Of the 14 categories of major investment decisions made by corporations, management consulting was the highest ranked for involvement by CEOs.
Independent research demonstrates that CEO involvement in the purchase of Consulting services is significant. In companies that use management consulting services, 96.9% of CEOs are personally involved in at least one stage of the purchase and firm selection decision. CEOs are most heavily involved in the Final Stage of the purchase decision, during which firms are selected and approved, at 77.5%.
CEOs also have significant involvement in the earlier stages of the consulting procurement process. 39.8% of CEOs are involved in the early stage, during which needs are identified, and 44.5% are involved in the middle stage, during which firms are evaluated and compared.
For 2013, 67.1% of CEOs anticipate spending on Management Consulting Services, with an average spend of $667,000.
The involvement of the CEO has a positive effect on the purchase of services including consulting. When the CEO is involved in a purchase decision, the likelihood is greatly increased that the organization will forward quickly in the evaluation and adoption process (+92.3%), it will become a priority that others in their organization will give serious consideration to and remove roadblocks in the evaluation process (+91.5%), and ultimately become a reality (+89.4%).
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