The Dark Side Dr. Joe O’Mahoney
Learning Objectives <ul><li>To understand the ethical conflicts and dangers in consulting </li></ul><ul><li>To know exampl...
The Agenda <ul><li>History Lesson </li></ul><ul><li>Ethical Practice </li></ul><ul><li>Conflicts of interest </li></ul><ul...
History of Consulting Ethics <ul><ul><li>Before Enron </li></ul></ul><ul><ul><ul><li>Audit & consulting </li></ul></ul></u...
 
Unethical Practices? <ul><li>Advice isn’t value for money and doesn’t work.  </li></ul><ul><li>Solutions are either fads o...
Conflicts of Interest Client Consultant Consultancy
Personal Cost <ul><ul><li>Work / Life Balance </li></ul></ul><ul><ul><ul><li>15% churn </li></ul></ul></ul><ul><ul><ul><li...
“ Today is the day. I am leaving this firm. I have spent (I can't say if it was &quot;invested&quot;, &quot;endured&quot;,...
Controlling the Consultant
The assignment life-cycle  Pre Assignment During the Assignment Post Assignment
Pre assignment <ul><li>Funded business case </li></ul><ul><li>Procurement department involvement: expectations </li></ul><...
Pre assignment <ul><li>Be vague: clear benefits and SMART objectives </li></ul><ul><li>Hide the internal political barrier...
During the assignment <ul><li>Establish milestones to measure benefits. </li></ul><ul><li>Schedule regular project meeting...
During the assignment <ul><li>Allow the consultant to dominate, work with them. </li></ul><ul><li>Allow scope creep – main...
Post the assignment <ul><li>Discuss outstanding issues. </li></ul><ul><li>Ensure handover of accountability for benefits d...
Post the assignment <ul><li>Allow the consultant to leave without checking with all stakeholders </li></ul><ul><li>Be afra...
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Management Consulting: The Dark Side

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There's a dark side to consulting.....

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Management Consulting: The Dark Side

  1. 2. The Dark Side Dr. Joe O’Mahoney
  2. 3. Learning Objectives <ul><li>To understand the ethical conflicts and dangers in consulting </li></ul><ul><li>To know examples of ethical conflicts </li></ul><ul><li>To understand key principles of managing consultants </li></ul>
  3. 4. The Agenda <ul><li>History Lesson </li></ul><ul><li>Ethical Practice </li></ul><ul><li>Conflicts of interest </li></ul><ul><li>The Personal Cost </li></ul><ul><li>Managing Consultants </li></ul>
  4. 5. History of Consulting Ethics <ul><ul><li>Before Enron </li></ul></ul><ul><ul><ul><li>Audit & consulting </li></ul></ul></ul><ul><ul><ul><li>Profits up and up </li></ul></ul></ul><ul><ul><ul><li>DotCom boom </li></ul></ul></ul><ul><ul><li>Collapse </li></ul></ul><ul><ul><ul><li>Enron </li></ul></ul></ul><ul><ul><ul><li>DotCom </li></ul></ul></ul><ul><ul><li>Threats </li></ul></ul><ul><ul><ul><li>Split of audit & consulting </li></ul></ul></ul><ul><ul><ul><li>SOX </li></ul></ul></ul><ul><ul><li>Now </li></ul></ul><ul><ul><ul><li>No legislation </li></ul></ul></ul><ul><ul><ul><li>Rebuilt consulting arms </li></ul></ul></ul>
  5. 7. Unethical Practices? <ul><li>Advice isn’t value for money and doesn’t work. </li></ul><ul><li>Solutions are either fads or ‘boiler-plated’ templates. </li></ul><ul><li>They don’t do anything permanent employees can’t do. </li></ul><ul><li>They collude with their clients. </li></ul><ul><li>They prey on the insecurities and ignorance of managers. </li></ul>
  6. 8. Conflicts of Interest Client Consultant Consultancy
  7. 9. Personal Cost <ul><ul><li>Work / Life Balance </li></ul></ul><ul><ul><ul><li>15% churn </li></ul></ul></ul><ul><ul><ul><li>Burn-out </li></ul></ul></ul><ul><ul><ul><li>DotCom boom </li></ul></ul></ul><ul><ul><li>De-humanisation </li></ul></ul><ul><ul><ul><li>Flexibility vs. Instability </li></ul></ul></ul><ul><ul><ul><li>Limits to learning </li></ul></ul></ul><ul><ul><ul><li>Trust & Authenticity </li></ul></ul></ul><ul><ul><ul><li>Cycles of emotional damage </li></ul></ul></ul>
  8. 10. “ Today is the day. I am leaving this firm. I have spent (I can't say if it was &quot;invested&quot;, &quot;endured&quot;, or what) almost nine years destroying my soul with this company and today it stops. Today, I choose authenticity. Today, for no particular reason that anyone will be able to put on an HR database, I will resign. No one will expect it. That, I think, is the most marvellous thing about it - nobody expects someone to resign because he is being destroyed, existentially, by working with this company. Nobody - except, perhaps, my HR department who will quite possibly have a &quot;reason for leaving&quot; code on the database: Existential Self-Destruction”.
  9. 11. Controlling the Consultant
  10. 12. The assignment life-cycle Pre Assignment During the Assignment Post Assignment
  11. 13. Pre assignment <ul><li>Funded business case </li></ul><ul><li>Procurement department involvement: expectations </li></ul><ul><li>Define and communicate clear rules: esp. change </li></ul><ul><li>Break the requirements down </li></ul><ul><li>Consider a variety of resourcing and remuneration options </li></ul><ul><li>Identify and make available internal resource </li></ul><ul><li>Brief your own employees </li></ul><ul><li>Watch out for “scope creep” </li></ul>Do
  12. 14. Pre assignment <ul><li>Be vague: clear benefits and SMART objectives </li></ul><ul><li>Hide the internal political barriers where this is a major factor. </li></ul><ul><li>Have one team doing procurement and another managing the contract </li></ul>Don’t
  13. 15. During the assignment <ul><li>Establish milestones to measure benefits. </li></ul><ul><li>Schedule regular project meetings attended by key players </li></ul><ul><li>Schedule time for handover and any follow-ups </li></ul><ul><li>Manage the contract </li></ul><ul><li>Review invoices thoroughly </li></ul>Do
  14. 16. During the assignment <ul><li>Allow the consultant to dominate, work with them. </li></ul><ul><li>Allow scope creep – maintain focus. </li></ul><ul><li>Exclude other parts of your business </li></ul><ul><li>Micro-manage – trust the consultant to do their job. </li></ul>Don’t
  15. 17. Post the assignment <ul><li>Discuss outstanding issues. </li></ul><ul><li>Ensure handover of accountability for benefits delivery </li></ul><ul><li>Establish reporting & resource for follow-on work </li></ul><ul><li>Conduct a post-completion review (savings, mutual feedback etc…) </li></ul>Do
  16. 18. Post the assignment <ul><li>Allow the consultant to leave without checking with all stakeholders </li></ul><ul><li>Be afraid to dispute payment </li></ul><ul><li>Allow information / documentation / knowledge to leave with the consultant. </li></ul>Don’t

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