Determining Area of Business Focus in Consulting using the Customer Need/Competency Need Matrix.

A Customer Need vs. Competency Matrix is a strategic tool used by organizations to assess how well their competencies (skills, capabilities, and expertise) align with the needs and requirements of their customers.

It helps businesses identify gaps in their capabilities, prioritize areas for development, and ensure that they can effectively meet customer demands.

This matrix can be particularly useful for consulting firms or any service-oriented business looking to match their offerings to the market's needs.

Structure of the Matrix

The matrix is usually set up as a table with Customer Needs listed on one axis (typically the rows) and Competencies on the other axis (typically the columns).

Each cell in the matrix represents how well a particular competency meets a specific customer need, often scored or rated to show the level of alignment.

Example Structure:

Customer Needs	Competency 1	Competency 2	Competency 3	...	Competency N
Need 1	Rating/Score	Rating/Score	Rating/Score	...	Rating/Score
Need 2	Rating/Score	Rating/Score	Rating/Score	...	Rating/Score
Need 3	Rating/Score	Rating/Score	Rating/Score	...	Rating/Score
...	...	...	...	...	...
Need N	Rating/Score	Rating/Score	Rating/Score	...	Rating/Score

Elements of the Matrix

• Customer Needs: These are the specific requirements, expectations, and pain points that customers have. For example, in consulting, a customer might need project management expertise, strategic advice, or data analysis.

• Competencies: These represent the skills, expertise, resources, and capabilities that the organization or consulting firm possesses. For instance, competencies could include M&E expertise, stakeholder management, policy analysis, or training delivery skills.

• Ratings/Scores: Each cell in the matrix can be filled with a score or rating to indicate how well a competency satisfies a particular customer need. The ratings can be numerical (e.g., 1 to 5) or qualitative (e.g., high, medium, low). The scale should be defined based on how closely aligned or effective a competency is at meeting the customer need.

  
  

How to Create and Use the Matrix

1. Identify Customer Needs:

   • Understand the key needs of your target customers through surveys, feedback, interviews, or market research.

   • List the needs in a structured way, focusing on what the customers are seeking from your service or product.

2. Define Your Competencies:

   • List the core competencies that your organization offers. These should be the skills and capabilities that you are known for or wish to develop further.

3. Assess Alignment:

   • Evaluate how well each competency meets each customer need. Use a scoring system that works for your context (e.g., 1-5 where 1 = poor alignment and 5 = excellent alignment).

4. Analyze the Results:

   • Identify gaps where customer needs are not being met effectively by your current competencies.

   • Highlight areas where you are strong and can leverage your competencies to meet customer needs.

5. Develop Action Plans:

   • Focus on improving areas where there are gaps or misalignments.

   • Consider upskilling, training, or hiring to build competencies that are currently lacking but are critical to meeting customer needs.

   • Use the matrix as a guide for strategic decisions on service development, marketing, and customer engagement.

Example in Consulting

Let’s assume a consulting firm specializing in public policy and project management wants to align its competencies with the needs of government clients in Ghana.

Customer Needs	Policy Analysis	Project Management (PMP Certified)	M&E Expertise	Stakeholder Engagement	Strategic Planning
Effective Policy Implementation	4	2	3	4	5
Program Impact Measurement	3	2	5	3	4
Project Delivery on Budget	2	5	4	3	3
Stakeholder Management	3	4	3	5	4
Strategic Alignment with National Goals	4	3	4	4	5

• In this example, the Program Impact Measurement row indicates a strong need for M&E expertise (score of 5). If this is a key area for clients, the firm should prioritize maintaining or enhancing this competency.

  
  

• The Project Delivery on Budget need shows a high alignment with Project Management (score of 5), indicating a strength the firm can market.

  
  

• A lower score, such as 2 in Policy Analysis for Project Delivery on Budget, might suggest a need for development in understanding how policy considerations impact project outcomes.

  
  

Benefits of Using a Customer Need vs. Competency Matrix

• Alignment of Offerings: Helps ensure that your services are directly aligned with what customers are looking for.

• Identification of Training Needs: Pinpoints gaps where further development or training is required.

• Strategic Focus: Allows you to focus on competencies that provide the most value to customers, improving satisfaction and competitive advantage.

• Resource Allocation: Guides decisions on where to allocate resources, whether for hiring, developing new services, or investing in technology.

  
  

This matrix serves as a strategic tool for making informed decisions about developing capabilities and aligning them with market demands, ensuring that your consulting practice or business remains competitive and relevant.

Decoy Pricing - Pricing Strategy

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At the School of Consulting, we’ve always emphasized in price modeling that you should never present a client with just one price.

This forces them into a simple yes or no decision.

Instead, by offering multiple options, the client shifts their thinking to deciding which option to choose.

For example; offer pricing option for your services or products;

Option 1: $100

Option 2: $200

Option 3:$250

Another trick is to make price of option 2 & 3 so close, that option 3 appears to be a better offer.

It is called Decoy Pricing.

In the example, by making the prices of Option 2 and Option 3 very close, Option 3 seems like a better value compared to Option 2, encouraging customers to choose it over the others.

How to Retire into Consulting

Transitioning from a corporate career into consulting can be an exciting and rewarding move, offering new opportunities to apply your skills, experience, and expertise in a more flexible and entrepreneurial setting.

However, making this shift successfully requires a strategic approach and a clear understanding of what consulting entails.

At the School of Consulting, we are dedicated to guiding professionals through this transition and helping them thrive in their new role as consultants.

Here's a roadmap to help you navigate this journey;

1. Understand Why You Want to Transition

Before diving into consulting, it’s essential to understand why you're making this move.

Are you seeking more flexibility, a new challenge, or an opportunity to leverage your expertise in a different way?

Having clarity about your motivations will help you focus your efforts and define your consulting niche.

Ask yourself:

• What skills do I enjoy using the most?

• What value can I offer to businesses in a consulting capacity?

• What challenges am I excited to solve?

2. Identify Your Niche and Expertise

Consulting is a broad field, and the most successful consultants are those who specialise in a particular area. Based on your corporate experience, consider what industries or functional areas you are most knowledgeable about and passionate about serving.

Your niche might be in areas such as;

• Strategy and management consulting

• Marketing and business development

• Human resources and organisational development

• Operations and supply chain management

• IT and digital transformation

At the School of Consulting, we emphasise the importance of finding your unique value proposition and how to market yourself as a specialist, not just a general consultant. You can develop your value proposition using our Consulting Niche Finder tool.

3. Develop Consulting Skills

While you likely have valuable corporate experience, consulting requires a distinct set of skills, such as:

• Problem-solving and analytical thinking

• Client relationship management

• Proposal writing and pitching

• Project management

• Adaptability and quick learning

Our training programs at the School of Consulting are designed to help you refine these skills. We offer a combination of theory, practical exercises, and real-world case studies to equip you for success. Check for our upcoming training events @ www.schoolofconsulting.com

4. Build Your Network and Personal Brand

In consulting, your reputation and connections are key. Start building relationships with potential clients, industry peers, and influencers in your niche. Additionally, work on establishing your personal brand through thought leadership, speaking engagements, and publishing articles.

Leverage platforms like LinkedIn to showcase your expertise, share insights, and engage with your target audience.

5. Test the Waters

If you’re not ready to jump into consulting full-time, consider starting small. You can take on freelance consulting projects while still in your corporate role, allowing you to gain hands-on experience and assess whether consulting is the right path for you.

By gradually building your consulting practice, you’ll also reduce the risks associated with leaving a full-time position.

6. Plan for Financial Stability

Transitioning from a salaried corporate role to consulting involves financial adjustments. It’s important to have a plan in place for managing your finances, especially in the early stages when consulting income may be unpredictable.

Consider setting aside savings, diversifying your income streams, and managing expenses while you grow your client base.

Join our next training cohort and take the first step toward a fulfilling consulting career.