onsultancy management
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1. CONSULTANCY MANAGEMENT
2. 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.
3. 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.
4. • 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.
5. 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.
6. Functions of a Consultant • Providing information to the client • Solving a client’s
problems • Making a diagnosis which may necessitate redefinition of the problem • Making
recommendations based on diagnosis • Assisting with the implementation of the
recommended actions
7. • Building a consensus and commitment around the corrective actions. • Facilitating client
learning. • Permanently improving organizational effectiveness.
8. 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.
9. • 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 client’s capacity to solve
problems.
10. • 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.
11. 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.
12. • 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.
13. • 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 consultant’s task is described as professional assistance in identifying, diagnosing and
solving problems concerning various areas of management and business.
14. • 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.
15. • 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 consultant’s special technical knowledge and the methods
used in doing so.
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16. • 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.
17. 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.
18. • 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.
19. • 3. Establishing business contacts and linkages: • Many clients take the help of
consultants to search for new business contacts, representatives, agents etc. • The
consultant’s 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.
20. • 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.
21. • 5. Doing Diagnostic Work : Clients use consultants for a wide range of diagnostic tasks
concerning the organization’s strength and weakness, potential for improvement, barriers to
change etc.
22. • 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.
23. • 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.
24. • 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.
25. • 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.
26. • 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.
27. The Consulting Process • Whenever there is a consulting intervention, the client and
consultant undertake certain activities required to achieve the desired goal. • These activities
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are known as consulting process. • This relationship has a clear beginning and a clear end. •
Between the beginning and end, the process can be divided into many phases.
28. • There are many ways of subdividing the intervening process. One of them is as under.
• It contains the following phases: • - Entry • - Diagnosis • - Action Planning • Implementation • - Termination
29. • Entry: • In this phase, the consultant starts working with the client. • This is a
preparatory and planning phase and lays the foundation for everything that will follow. • This
phase includes the fist contact, discussions on what the client would like to achieve, the
clarifications of their respective roles, the negotiations and agreement of a consulting
contract.
30. • 2. Diagnosis: This phase is an in depth diagnosis of the problem at hand. • During this
phase, the consultant and the client cooperate in identifying the sort of change required,
defining in detail the goals to be achieved, and assessing the client’s performance,
resources, needs and perspectives.
31. • 3. Action Planning: This phase aims at finding the solution to the problem. • It includes
work on one or several alternatives, the evaluation of alternatives, the elaboration of plan for
implementing changes, and presentation of proposal to the client. • Action planning requires
imagination and creativity as well as a systematic approach in identifying feasible
alternatives.
32. • 4. Implementation: This is the phase where the changes proposed start taking shape.
• This is also one of the most testing phases because this is the phase where things begin to
happen either as planned or differently. • Unforeseen problems arise and faulty assumptions
are uncovered. • The original design and action plan may need corrections and rectifications.
33. • 5. Termination: This is the final phase in the consulting process and includes several
activities. • The consultant’s performance during the assignment is evaluated by both the
client and the consulting firm. • Final reports are presented and discussed. • Mutual
commitments are settled. • If they want to pursue the relationship further, agreements are
drawn up. • Once these activities are completed, the consulting assignment is terminated.
34. The Consulting Assignment • A typical consulting assignment’s scope includes: • - The
purpose to be achieved • - the expertise to be provided by the consultant • - the nature and
sequence of tasks to be undertaken by the consultant • - the client’s participation in the
assignment. • - the resources required • - the timetable • - the price to be paid • - other
conditions as appropriate.
35. Contact us Parveen Kumar Chadha… THINK TANK (Founder and C.E.O of Saxbee
Consultants) Email :-saxbeeconsultants@gmail.com Mobile No. +91-9818308353 Address:First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015 Should you have Good
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