Academy of Management 2002
Management Consulting Division
Consulting Process:
Essential Skills
copyright Dunford, Geigle, Jenefsky,
2002
Module Objectives
Participants will have a greater ability to:
♦ identify key challenges in the consulting process
♦ anticipate the causes of key challenges
♦ link challenges to specific stages of the consulting
process
♦ plan and enact preventive and coping strategies
appropriate to specific challenges
copyright Dunford, Geigle, Jenefsky,
2002
Core Propositions
♦ That at each stage of the consulting process
there are key challenges/tensions in the
relationship between consultant and client.
♦ That awareness of these challenges “forearms
and forewarns” consultants in terms of:
– what to watch out for
– how to minimise the prospect of problems
emerging
– how to respond should problems emerge
copyright Dunford, Geigle, Jenefsky,
2002
Group Exercise: ComputerTime
You are Kim Stephens, a new solo practitioner without an established client base. You have had 15
years of corporate experience in a wide range of functions. Over lunch one day, an ex-colleague,
Sue West, tells you about a businessman friend of hers, Jed Stone, whom she thinks might benefit
from getting a consultant to have a look at one of his businesses.
You meet Jed Stone, who explains that he has the franchise on five retail computer stores in the
ComputerTime chain. These stores are not his main businesses – they’re more like investments.
He’s not ever used a consultant but Sue has convinced him that he should get someone independent
to analyze the operating of the stores.
Jed seems enthused about you doing the work and it sounds like an engagement well within your
expertise so you agree to accept the brief. You spend several days doing an industry study,
identifying the documents that you’ll want from Jed and preparing a schedule of visits to the
stores.
Armed with this, you revisit Jed. However, his reaction is most unexpected. “You can’t talk to my
staff”, he exclaims. “They are just salespeople- they won’t have any idea and all you’ll do is cause
concern that something is going on. And this request for the company’s financials – I really don’t
think that it is necessary or appropriate for you to have access to this.” You try to put a case to
him for access to both staff and the financials but he is unmoved. “That’s all the time I’ve got”,
says Jed, clearly agitated. “I have another meeting that I need to get to. Just get back to me when
you’ve got something to report.”
Still surprised by his reaction, you decide that you’ll need to rethink your data collection strategy.
The first step will be to carry out a survey of shoppers as they leave Jed’s stores.
copyright Dunford, Geigle, Jenefsky,
2002
Stages in the Consulting Process
♦ Entry and Contracting
♦ Diagnosis: Collecting & Analyzing Data
♦ Interventions and Deliverables
– Products (., workshop, installed system with trained use base,
implementation of a new compensation system)
– Reports
– Feedback
♦ Exit
– Closure (formal acceptance of deliverables)
– Contracting for add-on work
copyright Dunford, Geigle, Jenefsky,
2002
Entry and Contracting:
How do I get work?
♦ Client-initiated entry
– Referral from satisfied clients
– Return business
– Informal networking
– Formal requests for bids
♦ Consultant-initiated entry
– Prospecting in current clients
– Subcontracting for established consultants
– Business development activities
• Sales calls
• Conference presentations
• Pro bono work
copyright Dunford, Geigle, Jenefsky,
2002
Entry and Contracting:
First meetings
♦ What is the problem?
♦ Can I (we) be helpful in this situation?
♦ Is this the kind of work I (we) want to do?
♦ What is the chemistry between us/
♦ What should we do next?
copyright Dunford, Geigle, Jenefsky,
2002
Entry and Contracting:
Contracts and pricing
♦ Contract Types
– Fixed price
– Time and materials (., open ended)
– Variable fee (eg, based on profit and gain sharing)
– Retainer
♦ Pricing
– Hourly? Daily?
– What time do I charge for (preparation? travel?)
copyright Dunford, Geigle, Jenefsky,
2002
Entry and Contracting:
The contract
♦ Client
– Statement of the
problem
– Scope of work
(statement of work)
– Expected outcomes,
deliverables and
timetable
– Expected cost or level
of effort (LOE) (eg,
budget limit)
♦ Your Response
– Your understanding of
the problem
– Planning assumptions
(eg, what won’t
change)
– Work plan (tasks,
schedule, data sources)
– Deliverables
– Price
– Other terms (eg, must
you be on site)
copyright Dunford, Geigle, Jenefsky,
2002
Vignette: National Insurance
Your consulting firm (United Consulting) has been approached by Jamie
Landford, the Human Resources (HR) Manager of National Insurance. She
describes her company as being too conservative and needing a ‘can do’ culture
to cope with its increasingly competitive environment. She is keen that her top
managers drive the changes but believes that they need some targeted
exposure to approaches to change management. She invites you and some
colleagues to address the monthly meeting of her top management team (TMT)
on what United could provide in this accept the invitation.
After your address, John Callaghan, the IT Manager is one of the first to
comment, “We’re so heavily committed to existing projects,where would we fit
in the time?” Many of the others in the TMT murmur or nod in agreement.
“Sure, we’re all very busy”, says Jamie, “but the question is, does our company
need change management skills?” Alex Guthrie, the CEO is quick to respond,
“The answer is obviously, yes!” The remainder of the TMT are conspicuously
silent, something that you and you colleagues comment on with concern after
the meeting.
Three days later you are offered the contract to design and deliver the change
management program. You are asked to attend a follow-up meeting with Alex
and Jamie. You agree to attend, but what are you going to say at the meeting?
copyright Dunford, Geigle, Jenefsky,
2002
Vignette: Gatekeepers
Within a large, diversified conglomerate in a developing country,
you have identified an organizational unit which has a recognized
need for your consulting services. You have established a rapport
with the client who is prepared to work with you. However, within
the conglomerate there is an internal consulting unit that has the
right of first refusal on any consulting work within the
organization.
You and the client both believe that you are better qualified to
meet the client’s needs because of the specialized knowledge
required. In order to get the business, you will have to address the
claim of the internal consulting division that “we can do as good a
job as any outside consultant”. (In the cultural context of the
specific country, not getting the mandate would represent a “loss
of face” to the internal consulting group.)
Develop a strategy for dealing with this situation. Present your
strategy in a role play involving (1) you (., the external
consultant(s), (2) the client and (3) the internal consulting group.
copyright Dunford, Geigle, Jenefsky,
2002
Vignette: Metropolis USA
The HR Department of Metropolis USA has engaged your consultancy, SCA,
to evaluate their training programs and to recommend improvements. Your
client contact is Michael Jacobs, the corporate training manager. Your
project team consists of you (Lee) as project manager, a senior analyst
(Tracey), and a junior consultant.
A few days after the project kick-off meeting, you must go out of town for
another client. Before leaving, you inform Michael that you are leaving
Tracey in charge. You ask Tracey to start phase 1 of the project plan, which
involves collecting documents and conducting interviews on the training
programs. Two days later, you receive the following voice mail message
from Tracey:
“We have encountered serious problems at the client site.
Michael has no interest in the improvement of the programs.
He’s planning to retire at the end of the year and has said
several times that he doesn’t care what happens after December.
And everyone on the training staff is very nervous about our
presence here. One of the staff members joked with us, when
we were introduced, “You must be there to tell us everything
we are doing wrong.” Other people we need data from are not
very forthcoming with the documents we request.”
copyright Dunford, Geigle, Jenefsky,
2002
Vignette: Metropolis USA cont.
You return to the office and meet with your project team. Tracey
reiterates her concern about the “atmosphere” at the client site.
She is irritated Michael (the client contact) has not done a better
job informing the staff about your team’s work and is very upset
that the staff members are “not cooperating”, which she
attributes to Michael’s poor management skills.
Later that afternoon, you see Michael in the elevator and he asks,
“Do you have a few minutes?” When you reach the privacy of his
office, he asks, “What exactly is Tracey’s role on the project?”
You outline her role, then ask, “Do you have any concerns about the
project?” Michael replies, “No, not really, although Tracey’s visit
the other day was like a visit from the !”
Role play the actions you would take to get the project back on
track.
copyright Dunford, Geigle, Jenefsky,
2002
Vignette:
TransAm Parcel Service
You are nearing the end of your consulting engagement in which you and your
colleagues from EGOS Consulting have been analyzing the logistics operation
of TransAm Parcel Service (TPS). It has been a successful engagement from
your point-of-view and you are confident that the key items in the statement
of work have been addressed.
However, in the course of the engagement, you have become aware of a
broader range of issues that are impacting negatively on the performance of
TPS (outside the scope of work). In some instances you think you know what
specific improvements are needed. In other instances you are less clear about
the solution but feel that there are some issues that TransAm should address
promptly.
But you’re not sure what to do. Should you just stick to the statement of work
and present only those findings and recommendations that directly address
this? Or should you provide some of these additional views/recommendations
and if so how? Should you just try to “slip it in” to some imminent
conversation? Or would it look better to deal with it explicitly as an added
component of the formal report?
Whatever you decide, you’re going to have to decide soon!
copyright Dunford, Geigle, Jenefsky,
2002
Challenges in the Consulting Process:
Entry & contracting
♦ The consultant is unclear about the motivation behind the client’s desire to
engage a consultant (., the scapegoat phenomenon)
♦ The client has told you what the problem is; your initial investigations
reveal that this may not be the case
♦ The client has unrealistic expectations about what can be accomplished
and/or how quickly
copyright Dunford, Geigle, Jenefsky,
2002
Challenges in the Consulting Process:
Diagnosis
♦ Fear that consultants asking questions will dredge up problems,
which can lead to blaming the consultant for causing, as opposed to
revealing, trouble
♦ Consultant’s “need to know” vs informants’ “inclination to tell”
♦ Resistance from within the ranks of management, where the latter
resent the intrusion of outsiders because insiders think they have a
much better understanding of the situation or because “we are
paying them to learn our business!”
♦ Resistance from within the organization because they are skeptical
about the usefulness of the project
♦ Having to work with an internal change team that is not sufficiently
skilled/motivated
♦ Scope creep
copyright Dunford, Geigle, Jenefsky,
2002
Challenges in the Consulting Process:
Interventions & deliverables
♦ The “cookie cutter problem”, ., consultants perceived to be
insensitive to the specifics of the situation (too tied to templates,
formal methodologies)
♦ Ensuring that there are no surprises in findings and recommendations
♦ Deciding on an effective reporting style
– Research style ( “whodunnit style”)
context > problem > methodology > findings > recommendation
– Narrative style (Minto “Pyramid Principle”)
situation/complication/question raised > recommended solution >
specific approach/action steps
copyright Dunford, Geigle, Jenefsky,
2002
Challenges in the Consulting Process:
Exit and closure
♦ Clients discount the suggestions made about additional work needed
as an attempt by the consultant to gain add-on work
♦ How much should you do for the client after you have delivered the
“final” product?
