Interview with the Founder – Reflecting on 2024: A Year of…

Questions on The Industry and Market Outlook

You mentioned that 2024 was one of the most challenging years for you both personally and professionally. Was this due to shifts in the market landscape? How much did the economy play a role?

The year 2024 was undeniably challenging for many, marked by significant economic difficulties both globally and regionally. The stark reality is reflected in the numbers: over 11,000 German companies filed for bankruptcy by mid-year, a 25% increase and the highest in eight years. Similarly, Sweden saw 9,200 bankruptcies, a 24% rise from 2023 and a 64% increase from 2022.

In the GCC, 2024 presented a mix of ambition, adaptation, and intense competition. Countries in like UAE and specifically KSA made progress with their Vision 2030 plans, and major events like Expo 2030 and the 2034 World Cup set ambitious goals with strict deadlines. However, global challenges led to adjusted timelines for projects like NEOM’s The Line, and tightened government spending forced businesses to scale back and rethink strategies.

The global recession drove international companies to the GCC, particularly Saudi Arabia, to offset losses. This influx boosted investments but also heightened competition, increasing client negotiation power and compressing profit margins. Additionally, supply-demand imbalances became evident, especially in the F&B sector, leading to oversaturation and closures.

Does the same apply to the consulting industry?

Major consulting firms faced significant challenges when it comes to growth, and many senior partners even opted for early retirement, citing the challenging outlook for the industry. Financial Times reported that consulting divisions grew by just 1.9%, compared to 19.1% the previous year. This deceleration was primarily due to reduced demand in the Americas and Asia amid challenging economic conditions.

Conversely, the GCC demonstrated robust growth, with the consulting market expanding by 13.2% in 2023 and an additional 11% in 2024, bringing its size to over $6 billion. This growth was driven by economic diversification initiatives and large-scale projects in the region, which increased demand for consulting services. However, the influx of major international consulting firms into the GCC—especially Saudi Arabia—intensified competition, making growth less tangible for many firms. Adding to this challenge was a shift in client needs, expectations, and requirements, which many consulting firms struggled to adapt to effectively.

So what’s your perception for 2025? Will we have a different outlook?

I’m cautiously optimistic about 2025. While the first quarter might still reflect residual challenges, I believe 2025 will have a good come back  and we’ll see a market correction by mid-year, particularly in the GCC. Early signs of recovery were already visible toward the end of 2024.

In fact, at HEED, we have ambitious growth plans for 2025. We’ve learned a great deal from the market shifts and have adjusted our offerings, approach, and speed of execution to align with the evolving landscape.

What trends are shaping the consulting industry this year?

If you are referring to trends in clients’ needs, we have seen a notable increase in inquiries related to digital transformation.

Also, Gen AI has fundamentally reshaped clients’ needs and expectations from consultants. Traditional consulting approaches, which focus on framing knowledge, problems, and solutions, are no longer sufficient. Clients now demand pragmatic, actionable solutions that are deeply integrated with technology. Additionally, there is growing urgency for results; while clients seek sustainable solutions, they also expect quick results, which adds to the challenges faced by consulting firms.

There’s also a greater emphasis on the personal touch through the engagement. They’re looking for partners, not just advisors—firms that can co-create value and take ownership and being accountable for results and thus be reflected in the pricing structure – shift towards performance-based models.

Questions on The Impact of Technology and Business Adaptation

What are the top CEO priorities for 2025?

 

1. Generative AI Adoption: 90% of C-suite executives claim that generative AI has emerged as a top priority; however, integrating it effectively remains a significant challenge for many teams. While there is widespread agreement on its importance, 66% of leaders express ambivalence or dissatisfaction with their progress in adopting AI and generative AI technologies; many are reluctant to embrace it, and they are still testing the ground.
   By the way, to address these challenges, we are hosting a webinar at the end of January in collaboration with IdeatoLife, a firm specializing in deploying deep-tech and AI solutions.
2. Talent Acquisition and Development: In addition to technology integration, talent acquisition and development remain critical priorities for leaders in the GCC region. The focus is on fostering continuous employee growth to adapt to rapidly changing market demands.
3. Performance and Productivity Optimization: Moreover, improving performance and productivity continues to be a key objective, as organizations seek to enhance their operational efficiency and achieve sustainable growth.

How has Generative AI disrupted or enhanced the consulting industry in 2024?

I do not think we have seen a lot of disruption yet here, but there are no doubts it brought new capacity and ways to enhance the quality, optimize resources, and speed up the time for delivery.

As a CEO of a boutique consulting firm, I would say Covid (and remote working) along with Gen AI, were the key to HEED’s growth.

How has HEED adapted to all those challenges?

Thank you, allow me a moment to reflect on these changes and explain how we have adapted both internally, by evolving our ways of working, and externally, through enhancements to our offerings.

INTERNALLY

• We’ve always embraced a model that avoids full-time, on-site consultants, as we believe this approach enables our consultants to maintain the objectivity of an external perspective while staying efficient and responsive. Remote working has strengthened this model, allowing seamless client engagement from anywhere.
• Additionally, AI has allowed us to shift from a traditional pyramid structure (where entry-level roles dominate manpower) to a diamond structure, which emphasizes experienced consultants. This aligns with our boutique culture and reinforces our personal-touch approach.

EXTERNALLY

• The shift in client expectations towards demanding measurable impact and tangible results, coupled with fierce competition, has compelled consulting firms to prioritize execution and link a portion of their fees to success. This shift aligns perfectly with HEED’s mission, established in 2011, to actively follow through on execution. Over the years, we have built a strong team culture that thrives on navigating client-side challenges to ensure success. Our proven track record of delivering impactful results gives us the confidence to align our fees with client outcomes.
• Additionally, clients are increasingly seeking quick, impactful results while maintaining a focus on long-term sustainability. To address this, we have revitalized one of our flagship programs, Science into Sales, now reintroduced as Atomic Sales 2.0. This enhanced program has already generated significant interest among clients, and we anticipate that by Q3 2025, HEED’s sales enablement services will evolve into a standalone entity, reflecting its growing importance and demand.
• Finally, the combined effects of COVID-19, the digital transformation era, and advancements in AI have reshaped the consulting landscape, placing a greater emphasis on integrating AI-driven solutions. HEED has achieved considerable success in helping organizations transition their sales functions to next-generation, AI-powered models. We’ve supported clients in leveraging AI across various stages of the customer journey, and we look forward to sharing more insights during our upcoming webinar on this topic. Stay tuned!