It would seem, based on the results of this year's Executive Outlook survey, that consulting firm leaders feel as confident as they have in quite some time. There's no denying they feel good about the economy and their firm's overall financial performance in 2014, and especially bullish about their 2015 forecast. After years of frustrating fits and starts, it may finally be full speed ahead for the profession.
Based on the results of our Executive Outlook survey, which measures what firm leaders are forecasting for 2015, it appears the consulting profession feels pretty good about where we are and where we're heading. At least that's the major takeaway of our annual survey, which asks firm leaders about their business over the last 12 months, as well as what they're expecting for this coming year. And there's no denying the executive outlook for 2015 is filled with optimism.
As part of the survey, we asked consulting firm leaders about their businesses, including revenue, profits, opportunities, feel as confident as they have in quite some time. There's no denying they feel good about the economy and their firm's overall financial performance in 2014, and especially bullish about their 2015 forecast. After years of frustrating fits and starts, it may finally be full speed ahead for the profession. As part of the survey, we again asked firm leaders about their businesses, including revenue, profits, opportunities and the challenges ahead. Consulting surveyed 191 Managing Directors, Partners and Vice Presidents in November and December of 2014.
Comparing last year's projections with this year's reality is a good place to start. For the year that just ended, 85 percent of executives said they actually experienced real revenue growth, even higher than the 82 percent that predicted it. And 53 percent said that the growth was higher than 10 percent, just a shade below the 56 percent who had forecast double-digit growth.
As for forecasting 2015, the numbers are looking up, to say the least. Case in point: 95 percent of executives are forecasting growth, and 89 percent are saying that growth will exceed 6 percent. In 2014 and 2013, those numbers were 77 percent and 67 percent, respectively. So, the forecasts and projections of top-line growth is significant, but does that growth make it all the way to bottom line? It does. Some 65 percent of firm leaders reported improvements to their net profits in 2013. In 2015, a staggering 92 percent of firm leaders anticipate net profits will improve, while only 3 percent say they'll be down this year. The other 5 percent say they anticipate no change in net profits. And 51 percent, up from 45 percent, say net profits will be up more than 10 percent in 2015.
As part of the survey, we asked participants to rate how concerned they are about certain internal and external issues. There, the survey showed more positive signs. For instance, pricing pressures and sales cycles were top of mind for executives last year. This time around, new client business development and client retention tops the list. Internally, the biggest concerns in 2015 are setting new strategic goals/direction, staff morale and voluntary retention. Results that point to a recovery.
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