ESCP - Consultant behaviour session 3 2021 - mission lifecycle & consultant toolbox
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The document outlines the consulting mission life-cycle, detailing stages from pre-sales to post-mission activities while emphasizing essential skills needed for effective consulting. It discusses various phases such as qualifying client needs, defining key questions using the SCQ method, and employing the 'MECE' principle for organizing thoughts. Additionally, it provides examples and best practices for navigating client interactions and understanding market dynamics.
ESCP - Consultant behaviour session 3 2021 - mission lifecycle & consultant toolbox
- 1. Spring 2021 1 Consulting Behaviour Stream A7 Dr. Benjamin Lehiany & Stéphane Lesage Session 3: The mission life-cycle & consultant toolbox
- 2. 1. The consulting industry, actors & hot topics 2. Consulting jobs & careers 2 3. The mission lifecycle & consultant toolbox 4. The commercial proposal 5. The Consultant posture, ethics & time management COURSE STRUCTURE & CONTENT
- 3. 3 The mission life-cycle The big picture PRE-SALES • Prospection • Promotion • Call for tenders POST-MISSION • Satisfaction survey • References QUALIFYING THE NEEDS • Transform needs into opportunities • Screen decision process & budget • Commercial proposal: • Approach and action plan • Quotation PITCH & SELECTION • Pitch front of the client to introduce approach, action plan and submit a quotation • Selection of the consulting firm • Bargain before the deal EXECUTION • Data collection • Analysis, Diagnosis • Project management • Conclusions and deliverables CLOSING • Internally: return on experience / Knowledge Management • Externally: Identification of new needs / joint opportunities
- 4. 4 The mission life-cycle 1. Pre-sales PRE-SALES ORGANIZATION ALL BUSINESS DEVELOPMENT ACTIVITIES ▪ Calling, prospecting (LinkedIn, Twitter…) ▪ Catalogue of differentiating offers ▪ Watch over market trends (sectorial specificities, regulation, market trend, proactive offers…) ▪ Networking and promotional events (conference, forum, thematic workshop,…) ▪ Commercial referencing ▪ Business lunches (before COVID19) ▪ … WHO’S IS IN CHARGE? Depending on firms’ structure and organization, business development can be handled: ▪ By Partners ▪ By dedicated Business developers ▪ By Managers / Principals ▪ By everyone
- 5. 5 The mission life-cycle 1. Pre-sales Reputation is a KSF of the industry Consultants by their daily duties are the best ambassadors of their firm ▪ Quality of the job delivered ▪ Professional and proactive mindset ▪ Listening to customer problems / needs ▪ Coffee machine entrepreneurship… « Hello Benjamin Tu es trop fort ! tu arrives toujours à me refourguer des projets ! Quel montant pour ton projet? »
- 6. 6 The mission life-cycle 2. Qualifying the client’s needs > Customer’s needs can take various forms and come from various origins NON-FORMAL NEED > Opportunity identified or revealed through prospecting +/- FORMAL REQUEST > Formal demand expressed within the context of commercial relationship CALL FOR TENDER > Several consulting firms in competition IN ANY CASES, QUALIFY THE NEED BEFORE SUBMITTING THE PROPOSAL > Customer context > Key success factors > Expected deliverables > Methodology when required > Workload & quotation
- 7. 7 The mission life-cycle 2. Qualifying the client’s needs Understanding the client’s need is vital and not obvious ! Developed by DirCom Approved by the strategy Designed by engineers Installed by technicians Announced by CEO Asked by the client
- 8. 8 The mission life-cycle 2. Qualifying the client’s needs DEFINE THE KEY QUESTION > Understand the SITUATION > Determine the COMPLICATION > Formulate the KEY QUESTION DESIGN THE PYRAMID FROM THE KEY STATEMENT TO THE ROOT CAUSES > Put the key statement answering the key question at the top of the pyramid > Drill down key statement into relevant issues > Follow each path to identify the root causes CHECK WHETHER ALL REQUIREMENTS OF THE PYRAMID ARE FULFILLED > The pyramid must answer the key question > It must be MECE > It must be built in a logical vertical (deductive or inductive) order Source : BCG > BCG APPROACH : THE PYRAMID STRUCTURE
- 9. 9 The mission life-cycle 2. Qualifying the client’s needs Source : BCG > BCG APPROACH : THE PYRAMID STRUCTURE 1 DEFINE THE KEY QUESTION Formulate the key question by applying the SCQ method (Situation- Complication–Question) and agree on it The key question needs to be • Crisp • Actionable • Unambiguous 2 DESIGN THE PYRAMID FROM THE KEY STATEMENT TO THE ROOT CAUSES 2.1 Put the key statement answering your key question at the top of the pyramid 2.2 Drill down key statement into relevant issues • Differentiate between issues and sub-issues and sort them logically 2.3 Follow each path to identify the root causes 3 CHECK WHETHER ALL THE REQUIREMENTS OF THE PYRAMID ARE FULFILLED Check whether your pyramid: • Answers the key question • Is built in a logical vertical order • Is MECE • Has the lowest possible number of issues per layer or sub-issues per group • Is designed applying a logical order (inductive or deductive)
- 10. 10 The mission life-cycle 2. Qualifying the client’s needs Source : BCG Situation Complication Key Question Define the overall context within which the problem to be resolved • Internal economics • Competitive advantage • Industry environment Describe and define the cause of the problem • New competitors from unrelated industries • Technologies challenging the cost base Set a clear constraint on the problem to be tackled. Key question should be crisp, actionable and unambiguous •How can we stay competitive given new threats? •Can we adapt to the new technologies? Definition Company A has been undisputed leader for 10 years In the last year, Company A lost 10% share to new market entrant X •How can we compete with X to maintain our position as market leader? •Should we dive into new markets? Common issues Examples > BCG APPROACH: DEFINE THE KEY QUESTION BY APPLYING THE SCQ METHOD
- 11. 11 The mission life-cycle 2. Qualifying the client’s needs Source : BCG TEAM WORK: BCG has just started a strategy project for new client Phoenix. You have been staffed as the only consultant on the project, along with a very busy project leader. Just before leaving for a trip overseas, the project leader has left you a voicemail asking you to think through key issues and analyses. She told you that : • Phoenix manufactures and installs hot water systems based on solar energy for residential/commercial use • They have 8,700 employees and generate ~€900M last year • Phoenix is quality leader in the market • Preliminary analysis of key financial results shows that key competitor Thermo has achieved profitability three years after entering the market • Two Asian competitors are about to move into the market • After many unsuccessful cost cutting initiatives motivation among the staff is low • The owners have requested the CEO –who hired BCG –to make Phoenix profitable over the next two years DEFINE THE KEY QUESTION > BCG APPROACH: DEFINE THE KEY QUESTION BY APPLYING THE SCQ METHOD Before you dig into work you want to align the 'introduction’(situation, complication, key question) with her before she gets on the plane
- 12. 12 The mission life-cycle 2. Qualifying the client’s needs Source : BCG A POSSIBLE SOLUTION TO THE PHOENIX CASE : • Phoenix is quality leader; but unprofitable • Key competitor is profitable SITUATION COMPLICATION KEY QUESTION Client's demand in a highly challenging context : • Low motivation of staff after unsuccessful cost cutting initiatives • Threat from market entry of Asian competitors Which levers are available and realistic to make Phoenix profitable within the next two years considering the current challenges of low motivation and increasing competitive pressure? Which information is relevant in the actual context? Why BCG has been hired? To solve which problem? Can final outcome be visualized? > BCG APPROACH: DEFINE THE KEY QUESTION BY APPLYING THE SCQ METHOD
- 13. 13 The mission life-cycle 2. Qualifying the client’s needs Source : BCG > BCG APPROACH : THE PYRAMID STRUCTURE 1 DEFINE THE KEY QUESTION Formulate the key question by applying the SCQ method (Situation- Complication–Question) and agree on it The key question needs to be • Crisp • Actionable • Unambiguous 2 DESIGN THE PYRAMID FROM THE KEY STATEMENT TO THE ROOT CAUSES 2.1 Put the key statement answering your key question at the top of the pyramid 2.2 Drill down key statement into relevant issues • Differentiate between issues and sub-issues and sort them logically 2.3 Follow each path to identify the root causes 3 CHECK WHETHER ALL THE REQUIREMENTS OF THE PYRAMID ARE FULFILLED Check whether your pyramid: • Answers the key question • Is built in a logical vertical order • Is MECE • Has the lowest possible number of issues per layer or sub-issues per group • Is designed applying a logical order (inductive or deductive)
- 14. 14 The mission life-cycle 2. Qualifying the client’s needs Source : BCG > BUILDING THE HYPOTHESIS TREE Attempts to formulate the possible result of the project Hypotheses help to be specific and focused • Forces you to be explicit about what you expect to achieve in the project • More telling than a set of open questions Hypotheses are allowed to be wrong • Their use is to structure and focus the project • No preclusion of the results The hypothesis will be adapted to the findings during the project • More and more specific • Changing as the evidence evolves ROLE OF THE HYPOTHESIS A CLEAR HYPOTHESIS SAVES YOU FROM ‘BOILING THE OCEAN’
- 15. 15 The mission life-cycle 2. Qualifying the client’s needs Source : BCG A STEP BY STEP APPROACH The key statement Issues / sub-issues Root causes The key statement answers the key question (formulated using the SCQ approach) Drill down the key statement into relevant issues • Follow a logical approach asking the “5 whys” • Make sure that the sum of the issues matches the whole picture of the key statement • Drill down issues into sub-issues using the same approach Repeat drilling down as long as necessary to identify possible root causes and check them on their impact as key driver and addressability > BUILDING THE HYPOTHESIS TREE 1 2 3
- 16. 16 The mission life-cycle 2. Qualifying the client’s needs Source : BCG THE PHOENIX CASE • Phoenix is quality leader; but unprofitable • Key competitor is profitable SITUATION COMPLICATION KEY QUESTION Shareholders push for profitability during highly challenging times • Low motivation of staff after unsuccessful cost cutting initiatives • Threat from market entry of Asian competitors • Which levers are available and realistic to make Phoenix profitable within the next two years considering the current challenges of low motivation and increasing competitive pressure? Decrease cost Increase revenue Phoenix can maintain double-digit profitability Decrease procurement cost Decrease production cost Decrease Distribution cost Decrease Administration cost Decrease Financing cost Decrease variable cost Decrease fixed cost Decrease marketing cost Decrease sales- related cost Decrease logistic cost Decrease cost per outlet Decrease numb. of outlets Increase price Increase volume sold Increase sales of existing products Introduce new products ✓ ✓ ✓ ✓ ✓ ✓ ✓ > BUILDING THE HYPOTHESIS TREE - EXERCICE
- 17. 17 The mission life-cycle 2. Qualifying the client’s needs Source : BCG KEY STATEMENT: A COFFEE HOUSE WANTS TO INCREASE ITS REVENUE Increase price of beverages Introduce new products Sell more products Sell more to existing customers Increase prices of hot drinks Increase price of products Increase prices of snacks Increase price of cold drinks Increase the number of traditional products sold Sell to new customers Increase price of souvenirs > BUILDING THE HYPOTHESIS TREE - EXERCICE
- 18. 18 The mission life-cycle 2. Qualifying the client’s needs Source : BCG A coffee house wants to increase its revenue Sell more products Increase prices of products Sell more to existing customers Increase prices of hot drinks Increase price of cold drinks Sell to new customers Increase price of beverages Introduce new products Increase price of snacks Increase sales of existing products Increase price of souvenirs > BUILDING THE HYPOTHESIS TREE - EXERCICE KEY STATEMENT: A COFFEE HOUSE WANTS TO INCREASE ITS REVENUE
- 19. 19 The mission life-cycle 2. Qualifying the client’s needs Source : BCG > BCG APPROACH : THE PYRAMID STRUCTURE 1 DEFINE THE KEY QUESTION Formulate the key question by applying the SCQ method (Situation- Complication–Question) and agree on it The key question needs to be • Crisp • Actionable • Unambiguous 2 DESIGN THE PYRAMID FROM THE KEY STATEMENT TO THE ROOT CAUSES 2.1 Put the key statement answering your key question at the top of the pyramid 2.2 Drill down key statement into relevant issues • Differentiate between issues and sub-issues and sort them logically 2.3 Follow each path to identify the root causes 3 CHECK WHETHER ALL THE REQUIREMENTS OF THE PYRAMID ARE FULFILLED Check whether your pyramid: • Answers the key question • Is built in a logical vertical order • Is MECE • Has the lowest possible number of issues per layer or sub-issues per group • Is designed applying a logical order (inductive or deductive)
- 20. 20 The mission life-cycle 2. Qualifying the client’s needs Source : BCG > THE “MECE” PRINCIPLE IMAGINE OUR TASK TODAY IS TO SEGMENT ESCP STUDENTS IN CLEARLY DISTINGUISHABLE GROUPS WITHOUT IGNORING ANY GROUP OF STUDENTS WHAT WOULD BE THE CRITERIA?
- 21. 21 The mission life-cycle 2. Qualifying the client’s needs Source : BCG « ME » STANDS FOR « MUTUALLY EXCLUSIVE » Definition : Two sets of elements are mutually exclusive when they don’t overlap Advantages : • You consider each element only once, hereby ensuring not to duplicate efforts • You are forced to consider the details, seeing the individual tree as opposed to the forest A1 A2 Example : consider age groups as the segmentation criteria Born between 1950 - 1980 Born between 1981 - 1990 Born between 1991 - 1995 Born between 1996 - 2000 > THE “MECE” PRINCIPLE
- 22. 22 The mission life-cycle 2. Qualifying the client’s needs Source : BCG « CE » STANDS FOR « COLLECTIVELY EXHAUSTIVE » Definition : Sets of elements are collectively exhaustive when they fully cover the superior item you want to segment in more detail Advantages : • You ensure that you do not forget elements • You are forced to be innovative, viewing the forest as opposed to individual trees A1 A2 A = + Data of age groups from currently studying at ESCP (6 campuses) Example : segmentation is collectively exhaustive Every student currently registered in one of ESCP’s 6 campuses > THE “MECE” PRINCIPLE
- 23. 23 The mission life-cycle 2. Qualifying the client’s needs > WHEN THIS METHOD DOES NOT WORK… This pyramid method is very efficient to solve logical problems. It is weak for solving problems requiring creativity.
- 24. 1. The consulting industry, actors & hot topics 2. Consulting jobs & careers 24 3. The mission lifecycle & consultant toolbox 4. The commercial proposal 5. The Consultant posture, ethics & time management COURSE STRUCTURE & CONTENT Next session