Consulting Products Products have a name, a methodology, an application and great PR Consultants are charged with introducing ‘fashions’ Stern Stewart Stewart Economic Added Value 1993 CSC Hammer & Champy BPR 1993 Bain & Co. Reichheld Core Competencies 1990 MIT Peters & Waterman TQM 1998 Strategos / Harvard Hamel & Prahalad Value Chain Analysis 1985 Monitor / Harvard Porter Five Forces 1980 BCG Henderson Portfolio Analysis 1976 Organisation Consultant Product Dates
Who are Management Consultants?
What is a Management Consultant?
Not the brightest and the best
Not all Harvard MBAs or even business students
Not Magicians, Preachers or Witch-Doctors
Outstanding interpersonal skills
Excellent at writing reports
Generalist business knowledge
Methods & Frameworks
In-depth specific skill
Depth of expertise: skill or knowledge based Broad set of general consulting competencies
Basic Salaries (UK)
Graduate £20 – 26k
Junior Project Lead £30 – 35k
Team Leader £40 – 60k
Senior Consultant £60 – 80k
Principle Consultant £70 – 100k
Partner £100k +
+ 10 – 20% bonus
+ health care, share options
Highest salaries earned at niche consultancies
Design your own Consultancy
In pairs: you and 20 consultants wish to start your own medium-sized consultancy. You will consult on general strategic management issues such as mergers and acquisitions, outsourcing and new product development.
Write 10 scenarios (5 each) that you think might be likely to occur whilst running this consultancy. What functions, departments and skills will you need in the consultancy. Sketch a brief organisational design and strategy outlining:
Structure & Function
Marketing Consultancy Work
Finding a problem
Falling behind: benchmarks
Links with top academics / Business Schools (HBS, MIT, Sloan)
Links to conferences, institutions,
Publications: books, journals, the press
Free surveys / research
‘ Solution’ stories
Why Employ Consultants?
Someone to blame
To save money
External knowledge (e.g. best practice, benchmarking)
Types of project
Providing Advice: should I launch this product?
Project Design: how should I launch this product?
Implementation: install a system that will pay suppliers
Functional Management: run our department for us
Working With Clients
Defining the project
Open Closed questions: Predicament > Definition > Solution
Key Decision Makers
Enticing the Client
Contract, contract, contract
Clear goals, roles & procedures
Boilerplating & reuse
Quick measurable wins
The person not the project
The Consulting Life-cycle
Decisions / Plan
Initial Contact Definition Proposal & Contract Data Collection Data Analysis Decision-making, Planning Intervention Disengaging Review
The Consulting Life-cycle Initial Contact Definition Proposal & Contract Data Collection Data Analysis Decision-making, Planning Intervention Disengaging Review
Case 1: LightBox Inc.
I am the CEO of a light-bulb manufacturer. I have developed an ever-lasting light-bulb.