4. The Logic of Business Has
Not Changed
• Evolution of human needs…
• Transaction to Selling to Marketing
• And now from Marketing to Relationships and Partnerships!
• The emergence of institutions of business…
• The ability to customize solutions…
• Increased complexity and competitiveness…
• Enhanced coupling of national economies with each other…
• Technology…… Movement of goods and people….
Movement of Information!
5. Some Issues That Have
Emerged
• To be competitive globally even if you may be
acting locally
• To harvest and use business intelligence…
• To remain proactive…
• A concern for the environment……
• A concern for the society…..
6. The changes in the dynamics of business and the
challenges that have emerged are not always
manageable by all business organizations internally
7. Consulting Vs. Counseling
• We know consulting….. “To Consult”….. Whom…..
Someone who we think can give advise that will
work!
• Consultancy can be about strategy, processes,
hardware, software….
• Counseling is…..
“Professional guidance in resolving personal conflicts
and emotional problems”
8. According to Dictionary.com….
Counsel
• Advice, opinion or
instruction given in
directing the judgment
or conduct of another
Consultation
• The act of consulting or
conference
• A meeting for
deliberation, discussion
or a decision
Does it (it should) tell you
that counseling is done to improve the productivity or
morale of the human resources
9. Performance Counseling
The process of improving employee performance and
productivity by providing the employee with feedback
regarding areas where he or she is doing well and areas that
may require improvement
10. The Definition Should Tell
You….
• Performance counseling & personal counseling are different…..
• Performance counseling is a “step” in a “process” to keep the
human resources fine tuned and performing optimally
• Performance counseling is based on systematic performance
evaluation and not on subjective assessments
• It is then obvious that to be able to use performance counseling,
companies need to have systematic HR policies & practices……
11. Accountability in Consulting
Activity–Based Consulting
• No business need for the
consulting intervention
• No assessment of
performance issues
• No specific, measurable
objectives for
implementation and
business impact
• No effort to prepare
stakeholders/participants
to achieve results
• No effort to prepare the
work environment to
support implementation
Result-Based Consulting
• Intervention linked to
specific business needs
• Assessment of
performance
effectiveness
• Specific objectives for
implementation and
business impact
• Results/expectations
communicated to
stakeholders/participants
• Environment prepared to
support implementation
12. Accountability in Consulting
Activity–Based Consulting
• No efforts to build
partnerships with key
managers
• No measurement of
results or cost benefit
analysis
• Planning and reporting on
consulting intervention is
focused on input
Result-Based Consulting
• Partnerships established
with key managers and
clients
• Measurement of results
and cost-benefit analysis
• Planning and reporting on
consulting interventions
are focused on output
13. Consulting Proposals
• How do I as a consultant identify,
suspects, qualify the prospects, how do
I approach them, do you negotiate, how
are consulting deals closed, how do you
maintain an ongoing relationship?
14. Writing Consulting Proposals
For
Institutions/Organizations
• They will give you the
format
• They will provide
background info
• They will expect a well
“researched” proposal
• Deliverables, Timelines
and Costing are key
For SMEs/Individuals
• Every proposal will be
tailor made, so no pre
determined formats
• “Explain” and “clarify”
• Don’t sound patronising!
• Deliverables & costing
are obviously imp. but…
• Stress ROI! Most don’t,
but make effort to show
ROI or how you can
provide value
15. Business Problem Solving –
The Process
1. Define and Identify the Problem
2. Analyze the Problem
3. Identifying Possible Solutions
4. Selecting the Best Solutions
5. Evaluating Solutions
6. Develop an Action Plan
7. Implement the Solution
16. But When Does a Problem
Become So?
• A problem becomes known when a discrepancy is
observed between the way things are and the way things
ought to be.
• Problems can be identified through:
– Comparative/benchmarking studies
– Performance reporting - assessment of current performance against
goals and objectives
– SWOT Analysis – assessment of strengths, weaknesses, opportunities,
and threats
– Complaints
– Surveys
17. Step 1 – Define & Identify the
Problem
• Go beyond the obvious, try to differentiate between
problems and their “noticed effects”
• “Jumping to Conclusions” Vs. “Digging for Facts”
• “Hard Data”….. Sales data, financial statements,
profitability data etc…. Hard facts…
• “Soft Data” …… Feelings, hearsay, grapevine, opinions,
conflicts, behaviour etc….
• Research Methods, Market Research etc….
18. Step 1 – Define & Identify the Problem
• Once the hard and soft data is in hand, sit with the
client and brainstorm till you are able to:
A. Develop a Problem Statement: A statement that
clearly describes the current condition your group
wishes to change
B. State the Goal: Stating the goals achieves
congruence between your thought processes and
the client’s. So effort is focussed
19. But it is Not That Simple!!!
Analytical Thinking
in Addition to
Domain Knowledge
Will be Needed!
22. What is Scientific Thinking?
1. Talk to him, discuss with the teacher and find out what
could be wrong and ask him to practice more.
2. Take him to an astrologer and make him wear the gem
the astrologer suggests.
3. Take him to a temple, get “Jhaad Phoonk” done and to
be doubly sure….. Maybe sacrifice a goat.
My Son is Unable to Score in His Maths Exams…..
What do I do?
24. Step 1 – Ask Yourself
• Is the problem stated objectively using
facts?
• Is the scope of the problem limited
enough for you to handle?
• Will all who read it understand the same
meaning of the problem?
• Has the "desired state" been described
in measurable terms?
25. Step 1 – Caution!
• Listen to the client!
• You may be right, but the customer is
never wrong!
• His business philosophy may not match
yours but please remember….. “It is not
your business!”
• In meetings, be very careful how you
27. Step 2 – Analyze the Problem
• In your syllabus, this is written as, “-
Finding Leading to Solution
Development and Implementation”!!!
• Please don’t assume!
• Meet people up and down stream
• Talk to people at all levels. Ask a lot of
questions….
28. Step 2 – Analyze the Problem… Ask…
• When was the problem first “recognised” or
“felt”?
• What are the causes of the problem?
• What are the effects of the problem?
• What are the symptoms of the problem?
• How was the client dealing with the problem?
• What were the clients limitations in dealing with
the problem?
29. Step 2 – Analyze the Problem…
Thoughts…
• Usually, in India at least hiring a consultant by an
SME is a step taken late… Too late most of the
times!!
• They probably knew it, but were reluctant to
change!
• If the problem arose due to a lack of vision, they
will find it difficult to see it when you present it to
them too!
• Can your “systematic”, “rational”, “cut and dried”
30. Step 3: Identifying Possible
Solutions
• Find “optional solutions” than “the
solution”
• Shortlist solutions and arrive at a list of
two or three most optimum solutions or
the one that seems best….
• Shortlist or finalize in close
consultations with the client
31. Ask Before Finalizing a
Solution….
• Is the solution workable in relation to the
problem?
• Are there any limits that the solution
presents?
• When looking at the advantages and
disadvantages, which are there more
of?
• Does the chosen idea live up to the
32. Step 4: Develop an Action
Plan
• An action plan is a chart that lists the
tasks that need to be done and
identifies who will be responsible for
each, when and what action is
necessary, where to start, and how.
• Divide the Solution Into Sequential
Tasks
33. Step 5: Implement the
Solution
• Are you presenting solutions only or
implementing them too?
• Control is the key. Develop monitoring
systems and keep an eye on deviations.
• Be flexible and keep strategy
“responsive”
37. Issues in Pricing PROBLEMS:
1. Costs difficult to trace
2. Labor more difficult to
price than materials
3. Costs may not equal value
PROBLEMS:
1. Small firms may charge too
little to be viable
2. Heterogeneity of services
limits comparability
3. Prices may not
reflect customer
value
PROBLEMS:
1. Monetary price must be adjusted to reflect
the value of non-monetary costs
2. Information on service costs less available to
customers, hence price may not be a central factor
38. What is “Value” for Your
Client?
“Value is Low Price” “Value is Everything
I Want in a Service”
“Value is the Quality
I Get for the Price I Pay”
“Value is All that
I Get for All that I Give”
Discounting
Odd Pricing
Penetration Pricing
Prestige Pricing
Skimming Pricing
Value Pricing
Market Segmentation
Pricing
Price Framing
Price Bundling
Complementary
Pricing
Results-based Pricing
39. As Consultancy Services are essentially
“services”, the principles of pricing
services will apply here
40. Three Common Pricing
Methods
• Per Hour: Usually new or IT guys tend
to prefer this…
• Project Pricing: This method involves
quoting a total figure for the whole
budget and then arriving at a mutually
agreed pattern of payments. Usually
research projects, strategy based
consultancy involving big clients etc…
42. How Much Should I be
Earning???
• Decide upon a target in come per
year…. Let us say Rs. 10 Lac
• A typical consulting year will have
around 300 workable days….. Subtract
festivals, matches, vacations…. 250
• So…….. You should be earning
1000000/250…………... Rs. 4000 a
43. Contingency Pricing
A client complained that he couldn’t afford a consultant’s
hourly fee.
‘Instead of doing the job on a time and material basis, I’m
willing to do it for a contingency fee,’ responded the
consultant.
‘What is contingency fee?’ asked the client.
‘It’s very simple. If I don’t deliver what I promised, I’ll be left
with no money at all,’ explained the consultant
‘What if you do deliver what you promised?’ persisted the
client.
‘Then you’ll be left with no money at all,’ said the consultant.
47. As Consultants You Will
Do….
• Consulting
• Training
• Research
• What talents and skills will an
MBA need to be good at these?
• How can we develop such skills
and talents?
• What can an MBA student do to
develop such skills and talents if
the college is not doing anything
that can help?
48. Most Times You Will Be
Doing…
• Data Collection & Analysis
• Documentation of the outcomes
• Knowledge Transfer or Implementation
49. What Will it take to be a
Consultant?
• Conceptual knowledge
• Knowledge and exposure to analytical
tools & approaches
• Knowledge of various business scenarios
• Knowledge of elements of the internal and
external environment
