currently capture 8% of the total market; more than 700,000 organizations combine to capture the remaining 92%, representing approximately $205 billion. IPM’s projected 2018 revenue represents a very small percentage of this market. In 2017, year-over-year industry growth was 4% while IPM’s was 11% (2016 – 2017); in the four-year span from 2013 to 2017, it was 62%, compared to 16% industry- wide. IPM’s competitors include sole proprietors, small boutique firms, medium-to-large consulting firms, and client PM groups. As PM has gained recognition, large consulting firms have placed a greater focus on selling it. Conversely, IPM has broadened our focus, emphasizing providing business solutions and leading more complex strategic projects. P.2a(2) Competitiveness Changes IPM’s leadership maintains awareness of competitive trends in PM services to drive strategic planning and action. Some notable recent trends: 1. The commoditization of PM is increasing as the PM process is well understood. More project managers are being commissioned through educational institutions, internal company training programs, and through PMP certification preparation. 2. The number of competitors has increased. 3. The widespread failure of internal efforts to establish high-performing Project Management Offices (PMOs) is leading companies to outsource part or all of this function. 4. The outsourcing of procurement to managed services providers – third parties that handle negotiations of all contracted agreements – is increasing among large companies as a means of reducing consulting costs. 5. Organizations are struggling to evolve their strategy and keep up with rapidly changing market conditions affecting their businesses. There is an increasing need to rapidly transform high-level strategies to discernable, sustainable results. IPM’s strategic initiatives (our internal term for action plans ) are intended to counteract the trends that represent threats and capitalize on those that represent opportunities. The ability to develop solutions, execute them reliably, and embed change management to achieve and sustain the desired results and performance is a significant differentiator. This service feature, along with the quality of our people, Company longevity and reputation, and the overall added value of IPM’s composite capabilities, positions IPM between the very large consulting firms with their very high price points and the small and boutique firms that lack the support infrastructure and broad consulting capabilities. We “look big and can play big” and have a substantial value-to-price-point advantage. P.2a(3) Comparative Data Since our primary direct competitors are privately held consultancies, they do not publicize information pertaining to their performance, HR data, or customer satisfaction. Some
P.2 Organizational Situation P.2a Competitive Environment P.2a(1) Competitive Position
IPM was established well before PM was recognized as a distinct profession and before the Project Management Institute (PMI) had published The Guide to the Project Management Body of Knowledge (PMBOK) or the Project Management Professional (PMP) certification was widely acknowledged. Throughout our history, IPM has planned and executed critical initiatives for some of the biggest companies in the world, reliably delivering project results and creating a positive legacy experience for project participants and stakeholders. This has been accomplished through both the project achievements and the environment created to ensure success (the IPM Experience), one comprised of caring, collaboration, cooperation, and professionalism. IPM’s reputation has been built on our ability to execute consistently and perform in an honest and ethical manner. A conduct statement based on IPM’s values is included within every proposal to establish a relational framework for each engagement. IPM has evolved the Company’s capabilities and our market positioning to obtain critically important strategic projects. Execution competency, subject matter expertise, problem- solving dexterity, and conduct aligned with our FV have allowed IPM to compete with “big” consulting firms, and further distance ourselves from project scheduling and coordination and other more tactical applications of PM consulting. The progression of KPM is another factor in IPM’s marketplace differentiation, as it has had a tremendous impact on quality, continuous improvement, and most of all, employee development. A significant body of knowledge – accessible via The Hub, IPM’s SharePoint site – has been developed and is a valuable resource to our PMCs, each of whom is on-boarded through a rigorous process. All employees are provided training on an ongoing basis. KPM has additionally developed a broad range of processes and tools to enhance efficiency of operations and expose clients to PM best practices. Unlike many other small and mid-sized consulting firms, IPM’s model employs full-time, direct employees rather than augmenting staff with independent consultants during high- demand times (flexible staffing model), thus preserving IPM’s quality standards and reputation. Instead of assigning someone who has not been thoroughly vetted to a client, IPM chooses to turn down business rather than risk poor performance or employee behavior inconsistent with our FV . To determine IPM’s relative size and growth, we have used data from IBISWorld, a business intelligence leader specializing in industry market research. The consulting industry as a whole was projected to generate $223 billion in revenue in 2017. Three of the largest firms – Accenture PLC, McKinsey & Company, and Deloitte Touche Tohmatsu –
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