 |
Message From Our Founderby Eric Mahler We find ourselves in a new year, resilient and poised to look past the challenges of 2009 with renewed commitment and optimism. If there’s any question about whether our organization differentiated itself, the results we achieved last year should provide an answer. We finished a remarkably strong year in terms of financial performance thanks to our clients, consultants and staff. Financial performance for last year is just a lagging indicator of the determination, energy, creativity and sheer effort our organization put into helping our customers on a daily basis. For the 3rd year in a row, Fulcrum Consulting was rated as the No. 1 or 2 consulting firm by our largest customers as compared to our peers. Given all that we have experienced over the last year, I can say that I’m even more proud and honored to be working with the best, most distinguished group of people in our industry. It was obvious that our commitment to doing what’s right for our customers is what made the biggest difference for us last year and is what will drive us in the future. General Industry Perspective Demand for our services is driven by corporate profitability and the overall health of the US economy. The profitability of our firm depends largely on the expertise and quality of services we provide to our customers. As a hybrid consulting firm, Fulcrum Consulting has an advantage in that the range of services we offer the marketplace span across management consulting and IT consulting disciplines. Although cost is a major factor for our customers, our reputation and experience is typically more important. Most of our work involves studies and research, the formulation of possible business and technical solutions and the implementation of change. Technology plays an increasingly important role in what we do and what our customers ask of us. Business Challenges Consulting revenues depends on economic growth, and especially on corporate profits. Our services are considered an expendable cost or at least delayable when our customers face an economic slowdown. During the most recent slowdown, industry profits have fallen significantly. This market reality forces us to “be relevant” with our customers at all times. If we can’t justify our presence or services, we will be one of the first costs to be reduced and sometimes eliminated altogether. Our firm depends heavily on the intellectual capital of our employees. Attrition for many companies in our industry can range from 20 to 40 percent on an annual basis. Fulcrum continues to stand out from our competitors in that our voluntary attrition rate is below 20%. Due to the strength of our business development pipeline, the quality of engagements we provide and the team environment we foster, Fulcrum stands apart from many of our competitors. Beyond the economy and attrition challenges, Fulcrum Consulting, like most firms will continue to lose market share to offshore companies that can develop IT solutions at cheaper rates. We expect this trend to continue. That said, many companies utilizing offshore services have found it to be significantly challenging and recognize holes within their process’ which provide us an opportunity to fill those gaps; i.e. Project Managers, UAT, Business Analysis. Other business challenges for the industry include:
Despite these challenges, Fulcrum is well positioned to increase market share through a focus on customer and industry diversification, a delivery orientation that puts an emphasis on quality assurance and risk management and ongoing investments in knowledge management capabilities that allow Fulcrum consultants to capture and share our collective expertise. Business Trends and Opportunities The economy has forced US companies to become leaner. This trend has created a greater demand for the services we provide. Many large US businesses now retain our services as a matter of course, not just when they perceive a problem. In fact, many of the companies we interact with have stated that their goal is to utilize more of our services in the future rather than hire full time employees; they see it as a way to get work done with the flexibility they need to downsize or change direction quickly if economic conditions worsen. Many consulting firms, including Fulcrum have expanded their areas of expertise with the goal of becoming a one-source provider of services to corporate customers. Similarly, we have had to become more flexible with respect to how our fees will be paid. With customers demanding strong ROI on consulting services, many organizations in our industry must now consider contingency payments as a part of their billing structure. Other opportunities we believe will benefit our organization include: partnerships with “select” hardware and software technology firms; development of practice capabilities in growth industries like Healthcare and the Government, and functional expertise in areas like HR to help companies attract, retain and manage the right kinds of employees. My Role and Responsibilities for Fulcrum Consulting Because consulting is highly specialized and market demand is in regular flux, I will work across the organization to anticipate future demand and continue to foster an environment where our employees can thrive and become the strongest referral engine for our organization. As our industry emerges from two challenging years, it’s easy to be blinded by optimism. There’s no doubt that the consulting profession is not the same as it was a few years back, and many questions remain as to whether it will ever be the same. The last couple of years have challenged conventional wisdom on many of the best practices for our industry. This year will be challenging, but we will continue to renew our efforts and align our strategies to the new market realities of 2010. Fulcrum is well positioned to face these new realities and will continue to be successful. Our goal and overriding company philosophy is to help our customers develop, build, and operate strong businesses that deliver sustained value to their shareholders, customers and employees and to be recognized as a premier provider of consulting services in the markets we serve. On behalf of Fulcrum’s employees, I hope you tour our website, review our offerings and see why others have chosen to work with us. We look forward to building an even stronger and more successful Fulcrum. I encourage you to contact us directly with any questions about Fulcrum Consulting and the services we provide. Eric Mahler, Founder and Managing Partner ful·crum - Definitions: 1 a : PROP; specifically : the support about which a lever turns. b: one that supplies capability for action. |
|