Resilience during a period of geopolitical shockwaves: what clients need from consulting firms
The shockwaves of disruption emerging from the Iran War are the latest example of the turbulence that has characterised the market for the last 12 months. The result is simple: Resilience has moved rapidly to the top of clients’ business agendas and they are seeking the help of consulting firms to support them in determining their options.
However, our most recent research highlights that some firms are falling very short. Last year, clients recognised a shift in the operating environment from one of uncertainty to one that is unreliable. Clients are now more likely to meet macroeconomic curveballs with stoic resignation than surprise. The tacit acceptance of this level of volatility has changed the priority clients are giving to business resilience. Because shockwaves are now a routine element of organisational life, they are paying increasing attention to ensuring their future foundations are built on firm ground.
Our Future Trends report, Helping clients build a resilient future, report brings into focus how risk and resilience has been transformed as a functional area from a siloed specialism into the central lodestone that business leaders look to when reshaping their businesses for the future. And this shift to resilience represents a major opportunity for professional services firms outside of the risk space to sell resilience work, as now it’s also a wide-ranging strategic consideration. However, it also raises a difficult question: are firms succeeding in linking transformation work to long-term survival, or are they seen to be selling a short-term safety net?
So, what exactly do firms need to talk about?
Our research shows that, astonishingly, clients at the most senior levels are currently thinking about resilience on a daily basis, and they expect this to be echoed in their conversations and responses from their consulting partners. However, in our findings, it is clear this need is not being consistently met, with nearly 80% of clients saying that they want to hear more from consulting firms about resilience.
Unsurprisingly, resilience has a different meaning for different clients (see table below). For almost one-third it is about the ability to anticipate events and adapt while for others, their primary concern centres about how they respond to a specific crisis pertaining to their business. This points to the importance of consulting firms listening to their clients rather than immediately offering solutions, as client expectations are highly variable on this topic.
The great news for firms is that not only do clients want firms to talk more about resilience, but they also say they will pay a premium for it.
Resilience has transformed into a key value metric. While clients remain keen to improve their bottom line, our research indicates that they now also assess the value of a project based on how significantly it improves their overall stability.
This change has important implications for firms. First, it creates more urgency around bringing in consulting expertise. Secondly, because it’s seen as so valuable, clients are willing to spend more to accrue better long-term protection.
This presents a tangible opportunity for firms to increase revenue: 76% of clients said that they would actively pay more for a project if it would support their overall resilience.
What can firms do next?
Want to understand how your firm can support clients on their resilience journey? Our Future Trends report, Helping clients build a resilient future, examines what clients want from firms in this space today. It is full of data and insight that segments clients and explores their different transformation needs, reveals how they want to work with firms, and looks at where they are set to invest alongside what will convince them to spend more.
Contact us to purchase this report or to download an extract.