The process of consulting and client management
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The document outlines the management consulting process, emphasizing the roles and responsibilities of consultants, the consulting life cycle, and typical deliverables. It details how consultants assist organizations in strategic planning, resource allocation, and facilitating change management while providing essential expertise and new perspectives. Key aspects also include project management, operational efficiency, and the importance of effective communication in consultancy services.
![Outsourcing
Two main areas: ITO (information technology outsourcing)
and BPO (business process outsourcing).
The later is growing while the former is decreasing in use.
Most common form of BPO is Call Centre companies.
Other typical example of Business Process Outsourcing is
Passport Seva by the Ministry of External Affairs, Government
of India; Visa Counsellor services outsourced [to VFS Global]
by several Embassies and Missions.](https://image.slidesharecdn.com/theprocessofconsultingandclientmanagement-190818065754/85/The-process-of-consulting-and-client-management-29-320.jpg)
![Common Tools used by Management
Consultants
Cause and Effect Diagrams [ aka Fishbone Diagram ]
Lean Management
Six Sigma, Kaizen methods
SWOT Analysis
Porters Five Forces
The Delta Model
Balanced Scorecard
Financial Analysis
S-Curve Analysis
The Ansoff Matrix
BCG Matrix](https://image.slidesharecdn.com/theprocessofconsultingandclientmanagement-190818065754/85/The-process-of-consulting-and-client-management-30-320.jpg)
The process of consulting and client management
- 1. The Process of Consulting and Client Management during various stages of Consulting Life Cycle D. VASUDEVAN CONSULTANT
- 2. Content Management Consultancy – Revisiting the concepts Roles and Responsibilities of Management Consultants Management Consulting Process Consulting Life Cycle Typical Deliverables in Consultancy Assignments Tips and Guidelines
- 3. What is actually Management? Planning: deciding a future direction for the business and defining the courses of action Organising: regards the overall structure of the business – in strategic terms: ensuring that the organisation’s structure is appropriate for its strategy and environmental structure. Staffing: making sure that the business has the right people Directing: encouraging people to undertake tasks necessary to deliver the project outcomes Controlling: making sure that the right resources are in place and that they are being used effectively
- 4. Why do companies need Management Consultants first of all? Enterprises are run by Managers who have various levels of responsibilities and roles (Leadership, Decisional and Informational) The consultant take on one or more of these roles described above while working with a project. Which roles he/she will take on depends on the client’s needs. The motivation to call in a consultant arises because managers have identified a project that they think they will benefit the organisation but they recognise that they are not in the position to deliver it themselves. The reason for their inability can be found in skill gaps or the lack of resources and here the consultant offers to fill the gaps
- 5. Roles of Management Consultant Supplementing: The consultant is used as an additional resource when there are no existing managers available for the task. Complementing: When an organisation notices that they lack one or more of the important manager roles (above) they ask a consultant to fill that role. Differentiating: A consultant might be needed for divided responsibility and differentiate roles in an organisation: designing managerial responsibilities and setting up communication systems, etc. Integrating: The consultant are trying to integrate the managerial roles and make a more flexible structure Enhancing: The most general type of role development: to improve the overall level of the manager’s performance
- 6. Management Consultant: Levels of Responsibility Economic: to act in a way that is consistent with the long-term health of the business and maximize value for its investors Legal: To follow and comply with the applicable law, rules and regulations and not to break any criminal or civil laws. Moral: To act according to moral rules, ethics and code of conduct relevant to that industry Discretionary: A good consultant should regard both the written and un-written rules when taking on a project and maybe refuse to work in certain areas – this values can make consultant more attractive to other clients
- 7. Consulting Process General Business Management Aspects Operational Management Aspects Information Technology Management Aspects Technical Aspects Risk Management Aspects Human Resource Aspects Organisational Development Interim Management Outsourced Services Management
- 8. What do the Management Consultant provide to their clients? Provide Information Provide Specialist Expertise Provide a New Perspective Provide Support for internal debates Provide Support for gaining a critical resource Facilitate Organisational Change
- 9. Providing Information Enterprises needs information about: The business customers: their needs and behaviours The business products: design etc. Its markets: size, growth etc. Outside organisations that can offer support (suppliers etc.): who are they and how can we contact them Competitors: strengths, weaknesses If a business lacks this information a consultant can help them – both to get it and to analyse it.
- 10. Providing Specialist Expertise Business strategy: help with development, evaluation, planning Marketing strategy: defining a successful marketing mix Marketing research: find the best methods and results Promotional campaign: design and make sure that they are cost effective Develop a new product: convert customer needs into a new product offering Financial support: identifying bankers, Financial institutions and making a good case for their support Information systems: helping managers to get the information they need Planning export and international marketing: providing the business with a route to grow
- 11. Providing a New Perspective Company insiders are sometimes negative and when it has gone too far a consultant can try to give the managers a new perspective: The insider’s consideration are limited to a narrow range of options The initial objectives are never revised or challenged Newly discovered risks are being ignored New information are not used to challenge the initial course of action External experts are not used or even considered The insiders only use information that backs their initial thesis, so called: “myside bias” and “Boss is always right” The insider spends little time considering how bureaucratic inertia or organisational resistance might inhibit the implementation of chosen policies The consultant may simply offer a fresh mind and help groups become more innovative.
- 12. Providing Support to Internal debates Debates often arise in an organisation. A manager might be tempted to use a consultant to back his or her position in a debate. The consultant must recognise that he or she is not employed by a company this time but rather by an individual or Department within the company that want to make their own case. Here the consultant must try to be as impartial as possible not to ruin the reputation of consultants and not to make other groups suspicious. Some rules: Understand the politics of the consulting exercise Learn about both sides in the debate: who is supporting who? Who will gain and who will loose from the different options in the discussions? Make sure that all information that you use are legitimate Be honest with your clients strengths and weaknesses Explore win-win situations Explain to your client that credibility is important and if lost using independent consultants won’t be useful in the future.
- 13. Providing Support to find a critical Resource An organisation must attract resources to survive and this is also one of the manager’s most important functions. Resources may include: Goodwill of customers, suppliers and partners Capital from investors Approval and Clearances from government and support agencies People with special skills Materials, services etc. The manager can use the consultant to find these resources. The consultant generally provides information about: Who can supply them? How can they be contacted? What are the potential risk with working with them?
- 14. Facilitating Organisational Change Change usually meets resistance and managers tend to be conservative. Consultants can help the manager with this so called: “change management” to make the change into a positive thing. To be effective, consultant must be aware of the human dimensions to the change he or she is advocating and be competent in addressing the issues it creates.
- 15. MC: Core Business Process Business Planning Marketing Research Marketing Sales New Product Development, New Geography, Expansion Finance Mergers and Acquisitions, Partnerships New Business Models (BOT, SPV, etc)
- 16. Business Planning This is working on a firm’s growth strategy This can be: market growth or market share increase, new markets, develop new products, cost- reduction, re-organise structure The client is seldom clear about what he or she wants and can simply state that he/she wants the firm to GROW and here the consultant needs to evaluate the possibly ways of doing this
- 17. Marketing Research To reduce risks managers often want to do marketing research and often asks a consultant to do this job There are two different types of research: primary which includes quantitative and qualitative secondary research which is looking at earlier research and already existing reports When high level of expertise is needed the consultant might want to subcontract a marketing researcher to help him
- 18. Marketing To exploit the results from your marketing research you need a marketing strategy and a marketing plan. The strategy will be built on these questions: What products to customer want from our sector? How are competitors failing to provide this? What price are customers expecting or willing to pay? What channels are available for getting the product to the customer? Who might be the partners in the distribution process and how can we approach them? How do we inform customers that the product is available? How can we stimulate interest through promotion? This step often gives the consultant a chance to get a second project, which is doing a marketing plan. The core thing in the marketing plan is the PR-campaign and here you most find the most cost effective methods, the mechanics of doing the campaign and how it can be monitored.
- 19. Sales A consultant can be called in to help the sales team with different things, for example: Organise the team: size, geographic area etc. Sales team training: help them focus on customer service rather than ‘short-term-sales’. Sales team motivation: designing a bonus scheme = fixed salary + performance based. The bonus scheme most be transparent, fair and fit the organisation’s broader motivational strategy. Planning sales campaigns: who will be involved, what products will be sold, where to sell it, who to sell to? Etc.
- 20. New Product Development… Consultant can help the firm with technical advice, customer needs, promotion, finding suppliers, finding financing for the product etc. Consultant can help the firm venture in to new geography (could be another state or region within the country or a new country or continent, identification of risks and opportunities thereof, Local conditions (social, economical, geographical, political, legal, etc.) Sometimes the geography may remain the same but the company may be wanting to move to a Special Economic Zone, Export Processing Zone, IT Parks and may need the involvement of Consultants to help them in the decision or in the process.
- 21. Finance Financing is often needed in firms. Here the consultant can evaluate investment needs, finding investors and how to please them and make sure that the offer to investor is good and realistic Consultants are also hired for raising money from public, venture capitals, institutional borrowing, existing shareholders and all other sources of financing
- 22. MC: Operational Management This often involves large complex assignments. Consultants help by: finding bottle necks find ways to improve productivity make it more cost-effective finding cheaper raw-material Improve customer service Increase customer retention
- 23. MC: Information Technology Management Management information is not just about having info, it is about using it effectively! Consultants can help with technical advice and make sure that all gathered info is awarding and provide useful insights Consultants can also help with CRM (customer relationship management), for example Membership Clubs, Rewards Scheme, to get better information about the customers and to enhance Customer Satisfaction Consultants can also help in establishing Enterprise Resource Planning solutions, Supply Chain Management Solutions Consultant's can help in creating powerful presence in internet for the companies and manage the Search Engine Optimisation, Social Media marketing, Content Marketing to optimise the business outcomes
- 24. Technical Management It is important to differentiate your product, and that is often done by using a different technology or design than your competitors. Consultants can sometimes give advices here – but if they don’t have the specific knowledge needed they can at least identify the needs and help the client to find the person or partner firm needed to help.
- 25. Risk Management A consultant can help a firm assess the likelihood of certain events happening and put in place contingency plans to deal with them These days, risks on the cyber space far outweigh other risks and a good consultant can suggest ways and means to tackle this as well.
- 26. Human Resource Management consultant can give advice on placing right people on the right places: Identify skill gaps Creating advertisements to attract the right people Develop procedures for hiring the right person (interviews, criteria, tests) Give advice on reimbursement packages to the new recruits
- 27. Organisational Development Management Consultants also suggest the best way of organise a work force. This Can be done in different ways: Personal coaching Improve collective performance Advice on structure Discuss organisation culture Conflict Resolution and Negotiations Change Management
- 28. Interim Management Consultants at times also hold temporary appointment of an external manager to work with a company for a fixed period of time
- 29. Outsourcing Two main areas: ITO (information technology outsourcing) and BPO (business process outsourcing). The later is growing while the former is decreasing in use. Most common form of BPO is Call Centre companies. Other typical example of Business Process Outsourcing is Passport Seva by the Ministry of External Affairs, Government of India; Visa Counsellor services outsourced [to VFS Global] by several Embassies and Missions.
- 30. Common Tools used by Management Consultants Cause and Effect Diagrams [ aka Fishbone Diagram ] Lean Management Six Sigma, Kaizen methods SWOT Analysis Porters Five Forces The Delta Model Balanced Scorecard Financial Analysis S-Curve Analysis The Ansoff Matrix BCG Matrix
- 31. Analysis & Critical Thinking • Understanding of the problem • Proposed methodology • Timescales • Agreed outputs • Rates • Terms & Conditions Brief Proposal Kick off meeting Consultations Update Meetings / Key Milestones Draft Deliverables Final Deliverable Project Closure START MIDDLE END Consulting Life Cycle
- 32. Time Management Time is the most scarce resource a manager has. Managers who manage their time well are in control and hopefully more relaxed. Some ground rules for time management: Be aware of time – deadlines etc. use time management system to remind yourself Prioritise tasks – what tasks are ”bottlenecks”? Anticipate tasks – do tasks when you can – not when they need to be done. Avoid putting of jobs – do even the things you don't care for very much. Don't count on anyone else to it. Break down tasks – into series of subsidiary tasks. Declare the structure of these series. Ensure deadline is understood Be prepared – Time spend in meetings with clients is important and scarce, be prepared Support others with time management
- 33. Project Management Project management is the process of planning, organizing, and managing tasks and resources to accomplish a defined objective, usually within constraints on time, resources, or cost A project plan can be simple, for example, a list of tasks and their start and finish dates written on a notepad. Or it can be complex, for example, thousands of tasks and resources and a project budget of crores of rupees The trio of time, money, and scope is the project triangle. Adjusting one of these elements affects the other two. While all three elements are important, typically one will have the most influence on your project
- 34. Project Log It is a day-by-day record and requires commitment for especially manager. Ask yourself: What value is this activity adding? And Is the value added worth the effort? Benefits from using Project Log: Aids project planning activities – what needs to be done and when? Provides a summary of info collected Provides a secure locations for notes from communication – written notes are good for 1. Reinforcement of memory, 2. Hard source to refer to. Provides a forum for analysis – active analysis is best structured in written or visual form Encourages reflection on experience from project – what have we achieved? What might have gone better? Acts as a permanent record of the project Provides long time learning resource
- 35. Suggested Format for a Project Log The project log is a working tool for: flow of ideas, comments, notes and reflections Date Stage of project Status of project Summary of activities undertaken since last update Objectives of those activities Minutes of meetings held Details of info gathered Notes from communication Details of analysis Active learning reflections
- 36. Consulting Report A report provides a tangible, accessible and permanent communication of findings. Should include following: Executive summary – ”Gateway to report” Shall: 1. Motivate to read on, 2. Give the whole picture and findings in brief Introduction – specifying goals, objectives and outcomes that were agreed upon at first Body of the report – expand ideas and develop your case Summary and recommendations – summary of findings and recommendations in bullet points. Appendices – ”Assume they won´t be read!!”, if used in the implementation of recommendations don't hide it in appendix. ” A simple, well-written, well-laid-out report relating ideas that will have a real impact on the performance if the business is much better than a report rich with graphics but lacking substance.”
- 37. Formal Presentation Formal presentation is a very effective means of getting message across. Before creating the presentation: Analyse the audience Structure it well. Don't make it too complicated Consider the relationships you need to communicate Use pyramid principle of organizing message It´s important to rehearse and practise the presentation, use notes, time your presentation beforehand. Dress appropriately, but comfortable, make sure slides are ok, pace your speech Keep Presentation handouts ready. But hand them over towards the end not in advance Come prepared for the Questions and answer them with confidence Reiterate and reemphasis the key points
- 38. Making the Case: Persuading with the power of Information Information will be more influential if it: Is relevant the decisions the recipients need to make Is pitched at the right level of understanding Is presented in a form which makes it easy to understand and digest Is supported by impactful visual stimuli is placed in appropriate opinion and feeling context Is delivered in a situation of good rapport Is part of an interactive process where recipient is encouraged and supported to explore info Has key points signposted and highlighted
- 39. Answering Questions & Meeting Objections Really listen to the question and consider the nature of the question being asked. Is it a rational seeking of further info or emotionally rooted seeking of reassurance. Some useful points when answering questions: Summarize the question before attempting to answer – will ensure that you understood right and gives time to think If a complex question – break it down to individual questions Answer to the best of your ability. Conclude with: ” Does that answer your question?” How to deal with objections then? Start by recognising and welcome the objection Consider his feelings, is he seeking reassurance or information If clearly emotional or no answer is obvious ->”This is obviously a major concern for you. Why is that?” Objections or questions are a good opportunity to make positive points!!
- 40. Handing Over Ownership of the Project Handing over the ownership of project to the client is crucial. A consultant who is hired to make recommendations much present them in such a manner that implementation can be done easily. Main reasons why implementation goes wrong are: The individuals in the client organisation Who are supposed to carry out implementation are given other priorities The leadership of organisation is faced with different challenges The sponsors of project leave org/assigned different roles Funds required are diverted elsewhere Initial momentum is not sustained Good to have a follow-up meeting 3-6 month later. Maybe you may get additional work
- 41. Post Project Summary and Review A consulting forms most profitable business comes form loyal group of clients. Therefore it´s important for senior consultants to regular meet with executives. Post-project summary is good to keep the dialogue and includes: The original aims and objectives The project charter The time plan – predicted and actual Key successes Key issues Lessons Learnt The end result
- 42. Follow up Projects & Key Client Management The good thing with follow-up work is that the consultant is ” up-to- speed” and can act instantly if its needed. Many firms uses the sales funnel to keep a regular flow of projects in work and that Includes: Pre-prospects Prospects Proposals Projects Follow-ups The follow-up projects because they come up because of a ”bad job” in real project are not good. This kind of work should be kept at a minimum in order to sustain good relations to clients.
- 43. Using Consultancy Projects as Case Studies An important marketing tool for a consultant is past experience, have you done similar work? A case study might be good experience. It should include: Description of client Objectives of the consulting project Work undertaken Achievements of the project Caution should be exercised in case of Confidentiality Agreement, Non-Disclosure Clause, Intellectual Property Rights issues and Trade Secrets acts etc.
- 44. Tips for Management Consultants Make sure you understand the problem the client wants to solve – play it back to them Ensure the scope of work is clear – clear all ambiguities before you start working Don’t get too hung up on the methodology – it can change, in agreement with the client Be clear about timescales – but they can change in agreement with the client
- 45. Subject Matter / Process Expert Subject Matter Expert + Affiliated Field Trusted Advisor Valuable Resource Depth of personal relationship Breadthofbusinessissues The Trusted Advisor (Maister, Green & Galford 1990) Consultancy Value Chain
- 46. Consultancy Wisdom Ask Yourself “What is Going on Here”? What the Client thinks as the problem may not be the real problem! Don’t presume that you know the answers to all problems from the beginning!!! Hypothesize based upon your own experience Keep a very open Mind from the start –You are dealing with limited information to begin with Your Technical Mastery is important But Ultimately you must build a trust-based relationship Consulting Engagement Lifecycle & Core Consultancy Skills - Firewerks “ You don’t get the chance to employ advisory Skills until you get someone to trust you enough to share their problems with you…”
- 47. The Trusted Advisor (Maister, Green & Galford 1990) Consultancy Mantras Earn Trust Build Relationship Provide Effective Advice Success
- 48. Care about their problem If you say you are going to do something... do it! MANAGE EXPECTATIONS Don’t be afraid to manage the elephant in the room You can be creative with the truth but NEVER lie Remember the client knows more about their business than you Know when you are outside your area of expertise Practice the art of thinking 3 questions ahead
- 49. Never ‘tell’ someone what to do Express potential solutions as options Provide clear rationale for each option Remember it is the client’s decision not yours That doesn’t mean you can’t exercise professional opinion Not enough to be right – you must be helpful! Be mindful of internal politics in determining options You are there to make the client’s life easier not harder Ensure the client remains the centre of attention The client should feel like they have come up with the solution
- 50. You have 2 ears and 1 mouth, use them in that order Listen and understand... I mean really listen Show an interest and establish (genuine) rapport Earn the right to offer advice Set clear goals and outcomes Manage the engagement effectively Let the small stuff go... Research them and their background
- 51. Acknowledgements, Credits and References, Consulting Engagement Lifecycle & Core Consultancy Skills - Firewerks The nature of management consulting and how it adds value – Wickham and Wickham International Council of Management Consulting Institutes (ICMCI): www.icmci.org THE INSTITUTE OF MANAGEMENT CONSULTANTS OF INDIA: http://www.imcindia.co.in/ Institute of Management Consultants, USA: http://www.imcusa.org/ Management Consultancies Association, UK: http://www.mca.org.uk/home Wikipedia - http://en.wikipedia.org/wiki/Management_consulting
- 52. Thanks for your kind attention… mail@dvasudevan.com