Consulting services in Croatia

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Consulting services in Croatia
FEACO Annual Conference Budapest 8-10 November,
2006
Association of Management Consultants, (UPS
AMC), Croatia Anton Florijan Barisic, President
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Presentation Overview

• Croatia country overview
• Association of Management Consultants,
  Croatia
• MC market in Croatia

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ZAGREB Pop 868,000
Osijek Pop 130,000
Rijeka Pop 168,000
Zadar Pop 80,000
Split Pop 200,000
Geographical position Croatia is situated on
the cross roads between Central Europe and
Mediterranean, along the eastern coast of the
Adriatic Sea and its hinterland. It streches from
the hilly sides of the Alps on the North-West to
the Panonnian plain on the East.
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Country Overview

• Land area. 56.542 sq km
• Teritorial sea area 31.067 sq km
• Number of islands 1.185 inhabited 47
• Population (2001 Census) 4,437.460
• No of inhabitants per sq km 78,5
• Capital Zagreb 868.145 inhabitants

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Key indicators

• GDP US 35 bn (US20 bn in 1999)
• Per Capita GDP US 8,087 (US 4,028 in 1991)
• Inflation rate 2,1 (4,2 in 1999)
• Industrial output 4,6 (-1,4 in 1999)
• Investment grade rate BBB (SP), Baa3 (Moody)
• No. of active companies 68.000
• No. of registered banks 36
• No. of employees (end 2004) 1,116.000
• FDI (1994 2004) 11,3 US bilion
• Tourism revenue (2004) 8,4 US bn (2,8 US bn
  in 1999)

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Consulting services

• CEP has completed a survey of 200 enterprise
  managers in Croatia to undertake a
  first-of-its-kind market research on the
  consulting services industry in Croatia, by
  directly asking potential end-users about their
  views and plans.
• Respondents were asked questions from five
  categories
• Basic company data (to create respondent
  profiles)
• Management issues and vision
• Experience with consultants
• Plans for future use of consultants and
• Use of financing past and projected..

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Consultancy market in Croatia

• Approximately 600 consulting firms generate 70
  millions annually.
• Expected revenue growth by most firms is 5 at
  the low end and 20 at high end.
• The typical Croatian consulting firm is very
  small, usually one to four professionals, each
  employee generating about 40,000 in revenue
  annually.

Source CEP Consulting Industry Survey, 2002, AMC
Croatiia survey and estimates, 2005
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Consultancy market in Croatia

• The key sectors served are metal working,
  shipbuilding, construction, wood processing,
  textiles, food processing, tourism, financial
  services.
• Best growth is among firms with service
  specialization (HR for instance) and in major
  cities, eastern regions are less optimistic than
  central and western regions.

Source CEP Consulting Industry Survey, 2002, AMC
Croatiia survey and estimates, 2005
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Consulting services in demand
Consulting services bought have been fairly
evenly distributed with quality systems
assistance being most in demand.
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Croatian MC market demand side
What is important when selecting a consultant?
Source CEP Consulting Industry Survey, 2002, AMC
Croatiia survey and estimates, 2005
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Croatian MC market supply side

• AMC membership mostly individuals and small and
  medium consultancies (on average less than 5
  employees)
• SME sector is the largest potential user of MC
  services (state is co-generating the
  certification here)
• Several Big players are also present in Croatia
  
• Consulting for corporations
• More focused on regional collaboration than on
  national level

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Consulting services
Service portfolio Importance of services
Source AF Barisic and data from Consulting Needs
Survey Report USAID Croatian Enterprise
Promotion Activity,
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Consulting services
Supply portfolio (self-assessment by the service
providers)
Source AF Barisic survey and data from
Consulting Needs Survey Report USAID Croatian
Enterprise Promotion Activity
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Consulting services
Demand portfolio (self-assessment by the SMEs)
Source AF Barisic and data from Consulting Needs
Survey Report USAID Croatian Enterprise
Promotion Activity, Zagreb
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Consulting services
Comparison of demand and supply side analyses
Source AF Barisic survey and data from
Consulting Needs Survey Report USAID Croatian
Enterprise Promotion Activity,
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AMC Croatia

• Mission
• To promote excellence and ethics in management
  consulting using certification, education and
  expertise
• Goals
• Improvement of the quality of consulting services
• Defining of the standards and certification in
  accordance with internationally acknowledged
  standards
• Active participation in development of Croatian
  economy
• Active membership (more than 210 members, natural
  and legal persons)

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Standards for AMC members

• Main standard Ethics in business Code of
  professional conduct is obligatory for all
  members
• AMC promotes the Code towards the Consultants and
  the Clients
• Further development of AMC body of knowledge is
  underway
• Obligatory education for consultants (Consulting
  excellence, Ethics in consulting)

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Future perspectives

• Further promotion of MC services to the clients
• Croatian companies
• EU companies consultancies, consortia
• Differentiate member consultants with regards to
• Professional Ethics
• Standards
• Market development

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Future perspectives market development

• Organizational focus
• Building the capacity of AMC members to deliver
  improved management services
• Market focus
• Improving functioning of MCS markets

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Future perspectives market development

• Market refers to transactions between willing
  buyers or service users and suppliers
• Demand What do targeted clients really want and
  are willing to pay for?
• Supply More service providers products
  focused on target group
• Information readily available (needs assessment,
  services offered, quality)

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Future perspectives market development

• Its primary aim is to promote professionalism in
  the delivery of management and business
  consulting services by qualified practitioners
• Continuous activities
• Attract and Maintain Members with Professional
  Qualifications
• Market the Value of Consulting to the Business
  Community
• Provide Access to Industry Knowledge and Services
  to Members
• Provide training and professional development

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• Contact
• Association of Management Consultants
• Pavla Hatza 12, 10 000 Zagreb
• Phone [phone] ili 555
• Fax no 385 1 4897 556
• e-mail poslovni-savjetnik_at_ups-amc.org
• Web www.ups-amc.org