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47 Cards in this Set
- Front
- Back
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Why are consultants needed?
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They are needed by businesses to address change, costs, creativity, technology, and globalization
CCCTG |
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What do consultants do?
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Listen, Investigate, Analyze, Recommend, Catalyze Change, Implement
LIARCI |
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What is the definition of a consultant?
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-any professional who provides assistance to others, usually for a fee
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Largest firm
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IBM Consulting
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Internal Consultant Roles
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- Make recommendations
- Champion of ideas - Serve as a Think Tank - Establish direction RCTTD |
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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 |
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Expertise-based strategy
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- 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 |
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Organization-based strategy
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-study-and-recommend
-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 |
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Teaching-based strategy
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-facilitate-and-learn
-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 |
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Process-based strategy
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- 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 |
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Delivery Modes
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Study & Recommend
- skills appreciation - low-client involvement Facilitate & Learn - Skills transfer - High client involvement |
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Content Focus
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Technical Systems
- Finance - IT Social Systems - Organizational Design - Organizational Development |
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Typical Consultant Assignment Process
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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 PANSDAPARI |
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1. Prospect/Bid for Assignments
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Proposals
- Unsolicited/Solicited - Reply to RFPs -Non-Disclosure Agreemtn |
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Key Considerations
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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 |
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Proposal Outline
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-Scope of Work
-Key Assumptions -Client and Consultant Responsibilities -Schedule -Charges -Indirect Expenses - Completion Criteria - Reporting - Deliverables SKRSCECRD |
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2. Receive Notification of Assignment/Bid Award from Client
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-phone call, letter, e-mail, fax
-client version of contract agreement vs. consultant version of contract agreement |
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3. Negotiate consulting agreement with client
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-parties in agreement
-services to be provided - client responsibilities - term - general provisions - signatures PSRTGS |
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4. Commence Schedule
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Location
-on site client HQ -on site client branches - off site field research - off site consultant's office |
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What are the general parts of a consulting agreement (contract)?
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-services to be provided
-client responsibilities -term -fees, expenses, billing -general provisions (independent contractors, NDAs, work product, indemnify, termination, entire agreement, successors) |
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5. Collect Data
(things to consider) |
- The Context of Data Collection
- Approaches to Data Collection - Types of Data to Collect - Data Collection Techniques |
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The Context of Data Collection
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- 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 |
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Approaches to Data Collection
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-Deductive: start with hypothesis, find data that supports/doesn't support it
- Inductive: don't start with an idea, conduct assignment, find solution |
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Data Collection Techniques
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- the face-to-face interview
- focus groups - observation - documents - questionnaires |
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Face-To-Face Interview
-Definition -Types - 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 |
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Focus Groups
-Definition -Types - 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 |
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Observations
-Definition -Types - 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 |
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Documents
-Definition -Types - 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 |
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Questionnaires
-Definition -Types - 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) |
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6. Perform Data Analysis and Diagnosis Recovery
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Framing the Problem
- The Presenting Problem - Layers of the Problem - Management of the Problem |
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The Presenting Problem is...
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- the client's first description of the problem
- usually only a symptom of the real problem - opposite of real problem |
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Layers of the Problem
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- Top: Expressed in terms of the organization
- Second: Expressed in terms of other work groups - Third: Expressed in terms of the interviewee |
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Management of the Problem
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- subgroups
- support - status - authority (do you have enough?) - decisionmaking - leadership style - conflict (is this defined?) |
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Notes of Caution (Dos and Don'ts)
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-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 |
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7. Present issues to be analyzed to the client**
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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) |
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8. Apply Analysis Model/Framework to Issue
Types of Models |
-context
-strategy -marketing -organizational -change -performance |
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Context Models
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-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 |
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Strategy Models
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- 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 |
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Marketing Models
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- 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) |
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Organizational Models
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- Operating Structure: See if the company is centralized or decentralized
-Admin & Tech systems -Corporate Cultures |
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Change Models
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- 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 |
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Performance Models
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-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" |
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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 |
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Reasons Clients Would Not Implement
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- too costly
- too different and therefore the risk is too high - resistance because of disagreeing viewpoints (i.e. they don't like recommendation) |
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Players in Implementation Phase
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Clients
- Managers seek to preserve value - Leaders seek to create value Consultants - collusion agents seek to preserve relationships - change agents seek to create transformation |
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Four Strategies for Changing Human Systems
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-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 |
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Consultants Tasks that Enhance Success to Implement Change
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-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 |
