There has been much discussion across the global industry analyst relations sites of late about what makes a great boutique analyst firm. While I agree with much of the discussion I couldn’t disagree more about the role of the star analyst. I actually believe that star analysts gave the industry a bad name and are a poor substitute for the long-term sustainable management of any professional advisory company. 

However, I do believe the cultural influence that great analysts can add to a company is unassailable. I’ll be the first to admit that I hired the guy with the highest standards in the industry and that working hard to keep him happy in terms of IP, customer standards, and culture has been a driving force in our success. But let’s drop the self-delusion. Not all star analysts think alike, and I think the best of them realise that they are ultimately a cog in the wheel.

There are basic things that simply constitute a ticket-to-play in the analyst industry and I don’t know why we continue to get caught up talking about stars. I think it is because, as Kevin McIsaac recently pointed out, that analysts haven’t always had a depth of experience in management and ironically find it difficult to not take an over-simplified view of it. 

Companies need great people, a great brand, great products and services, great management, great processes, and a great customer-focused culture. In that regard every boutique firm should have people that customers consider a star with an amazing catalogue, but should those stars define the record label or movie studio? The answer is no.

Outside of a farmer’s co-op, a firm built simply of star analysts sounds like the flimsiest of business models to me. It has actually been written about in-depth as a key inflection point in McKinsey’s history at the point-in-time it parted ways with Tom Peters in the 80’s. Great firms and stars can only operate for so long together when the latter out-thinks the formers approach to culture, collaboration and most importantly teamwork.  

Decisions regarding analyst relationships have actually got easier as more boutiques come into the market. They tend to be either co-ops of sole trader individuals, or stand-alone brands with employees. The distinction is easy. One can stand without the other.

But even in traditional co-operative models of primary production such as wheat, sugar, milk or any other produce, the Dairy Board, or Wheat Board demands a strict code of conduct and unity within ranks. Co-opted analyst boutiques seem more to be temporary refuges for individuals rather than genuine advisory brands which may cause some concern for end-users seeking decision support.

The great wonder of ICT industry analysts is not the product or the people but the context defined by the customer’s market. I actually think that customer demand has hardly changed at all. They want data, advisory, analysts, events, and support. They just want it on a more personalised, geo-targeted market basis.

For years while at META Group and Forrester all that the customers wanted in this region was the same thing delivered by the US firms but targeted for the geography in which they operated. I had that chat with George Colony shortly before leaving Forrester and would still be there today (god willing) if there was scope within the business model and share-holder responsibility to deliver it. But there wasn’t and I still don’t consider that a failing of the Forrester or Gartner business model. It is too hard and pointless to argue with success on that scale. So ultimately with boutiques, the question is whether brand is better than an A-list star or a few co-opted B-list support stars?

In pure management practice the well managed brand (the model we have chosen) that is not beholden to stars simply provides more surety for a company director’s legal responsibility to annual corporate regulator checklists as well as for the customer and resource structure of everyone else in the firm.

What is wrong then with a traditional analyst firm delivered with renewed vigour and focus? From where we stand, there is very little other than patience, good strategy, great product and a little bit of luck. While star analysts given free reign will continue to do well, they are not an innovation, nor ultimately the sustainable future of our industry.