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Writer's pictureShola Ajani

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.

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