CONSULTANCY MANAGEMENT

The Management Consultancy Process

Management Consultancy

Reported by: Gilbert G. Asuncion, Jr.

Prof. Pascual B. San Jose

What we mean by consultancy

to try to take ownership of an organization's problems and use research and logic to develop possible options for a way forward. Matt Baumann giving solutions to the problems that companies have. Jane Ridley There are many definitions of consulting, and of its application to problems and challenges.. Two basic approaches : broad functional view - providing help on the content, process, or structure of a task, not actually responsible.. views consulting as a special professional service, advisory

What we mean by consultancy

The MCA The Management Consultancies Association (MCA), which represents the major UK consultancy firms "defines management consulting as: The creation of value for organisations, through improved performance, achieved by providing objective advice and implementing business solutions.

The rendering of independent advice and assistance about management issues. This typically includes identifying and investigating problems and/or opportunities, recommending appropriate action and helping to implement those recommendations.
The service provided to business, public or other undertakings by an independent and qualified person or persons in identifying and investigating problems concerned with policy, organization, procedures and methods, recommending appropriate action and helping to implement those recommendations.- The Institute of Management Consultants

Management consulting is an advisory service contracted for and provided to organizations by specially trained and qualified persons who assist, in an objective and independent manner, the client organization to identify problems, analyse such problems, recommend solutions to these problems and help, when requested, in the implementation of solutions. L Greiner and R Metzger, Consulting to Management (1983) Within these all-encompassing definitions there are three important themes: identifying a problem recommending a solution helping with implementation. These three characteristics of consultancy necessitate different roles and require very different competences on the part of the consultant. Thus, the consultant will sometimes adopt the role of mentor, at other times the role of creator, while on other occasions the consultant is, in reality, a leader.

What is Management Consulting?

It is the practice of helping organizations improve their performance through analysis of existing organizational problems and development of plans for improvement. Examples are HR consultants: specializing in HR ISO Consultants: specializing in the process of ISO certification.

Why are management consultants needed?

Management Consultants are needed by firms who wish to bring about some improvement in their organizations or are facing a problem and wish to solve it. Management Consultants are hired by firms to gain external advice and the consultants specialized expertise.

 Since the consultants are exposed to and have relationships with many organizations, they are aware of the best practices in the industry, which the firm can use.

What do consultants do?

Provide organizational change management assistance. Development of coaching skills Technological implementation Strategy development skills Operational improvement services. Consultants have their own methodology of identifying problems which form the basis of recommendations for improvement.

Functions of a Consultant
Providing information to the client Solving a clients problems Making a diagnosis which may necessitate redefinition of the problem Making recommendations based on diagnosis Assisting with the implementation of the recommended actions

 Building a consensus and commitment around the corrective actions. Facilitating client learning. Permanently improving organizational effectiveness.

Difference between a consultant and an advisor

Although to a layman, both seem to be the same, there is a difference between consultants and advisors. A consultant is called when the firm has a clear cut problem in need of a solution, whereas an advisor is called when the firm has already thought of several solutions and is not sure which one to adopt.

 Consultants are problem solvers. They excel at developing and selling ideas and can be great simplifiers. Advisors are better problem definers than problem solvers. They often broaden the view of the clients. They contribute to strengthening the clients capacity to solve problems.

 Advisors can provide early warning about emerging problems which are often missed by the consultants because of their sharp focus on solving the problem at hand.

Why are Consultants Used

1. Achieving Organizational Purposes and Objectives: Organizations, when they hire a consultant, generally have the purpose of getting help in achieving their business, social or other objectives. These goals may be sectoral leadership, competitive advantage, corporate excellence, profitability, effectiveness, growth etc.

 Whatever the purpose may be, but the fact remains that consulting has to add value to the client organization. At times the job of the consultant may be to advise client on how to maintain status quo or even how to get out of business.

 2. Solving Management and Business Problems: The most common purpose of hiring a consultant is to help managers and decision makers with problem solving. In this context, the consultants task is described as professional assistance in identifying, diagnosing and solving problems concerning various areas of management and business.

 3. Identifying and Seizing new Opportunities: Consultants are also used to identify new opportunities . Consultants are regarded as a source of valuable information and ideas that can be turned into a wide range of initiatives like developing new markets, improving quality, becoming more useful to customers, finding new business contacts.

 4. Enhancing Learning: In the modern concept of consulting, this dimension is omnipresent. Many clients turn to consultants not only to find a solution to a specific problem, but also to acquire the consultants special technical knowledge and the methods used in doing so.

 5. Implementing Changes: Consultants are often known as change agents. They help client organizations to understand change, live with change and make changes needed to survive and be successful in an environment where continuous change is the only constant.

How are Consultants Used?

There are ten principle ways in which consultants are used: 1. Providing Information: Quite often, more complete and more relevant information is the only need of a client to make the right decisions. The consulting firm may have this information already available with it, or it may know where to find it. There is no consulting that does not involve working with and providing information. But in providing this information, consultants have to distinguish between what information can be given and what cannot be given to a client.

 2. Providing Specialist Resources: In some cases, expertise is required for a short term. In other cases, there are organizational constraints about hiring experts . This is where consultants are used . A special case is interim management. In this client firms borrow staff members of consulting firms to occupy a position in their management hierarchy on a temporary basis.

 3. Establishing business contacts and linkages: Many clients take the help of consultants to search for new business contacts, representatives, agents etc. The consultants task is to identify one or more suitable candidate from among the available alternatives, depending upon the suitability of the candidate. The consultant also advises the client on the conditions of alliance or business deal.

 4. Providing Expert Opinion: The consultant may be approached to provide expert opinion in cases where the client has many alternatives. Consultants may also be invited to act as an expert witness, testifying witness in lawsuits or arbitrations calling for specialized knowledge.

 5. Doing Diagnostic Work : Clients use consultants for a wide range of diagnostic tasks concerning the organizations strength and weakness, potential for improvement, barriers to change etc.

 6. Developing Action Proposals: The diagnosis is followed by development work in any organization. The consultant may be asked to do the whole job, share the task with the client or act as an advisor to the client who has undertaken to take the developmental work.

 7. Developing Systems and Methods: The consultant may be asked to develop systems and methods for a client in his field of expertise. These fields may be organization development, management information, business planning, operations scheduling and control. Traditionally, consultants develop one or more of these areas as their field of operation.

 8. Planning and managing organizational Change: When organizational changes are inevitable and the client does not have the necessary skills or expertise to undertake it, they turn to the consultant for help. The consultant may provide expertise and advice both on specific methods and techniques that are being changed. They also advise on how to deal with the interpersonal relations , conflicts, motivation problems that arise as a result of the change undertaken.

 9. Training and Developing Management Staff: The client may need to be trained in the new methods and techniques provided by the consultant. This may be undertaken as a distinct client service or in conjunction with and in support of other services.

 10. Counseling and Coaching: management consultants can render an excellent service to managers and entrepreneurs who need strictly personal feedback on their leadership style, behavior, work habits. Personal counseling is necessarily a one to one relationship based on trust and respect. It can be informal and should be strictly confidential.

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GOD BLESS