Pricing and people analytics at PSF consulting
Marie Bernard, the recently appointed CEO of PSF Consulting, was determined to leave her mark on the company she had tirelessly served for more than two decades. And while for most of her predecessors that meant relentless growth, expansion into new countries and industries-a need she was certainly aware of-her focus had recently turned inward, to the "inner workings" of the company. Two issues stood out to her from her tenure as Managing Director for Western Europe: the way the company handled workforce planning (people being its most important resource and asset) and project bidding. Both functions were based on principles of transparency and consensus and did not seem to cause any problems. But Marie was keenly aware that the two functions were operating in a disconnected manner, when common sense would suggest that they should be closely coordinated. To Marie, the current way of working seemed to sacrifice productivity and profitability for the sake of simplicity, and did not take advantage of the vast amounts of data the firm had on past engagements and clients. As she prepared for her first face-to-face executive committee meeting in her new role, she wondered how she could synthesize these ideas into a coherent initiative that would win over the firm's senior leadership, and how hard to push if she encountered resistance.
Collection: IESE (España)
Ref: OIT-37-E
Number of pages: 8
Publication Date: Feb 21, 2024
Language: English
Review date: Sep 18, 2024
What material is included in this case:
Description
Marie Bernard, the recently appointed CEO of PSF Consulting, was determined to leave her mark on the company she had tirelessly served for more than two decades. And while for most of her predecessors that meant relentless growth, expansion into new countries and industries-a need she was certainly aware of-her focus had recently turned inward, to the "inner workings" of the company. Two issues stood out to her from her tenure as Managing Director for Western Europe: the way the company handled workforce planning (people being its most important resource and asset) and project bidding. Both functions were based on principles of transparency and consensus and did not seem to cause any problems. But Marie was keenly aware that the two functions were operating in a disconnected manner, when common sense would suggest that they should be closely coordinated. To Marie, the current way of working seemed to sacrifice productivity and profitability for the sake of simplicity, and did not take advantage of the vast amounts of data the firm had on past engagements and clients. As she prepared for her first face-to-face executive committee meeting in her new role, she wondered how she could synthesize these ideas into a coherent initiative that would win over the firm's senior leadership, and how hard to push if she encountered resistance.
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Year: 2023
Geographic Setting: France
Industry Setting: Consulting and Professional advice
Learning Objective
The case focuses on the interplay between pricing and workforce planning, and the use of advanced analytics in both, in the context of a large management consulting firm. It is a rather flexible case that can be used in different ways depending on the audience: (i) Using the accompanying data set, it can be used to illustrate pricing analytics methodologies such as consumer choice modeling, segmentation, and price optimization. This use may be more appropriate for an elective course at the MBA or Master in Management level, or at the undergraduate level; (ii) alternatively, the case can be used to motivate an open discussion about the productivity and profitability gains that can be achieved through the use of advanced analytics - here in pricing and HR - and the organizational changes and change management initiatives that this adoption may require. This use may be more appropriate for a more senior executive audience.
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