
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W
hen to seek outside help? For a core competency outside your
department. If you do not have the time
and resources, a buy in from the top, it is
not worth the time to bring in a consultantor imbedded There has to be a strong
commitment from leadership toperform.
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There are 3 options that should
be considered to be the bestmodel for the company. All outsourced (what most people do)
Hybrid, and all in house.
People have started to think along the lines of Ican build a great team for the $2 million that I amspending on Project Management
This is a growing problem for agencies that need
to provide value Another question to consider: is the current
model working?
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What is the culture?Will vendors fit in, and howare they managed? For the execution, ask what
is the labor resource required?What arecustomized toolsdo we need somethingcustom?
For cost efficiency,What is the total cost of each
program?What are the barriers toimplementation and what will the costs be toovercome them? In measuring/predicting timeand success,, he feels that in the end some formof hybrid marketing will rule.
You can do well completely in house, especiallyfor the low-hanging fruit
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Then there are more advanced things that mayrequire help such as architectural issues and more
advanced coding problems. So, if you are going with completely in house:
spend time at conferences, understand youmarket share.What are you getting versus what
your competitors are getting. Completely outsourced: It isnice to have
someone to assign the work to, but youstillneed to remain educated,inorder tonot go
in the wrong directions. Remember that youwill also have toguide the consultant,especially for keyword selection andcopywriting, as well as link building.
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The larger the company the more complexthe politics,usually.
What are the questions to figure out before hiring
someone? What is the staff t- client ratio?
What is the employee turnover rate?
W
hat is the level of customization?W
hat isthe standard deliverable, and what will costextra? How doesprocess, training, and onboarding work? Lastly: Meet your team. At
the end of the day it is about the people whoare working with your business.
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Share data. It may take longer tobecome comfortable with sharing
sensitive data, but when you can,it willimprove performance. Invest inlearning, and plan for long termgains.
Reward success structure somethingin the contract togive agency extra
based onperformance. Push for
innovation and exceptional results.
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Summary of the pros and cons
of being in-house: Pros: Strong connection to the product / service
offering and in depth understanding of the industryand top competitors.
Concentrated focus on servicing just one client insteadof balancing the needs of multiple clients.
It may be less expensive to maintain internalresources, depending on the size and experience of theteam.
Timely and complete access to forecasts, sales data,inventory, etc.
Better integration and coordination with otherinternal departments, including: marketing,merchandising, IT, and finance.
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Cons to being in house: Many of the best consultants are extremely
competitive individuals, yet internal positions donot usually foster this competitive spirit.
There is often a sense of boredom and eventuallack of motivation that comes with continually
working on the same site as opposed to newchallenges and opportunities.
As part of a small internal team there is often alack of informal learning opportunities which
inhibits professional growth and the ability todeliver in a rapidly changing environment.
With a single in house resource, you will beconstrained to a single set of strategies, as
opposed to best of breed solutions that resultfrom an inte rated team a roach.
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Professionals are rarely equally trained or
experienced in both organic optimization
and paid search marketing
You may be sacrificing by relying on one
resource or investing in a larger team. It is
often difficult to drive organizationalchange from within.
External resources are needed to justify
priorities, directional change, and budgets.
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At the moment across the ecosystemthere doesnot seem to be a single
model that is totally dominant.We havesome web analytics teamsincompanies that are all in-house.Wehave a whole bunch that are sort of a
hybrid,some work done in-house butmost of the work done by individualoutside Consultants or via one of thelarger web analytics consultingCompanies. There are fewercompletely out-sourced models forsome reason.
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So here is a framework to think through stageof the journey and some characteristics of eac
stage.
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Stage One: BirthWhat doesit look like?
You have nothing,no web analyticsimplementationor a really new one.
You are just gettingstarted but havesome support frommanagement.
What do youneed?
1)W
eb analytics toolsimplementation.2) Show promise from data andconvert the masses.
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What is your role?
1) Find the most senior person who
owns your company policies andassign them the accountability fordeliverables.
2) Don t expect perfection and don tpick the most expensive tool and don t
pay the consultant lots and lotsof
money upfront (you ll do that later).
3) Ask tospeak to a client that theconsultant has recently lost.
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What is the consultant s expected role?
1) Talk to the client owner a lot and
some data consumers.2) Help you find and implement thebest fit first tool fast. (Suggestedvendor selectionprocess.)
3) Teach younot tomake mistakes alltheir other clientsmake.
4) Do lotsof trainingsessions and dog
and pony shows around your company(makes you look good and showspromise of what spossible).
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What should you be careful about?
Most of what will be done in thisstage will be
thrown away later, and it isok. Make sureyouset that expectation with your internalcompany customers /partners. As your firstphase targets choose people who have dataaffinity and your friends (so they ll stick withyou through the birthingpains),mostdefinitely don t over-stretch and give 500people login accounts to your new webanalytics application.
What do youpay consultants?
Small dollars,more frequently.
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Stage Two: Toddler to Early
Teens What doesit look like?
You have wonover a few converts, the
consultants are pumpingin reports thatpeople are using and you are drowninginquestions,some people have started tocomplain about the fact that they don t knowwhat action to take, the VP of Marketing iswondering why we keep changing the sitebut the analytics tool isnot telling them whyconversion rate is tanking.
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What do youneed?
1) Consider hiring a Web Analyst to be the
in-house resident expert,someone who llcollect tribal knowledge and be on the beckand call of the VP.2) Customized solutions for your business
(because you have realized you are uniqueand standardized KPI s from books don tapply to you).3) You will find lotsof data ismissing andthe tags are not right so you will need a
massive effort toupdate your tags andcollect new data (say site structure,siteoutcome details,new cookies/parameters,campaignmeta data etc).
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What is your role?
1) Help fill the Analyst position assoon
as you can (look for acumen, curiosityand simple web smarts).2) Have the consultant spend a lot of
time on the problem talking to thepeople who run your businesses.
3) Find out what the financial goals are
for the project or problem, look for
benchmarks, find out how the successof others channelsis beingmeasured .
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What is the consultant s expected role?
1) Really understand your businessand your businesssuccess criteria and
bring their business acumen to thetable (vs. tool expertise inStage 1).
2) Create those aforementionedcustomized solutions that incorporate
core financial or other goals for key
metrics toshow real success.
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3) Help youput standardsinplace to
capture meta-data that youneed to dooptimal analysis (meta data round
campaigns,products, website
customers etc). The consultant has to
help younail all the data problems(either missing data or bad data) in thisstage.
4) Teach you how to do reporting for
yourself.
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What should you be careful about?
Thisis a very painful stage for you, the
client. There ismore data than you candigest and yet it means little. Be patient,practice zen.You very deliberately want tobring reportingin-house now mostly because
it will be cheaper for you to do (and a greatway to train your Analyst) and you reallywant to focus the consultant on doing trueand powerful analysis (and teaching you thatas youmove from toddler to a teen).
What do youpay consultants?
Mediumsized dollars, less frequently.
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Stage Three: The WildYouthW
hat doesit look like? Problems and analysis rule the roost.
Your conversion rate (or Problem
Resolution Rate for support sites) hasdoubled from 1% to 2%.Your decision
makers have realized that PathAnalysisis a waste of time.
You have extracted all you can fromyour data Analytics tool.
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What do youneed?
1) Experimentation and Testingexpertise, to realize you are wrong
about what your customers want.
2) Youneed tostart movinginto
collecting Qualitative data (for examplesurveys).3) Help creating a strategy that would
integrate all the new piecesof data youwill capture.
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What is your role?
1) Expand your teamin the company toget other bright people involved on
problem and solution analysis.
2) Identify decisionmakers whoget
Customer Centric Decision Making andcozy up to them (you ll need theirsponsorship / air cover /money).
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What is the consultant s expected role?
1) Bring tools and expertise to the tablefor these new things you know nothing
about.
2) Knowledge transfer (because soon
the general ideas won t bear hugefruits and you ll have to bring businessexpertise to the table) and
implementing best practices.
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3) Help youintegrate your various datasourcesso that you can do analysis for
survey responsesor figure our multi-channelimpact of your experiments/tests.
What should you be careful about?
Start with modest goals and don t
underestimate the immense resistance you llget from your company culture. It is veryhard for companies to truly have a customercentric mindset and at very step youshouldbe prepared tomassage egos and re-frame
thingsso that they let you bring customervoice to the table and not just kill it becauseof their opinions.
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Create case studies when you do agreat test or find out a huge nugget of
information via the Research work.(itwill pay you back big).
What do youpay consultants?
Big sized dollars, a bit initially and thenonly periodically.
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Stage Four: Maturity
What doesit look like?
You have truly implemented something
akin to the Trinity. You don t have
enough people to do the analysis work.
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What do youneed?
1) New and different ways to capture data.
2) More people.3) Create self sustainingprocesses that feedactive decisionmaking.4) Maybe another challenge! : )
What is your role? 1) Chief Cheerleader.
2) Find the right talent.3) Find Insights fromSix Sigma and Process
Excellence (booksmaybe).4) Truly consultants who really don t domuch work except come talk to you and giveyouideas.
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What is the consultant s expected role?
1) For the new technologies you are tryingyou will need helpinunderstandingthem and instrumentingnew waysofcapturing data.2) Bring truly radical outside perspectives(that a select few consultantsin the worldhave) that will both energize you but alsohelpinfluence strategy (vs. KPI sor pagedesign).
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What should you be careful about?
You are going to be in very rarefied air,make sure your organization has the
appetite for risk and they back you.You willmake more mistakes here (but you will alsowin big), be prepared for it and make sure
that that isok. Ensure that you don t gosoprocess crazy that people have meetings
and dographs just for the sake of processmeetings (this happens all the time).Your
personal job is tomotivate your team(analytics/research/web/whatever) and keepthe organizationon the right track time andpeople evolve.
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What do youpay consultants?
Huge sized dollars, infrequently.
It s that simple.
There are many great consultants /consulting companies.Some of them
have different sizes and specialties butthey all know what they are doing
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Future trendsy The numbers of both in-house and
agency will decline; this drop will bepartially countered by growth in self-employed consultants.
An interesting uptick in the number of
those "not employed" in Induvidualadvisers(IAs). Considering how thisnumber had steadily declined, this issomewhat surprising, but manyrespondents indicated that they'd moveinto management, broader work, or newactivities altogether. This is supported bypredictions in what portion of our jobswill be dedicated to IA in the future. IA
ain't the end-all-be all
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Thank you