In a sense, as they look for growth, utilities are going back to basics with consultants, ensuring flashlighttheir companies get the most bang flashlight for their consulting buck. Consultants are responding Mini Flashlight to those expectations, and that means that service offerings are changing. (see the sidebar, "Consulting Confidential.") Consulting Market Snapshot Most of the consulting firms vying to help utility clients develop and execute strategies to address the complex combinationflashlight of pressures confront a unique set of pressures of their own. The overall consulting market continues to expand, flashlightalthough closer scrutiny indicates that the polarization of the profession into highly successful firms and firms struggling to survive, a trend that emerged during the last recession, continues. In aggregate, the typical consulting firm grew by an average rate flashlightof 2 percent in 2004, according to Jess Scheer, editor of Kennedy Information's Consultant News. Scheer expects the average growth rate for 2005 to increase slightly, somewhere between 3 percent and 6 percent.
Yet, classifying a consulting firm as "typical" these days is risky business. Boutique firms that specialize in rate case expertise are booming, as are select strategy firms that manage to differentiate their services as unique or "higher value." Few, if any, firms aggressively promote systems integration initiatives Rechargeable Flashlight or large technology projects, with the exception of automated meter reading (AMR) initiatives. Even consultancies traditionally flashlightknown as information technology (IT) firms don't quite sound like IT firms in their positioning; rather, they are promoting transformational projects, process-improvement initiatives and, in some cases, outsourcing. Transformation now comes in several different forms including flashlightoutsourcing, post-merger integration and smaller, more manageable initiatives best described as "transformation life." Instead of an outsourcing transformation that involves most back-office accounting processes, companies seem more likely to start by outsourcing a single accounting process (such as accounts payable). Process improvement and operational improvement initiatives also tend to be more focused and less expansive. Seasoned, highly focused energy-sector expertise is in high demand-but so is the need for new flashlightthinking, fresh ideas, and a broad collection of diverse expertise. flashlightDespite a distinctly modest overall growth rate, 30 percent to 40 percent of flashlightconsulting firms are thriving, posting annual growth rates above 10 percent, according to Scheer. Another 30 percent to 40 percent of firms are struggling. For his research, Scheer divides the consulting industry into four sectors according to their primary offerings: IT, human resources (HR), strategy, and operations management. In addition, each Battery Flashlight of those flashlightcategories appears to be splitting in two, with several firms that offer unique, highly customized, intellectual-capital-heavy products occupying the top half and the firms whose services are quickly becoming a commodity occupying the lower half.