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47 Cards in this Set

  • Front
  • Back
Why are consultants needed?
They are needed by businesses to address change, costs, creativity, technology, and globalization

What do consultants do?
Listen, Investigate, Analyze, Recommend, Catalyze Change, Implement

What is the definition of a consultant?
-any professional who provides assistance to others, usually for a fee
Largest firm
IBM Consulting
Internal Consultant Roles
- Make recommendations
- Champion of ideas
- Serve as a Think Tank
- Establish direction

Why become a consultant?
What credentials are needed?
What is the lifestyle of a consultant?
-Paid well, but they work you to death.
- Fairly unregulated (low barrier to entry), usually MBA, specialty skills, expertise
- Long hours, entertain folks
Expertise-based strategy
- study-and-recommend delivery mode
- focused on technical systems
- good for when the problem is obvious and everyone is willing to help implement solution, provides external POV
- bad in that it's a one-shot solution that may not be implemented
Organization-based strategy
-social systems
-provides external POV
-good for when the client recognizes it has social problems but don't have the expertise to do it themselves
-bad because it's one-shot, clients depend on the consultants to fix it this time
Teaching-based strategy
-technical systems
-integrate expertise and knowledge into daily systems (includes organizational structure and reward system)
-social dynamics of the technical system
-helps with implementation, but it takes too long, can be chaotic depending on the learning curve of the employees
-good for when clients are facing a constantly changing environment that is unpredictable
Process-based strategy
- facilitate-and-learn
-social systems
-consultants play a facilitative role
-emotionally charged, takes time, clients think it's a soft problem, can't deal with technical issues that are related
-good where clients have social problems and those directly involved are willing to confront them
Delivery Modes
Study & Recommend
- skills appreciation
- low-client involvement

Facilitate & Learn
- Skills transfer
- High client involvement
Content Focus
Technical Systems
- Finance
- IT

Social Systems
- Organizational Design
- Organizational Development
Typical Consultant Assignment Process
1. Prospect/Bid for Assignments
2. Receive Notification of Assignment/Bid Award from Client
3. Negotiate Consulting Agreement with Client
4. Commence Schedule*
5. Collect Data
6. Perform Data Analysis and Diagnosis Recovery
7. Present Issues to be Analyzed to Client**
8. Apply Analysis Model/Framework Issues
9. Formulate and Present Recommendations to Client***
10. Assist Client with Implementation of Recommendations

Prospect, Award, Negotiate, Schedule, Data, Analysis, Present, Apply, Recommend, Implement

1. Prospect/Bid for Assignments
- Unsolicited/Solicited
- Reply to RFPs
-Non-Disclosure Agreemtn
Key Considerations
Scope of Work
- Problem: Big or small?
- Capabilities: Can you solve the problem?
- Solution
-You understand what the prospects problem is, restate the problem, and what you are focusing on

Financial Structures
- Hourly
- Retainer
- Value
Proposal Outline
-Scope of Work
-Key Assumptions
-Client and Consultant Responsibilities
-Indirect Expenses
- Completion Criteria
- Reporting
- Deliverables

2. Receive Notification of Assignment/Bid Award from Client
-phone call, letter, e-mail, fax
-client version of contract agreement vs. consultant version of contract agreement
3. Negotiate consulting agreement with client
-parties in agreement
-services to be provided
- client responsibilities
- term
- general provisions
- signatures

4. Commence Schedule
-on site client HQ
-on site client branches
- off site field research
- off site consultant's office
What are the general parts of a consulting agreement (contract)?
-services to be provided
-client responsibilities
-fees, expenses, billing
-general provisions (independent contractors, NDAs, work product, indemnify, termination, entire agreement, successors)
5. Collect Data
(things to consider)
- The Context of Data Collection
- Approaches to Data Collection
- Types of Data to Collect
- Data Collection Techniques
The Context of Data Collection
- Resistance
-- Reasons for resistance: doing something unethical, hiding weakness, "Will I lose my job?", "I'm not getting paid like you are."
- Rapport: Understanding the people who collect data

Garbage In, Garbage Out
Approaches to Data Collection
-Deductive: start with hypothesis, find data that supports/doesn't support it
- Inductive: don't start with an idea, conduct assignment, find solution
Data Collection Techniques
- the face-to-face interview
- focus groups
- observation
- documents
- questionnaires
Face-To-Face Interview
- Advantages/Disadvantages
- An interview is a PURPOSEFUL CONVERSATION in which an interviewer poses a series of questions to gather information from a respondent in his or her own words
-Unstructured: can jump around as long as topics are covered
Structured: e.g. list of questions, looking for a particular answer
-Advantages: Can address large range of subjects and issues, improvise questions
-Disadvantages: Dependent upon the interviewer's skill in developing rapport and listening
Focus Groups
- Advantages/Disadvantages
- The simultaneous interviewing of 7 to 10 people by a MODERATOR WHO GUIDES the discussion
-Customer/Suppliers, Employees/Managers
-Adv:Can obtain many POVs from a variety of individuals in a small amount of time
-Dis: some individuals may dominate the air time or have undue influence over others' opinions

- Don't mix the group so people can talk freely, not necessarily a good representation of the population
- Advantages/Disadvantages
-the consultant watches the activities of customers, suppliers, employees, or managers
- systematic: answer specific questions
non-systematic: find patterns through observation
-Adv.: can learn things that participants may be unwilling to talk about in interviews
-Dis: potential reactivity to the presence of the observer (can avoid if observer is unnoticed)

-Hawthorne effect: work harder if they know they are being watched
- Advantages/Disadvantages
- anything printed, written, or relied upon to record or prove something
- for external consumption, for internal consumption
-Adv: provides an unobtrusive way to discover information
-Dis: can be incomplete, inaccurate, and selective
- Advantages/Disadvantages
- a fully structured method of collecting information directly from people involved
- open-ended, close-ended
-adv: can obtain a large amount of info from a large number of respondents
-dis: limited opportunity for free expression by respondents (can avoid with open-ended questions, but will need more time to sift through info)
6. Perform Data Analysis and Diagnosis Recovery
Framing the Problem
- The Presenting Problem
- Layers of the Problem
- Management of the Problem
The Presenting Problem is...
- the client's first description of the problem
- usually only a symptom of the real problem
- opposite of real problem
Layers of the Problem
- Top: Expressed in terms of the organization
- Second: Expressed in terms of other work groups
- Third: Expressed in terms of the interviewee
Management of the Problem
- subgroups
- support
- status
- authority (do you have enough?)
- decisionmaking
- leadership style
- conflict (is this defined?)
Notes of Caution (Dos and Don'ts)
-DON'T take sides on people or group issues during interviews
-DON'T blame management or blame labor during conversations
- DON'T get caught up in stories on people who aren't with the organization anymore
- DO explain that you are trying to gather all the facts
- DO remain professional and impartial in conversations
- DO say that you are looking at all issues in terms of the total organization
7. Present issues to be analyzed to the client**
First part of consultant report
- re-statement of scope of work
- assumptions
- data collection methods (how you did it)
- Findings
--Key Data to support findings
--Issues for Analysis (what to analyze)
8. Apply Analysis Model/Framework to Issue
Types of Models
Context Models
-Sector Analysis: Understand environment by looking at these sectors
-Stakeholder Model: how this problem affects the different categories of the stakeholders and what do they want to do about it
-Porter's 5 Forces: how the general environment affects you
Strategy Models
- Value Chain Analysis: By looking at the different stages in production, analyze and how does it affect profit
- Generic Strategies: Looking at the company as a whole and looking at each business unit individually
Marketing Models
- Life Cycle Model: looking at the stages of the life cycle for any product or industry
-Marketing Mix: how the type of product, price, promotions and the placement(distribution) affect sales
- BCG: Looking at the product placement in the industry, and where you need to improve/invest in (rate of industry growth/relative market share)
Organizational Models
- Operating Structure: See if the company is centralized or decentralized
-Admin & Tech systems
-Corporate Cultures
Change Models
- Transition Management: what to do to get to a future state (point A to point B)
- Contingency/McKinsey/7S Model: Observe a specific segment to see its effects on a company
- Congruence/Mercer Delta Model: Focuses on the people and processes to evaluate interconnectivity
Performance Models
-Accounting Ratios: Evens out all companies to be able to compare them to the industry standards financially, regardless of size
- Economic Value Added(EVA): Use financial data from BS/IS to see what the outcome of a decision would be (good or bad)
-Balanced Scorecard:mix of quantitative and qualitative methods to see if things are "out of balance"
9. Formulate and Present Recommendations to Client***
10. Assist Client with Implementation of Recommendations
- create incentive to client to implement recommendation
- players in implementation phase
- strategies for changing human systems
- consultants tasks that enhance success to implement change
Reasons Clients Would Not Implement
- too costly
- too different and therefore the risk is too high
- resistance because of disagreeing viewpoints (i.e. they don't like recommendation)
Players in Implementation Phase
- Managers seek to preserve value
- Leaders seek to create value

- collusion agents seek to preserve relationships
- change agents seek to create transformation
Four Strategies for Changing Human Systems
-The Telling Strategy:Tell others to change
- The Forcing Strategy: Leverage others to change
- The Participative Strategy: Engage others in conceptualizing change
- The Transformational Strategy: Model Change by others
Consultants Tasks that Enhance Success to Implement Change
-conduct a readiness assessment: use organizational charts and production process charts
-design recommendations for success: use a written work plan and project measurements
- provide implementation support: help plan progress meetings and attend them