What changed in this filing

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Item 1. Business

2022-03-04 compared with 2021-03-12 · 46 added, 45 removed, 208 unchanged (30% of the section changed)

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We were originally incorporated on April 23, 1997.

The Hackett Group is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm serving global companies.

The Hackett Group is an intellectual property-based digital transformation consultancy and leading enterprise benchmarking and best practices implementation firm serving global companies.

Services include benchmarking, executive advisory, business transformation, and cloud enterprise application implementation.

The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle and SAP practices.

The Hackett Group has completed nearly 20,000 benchmarking and performance studies with major organizations, including 97% of the Dow Jones Industrials, 94% of the Fortune 100, 70% of the DAX 30 and 51% of the FTSE 100.

These studies drive our Digital Transformation Platform (“DTP” or “Hackett DTP”) which includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enable The Hackett Group’s clients and partners to achieve world-class performance.

These studies drive our Digital Transformation Platform (“DTP” or “Hackett DTP”) which includes the firm's benchmarking metrics, best practices repository, and best practice configuration and process flow accelerators, which enables our clients and partners to achieve world-class performance.

The rapid development and move to cloud applications and infrastructure along with improving analytics, mobile functionality and enhanced user experience is dramatically influencing the way businesses compete and deliver their services.

This was further accelerated by the necessity to work remotely as a direct result of the COVID-19 pandemic.

This is redefining entire industries at an accelerated pace, forcing organizations to fundamentally change and adopt these new capabilities in order to remain competitive.

This is redefining entire industries at an accelerated pace, forcing organizations to fundamentally change and adopt new capabilities in order to remain competitive.

Traditional sequential and linear-based business models are changing to fully networked and dynamic automated workflows and events with enhanced analytics.

This era is very attractive to our sector since we believe clients will increasingly require organizational and technology implementation insight on what technology can deliver and what changes in business models are required to justify significant investments.

This digital transformation era is very attractive to our sector since we believe our clients will increasingly require organizational and technology implementation insight on how to digitize their businesses and what changes in business models are required to justify significant investments.

We have repositioned all of our offerings to the emerging digital transformation opportunities which started by digitizing all of our benchmarking and best practices intellectual property (“IP”).

We wanted to deliver our proprietary insight in new ways and to do so efficiently and whenever possible, virtually.

We wanted to deliver our proprietary insights in new ways and to do so efficiently and whenever possible, virtually.

This also required us to change the way we go to market and engage clients, as well as added additional software implementation partners.

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We have also expanded our alliance partners to include Coupa and Ariba in Procurement, as well as OneStream in EPM and Corporate Performance Management (“CPM”).

In regard to SAP, we were an early provider of S4 HANA which has allowed us to quickly transition our implementation skills and benefit from the SAP migration to the Cloud.

Launched Quantum Leap™ (“QL”) – We launched our next generation benchmarking and continuous improvement software as a service solution.

In regard to SAP, we were an early provider of S4 HANA which allowed us to quickly transition our implementation skills and benefit from the SAP migration to the Cloud.

Launched Quantum Leap™ (“QL”) – In 2017, we launched our next generation benchmarking and continuous improvement software as a service solution.

This market leading benchmark solution allow s us to improve the client experience by delivering twice the insight and reducing the client effort by half, thus redefining our benchmarking leadership.

It covers over 100 enterprise process areas, across 20 industry groups on an end-to-end, functional or individual process basis.

Launched the Hackett DTP – We have digitized our IP and changed the way we share and deliver our IP with our clients across our benchmarking, advisory, transformation and Cloud Enterprise application solutions.

The Hackett DTP accelerates the speed to benefit realization by helping an organization achieve their performance targets through a combination of benchmark metrics, best practices and software configuration and process flow accelerators delivered in a fully automated platform.

The Hackett DTP accelerates the speed to benefit realization by helping organizations achieve their performance targets through a combination of benchmark metrics, best practices and software configuration and process flow accelerators delivered in a fully automated platform.

Expanded our IP as a Service Revenue - We believe our QL and DTP platform should allow us to attract new alliance partners that can leverage our unique benchmarking and best practices IP to help them differentiate and sell their software or services solutions.

Expanded Smart Automation Capabilities – We expanded our ability to help clients assess and implement the rapidly emerging Workflow and Robotics Process Automation (“RPA”) and related smart automation technologies.

Expanded Smart Automation Capabilities – We expanded our ability to help clients assess and implement the rapidly emerging Workflow Automation, Process Mining and related smart automation technologies.

Launched the Hackett Institute and acquired the joint venture interest of our Certified Global Business Services (“CGBS”) Program - We moved our training content to a state-of-the-art learning management system, which we believe is better aligned with our client demands.

We continue to expect one of the key drivers for our growth to come from the growing leverage of our “wedge” or IP as a Service offerings, which include our Benchmarking and Best Practices Advisory, and our IP as a Service offerings which are enabled by our QL and DTP platforms .

We continue to expect one of the key drivers for our growth to come from the growing leverage of our “wedge” or IP-as-a-Service offerings, which includes our Benchmarking and Best Practices Advisory, and our IP led offerings which are enabled by our QL and DTP platforms.

OUR PROPRIETARY BEST PRACTICE IMPLEMENTATION INTELLECTUAL CAPITAL

Hackett uses its proprietary benchmarking enterprise performance metrics and best practices repository intellectual capital to help clients improve their performance.

Our benchmark offerings allow clients to empirically quantify their performance improvement opportunity at an actionable level.

Our benchmark offerings allow our clients to empirically quantify their performance improvement opportunity at an actionable level.

It also provides us visibility into how leading global companies deploy technology or organizational strategies to optimize their performance.

This insight results in a proprietary Best Practices Repository, as well as, best practice software configuration, process flows and organizational strategies.

Utilizing the benchmarking metrics and repository of best practices, combined with the global strategy and implementation insight of our transformation and technology associates, Hackett has also created a series of organizational and technology accelerators that allow clients to effect proven sustainable performance improvement.

During 2017, we launched the first version of the Hackett DTP which resulted in our new way to share and leverage our IP in a single platform.

This required us to digitize much of our intellectual capital and the way we shared it with our clients across our benchmarking, advisory, transformation and Cloud Enterprise application implementation solutions.

This insight results in a proprietary Best Practices Repository, as well as, best practice software configurations, process flows and organizational strategies.

Utilizing the benchmarking metrics and repository of best practices, combined with the global strategy and implementation insight of our transformation and technology associates, Hackett has also created a series of organizational and technology accelerators that allow our clients to effect proven sustainable performance improvements.

Our Hackett DTP resulted in a new way to share and leverage our IP in a single platform.

This required us to digitize most of our intellectual capital and the way we shared it with our clients across our benchmarking, advisory, business transformation and Cloud Enterprise application implementation solutions.

Our ability to fully digitize our IP and align proven technology and organizational solutions to help clients drive transformational change allows us to highly differentiate our offerings.

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This allows us to utilize our IP on client engagements to ensure that best practices are identified and implemented, whenever possible.

This coordinated approach addresses people, process, information, and technology, all within the framework of our Hackett-Certified best practices.

Because Hackett solutions are based on Hackett-Certified best practices, we believe that clients gain significant advantages.

This coordinated approach addresses people, processes, information, and technology, all within the framework of our Hackett-Certified best practices.

Because our solutions are based on Hackett-Certified best practices, we believe that clients gain significant advantages.

Clients can have confidence that their solutions are based on strategies from the world’s leading companies.

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The Hackett DTP often begins with an assessment of a client’s performance, which is normally gained through benchmarking key processes and comparing the results to world-class levels and industry standards captured in the Hackett performance metrics database.

We then help clients prioritize and select the appropriate best practices to implement through a coordinated performance improvement strategy.

We then help clients prioritize and select the appropriate best practices to implement through a coordinated workflow automation and organizational design improvement strategy.

Without a coordinated strategy that addresses the seven key business components which include organization and governance, process design, process sourcing, service placement, information, enabling technology and skills and talent, we believe companies risk losing a significant portion of business case benefits with their investments.

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Similarly, we integrate Hackett-Certified best practices directly into technology solutions.

We believe it is imperative that companies simplify and automate processes to meet best practice standards before new technology implementations and upgrades are completed.

We believe it is imperative that companies simplify and automate workflows and processes to meet best practice standards before new technology implementations and upgrades are completed.

The automation of inefficient processes only serves to continue to drive up costs, cycle times and error rates.

We have completed detailed fit-gap analyses in most functional areas of major business application packages including Oracle, SAP and other Enterprise applications to determine their ability to support best practices.

We have completed detailed fit-gap analyses in most functional areas of major business application packages including Oracle, SAP and other leading enterprise applications to determine their ability to support best practices.

Application-specific tools, implementation guides and process flows allow us to optimize the configuration of enterprise software applications.

Hackett DTP enables the foundation for improved performance.

We believe the combination of optimized processes, best practice-based business applications and enhanced business analytics environments allow our clients to achieve and sustain significant business performance improvement.

We believe the combination of optimized processes and workflows, best practice-based business applications and enhanced business analytics environments allow our clients to achieve and sustain significant business performance improvement.

The specific client circumstances normally dictate how they engage us.

Our goal is to be responsive to client needs, and to establish a continuous and trusted relationship.

We have developed a series of offerings that allow us to efficiently help the client without regard to where they are in their performance improvement lifecycle.

We have developed a series of offerings that allow us to efficiently help our clients without regard to where they are in their respective performance improvement lifecycle.

The strategic business advisory and technology consulting marketplace continues to be extremely competitive.

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Expanding our brand or market permission to our other offerings.

We believe that our long-term growth prospects depend on our ability to extend our unique market permission to help clients and strategic partners measure their performance improvement opportunity using our proprietary benchmark database into our other offerings.

We believe that our long-term growth prospects depend on our ability to extend our unique market permission to help our clients and strategic partners measure their digital transformation opportunity using our proprietary benchmark database into our other offerings.

We have started to extend our permission through the strategic relationship that results from our Benchmarking and Best Practices Advisory Programs.

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Continue to position and grow Hackett as an IP-centric strategic advisory organization.

We believe that the Hackett brand is widely recognized for benchmarking metrics and best practice strategies.

We believe that the Hackett brand is widely recognized for its benchmarking metrics and best practice strategies.

By building a series of highly complementary on-site and off-site offerings that allow our clients’ access to our IP, which is based on our best practice process and technology implementation insight, we are able to build trusted strategic relationships with our clients.

Depending upon where our clients are in their assessment or implementation of performance improvement initiatives, we offer them a combination of offerings that support their efforts.

Depending upon where our clients are in their assessment or implementation of performance improvement initiatives, we provide them a combination of offerings that support their efforts.

We believe that clients that leverage our IP are more likely to allow us to serve them more broadly.

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If our clients need off-site access to our IP and advisors to help them either assess or execute transformation initiatives on their own, they can avail themselves of our Best Practices Advisory Programs or our new IP-as-a-Service offerings.

key is for the client to know that we can support them strategically by leveraging our unique IP and insight so that we are able to build a strategic relationship which is appropriate for them.

We also believe that clients that value our IP will turn to us for other services when the need arises, allowing us over time to ascribe a larger amount of our total revenue to our existing client base, which will improve the predictability of our results.

key is for our client s to know that we can support them strategically by leveraging our unique IP and insight s so that we are able to build a strategic relationship which is appropriate for them.

We also believe that our clients that value our IP will turn to us for other services when the need arises, allowing us over time to ascribe a larger amount of our total revenue to our existing client base, which will improve the predictability of our results.

We continue to explore ways to leverage our IP through new external strategic partners and their channels.

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We launched a program with ADP that added a dedicated Hackett Best Practices advisory program to ADP’s Vantage HCM solution which has now expanded to cover their Workforce Now offering.

Given our success with ADP and our investment in QL and DTP platforms, we are now in a stronger position to attract new alliance partners and to support and accelerate their sales initiatives as well as and their clients’ continuous improvement efforts.

Given our continuing investment in QL and DTP platforms, we are in a stronger position to attract new alliance partners and to support and accelerate their sales initiatives as well as and their clients’ continuous improvement efforts.

We believe this capability is unique to Hackett given our strong brand permission, benchmarking capabilities and best practice IP.

Continue to expand our QL/DTP Content and Technology .

DTP incorporates intellectual capital from Hackett into our implementation tools and techniques.

DTP incorporates Hackett intellectual capital into our implementation tools and techniques.

For our clients, the end results are tangible cost, performance gains and improved returns on their organizational and technology investments.

Many clients attribute their decision to employ us to our IP and accelerators.

Our objective is to help clients make smarter business process and software configuration decisions as a result of our methods and knowledge.

Our objective is to help our clients make smarter business process and software configuration decisions as a result of our methods and knowledge.

We are continuously updating our content and tools through benchmarking, enterprise transformation and research activities.

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Best Practice Research:

Empirically based research and insight derived from Hackett benchmark, performance and transformation studies.

Empirically based research and insight derived from our Hackett benchmark, performance and transformation studies.

Our research provides detailed insights into the most significant proven approaches in use at world-class organizations that yield superior business results.

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Regular member-led webcasts, annual Best Practice Conferences, annual Member Forums, membership performance surveys and client-submitted content provide ongoing peer learning and networking opportunities.

Introduction of New IP- centric Offerings :

We are continuing to seek new opportunities through strategic alliances and channels to use our IP to help others sell and deliver their products, such as those offered through dedicated partner and Hackett Institute programs.

We continue to look for other potential programs through which to introduce new IP-centric offerings.

Introduction of New Vendor IP- centric Offerings :

We are continuing to seek new opportunities through strategic alliances and channels to use our IP to help others sell and deliver their products, such as our IP-as-a-Service offerings and Hackett Institute programs.

We continue to look for other potential programs through which to introduce new IP-centric offerings and expand the power and reach of our brand.

Benchmarking Services

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Business Transformation Practice

Our Business Transformation practices help clients develop a coordinated strategy for achieving performance improvements across the enterprise.

Our experienced teams utilize Hackett performance measurement data to link performance gains to industry best practices.

Our Business Transformation practices help our clients develop a coordinated digital transformation strategy that allows to achieve meaningful performance improvements across the enterprise.

Our experienced teams utilize the Hackett performance measurement data to link performance gains to industry best practices.

Our strategic capabilities include operational assessments, process and organization design, change management and the effective application of technology.

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SAP Solutions

Our SAP Solutions practice helps clients choose and deploy S4 HANA applications that best meet their needs and objectives.

Our SAP Solutions practice helps clients choose and deploy S4 HANA Cloud applications that best meet their needs and objectives.

Our expertise is focused on SAP ERP (with primary focus on Life Sciences and Consumer Goods).

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The CPM market has responded to OneStream’s unified platform with significant growth and we expect that trend to continue.

To take advantage of this opportunity, Hackett has made a significant investment to grow the OneStream practice and we believe that we are strongly positioned as a OneStream strategic provider having recently been named a OneStream Diamond Partner.

To take advantage of this opportunity, Hackett has made significant investments to grow the OneStream practice and we believe that we are strongly positioned as a OneStream strategic provider, having been named a OneStream Diamond Partner.

Our rapid OneStream deployment methodologies enable clients to quickly realize benefits by integrating Hackett best practices and intellectual property into accelerated solutions utilizing OneStream.

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We focus on developing long-term client relationships with Global 2000 firms and other sophisticated buyers of business and IT consulting services.

During 2020, 2019 and 2018, our ten most significant clients accounted for 22%, 22% and 22% of total revenue, respectively.

During 2021, 2020 and 2019, our ten most significant clients accounted for 22% of total revenue in each year.

In addition, during 2021, 2020 and 2019, our largest client generated 4%, 5% and 4% of total revenue, respectively.

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Our revenue generation strategy is formulated to ensure that we are addressing multiple facets of business development.

Our primary goal is to continue to increase awareness of our brand which we have created around Hackett’s empirical knowledge capital in the extended enterprise that we now serve.

Our primary goal is to continue to increase awareness of our brand which we have created around our Hackett empirical knowledge capital in the extended enterprise that we now serve.

We have a regional sales and market development effort in both North America and Europe, so we can better coordinate the sales and marketing messages from our various offerings.

Our compensation programs for our associates reflect an emphasis on optimizing our total revenue relationship with our clients.

In our technology practice groups, we have continued to utilize Hackett intellectual capital as a way to differentiate the relationships we have with the software providers and with our clients.

In our technology practice groups, we have continued to utilize our Hackett intellectual capital as a way to differentiate the relationships we have with the software providers and with our clients.

The categories below define our business development resources.

BUSINESS DEVELOPMENT RESOURCES

Although virtually all of our advisors and consultants have the ability to and are expected to contribute to new revenue opportunities, our primary internal business development resources are comprised of the following:

Although virtually all of our advisors and consultants are expected to contribute to new revenue opportunities, our primary internal business development resources are comprised of the following:

The Leadership Team, Principals and Senior Directors are comprised of our senior leaders who have a combination of executive, regional, practice and anchor account responsibilities.

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We also have an employee referral program, which rewards existing employees who source new hires.

As of January 1, 2021, we had 1,047 associates, excluding subcontractors, 80% of whom were billable professionals.

As of December 31, 2021, we had 1,135 associates, excluding subcontractors, 82% of whom were billable professionals.

We do not have any associates that are subject to collective bargaining arrangements, however, in France, our associates enjoy the benefit of certain government regulations based on industry classification.

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One important way we put our values into action is through our commitment to the communities where we work.

We do so by encouraging and supporting our associates communities and personal volunteer and service programs and social gatherings.

We do so by encouraging and supporting our associate’s communities and personal volunteer and service programs and social gatherings.

INTELLECTUAL PROPERTY

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business