Managing Research for Profit Forum

The mindset in client companies is shifting towards increasing the profitability of research.
The common characteristic is broadening the range of clients that the research company works with and widening the types of services offered. There is a stronger focus on fund raising and on the contribution of marketing research to the bottom line. These are main conclusions of the unique cross MR industry forum 'Managing Research for Profit' held by ESOMAR last month.

Changes in the business environment are driving the profound transformation of the 'demand side' of the market research industry. New ways of working and organisational adaptation are having a tangible impact on the research function in many companies. Responses include relinquishing the function, downsizing the team, in-sourcing and out-sourcing, renaming, upgrading and strengthening the role. There is a need to have a better factual understanding of what precisely is going on. These were the main factors which persuaded ESOMAR to dedicate a two day forum to managing research and the contribution of research in client companies.

Important elements building to this forum were creating a better understanding of the contribution of research as a value driver in companies and identifying critical elements for the success of the research function including organisational options.

At the forum the first results of 'Marco Polo' were also presented. Marco Polo is an ESOMAR industry research project to collect up to date, in depth knowledge of corporations' needs regarding market research.

About 60 participants, of whom two thirds were from the user's side, listened to a number of cutting edge presentations with a focus on the client's perspective. They also discussed the necessary requirements to run an effective research function in an organization and reviewed possible client-side focused activity areas for follow up.

'It is our belief that setting up a cooperative dialogue between research providers and company researchers aimed at finding ways to further strengthen the position of company researchers, is very instrumental' Mario van Hamersveld (ESOMAR) said in his opening remarks. 'Therefore ESOMAR - in close cooperation with the ARF - has decided to create platforms where the two can meet and prepare concrete actions, if possible.'

John Forsyth (McKinsey), chairman of the programme committee, stressed the need to create an aspirational vision that announces the intended added value to the marketing research department and its clients.

Jorge Garcia-Gonzalez (JGG Consulting) added that to gain a place at the table, researchers should demonstrate their direct and effective contribution to the increase in shareholder value through clear performance metrics. The focus should be on 'Value Based Management'.

John Dimopoulos (Reckitt Benckiser), Sharon Spiers (Eli Lilly), Randy Emond (Philips Consumer Electronics), Raymond Hastings (Lego) and Karin Riddell (BT) dealt in detail with the contribution of research as a value driver in their companies. Considerable insight was provided on specific ways of working and the challenges faced in transforming marketing research.

The forum also featured introductions on optimizing the client side. What areas of improvement can be identified? Future open thinking as a means to reduction of uncertainty, scenario planning and systematic monitoring concepts were highlighted by Franz Tessun (FT&T).

As information technology is fundamentally changing the relationship between business and their customers, research providers are increasingly at risk from database-centred solutions. Andrew Elder (Citigate Cunningham) stated 'CRM offers compelling decision support. Market researchers should broaden the scope of their organizational influence.'

David Smith (Citigate DVL Smith) recommended re-thinking research commissioning procedures, for instance, adding more value to the problem definition and briefing process and being more pro-active in the way research presentations are managed.

In aiming to improve the client-provider dialogue there is no one-size-fits-all vision or solution. Expectations and needs might vary. Simon Chadwick (NOP) presented a taxonomy of needs. He distinguished five value added levels: primary data collection, project management, insight generation from a particular study or across multiple studies, integration of information and insights from across multiple sources and consultative dialogue based on 'knowledge management and business decision support'.

Anna Christina King (Philips Consumer Electronics) suggested providers set up exchange programs for professionals with 'buyers'. She also recommended looking outside the market research profession to build alliances with external experts and taking on the profit challenge: for instance, provider's revenues could be linked with buyer's profitability.

Forum participants identified common challenges in working groups and listed conditions for success for market research departments.

To run an effective set-up, a clear mission and vision and role is required. Marketing research should be a key partner in business decision making, have sufficient resources - budget, people- and in addition it should act on agreed sets of standards and processes. Good external relationships with partners are key. This implies finding high quality research providers that are committed to building long-term partnerships. Pro-activity, curiosity and drive for innovation were also stressed.

Participants recommended setting up round client tables - client issue meetings - and intensifying training programs. Market research industry statistics must be improved. Sharing of case studies and best practice should be promoted. The Forum could be seen as the start of a continuous process. The process should be solution-focused and leverage the results of the Marco Polo study.

The next Managing Research for Profit Forum will take place in Brussels in May 2003.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.