Está en la página 1de 9

ENSR International

by: Section A, Group 7

with a Total Gross Sales of $ 219 million (it was $ 218.59% only . ENSR completed approximately 3000 projects.background o Started in 1968 by atmospheric scientists Norman Gaut and James Mahoney to help firms deal with new air quality requirements and regulations o In 2000.3 billion (US alone) o % Revenue Market Share (RMS) for ENSR in Environmental consulting industry – 1% o % RMS for ENSR in their niche (DES) is 4.4 million in 1999) o Net sales after adjusting for subcontractor fees is $ 142 mil for 2000 and $ 137 mil in 1999 o Total market size for the year 2000 was $ 24.

Remediation/Integrated Site closure. Process Engineering. Water Quality.background o Consulting is majorly done along 8 service lines o Air Quality. Capital Projects Planning o ENSR’s client sector was well diversified (although there wasn’t any explicit intention for the same) o Organization: By 2000. Impact Assessment. Environmental Health and Safety (EHS). of which 15 were dedicated to management and 300 administrative staff) o Culture: o Employees were in this not just for money but also for a sense of satisfaction of giving something back to the society (“doing good”) . Due Diligence. ENSR had 1200 employees (900 of them were consultants.

the Seller-doer will have to appraise the MEA . staffing and developing incentive compensation of the consultants in that CSC o Profitability = (No of hours billed by each consultant * Hourly rate) – total costs o 100 designated Seller-doers (70 CSC Managers and 30 Senior Level consultants) whose primary objective is to build strong relationships with the MEA of client organization o As a part of this. Seller-doers and Compensation o ENSR was organized along geographic lines.CSC. o of the various works that were/are being done by ENSR’s other CSCs to that client o That ENSR worked with similar clients o ENSR’s coverage (active and adequately staffed CSCs across the client’s territory of operation o That ENSR understood the client’s business o And most importantly. that ENSR did good work . with each office named as Client Service Center (CSC) o Each CSC was run by a CSC Manager (15 years of consultant experience) who is responsible for the profitability.

ENSR won half of those o Ten percent of the projects were awarded as a Single Source contract . the vendor selection by the client is done either on the basis of price ( if the Purchasing department felt that the consulting firms were on equal footing in terms of quality) or a joint decision by a team o One third of the RFPs never materialized into a project. and of the remaining two thirds. CSC manager assigns a Proposal Manager to formulate a bid o An average proposal team has 3-4 consultants and if required. sometimes more including people from different CSCs and with different backgrounds o After submission of bid.The Buying Process o Client organization sends an Request for Proposal to various consulting firms o On receiving a request.

Present Objectives and Issues o Objective is to improve Bottom line Issues o Sales has been flat for 2 years o ENSR has been losing projects to Hughes-Hailey (including the lucrative Westchem project) o Utilization rates in some CSCs are very low (Camarillo. contacts and testimonials these projects can bring in o CSCs working in silos and each CSC cares only about their profitability and not the company’s o Three proposals at hand . CA has a utilization rate of 42%) o ENSR is winning only 1/3rd of the projects to which it submits a bid (or 50% of the projects that get commissioned). This implies that they are potentially losing out on business worth of $ 200 million very year and also the additional single source businesses.

and to bring in business o Compensation based on the volume of business they bring in Advantages: o Consultants can go back to consulting and leave the business development part to the BDO’s o ENSR has an experience of BDO and hence it won’t be difficult to implement o Doesn’t require major restructuring of the firm Disadvantages o BDO on its own doesn’t address the problem of CSC’s working in silos o BDO doesn’t address the problem of CSC losing out on 50% of the projects that eventually materialize o Doesn’t result in a very strong relationship with firms either .Pros and Cons of each Proposal Reintroducing BDO o BDO’s are paid solely to sell.

developing relationship with MEA etc) o Subjective criteria to be included when the deciding the bonus Advantages: o Incentivize the consultant to take more risks and to go after big deals o Doesn’t require major restructuring of the firm o Encourages the consultant to spend more time with clients and strengthening these relationships Disadvantages o Doesn’t address the problem of CSC’s working in silos. o each consultant is going to worry about the profitability of his/her CSC because the CSC managers incentive is still tied to it .Pros and Cons of each Proposal Changing incentive structure of consultants o The present compensation structure doesn’t take into the account the non-billable yet important work put by the consultant (like preparing bidding documents.

Profitability calculations will be done at the central level Advantages o Removes the silo mentality and forces each CSC to look for new businesses . and each team liaising with MEAs of a client o The new department should try and develop a relationship with the clients and also help coordinate the consultants of ENSR across US Compensation Structure: o A consultant would be compensated purely on his/her utilization rate o Each CSC manager’s incentive will be calculated based on the utilization rate of the consultants of his CSC o This compensation plan would also abolish the existing system of treating each CSC as a profit center o In the new model.Pros and Cons of each Proposal Key Accounts Program – Our Proposal o Develop a database of companies who contribute more than 5% of the ENSR’s total revenue and .pre than 20% of CSCs’ revenue – Key Account* o Create a new department at a central level with teams of people.