Can a Business Consultancy Drive Impact? Real-Time Management – RTM experience

Could you briefly describe RTM, its mission, its most significant achievement to date, and your role as Sustainability Leader?

RTM is a business consultancy that stands out for its unique operational approach compared to other service companies. Founded over 20 years ago, RTM operates in Peru, Mexico, and Panama, where we collaborate with local partners to adapt our solutions to the specific needs of each market. A key characteristic of RTM is that it was established without a physical office well before the pandemic; our primary office has always been at the client’s site. Our mission is clear: to transform businesses to transform the countries where we operate. For example, we work across various sectors in Peru, such as mining, services, infrastructure, retail, fishing, textiles, and banking, creating targeted value propositions for each industry.

“Our mission is clear: transform businesses to transform the countries where we operate.“

Our team in Peru includes more than 30 professionals, mainly civil, mechanical, and industrial engineers. At RTM, we emphasize attracting young talent from universities and guiding them through an internal training program. This program focuses on professional and personal growth through mentorship, allowing consultants to rotate between different industries and roles. After spending five years with the company, they can explore new career paths within RTM or other ventures.

As the Head of Sustainability at RTM, my role involves developing and managing initiatives that address social, environmental, and business challenges with a focus on sustainability. Currently, my efforts are directed toward transitioning to sustainable models that recognize nature as a key stakeholder. Among my projects are initiatives in the Amazon aimed at regenerating the region and tackling its environmental issues.

I believe that we are successfully achieving our mission. We want to have a much more significant impact, go to the regions, and incorporate small and medium-sized companies, but we are moving forward. Some of the social and environmental impact projects we promote are evidence of this. My journey with RTM has evolved through several stages. I initially joined the company while completing my university studies. Over the years, I participated in various development and sustainability projects, collaborating with organizations such as Pachamama Raymi, UNESCO, and working in the mining sector with a focus on sustainable development. Recently, I returned to RTM to strengthen the sustainability division, foster partnerships, and build dynamic teams. I actively participate in multiple sustainability and development projects, collaborating closely with local businesses and communities.

What successful projects can you share where RTM has enhanced impact measurement and management? How does RTM propose to measure impact for companies within their strategic plans? What methodologies or tools does RTM recommend for this purpose?

As part of RTM’s social responsibility towards Peru, we have provided free consulting services to various organizations over the years. For instance, Fe y Alegría, an NGO, received a complimentary strategic plan. Pachamama Raymi, another NGO, and L+1, an organization formed by leading figures in Peru, were supported with strategy development. Similarly, Acción Emprendedora, a civil association that works with entrepreneurs in Lima, was also assisted with its strategic plan. 

One of our most significant achievements during my tenure as the Executive Director of Pachamama Raymi involved developing a strategic case study on its impact on human development in mountain and jungle communities. This influential study, conducted while I was with RTM in the sustainability sector, has been featured in academic settings in Peru and Spain. A crucial aspect of developing business methodologies is integrating community knowledge and practices. This principle is central to Pachamama Raymi’s approach, mainly through their “Raymi or The Celebration of Change” methodology, which fosters sustainable value in tandem with local communities.

Following our study, we assisted Pachamama Raymi in crafting a strategic plan that enhanced their fundraising efforts and diversified their income sources, diminishing their dependence on international donations. This plan included tools for robust measurement and management, strengthening Pachamama Raymi’s presence in Peru and broadening its impact. This includes initiatives like lifting families out of poverty and engaging in reforestation to restore soil and counteract environmental degradation.

Moreover, Pachamama Raymi has initiated successful projects like “You Buy, We Plant,” where each purchase of coffee or pastries at a renowned café in Lima leads to a tree being planted. Another initiative is the HOSEG brand, which markets jackets and contributes to warming children in need. These income-generating projects are among the many ways RTM has significantly contributed to Pachamama Raymi’s mission, marking our consulting firm’s pivotal role in Peru.  

We recently supported Acción Emprendedora in crafting its strategic plan, which we hope will begin implementation next year. RTM will continue to provide follow-up, and consultants will accompany the execution of the formulated strategy. Our impact measurement approach becomes even clearer in projects involving companies collaborating with communities and their environments. For example, we are currently working with a mining company on a strategic transformation of its operations within the surrounding community. This project focuses on helping supplier companies—primarily family-run businesses and local residents—grow and develop. These individuals, however, often have limited business knowledge. The first step in this process is a comprehensive diagnosis to understand the business. This diagnosis must be communicated effectively so that the people or companies receiving it understand its purpose and how it will benefit them. Our methodology involves working closely with the client and local communities, allowing them to assess their company’s level of maturity, for example, by rating themselves from 1 to 5 in areas such as finance or operations. This process helps them identify strengths and weaknesses, including their social impact on the community. Next, we collaborate with them to create a value chain that outlines the key processes needed for the company and the support actions required to ensure these processes function effectively, ultimately leading to measurable outcomes and a positive impact on their overall performance. With this foundation, we can measure the impact and progress made over time, typically 6 to 8 months, depending on the consultancy’s duration. Companies not only see their improvements but also prioritize areas for growth.

“We collaborate with them to create a value chain that outlines the key processes needed for the company and the support actions required to ensure these processes function effectively. This ultimately leads to measurable outcomes and positively impacts their overall performance.

In other projects, we’ve applied similar methodologies to sectors like mining, where creating a clear, concrete baseline is vital. Throughout the process, data is collected and analyzed to track progress. Additionally, we always recommend having an external evaluator conduct an independent audit to validate the social and environmental impacts achieved. This third-party assessment ensures transparency and helps identify immediate outcomes. Another essential element is digital transformation and cultural change within companies. Successful strategy implementation requires people to understand, feel motivated, and possess the necessary skills to execute the changes. This includes identifying and addressing training needs across different levels of the organization. While economic returns are often the most visible outcome, we also track social impacts. For example, we measure the cultural transformation within organizations and the extended value chain, including suppliers and other stakeholders. The information collected must be accurate, properly stored, and easily accessible for analysis. Without this, our measurement efforts would lack precision.

Finally, we suggest appropriate tools depending on the digital and human resources available in our organizations. For larger companies, we may recommend advanced tools like Empower Ambition, which tracks progress across various areas and provides comprehensive dashboards. For smaller organizations like Pachamama Raymi, we create basic tools for data collection, such as photographs, audio recordings, and Google tools, tailored to their needs and capabilities. Once the data is collected, we analyze it to ensure it reflects reality. We use follow-up assessments at specific intervals and track key performance indicators (KPIs) to monitor progress. Ultimately, the goal of social organizations is to capture the voices of the people impacted, allowing us to measure how much progress has been made.

What challenges has RTM faced in measuring and managing impact in Peru, and how do they support companies adopting these practices?

RTM has faced several challenges in measuring and managing impact in Peru. One significant challenge is resistance from organizations that may hesitate to invest in audits. Audits are part of our methodology adapted from Discovery. In RTM’s consulting structure, auditing is a fundamental part of the services offered, where companies are charged for this audit process. During the negotiation phase of a project, RTM proposes that the company return after a specified period for a follow-up audit, which typically involves one or two dedicated personnel, depending on the need. This structure is included in the negotiation to emphasize the importance of ongoing evaluation.

While some companies may initially decline the follow-up audit, they may develop a need for such evaluations over time. This underscores the importance of audits, which create substantial value and are not necessarily costly. In fact, failing to conduct an audit or evaluate commitments and actions can lead to higher costs in the long run. For organizations focused on social issues, such as NGOs or educational entities, measuring results and impact only allows access to funding. With evaluation, improving, functioning effectively, and continuing learning and growing becomes easier. Moreover, organizations may need help securing the financing necessary for sustainability. However, measuring impact goes beyond simply gathering data. It requires a deep understanding of impact and how to measure it effectively. It’s about more than just the number of workshops or training sessions; those figures do not reflect the true impact. We must assess actual life changes, continuous learning, and the tangible results of actions over time.

For companies, measuring impact is even more critical. For example, a mining company aims to gain the appreciation of the communities in which they operate to foster a stable and positive social environment. This impact is reflected in the level of community collaboration, the territory’s development, and the community’s perception of the company’s role. The goal is to view the company as another stakeholder in the territory, engaging in dialogue and negotiating the future direction of the community. In service companies, we assess impact by evaluating improvements in purchasing categories—how they buy and negotiate with suppliers and the diversity of their supplier base. This includes engaging with vulnerable groups and communities. Here, the company’s impact is measured regarding cost savings, supplier consistency, quality, and the inclusion of new sectors.

Ultimately, the metrics we analyze depend on the specific impacts we aim to assess. In business consulting, impact is often defined as direct economic benefits. In sustainability projects, however, the impact is more easily measurable through quantifiable metrics, such as the amount of plastic saved, CO2 emissions prevented, process efficiencies, or the inclusion of new team members. For instance, circular economy projects allow for precise measurements, such as the amount of material saved. To effectively measure and manage impact, members of companies and enterprises must understand each process involved. This entails communicating information clearly, in a language that resonates with them and respects their cultural context and knowledge. This challenge can be seen as an opportunity for RTM. In this process, RTM strengthens its approach by applying strategy and know-how, ensuring that the measurement and management processes are effectively executed.

Lastly, could you share who the key players are in impact measurement and management processes? Furthermore, considering RTM’s mission of “transforming companies to transform countries,” could you explain how RTM measures and manages its impact?

As you mentioned, it’s not a case of “the shoemaker’s son always going barefoot,” right? In fact, we have been working for two years towards achieving a B certification. However, it’s not solely about obtaining the certification; it’s about continuously adjusting and transforming various areas and systems within the organization. We are in the final stage, passing with solid scores in health, education, and internal training for our teams. We focus on institutional climate, goal performance, personal achievements, and team development. Therefore, everyone at RTM plays a crucial role in managing and measuring our impact.

In terms of business operations, RTM employs an impact audit methodology, commonly referred to as audits, which is applied across all projects. This approach enables us to revisit companies at different stages to measure key success indicators for each consultancy. This methodology has been essential for assessing the impact of our work.

If we achieve B certification this year, we will likely be the first business consultancy in Peru to attain this status (1). This is particularly challenging in the consulting sector, as measuring social and environmental impact is complex. Nonetheless, this process has allowed us to review and enhance our practices across different areas.

“Measuring social and environmental impact is complex […], and this process has allowed us to review and enhance our practices across different areas.

Moreover, beyond having key performance indicators (KPIs) or external reports, RTM’s long-term contribution lies in personal development. One significant achievement is that over 90% of consultants who have worked with RTM have gone on to pursue their KPIs, with 80% attending top universities worldwide. RTM serves as a training ground where junior consultants grow, acquire skills, and advance their careers. We also prioritize national talent, providing opportunities irrespective of race, language, or background. Our team represents diverse perspectives and excellence in their work, significantly contributing to the company’s mission.

Additionally, we have projects like PROBONO, through which we offer consulting services to various organizations needing our expertise. These initiatives extend to sectors such as education, with projects focused on financial literacy and entrepreneurial support, thereby helping to cultivate some of the country’s top leaders.

Key players in the impact measurement and management processes include the RTM team. We actively engage with community members to understand their perspectives and needs when conducting audits or evaluations of our partners, stakeholders, and the communities we serve. For instance, we actively engage with community members to understand their perspectives and needs when conducting audits or assessments. This collaboration ensures that our impact is measured and aligned with the aspirations of those we aim to serve. Ultimately, by strengthening our internal systems and involving external stakeholders, RTM creates a holistic approach to measuring and managing impact, reinforcing our mission of transforming companies to transform countries.

Comments:The interviewee later updated us that the company has received B Corporation certification. For more details, see this post: https://www.linkedin.com/posts/sistema-b_peraeq-sistemabperaeq-realtimemanagement-activity-7256793075056836608-G-7Y?utm_source=share&utm_medium=member_ios