AREAS OF MANAGEMENT

ADVISORY SERVICES
Types of MAS Engagements
Six dimensions of management services engagements:

1. nature of the problem,

2. service delivery area,
3. phase(s) of the analytic process,
4. techniques and methodologies applied,
5. industry (or nature of organization) to which the client belongs, and
6. geographical area(s) where the engagement take/s place
Nature of the Problem
Classifications of problems according to their situation:

A. Corrective
B. Progressive
C. Opportunistic
Corrective Problem
- Involves a situation in which conditions have worsened;
- Usually arises suddenly and demands urgent action

Example: sudden drop in productivity within a critical department

Progressive Problem
- Involves an existing situation that can be improved

Example: the firm may have been acquired by the firm’s competitors but the
firm’s procedure have remained unchanged
Opportunistic Problem
Involves a situation in which a future opportunity exists

Example: a firm might have excessive cash and cash equivalents available
Service Delivery Areas
-- the functions or activities in which the problem situation exists; may be classified in a number
of ways
For example:
1.0 General management
2.0 Manufacturing
3.0 Personnel
4.0 Finance and accounting
5.0 Marketing
6.0 Procurement
7.0 Research and development
8.0 Packaging
9.0 Administration
10.0 International operations
4.1 General accounting
4.2 Cost accounting
4.3 Short-term planning, budgeting and control
4.4 Credit and collections
4.5 Long-range financial planning
4.6 Capital investment
4.7 Marginal income analysis
4.8 Financial planning
4.9 Valuation and appraisal
4.10 Taxes
4.11 Financial information and planning
Application of the Analytic Process
1. Identifying the objectives
2. Defining the problem
3. Finding out the facts
4. Developing the solution
5. Implementing the solution
Techniques and Methodologies Applied
Example: capital investment planning can be aided by a discounted cash flow
model such as the present value or the internal rate of return model
Industry or Nature of Organization
• privately-owned business firm
• government agency
• not-for-profit nongovernmental organization
• professional association
Geographical Areas
- either a single location (e.g., home office of the client) or multiple locations
Areas of MAS Practice
1. Management functions of analysis, planning, organizing, and controlling.
2. The introduction of new ideas, concepts, and methods to management.
3. The improvement of policies, procedures, systems, methods and
organizational relationships.
4. The application and use of managerial accounting, control systems, data
processing, and mathematical techniques and methods
5. The conduct of special studies, preparation of recommendation
 Most sought-after types of consultancy
work
a. Business planning and development or project feasibility studies
b. Information systems consulting
c. Internal audit services
d. Management operations audit
e. Business process improvement/reengineering
f. Others, such as:
- marketing research - new product development
- marketing strategy development - developing proposal for financial support
- developing promotional campaign - staff recruitment
- planning sales force activity - exporting and international market
Business Planning and Development
(Project Feasibility Studies)
-- often encountered in businesses that have ambitions to grow and develop;
-- offers the consultant a broad remit to contribute to the development of the
business

First task: to establish exactly what the client wants from a business
development project
Common outcomes desired from business development:
 growth of the business within its core markets by capitalizing on market growth
or market share increase
 expansion of the business into new market sectors
 development of new products
 increasing profits through cost-reduction programs
 internal structural reorganizations
Information Systems Consulting
Information – is a corporate resource
Management information systems – aim to collect and organize such
information and present it to managers in a usable form
Internal Audit Services
Internal auditing – is an independent, objective assurance and consulting
activity designed to add value and improve an organization’s operations;

Helps an organization accomplish its objectives by bringing a systematic,

disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes
Management/ Operations Audit
Operational audits– also known as management audits and performance audits
- are conducted to evaluate the effectiveness and/or efficiency of operations
- are examinations of all or part of an entity to determine the degree of its
operational efficiency, effectiveness, and economy
Business Process Improvement/
Reengineering
- considered a more radical approach to improvement than TQM
- more likely to be imposed from above and to use outside consultants
- a business process is diagrammed in detail, questioned, and then completely
redesigned
1. to eliminate unnecessary steps
2. to reduce opportunities for errors, and
3. to reduce costs

Business process – is any series of steps that are followed to carry our some task in a
business
Re-engineering – is the complete redesign of a process with an emphasis on
finding creative new ways to accomplish an objective
- involves a radical shift in thinking about how an objective should be met
- involves developing new ways to perform existing activities and ways to stop
performing non-value-adding activities
Reengineering
a. Cultural Factors
Organizational culture – the mindset of employees, including their shared beliefs,
values, and goals
b. Managing Organizational Change
Change champion – is an individual who recognizes the need for change and
seeks to bring it about through his or her own efforts. S/he is usually at a high
level in the organizational hierarchy, has strong entrepreneurial skills,
demonstrates political influence within the organization, and has the ability to
persuade and motivate others
Elements of organizational change:
 Well-defined process established for change
 Timetable for certain activities
 A set of well-articulated goals
 Follow-up
Each employee should be made aware of:
A. the goals of the program,
B. the process by which the program will be implemented and evaluated, and
C. the employee’s role in making the program a success
Other Types of Consultancy Work
a. Marketing research
b. Marketing strategy development
c. Developing promotional campaigns
d. Planning sales force activity
e. New product development
f. Developing proposals for financial support
g. Staff recruitment
h. Exporting and international marketing
Marketing Research
Is the process through which managers discover the nature of the competitive
environment in which they are operating.

Objective: to obtain information which managers can use to support their

decision-making, to reduce risk, and to enable managers to dedicate valuable
resources in a more reliable way
Two types of marketing research:
1. Primary research – information collected for the specific project
A. quantitative research
B. qualitative research

2. Secondary research – based on information that has been collated earlier for
reasons other than the project at hand
Marketing Strategy Development
Marketing strategy – defines the approach the business will take in order to get
the customers’ attention and critically get them to spend their money on the
business’ products and services
The marketing strategy will be built on the answers to the following questions:
 What products do customers want from a sector’s produces?
 In what way are competitors failing to produce these products?
 What prices are customers expected or willing to pay?
 What channels are available for getting the product to the customer?
 Who might be the partners in the distribution process?
 How might they be approached?
 In what ways can customers be informed that the product is available?
 How can the customers’ interest be stimulated through promotion?
Developing Promotional Campaigns
Promotional campaign – is any program of activities dedicated to informing
customers about a product, stimulating their interest and encouraging purchase

Examples: advertising and public relations campaigns, sales drives, direct

mailing, exhibitions and in-store demonstrations
The key questions that the client will be asking will be:
 What methods will prove to be cost-effective?
 What will be the mechanics of running the campaign?
 How can it be monitored?
Planning Sales Force Activity
Key issues that might be addressed:
 overall organization of the team
 sales team training
 sales team motivation
 planning sales campaigns
New Product Development
- represents a complex project that draws in most, if not all, of the firm’s functions
- is often undertaken by interdisciplinary teams, which cut across departmental
boundaries

The role of the consultant

 understanding the customer’s needs through market research
 technical advice on product development
 identifying and contacting suppliers of critical components
 development of marketing and PR campaigns to support the launch
 developing promotion campaigns to get distributors on board
 financial planning and evaluation of the return on new product investment
Developing Proposals for Financial
Support
Critical areas:
 evaluation of the business’ investment needs
 identification of funding providers and how they might be contacted
 developing an understanding of the criteria employed by funding providers and
how these might be addressed
 developing communications with funding providers, particularly in relation to
proposals and business plans
Staff Recruitment
Important contributions of the consultant to recruitment projects:
 assessing the firm’s human resource recruitment and identifying skill and knowledge
gaps, both currently and predicting for the future
 creating advertisements (with insights into both message and medium) to attract the
right people
 developing assessment criteria, interview procedures and, possibly, psychometric
testing of candidates
 advice on the reimbursement packages new recruits will expect
Exporting and International Marketing
The consultant’s role
 an overall insight into regional, social, and macroeconomic development
 an analysis of the growth and evolution of specific markets
 an evaluation of consumer needs and requirements and how these are being satisfied
currently
 information on regulatory and legal issues
 details of the existing supply structure and competitors present
 an investigation into distribution channels and possible partners
 information on advertising and promotional opportunities