• Recent Posts: Influencer Relations

    Is this how the Quadrant lost its Magic?

    Is this how the Quadrant lost its Magic?

    Gartner’s Magic Quadrant is the most influential non-financial business research document. In the late 1980s, it was a quick and dirty stalking horse to provoke discussions. Today it is an extensive and yet highly limited process, based on the quantification of opinions which are highly qualitative. The early evolution of the MQ tells us a lot about the challenge of industry […]

    Saying farewell to David Bradshaw

    Saying farewell to David Bradshaw

    A funeral and celebration for David Bradshaw (shown left in this 2000 Ovum awayday photo, arm raised, with me and other colleagues) is to take place at West Norwood Crematorium, London SE27 at 2.45pm on Tuesday 23rd August and after at the Amba Hotel above London’s Charing Cross Station, on the Strand. David considered that that Ovum in that incarnation was […]

    David Bradshaw 1953-2016

    David Bradshaw 1953-2016

    David Bradshaw, one of the colleagues I worked with during my time as an analyst at Ovum, died on August 11. He led Cloud research in Europe for IDC, whose statement is below. David played a unique role at Ovum, bridging its telecoms and IT groups in the late 1990s by looking at computer-telecoms integration areas like CRM, which I […]

    AR managers are failing with consulting firms

    AR managers are failing with consulting firms

    Reflecting the paradoxical position of many clients, Kea’s Analyst Attitude Survey also goes to a wide range of consultants who play similar roles to analysts and are often employed by analyst firms. The responses to the current survey show that consultants are generally much less happy with their relationships with AR teams than analysts are. The paradox is that as […]

    Fersht: some IIAR award-winners “just tick the boxes”

    Fersht: some IIAR award-winners “just tick the boxes”

    Some of the firms mentioned by the IIAR’s analyst team awards fall short of excellence. That’s the verdict of several hundred analysts who took our Analyst Attitude Survey, and of the CEO of one of the top analyst firms. Phil Fersht left the comment below on our criticism of the IIAR awards. We thought we’d reprint it together with the […]

Managing the AR budget in a recession

icon-budget-cuts-105w.jpgWith all the turmoil in the economic scene, we have been getting inquiries about how to manage the analyst relations (AR) budget in a recession. This post is a roundup of content we have published on the SageCircle blog on the topics of budgets and spending. 

This content is the tip of the iceberg when it comes to the full set of intellectual property SageCircle has generated on these topics. There is more written research and SageToolsTM in the Online SageContentTM Library. There is also an AR Team Briefing on managing budgets in a recession. Finally we recommend that Advisory clients, either Blocks of Advisory Hours or Annual Advisory, schedule inquiries to discuss the budget implications of the economic uncertainty.

Purchasing Analyst Services, a six-part series:

  1. Using five rights to avoid a wrong when it comes to purchasing Gartner or Forrester services
  2. Right reasons – Evaluate why you are purchasing analyst services
  3. Right services – Align the services you buy to better match the reason for info or advice
  4. Right firms – Search out alternative services providers that better match your reasons
  5. Right price – Acquire those services that meet your basics requirements
  6. Right usage – Drive usage of the services you buy to ensure maximize business value

SageCircle Technique:

  • AR should take a zero-based budgeting approach to any expense reduction exercise with everything on the table
  • AR should revisit its charter, objectives and priorities to ensure that they are aligned with the company’s strategy and tactics, especially if the company strategy is changing
  • AR should examine every expense for its relevance to AR’s objectives and cut those that should be handled by another budget
  • Annual analyst contracts should be scrutinized to make sure that everything in the current and prior contracts was fully utilized with underused items cut from the new contract. This will produce howls of protest from the firms’ sales representatives but will not impact analysts opinion

Bottom Line: Budget cutting is never painless and is fraught with political challenges. However, taking a systematic approach rather than generic across-the-board cuts can produce significantly better outcomes.

Question:

  • Analyst firm sales executives – Are you working to ensure that every part of your contract is getting fully utilized and delivering visible business value?
  • Analysts – How does budget cutting that impact your firm’s contract affect your opinion of the vendor?
  • AR managers – How do you approach budget cutting? How much of your current spending really belongs in someone else’s budget?

2 Responses

  1. This is music to our ears here at MWD. We may not have coverage as broad as that of the gorillas, but in our areas of expertise we’re tough to beat. We move faster and we’re more flexible, too. And because our overheads are *way* lower we can be significantly more cost-effective than those gorillas.

    Now, as long as everyone behaves rationally, we’ll all be fine… oh no, hang on…

  2. There I was, just thinking “I wonder if anyone has written a guide to dealing with analysts in this climate… let’s take a look at Sage Circle.” and lo and behold…

    All good stuff Carter, wise words indeed.

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