Conventional management approach is a misfit today, says Vector Consulting Director
Alokesh Bhattacharyya August 8, 2016
Vector Consulting, a Mumbai-based management consulting firm, follows the 'Theory of Constraints' model for providing solutions to management and strategic issues of its clients. Kiran Kothekar, Founding Director, Vector Consulting Group, spoke to Business Today. Excerpts:
This 'advisory' model works for large cash rich multi-nationals, public sector companies or governments who can afford it even if expensive recommendations do not fructify into expected outcomes. But family-owned companies, especially in the below 500 cr category, are wary of spending huge amounts as upfront commitments. This has meant that despite the fast growth of consulting in the country, consulting penetration remains relatively poor in the country.
So over the last few years, there has been increasing demand for a 'skin-in-the-game' model of consulting with fees linked to actual implementation, results and sustainability. Companies would like consultants to not only give them strategic direction but also handhold implantations since the challenges and surprises thrown up during implementation have become fairly complex. Without overcoming these effectively, they cannot realise the benefits of these very expensive recommendations.
Q. In the companies you are working with, do you see any influence of global management thinking/patterns creeping in?
Q. In India, management consulting is dominated by the big multinational companies. How is Vector facing up to the challenge?
How does it work?
A. Let me explain with an analogy. If there is an enormous rock in your path, the easiest and simplest way to remove it is by using a crowbar or a metal rod to pry it out of the way. But for the best results the rod had to be wedged against the rock at one particular point (the fulcrum) which can give you maximum leverage. Our study phase involves identifying this point of leverage for a company, where any intervention will be rewarded with disproportionate results. Further, we work only in select industry segments - consumer goods, retail, textile, auto, equipment manufacturing, engineering & construction - where we have high domain knowledge and experience. Most companies experience a growth of approximately 15-30 per cent after Vector's implementation even if the market they are operating in is stagnating and/or even if they already market leaders.
Q. Are you planning to get into any new areas in the near future?