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Build an operating model: They develop a deep bench of internal talent, external partners and technical advisors whom they can draw upon to source information, advise on trends, and work with ‘target’ companies. They also proactively address issues that are likely to arise between sector teams and clarifying procedures for sharing resources. Conversion into Investment Themes Expertise in a sector is a necessary but not sufficient precondition for identifying high value targets, a crucial element in sector-strategy success and a thorny implementation challenge. To get ahead of the curve, smart sector teams take a fresh-eyed look at their areas of interest. They gather unbiased information from the field by interviewing customers, suppliers, competitors and creditors to build a deep enough understanding of a sector that can point them to concrete, counterintuitive themes and different types of added value. Recognizing that it can be risky venturing too far ahead of the competitive curve, they test their themes by looking for successful ‘‘Many professional firms shy away from certain types of work, such as ones in businesses with fastchanging technology or high cyclicality.’’ was ready to pounce. Beating stiff competition from strategic and financial buyers, it landed the deal in mid-2012 and helped merge it with a major existing client. The firm had no trouble convincing management of both companies of the merits of the merger, thanks to its deep knowledge of the sector and well thought-out model(s). precedents in similar sectors before committing to a novel idea. They continually gather new evidence to challenge and fine-tune their themes. For example, a leading European professional firm converted insights in the specialty chemicals industry into a profitable thesis that caught the sector’s consolidation and globalization wave. Through research and direct contacts with industry executives in early 2012, the firm liked what it found: a stable market, strong cash flows, high profit margins and relative resistance to business cycle gyrations. When a major conglomerate announced in late 2011 that it would sell off its specialty chemicals division, the professional firm Arming your brand with the Concepts and tools that connect to the East African Market Continuing to mine the consolidation theme, the firm engineered further selective acquisitions and used its scale to achieve top-supplier status with more key clients. Professional firms that successfully retool themselves around industry sectors will be well positioned when the credit clouds lift and the market truly rebounds. Tomorrow’s winners will be those that are ready to execute best. Dr Clifford J Ferguson is the Managing Partner of Rainmakers, and chairman of Glad’s House. He can be reached via mail on: Cliff.Ferguson@rainmakers. uk.com, or website; www.rainmakers. uk.com. Nandi Impressions Ltd. The Marketing & AD Agency Concepts | Branding | Signage | Print +256 414 598105 [email protected] www.nandiimpressions.ug