Consultancy Skills
Dr Simon Haslam
FMR Research Ltd
Our aim
To learn about consultancy in an
organisational context. What consultancy
involves, the key competencies and abilities,
and the tools and techniques helpful to a
consultant.
About us
• Your role
• Your consultancy experience
• What you’re hoping to learn from today
1. What we mean by
consultancy
What we mean by
consultancy
The MCA defines management consulting as: “The creation of
value for organisations, through improved performance, achieved
by providing objective advice and implementing business
solutions.”
“Consulting involves individuals, whether self-employed or
employed, individually or collectively using their knowledge,
experience and analytical and/or problem-solving skills to add
value into a wide variety of organisations, and therefore to the UK
economy as a whole, within a framework of appropriate and
relevant professional standards, disciplines and ethics.” (IC)
What we mean by
consultancy
“…to try to take ownership of an organisation’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
Consulting is
about helping an
organisation get
from A to B…
… perhaps without
knowing at the
outset where A is,
where B is, the
appetite for the
journey or your
role in it.
Consultants = change
What
Feasibility - exploration
Change implementation
Review/evaluation
Why
Additional capacity, third party objectivity,
process skills, access to specific information, ‘bad
guy’
Eras of consultancy
• Scientific management
• Strategy boutiques
• Technology enabled change
Management Consulting
Labour government - £2m pa spend
Previous conservative government - £0.5m pa
European market (2010) – 25m euros
Sourceforconsulting.com identified six key client trends:
1. Context – the globalisation of clients will be a crucial source
of growth, but at the same time, it will reshape the industry.
2. Purchase – increasing use of multinational purchasing models
will impact the historic influence of relationships.
3. Resources – clients are choosing to staff more projects internally
which, before they might have hired external consultants to do.
4. Delivery – instead of competition primarily being between familiar
enemies, it’s now between firms and freelancers.
5. Outcome – the majority of firms now sit in the middle between advice
and implementation.
A new basis of differentiation is needed: outcomes.
6. Margin – fee rates among multinational companies have dropped by
10-15 per cent.
Key Stages in Consulting
1. Opportunity development
2. Agreeing Terms of Reference
3. Information gathering
4. Interpretation and insight development
5. Sign-off
6. Aftercare
‘What are the deliverables?’
Cost
Spec/quality
Time
Intervention styles
• ‘Expert consultant’
• ‘Process consultant’
Hands on – hands off
7.
Help them think through their own ideas
6.
Add options to their ideas
5.
Advise them what to do
4.
Tell them what to do
3.
Show them how to do it
2.
Do it with them
1.
Do it for them
Competence framework
© Institute of Consulting
1.0
Client Focus
2.0
Building and Sustaining Relationships
3.0
Applying Expertise and Knowledge
4.0
Achieving Sustainable Results
5.0
Market Capability and Knowledge
2. Perspectives helpful to
consultants
The organisational context
Internal
Micro environment
Macro environment
In one application, sensemaking is
approached as the ability or attempt to
make sense of an ambiguous situation.
More exactly, sensemaking is the process
of creating situational awareness
and understanding in situations of high
complexity or uncertainty in order to make
decisions. It is "a motivated, continuous
effort to understand connections (which
can be among people, places, and events)
in order to anticipate their trajectories and
act effectively“
(Klein, as referenced in Wikipedia)
• Vision – ambition, aspiration
• Mission – purpose, raison d'être
• Values – strategic drivers, codes
‘Hilltops’
low
‘agreement’
high
high
‘certainty’
low
‘edge
of
chaos’
low
‘agreement’
high
Zone of Extra-Ordinary Management:
Under relatively ambiguous
conditions - higher levels
of awareness and interpersonal skill
become critical
Zone of Ordinary Management:
- may be adequate under relatively unambiguous
conditions
high
‘certainty’
low
Cultural web
“Culture eats strategy for breakfast” Peter Drucker
Kubler-Ross model
3. Analytical frameworks
and tools
Process guidance
Start with the client – deliverables, process, perspective
Pull together secondary data asap
Primary data follows
Facilitate external perspective/bring something new
Share understanding during process
Keep eyes on ‘triangle’… and keep in touch
Process guidance (2)
Make your client look good
Expect to over deliver
Invoice promptly
Seek formal feedback quickly
Note, but take a light touch with, follow-up opportunities
McKinsey 7S
Helpful when looking at organisational alignment
SWOT analysis
Strengths
Opportunities
Weaknesses
Threats
Helpful to summarise a situation analysis
How to Change - Stages
Change models
Unfreezing
Refreezing
Changing
How to Change - Stages
Gerry Egan’s ‘Model B’
1. Present
‘Blind Spots’
2. Preferred
3. Getting there
Agenda
‘Story’
Best fit
Possibilities
Commitment
Strategies
Plan
‘Leverage’
Actions leading to positive outcomes
Stakeholder mapping
(Mitchell, Agle and Wood 1994)
Low interest
High interest
High
power
Low
power
Helpful when shaping perception research and change
Strategy canvas
10
8
6
PS3
4
X-Box 360
2
ed
ity
ss
or
s
pe
ct
iv
Pr
oc
e
C
on
ne
D
VD
1
D
ol
by
5.
c
di
s
H
ar
d
Pr
i
ce
0
Helpful when looking at business models and positioning
Four Actions framework
Re-shaping the value curve results from the
consideration of four actions
‘Raise’ means increasing the strength of a existing factor
‘Reduce’ means reducing the prominence of an existing
factor (cost saving)
‘Create’ means introducing a new factor to your recipe.
‘Eliminate’ means making a factor in your current recipe
redundant (cost saving)
by
1
c
5.
di
s
DV
Co
D
nn
Pr
ec
oc
t iv
es
ity
s
or
M
ot
sp
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ee
n
d
co
nt
ro
la
bl
La
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rg
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pu
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ic
Do
l
Ha
rd
Pr
ic
e
Nintendo’s ‘blue ocean’ response
Strategy canvas
10
8
6
PS3
4
2
0
X-Box 360
Wii
2007
Gp1-2012
Gp2-2012
Capacity
building/facilitation
Regional presence
Product range
(customers)
Focus on
disadvantage
FT focus
Political' activity
Financial 'safety'
Relative cost base
Product range
(investors)
Investor diversity
Share capital
Perceived integrity
Gap analysis
(using strategy canvas)
Core competence
C.K Prahalad and Gary Hamel’s view is that
strategy should focus on an organisation
recognising ‘what it is fundamentally good at’,
and building from this. They provide access to a
wide variety of markets, contribute significantly to
end product benefits and are difficult for competitors
to imitate.
Helpful when looking at internal ability
Value Chain
Helpful when looking at internal capability, development
and out-sourcing possibilities
PESTEL macro environmental forces
POLITICAL
SOCIAL
ENVIRONMENT
ECONOMIC
TECHNOLOGY
REGULATORY/
LEGAL
Helpful as a basis for organisational design (fit for
environment), horizon scanning, scenario planning,
Porter’s Five Forces
• Rivalry amongst those in the industry
• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of new entrants
• Threat of substitute products or services
• Bargaining power of buyers
Helpful when looking at competitive positioning,
segmentation approaches, customer needs and
perception
Decision making - options
Suitability – does it achieve what we want?
Feasibility – have we the resources/
capability?
Acceptability – can we live with the
consequences of this action?
Creativity approaches
1. Have a process
2. Start with divergent thinking
3. Finish with convergent thinking
Helpful for fresh perspectives and buy-in
Metrics
What get measured gets done…
…what gets rewarded gets done better.
Perverse outcomes… can
we live with the
consequence of our choice
of CSF/KPI/objective
Balanced Scorecard (MI)
Strategy
Perspective
Goals
Measures
Shareholder
satisfaction
ROC, EVA, Cash,
Sales growth, Cost
reduction
Customer
Customer
satisfaction
Retention
Development
Acquisition
Internal
High quality
people &
processes
Cycle time, Quality,
Cash conversion,
Service levels
Learning & growth
NPD, Employee
development,
Adaptability
Financial
Future
Helpful when assessing performance, agreeing targets, MBO
Risk analysis
High
Likelihood
Med
Low
Low
Med
Impact
High
Helpful when evaluating change options and strategies
Force field analysis
Promoting forces
Restricting forces
Helpful when planning pragmatic change
Ansoff matrix
Existing
products
New
products
Existing
markets
Penetration
Product
development
New
markets
Market
development
Diversification
Helpful as a basis to discuss strategic options
Directional Policy Matrix
Industry attractiveness
High
Medium
Low
Strong
Business
competitive
position
Medium
Weak
Helpful when analysing portfolios and developing strategy
4. Our personal
contribution
TGROW
- discussion road map
•
•
•
•
•
Topic
Goals
Reality
Opportunities
Wrap-up
In a meeting/discussion – what phrases
might one use around each of these five
stages?
Expansive
Recognition
Affiliation
(Expressive)
(Amiable)
Dominant
Unassuming
(assertive)
Achievement
Security
(Driver)
(Analyser)
Contained
(emotionally controlled)
How each style makes decisions
PROMOTING
FACILITATING
• Boldly
• Facilitating
• Prefers new
alternatives
• Reluctantly
• Involves others
• Prefers to be part of a group decision
• Quickly
• Involves others
• Idealistically in terms of people
• Concerned about decision’s effect on
other people
CONTROLLING
ANALYTICAL
• Realistically
• Reluctantly
• Willing to take
calculated risk
• Logically
• Independently
• Prefers effective
alternatives
• Slowly
• Likes to study alternative
possibilities in detail
• Carefully
In bid meetings…
Do your homework – think of the questions you might
be asked
Work in your elevator pitch
Don’t make statements you can’t back up
Ask questions back – seek to clarify
Be honest – if you don’t know something, admit it
Take responsibility – show how you will add value
Agree follow up actions – and do yours
The ‘elevator pitch’
The ‘elevator pitch’ is a short summary which quickly
and simply explains a product/organisation and,
importantly, its value proposition.
Your elevator pitch
• Addresses a problem
• Outlines your solution/value proposition
(what you do to help others).
• Brief
• Easy to understand
• Emotional hooks
• Say what you want
Brand
“A relationship with the customer”
“A promise”
“essence – identity – experience”
Repetition builds reputation
58
Competitive Advantage
D
i
f
f
i
c
u
l
t
y
Patents
Copyright
Brand Values
Registered Design/logo
Strategic
Distribution Channels
People, team, knowledge
Positioning
Tactical
Product quality
Pricing
Customer Service
Promotions
Time taken to copy
Branding and the
entrepreneur
• Brand often linked with entrepreneur
• Brands are built – you don’t start with a
strong brand
• Brand development is a consequence of
doing business
• Does the brand have ‘stretch’?
• Can you protect your brand?
10 entrepreneurial
branding tips
1. The design of your logo really doesn’t matter.
1. Have a professional website.
2. Blogs are good.
3. Blogs are good, but they’re just one tool.
4. Prepare a one page corporate overview.
5. Participate in local business events.
6. Do what you say you’re going to do.
7. Stand for something.
8. Realize that you’re not in total control of your brand.
9. Branding is as much about your people as anything else.
Entrepreneurial Marketing
• Opportunistic – make the most of an opportunity
• Customer focussed
• Proactive
• Innovation focussed
• Resource leveraging
Executive Presence Model
Stories
Professional
image
Social
skills
Politically
aware
Inspirational
presenter
Courage
Future
orientation
Self belief
State
management
© DTC Ltd
Corporate
view
Passion
Clarity
Questioning – 8 views
1. Questioning for whose benefit?
2. Open-ended to explore…
3. …closed to verify
4. ‘Why’ – raises level of (but intrusive)
5. ‘How’ – homes in on practicalities/detail
6. ‘Have you considered…’ – quegestions
7. Prefixing reduces the threat of questions
8. Checking understanding - powerful
Listening (after Nancy Kline)
•
Pay beautiful attention to the client, don’t even think
about interrupting, make sounds only occasionally to
indicate understanding or encouragement, keep
your eyes on your client’s eyes, don’t ask picky
questions, smile occasionally, look interested, be
interested and be at ease…
…and don’t even think about interrupting.
•
Clients are capable of sorting out 70% of
their own problems
5. Plus…
Zones of debate
Zone of ‘comfortable’ debate
Zone of ‘uncomfortable’ debate
Intuitive core
Source: Cliff Bowman
What is Strategy
…is the creation of a unique and
valuable position, involving a different
set of activities (few needs of many
customers or broad needs of a few)
…requires you to make trade-offs in
competing – to choose what not to do.
…involves creating ‘fit’ among a
company’s activities.
Strategy
…. is derived from the military, and studies of
generalship
…. a pattern or plan that integrates an organisation’s
major goals, policies and action sequences into a
cohesive whole
James B Quinn
.... is to do with the matching of the activities of the
organisation to the environment in which it
operates
Gerry Johnson & Kevan Scholes
Complexity Theory
Draws on
Chaos Theory (small changes)
Complex Adaptive Systems (no boundary or architect)
Dissipative Structures (need energy to maintain)
What
‘Complicated’ – where the answer isn’t obvious
Challenges
How organisations assimilate information
How this fits with consultancy project objectives
30%, 60%, 10%
Personal change process
•
Denial
•
Anger
•
Bargaining
•
Depression
•
Acceptance
Strategy formation?
Understanding
what’s going
on
Analysis
Creativity
Learning
Adapting to
changing
conditions
Doing something
distinctive
about it
DP Matrix factors
Business Unit Strength
Industry Attractiveness
Market share
Market growth rate
Brand strength
Market size
Production capacity
Industry profitability
Profit margins/income
Industry rivalry
Growth in market share
Marco-env (PESTEL)
Distribution channel access
Strategic thinking
1.
Systems perspective – mental model of the
complete system for value creation (and
implications)
2.
Intent focused – to be more determined and
less distractible
3.
Thinking in time – past/present/future in mind
at the same time
4.
Hypothesis driven – creative and critical
thinking
5.
Intelligent opportunism – being responsive to
good opportunities (changing environment)
How to Change - Stages
Best books
•
Peter Block – Flawless Consulting
•
Peter Block - (field book for the above)
•
Edgar Schein – Process Consultation Revisited
•
Mike Cope – 7Cs of Consulting
Plus, tons of stuff on the web, ‘Business Balls’ etc