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Introduction to consulting
3/31/2017 consultorama.101@gmail.com 1
Introduction
Some definitions before getting started
3/31/2017 consultorama.101@gmail.com 2
The consulting equation
Consulting
The business
of giving
expert advice
to other
professionals.
Consultancy
Consultant
A professional
practice that
gives expert
advice within
a particular
field.
A professional
who provides
expert advice
professionally.
Client
+
Advice
+
Expert
+
Professional
1
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Consulting consists in finding workable solutions to clients’ problems …
4
Problem
Solution
… and accompanying them along the way.
3/31/2017 consultorama.101@gmail.com
1
More precisely, consulting can take several forms
Facilitating client
learning
Permanently improving
effectiveness
Assisting with reco
implementation
Building consensus /
commitment
Running a diagnostic
Making
recommendations
Providing information Solving problems
1
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Source: Turner, 1984
Client perception of their expectation(s) can strongly vary, requiring
constant adaptation
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‘Client has
no time or
resources to
initiate
change’
Capacity Capacity
Plan
Capacity
Plan
Vision
‘Client
doesn’t
know how
to change’
‘Client
doesn’t
know if they
need to
change’
1
Structures and organizations
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Consultants work in very different types of structures & organizations
8
Freelance Employee in a consulting firm Internal consultant
Independent consultant Different categories of consulting firms:
International consulting firms with strong
brand and positioning
Regional / national consulting boutiques
International audit firms
Employee in the Consulting Unit
of an organization
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2
The vast majority of all consultants
are employed by consulting firms
International consulting firms
with strong brand and
positioning
They work for global leaders
Regional / national consulting
boutiques wit a niche
positioning
They work for national players
International audit
firms with consulting
activities, in connexion
with finance and
accounting
Consulting firms are far from forming an homogenous ecosystem
93/31/2017 consultorama.101@gmail.com
2
Consulting firms are built on a pyramidal structure with several ‘levels’
corresponding to various degrees of skill and experience
Analyst
Senior Analyst
Consultant
Senior Consultant
Manager
Principal
Senior Partner
Partner
10
It takes in average 10 years to
make it to the top of the
pyramid
3/31/2017 consultorama.101@gmail.com
Partner to staff ratio often
ranges between 1/20 and
1/10
2
Consulting firms have specific denominations for each level on the pyramid but
general positioning tends to be the same
Execution
Delivery
Coordination
Delivery
Management
Operational
Strategic
Management
113/31/2017 consultorama.101@gmail.com
Most consultants
begin at the bottom
of the pyramid …
… and quit after 3
years
2
Despite this pyramidal structure, consulting firms are flexible organizations
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Even when there are
specialized teams - per
industry or function -
there are many
opportunities to work
‘outside your box’
Promotion &
remuneration decisions
are usually collegial and
communicated by a
‘mentor’
Relationships are based
on variable geometry
principle, with teams
specially assembled for
each assignment or
commercial action
A consultant is
supervised and
evaluated by different
persons from one
assignment to the other,
sometimes even by
peers
2
Segmentation
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Consulting activities can be segmented along 3 main axes depending on clients’
category of problem, sector of activity & function 3
Strategy
Organization & processes
Information systems
Industry
Services
Public services
Non-profit organizations
Top management
Front office
Support functions
Function
Sector of
activity
Category
of
problem
3/31/2017 consultorama.101@gmail.com 14
First segmentation axis: the category of problem clients need to address
15
Strategy Organization & processes Information systemsCategory of problem
Strategy design,
Business Model definition,
Activity portfolio,
Growth opportunities…
Organization & process
streamlining,
Post-merger integration,
Operating model design …
Long-term planning,
Digitalization,
Software integration,
Architecture design…
A few years ago, a clear positioning on one of these 3 segments was usually the rule but
things have changed and many consulting firms now serve them all, directly or via
specialized subsidiaries
3/31/2017 consultorama.101@gmail.com
3
Second segmentation axis: the sector of activities the client is operating in
3/31/2017 consultorama.101@gmail.com 16
Industry Services Others
Automotive
Energy & utilities
Telco
Pharmaceutical
…
Bank
Asset Management
Insurance
Tourism
…
Administration & public
services
Non-profit organizations
…
Issues, environment, business practices, consumption habits strongly differ from an
industry to the other
3
Sector of activity
Third segmentation axis: the function and positioning of the client
3/31/2017 consultorama.101@gmail.com 17
Top Management Front Office Support Functions
Executive Committee
Strategy department
…
Sales & innovation
Business development
R&D
Marketing
…
Operations
Finance & Risks
IT
HR
Depending on their positioning on the organization chart, clients will tend to have
different needs and expectations
3
Function
Illustration
3/31/2017 consultorama.101@gmail.com 18
As an illustration, a sample of corporate strategy assignments
19
Strategy
Strategy design,
Business Model definition,
Activity portfolio,
Growth opportunities…
“An new business model helps a Southeast Asian Bank attract Millennials
A major bank charts a new course to attract younger customers who want
simplicity & solutions.” BCG
“We helped a leading oil and gas company define its long-term corporate
strategy, exploring new areas to enter and optimizing the existing
businesses. To improve the company's ability to translate the strategy into
action, we overhauled the strategic-planning process.” Mc Kinsey
“Focus on core delivers growth for retailer
A family-founded company—with roots dating back generations—reaches
new heights with its strategy refocused on its core business.” Bain
“Determined the most advantageous structure for a high-speed rail line
transport system for the government of a European country, prepared the
overall commercial proposition and developed proposals for privatization
that illustrated the full commercial value to private sector investors.” L.E.K
3/31/2017 consultorama.101@gmail.com
Source: companies website
4
As an illustration, a sample of organization and process assignments
20
Organization &
processes
Organization & process
streamlining,
Post-merger integration,
Target operation model design
…
“We built a global infrastructure that unifies processes and information
systems. Accenture collaborated with executives across a broad spectrum
of functions, cultures, customs and languages to assess and determine the
best practices required for a global business structure.” Accenture
“Global Cosmetics Company Revamps Foundations of Success
A global cosmetics company sought to change behaviors, beliefs, and
capabilities in laying the foundation for growth in emerging markets.”
AT Kearney
“Supporting the implementation of a new approach in Human Resource
Management.”
Wavestone
“CAPCO MASTERS A MASSIVE TRANSFORMATION OF A GLOBAL WEALTH
MANAGER. Capco transforms a global wealth management client—
reducing costs, improving capabilities, and increasing regulatory
compliance.” Capco
3/31/2017 consultorama.101@gmail.com
Source: companies website
4
As an illustration, a sample of information system assignments
21
Information systems
Long-term planning,
Digitalization,
Software integration,
Architecture design…
“CAPCO FACILITATES AND REVITALIZES DATA CENTER MIGRATION
PROGRAM. Capco’s insurance team helps Global Insurance Provider
facilitate and complete a Data Center Migration with third party
outsourcer.” Capco
“Reaching Consumers in New Ways with Accenture Digital Marketing
Strategy Services. Worldwide digital marketing, consumer data
management and campaign management solution helps improve value for
global CPG company.” Accenture
“APPLICATION OUTSOURCING: CSC HELPS NETWORK COMPUTING
PROVIDER TRANSFORM APPLICATIONS BUSINESS”
CSC
3/31/2017 consultorama.101@gmail.com
Source: companies website
4
3/31/2017 consultorama.101@gmail.com 22

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Introduction to Consulting: Expert Advice for Professionals

  • 1. Introduction to consulting 3/31/2017 consultorama.101@gmail.com 1
  • 2. Introduction Some definitions before getting started 3/31/2017 consultorama.101@gmail.com 2
  • 3. The consulting equation Consulting The business of giving expert advice to other professionals. Consultancy Consultant A professional practice that gives expert advice within a particular field. A professional who provides expert advice professionally. Client + Advice + Expert + Professional 1 3/31/2017 consultorama.101@gmail.com 3
  • 4. Consulting consists in finding workable solutions to clients’ problems … 4 Problem Solution … and accompanying them along the way. 3/31/2017 consultorama.101@gmail.com 1
  • 5. More precisely, consulting can take several forms Facilitating client learning Permanently improving effectiveness Assisting with reco implementation Building consensus / commitment Running a diagnostic Making recommendations Providing information Solving problems 1 3/31/2017 consultorama.101@gmail.com 5 Source: Turner, 1984
  • 6. Client perception of their expectation(s) can strongly vary, requiring constant adaptation 3/31/2017 consultorama.101@gmail.com 6 ‘Client has no time or resources to initiate change’ Capacity Capacity Plan Capacity Plan Vision ‘Client doesn’t know how to change’ ‘Client doesn’t know if they need to change’ 1
  • 7. Structures and organizations 3/31/2017 consultorama.101@gmail.com 7
  • 8. Consultants work in very different types of structures & organizations 8 Freelance Employee in a consulting firm Internal consultant Independent consultant Different categories of consulting firms: International consulting firms with strong brand and positioning Regional / national consulting boutiques International audit firms Employee in the Consulting Unit of an organization 3/31/2017 consultorama.101@gmail.com 2 The vast majority of all consultants are employed by consulting firms
  • 9. International consulting firms with strong brand and positioning They work for global leaders Regional / national consulting boutiques wit a niche positioning They work for national players International audit firms with consulting activities, in connexion with finance and accounting Consulting firms are far from forming an homogenous ecosystem 93/31/2017 consultorama.101@gmail.com 2
  • 10. Consulting firms are built on a pyramidal structure with several ‘levels’ corresponding to various degrees of skill and experience Analyst Senior Analyst Consultant Senior Consultant Manager Principal Senior Partner Partner 10 It takes in average 10 years to make it to the top of the pyramid 3/31/2017 consultorama.101@gmail.com Partner to staff ratio often ranges between 1/20 and 1/10 2
  • 11. Consulting firms have specific denominations for each level on the pyramid but general positioning tends to be the same Execution Delivery Coordination Delivery Management Operational Strategic Management 113/31/2017 consultorama.101@gmail.com Most consultants begin at the bottom of the pyramid … … and quit after 3 years 2
  • 12. Despite this pyramidal structure, consulting firms are flexible organizations 3/31/2017 consultorama.101@gmail.com 12 Even when there are specialized teams - per industry or function - there are many opportunities to work ‘outside your box’ Promotion & remuneration decisions are usually collegial and communicated by a ‘mentor’ Relationships are based on variable geometry principle, with teams specially assembled for each assignment or commercial action A consultant is supervised and evaluated by different persons from one assignment to the other, sometimes even by peers 2
  • 14. Consulting activities can be segmented along 3 main axes depending on clients’ category of problem, sector of activity & function 3 Strategy Organization & processes Information systems Industry Services Public services Non-profit organizations Top management Front office Support functions Function Sector of activity Category of problem 3/31/2017 consultorama.101@gmail.com 14
  • 15. First segmentation axis: the category of problem clients need to address 15 Strategy Organization & processes Information systemsCategory of problem Strategy design, Business Model definition, Activity portfolio, Growth opportunities… Organization & process streamlining, Post-merger integration, Operating model design … Long-term planning, Digitalization, Software integration, Architecture design… A few years ago, a clear positioning on one of these 3 segments was usually the rule but things have changed and many consulting firms now serve them all, directly or via specialized subsidiaries 3/31/2017 consultorama.101@gmail.com 3
  • 16. Second segmentation axis: the sector of activities the client is operating in 3/31/2017 consultorama.101@gmail.com 16 Industry Services Others Automotive Energy & utilities Telco Pharmaceutical … Bank Asset Management Insurance Tourism … Administration & public services Non-profit organizations … Issues, environment, business practices, consumption habits strongly differ from an industry to the other 3 Sector of activity
  • 17. Third segmentation axis: the function and positioning of the client 3/31/2017 consultorama.101@gmail.com 17 Top Management Front Office Support Functions Executive Committee Strategy department … Sales & innovation Business development R&D Marketing … Operations Finance & Risks IT HR Depending on their positioning on the organization chart, clients will tend to have different needs and expectations 3 Function
  • 19. As an illustration, a sample of corporate strategy assignments 19 Strategy Strategy design, Business Model definition, Activity portfolio, Growth opportunities… “An new business model helps a Southeast Asian Bank attract Millennials A major bank charts a new course to attract younger customers who want simplicity & solutions.” BCG “We helped a leading oil and gas company define its long-term corporate strategy, exploring new areas to enter and optimizing the existing businesses. To improve the company's ability to translate the strategy into action, we overhauled the strategic-planning process.” Mc Kinsey “Focus on core delivers growth for retailer A family-founded company—with roots dating back generations—reaches new heights with its strategy refocused on its core business.” Bain “Determined the most advantageous structure for a high-speed rail line transport system for the government of a European country, prepared the overall commercial proposition and developed proposals for privatization that illustrated the full commercial value to private sector investors.” L.E.K 3/31/2017 consultorama.101@gmail.com Source: companies website 4
  • 20. As an illustration, a sample of organization and process assignments 20 Organization & processes Organization & process streamlining, Post-merger integration, Target operation model design … “We built a global infrastructure that unifies processes and information systems. Accenture collaborated with executives across a broad spectrum of functions, cultures, customs and languages to assess and determine the best practices required for a global business structure.” Accenture “Global Cosmetics Company Revamps Foundations of Success A global cosmetics company sought to change behaviors, beliefs, and capabilities in laying the foundation for growth in emerging markets.” AT Kearney “Supporting the implementation of a new approach in Human Resource Management.” Wavestone “CAPCO MASTERS A MASSIVE TRANSFORMATION OF A GLOBAL WEALTH MANAGER. Capco transforms a global wealth management client— reducing costs, improving capabilities, and increasing regulatory compliance.” Capco 3/31/2017 consultorama.101@gmail.com Source: companies website 4
  • 21. As an illustration, a sample of information system assignments 21 Information systems Long-term planning, Digitalization, Software integration, Architecture design… “CAPCO FACILITATES AND REVITALIZES DATA CENTER MIGRATION PROGRAM. Capco’s insurance team helps Global Insurance Provider facilitate and complete a Data Center Migration with third party outsourcer.” Capco “Reaching Consumers in New Ways with Accenture Digital Marketing Strategy Services. Worldwide digital marketing, consumer data management and campaign management solution helps improve value for global CPG company.” Accenture “APPLICATION OUTSOURCING: CSC HELPS NETWORK COMPUTING PROVIDER TRANSFORM APPLICATIONS BUSINESS” CSC 3/31/2017 consultorama.101@gmail.com Source: companies website 4