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About Management Consulting


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An overview of Management Consulting Industry

Published in: Business, Economy & Finance

About Management Consulting

  1. 1. Management Consulting<br />Carrier Perspective<br />
  2. 2. What is Consulting?<br />Product / Service: Ability to solve business problems.<br />Team-based Work<br />Clients: leaders of corporations, governments, and non-profit groups.<br /><br />
  3. 3. Consulting Firms<br />Focus: Strategy, IT, HR, etc.<br />Industry: Healthcare, Financial Services, etc.<br /><ul><li>McKinsey & Company
  4. 4. Boston Consulting Group
  5. 5. Bain & Company
  6. 6. Booz Allen Hamilton
  7. 7. Monitor Group
  8. 8. Mercer Oliver Wyman
  9. 9. Deloitte Consulting
  10. 10. Accenture
  11. 11. Kurt Salmon
  12. 12. Roland Berger</li></ul><br />
  13. 13. Why Hire Consultants?<br />Lack of Knowledge or Skills<br />Flexible Labor Pool<br />Fresh Perspective<br />Politics<br /><br />
  14. 14. Typical Week<br />FRI<br />THURS<br />WED<br />TUES<br />MON<br />3-4-5 Rule<br />Activities: Interviews, meetings, research, data analysis, building “decks”.<br />Excel & Powerpoint<br /><br />
  15. 15. Lifestyle: the Bad and the Ugly<br />Travel<br />Hours<br />Vs Banking<br />“on the beach”<br />Consulting: What is it again?<br />Implementation<br /><br />
  16. 16. Lifestyle: the Good<br />Challenging Work<br />Smart people<br />Career development<br />Training & Variety<br />Access to Management<br />Jumping to Industry<br /><br />
  17. 17. Research<br />Is Consulting for You?<br />Which Firms?<br />Sound like an Insider<br />Consulting Lingo<br />Trends and Current Topics<br /><br />
  18. 18. Getting a Job<br />Your Story<br />Why Consulting? Why Our Firm?<br />Be Genuine<br />Networking<br />Case Interviews<br /><br />
  19. 19. Networking<br />Corporate Presentations & MCA Events<br />Alumni: SWAP & CAP<br />Ask Smart Questions<br />Dress & Etiquette<br /><br />
  20. 20. Case Interview<br />Various Formats<br />Casing Boot Camp<br />Books:<br />Case in Point by Marc P. Cosentino<br />Crack the Case by David Ohrvall<br />Mastering the Case Analysis by Alexander Chernev<br />WetFeet Guides (Ace Your Case I to VI)<br />The Vault Guide to the Case Interview<br /><br />
  21. 21. Introduction to Management Consulting<br /><br />
  22. 22. To give an overview of the course<br />To know the definition, history and purpose of management consulting<br />To understand the consultancy market: the main players, industry segmentation, clients and trends<br />To gain an overview of the consulting life-cycle<br />To understand the basics of approaching cases, guestimating and analysing.<br />Today’s Learning Objectives<br /><br />
  23. 23. The Course<br />What is Management Consulting?<br />Who are Management Consultants?<br />Clients<br />Analysing Cases<br />The Agenda<br /><br />
  24. 24. The Course<br />Practical, Practical, Practical……<br />Case-based (Harvard)<br />Develops skills<br />Get jobs<br />Highest retention rates<br />To…<br />Understand Consultancy<br />Analyse businesses<br />Develop solutions<br />No...<br />Books<br />Theories<br />Bullshit<br /><br />
  25. 25. The Course Pt. I<br />Introduction to Consulting<br />Overview of Consulting<br />Designing your own firm<br />Proposals and Planning<br />Planning, Costing and Proposing<br />Assignment: Speaker from StayMobile Ltd.<br />Strategy Consulting & Market Analysis<br />Analysing Trends<br />Making Recommendations<br />IT & e-Commerce<br />Requirements Management<br />E-business<br /><br />
  26. 26. The Course Pt. II<br />Dark Sides of Consulting<br />Stress, manipulation and exploitation<br />Illegal trades: Enron, Parmalat, WorldCom<br />Speaker Day 1: Consulting Work<br />EDS & Deloitte<br />Managing Delivery<br />Speaker Day 2: Analysis with SSM<br />Jeremy Hilton: Private Consultant<br />Methodologies & Modelling<br />Speaker Day 3: Consulting Careers and CVs<br />IBM<br />Getting a job & getting on<br /><br />
  27. 27. What is Management Consulting?<br /><br />
  28. 28. Historical & Future Trends<br /><ul><li>Big player recovery from 2000 - 2003 (DotCom bust)
  29. 29. Accountability (Chinese Walls, Enron, Sarbanes-Oxley, Basel II)
  30. 30. Diversification (M&A, Internationalisation, Sectors)
  31. 31. Image (MBAs, Up selling, Over-charging, Facsimile Consulting)
  32. 32. Projects (outsourcing, e-business, protection vs. emergent markets)
  33. 33. Competition (numbers, approved lists, proven track record, sceptical clients)</li></li></ul><li>The Biggest Consulting Firms<br />Accenture (IT, Operations, HRM)<br />Cap Gemini (IT, Operations)<br />CSC (IT, Operations)<br />IBM BCS (IT)<br />PWC (IT, Operations, HRM)<br />KPMG / Bearing Point (IT, Operations) <br />Deloitte (IT, Operations)<br />McKinsey & Co. (Strategy, Operations)<br />BAH (Strategy, Operations)<br />Mercer (Strategy, HRM)<br />Anderson (Operations)<br />A. T Kearney (Strategy, HRM)<br />Monitor (Strategy)<br />BCG (Strategy)<br />A.D. Little (Strategy)<br />Bain & Co. (Strategy)<br /><br />
  34. 34. So……Who’s doing what?<br />ADL, BCG<br />McKinsey<br />Bain & Co<br />ADL, BCG<br />McKinsey<br />Bain & Co<br />ADL, BCG<br />McKinsey<br />Bain & Co<br />KPMG / Deloitte<br />PWC / EY<br />PWC / EY<br />KPMG / Deloitte<br />Accenture / IBM<br />Accenture / IBM<br />Size<br />Program Management<br />Implementation<br />Operation<br />Strategy<br /><br />
  35. 35. Segmentation<br />Industry<br />Telcos - Health<br />Digital Media - Manufacturing<br />Finance & Banking - FMCG& Retail<br />Utilities - Transportation<br />Function<br />Strategy - HRM<br />Operations - IT (incl. e-business)<br />Sector<br />Non-profit<br />Public<br />Private<br /><br />
  36. 36. Strategy Consultants<br />Diamond<br />Sapient<br />Oliver Wyman<br />McKinsey<br />Scient<br />A.T. Kearney<br />Software Providers<br />Service providers<br />/ Utilities<br />Deloitte<br />EDS<br />PwC<br />CSC<br />IBM<br />Accenture<br />Technology Providers<br />A Consulting Typology<br /><br />
  37. 37. Sector Analysis Pt. I<br />Strategy<br />Direction, Long-term plans & High-level goals<br />Lever to implementation<br />Bain & Co. - BCG<br />McKinseys - Monitor<br />Operations<br />Day-to day running of firm, Reaching, strategic goals<br />Re-engineering, outsourcing, supply-chains<br />Accenture - Deloitte<br />Cap Gemini - CSC<br /><br />
  38. 38. Sector Analysis Pt. II<br />IT<br />Systems development, implementation<br />Business focused requirements<br />IBM - AMS (American Management Systems)<br />Accenture - CSC<br />HRM<br />Strategic alignment of people function<br />ERP, training, culture change, competence management<br />Accenture - PWC<br />Mercer - AT Kearney<br /><br />
  39. 39. Consulting Products<br />Products have a name, a methodology, an application and great PR<br />Consultants are charged with introducing ‘fashions’<br />
  40. 40. Who are Management Consultants?<br /><br />
  41. 41. What is a Management Consultant? <br />Not the brightest and the best<br />Not all Harvard MBAs or even business students<br />Not Magicians, Preachers or Witch-Doctors<br /><br />
  42. 42. Broad set of general consulting competencies<br />Depth of expertise: skill or knowledge based<br />Skill Profile<br />Skills:<br /><ul><li> Outstanding interpersonal skills
  43. 43. Great Presenter
  44. 44. Excellent at writing reports</li></ul>Knowledge:<br /><ul><li> Generalist business knowledge
  45. 45. Methods & Frameworks
  46. 46. In-depth specific skill</li></ul><br />
  47. 47. Basic Salaries (UK)<br />Graduate £20 – 26k<br />Junior Project Lead £30 – 35k <br />Team Leader £40 – 60k<br />Senior Consultant £60 – 80k<br />Principle Consultant £70 – 100k<br />Partner £100k +<br />+ 10 – 20% bonus<br />+ car<br />+ health care, share options<br />Highest salaries earned at niche consultancies<br /><br />
  48. 48. Design your own Consultancy<br />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. <br />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:<br />Skills Required<br />Structure & Function<br />Major Costs<br />Key problems<br /><br />
  49. 49. Clients<br /><br />
  50. 50. Marketing Consultancy Work<br />Finding a problem<br /><ul><li>External threats
  51. 51. Mimicking others
  52. 52. Falling behind: benchmarks
  53. 53. New opportunities</li></ul>Marketing Consultancy<br /><ul><li>Links with top academics / Business Schools (HBS, MIT, Sloan)
  54. 54. Links to conferences, institutions,
  55. 55. Publications: books, journals, the press</li></ul>Getting in<br /><ul><li>Free surveys / research
  56. 56. ‘Solution’ stories
  57. 57. Referrals
  58. 58. ‘Jumpers’</li></ul><br />
  59. 59. Why Employ Consultants?<br />Expertise<br />Objectivity<br />Someone to blame<br />To save money<br />External knowledge (e.g. best practice, benchmarking)<br /><br />
  60. 60. Types of project<br />Providing Advice: should I launch this product?<br />Project Design: how should I launch this product?<br />Implementation: install a system that will pay suppliers<br />Functional Management: run our department for us<br /><br />
  61. 61. Working With Clients<br />Defining the project<br />Open  Closed questions: Predicament &gt; Definition &gt; Solution<br />Key Decision Makers <br />Enticing the Client<br />Free analysis<br />Free juniors<br />Corporate entertainment<br />Successful Projects<br />Contract, contract, contract<br />Clear goals, roles & procedures<br />Boilerplating & reuse<br />Quick measurable wins<br />Solid Conclusions<br />The person not the project<br /><br />
  62. 62. Initial Contact<br />Proposal & Contract<br />Definition<br />Data Collection<br />Data Analysis<br />Review<br />Disengaging<br />Decision-making,<br />Planning<br />Intervention<br />The Consulting Life-cycle<br /><br />
  63. 63. Strategy: A Refresher<br /><br />
  64. 64. Vision what values drive this company?<br />Objectives where do we want to be?<br />Plan how will we get there?<br />Goals how will we know when we’re there?<br />Programs streams for delivery<br />What is Strategy?<br /><br />
  65. 65. Porters Five Forces<br />- Barriers, Buyer Power, Customer Power, Substitutes, Competition<br />4 Cs<br />- Customers, Cost, Competition, Company<br />4 Ps<br />- Product, Price, Promotion, Place<br />Scenario Planning<br />Strategy Tools<br /><br />
  66. 66. Key Concepts<br />BCG – Experience curve<br />BCG – Growth Share Matrix<br />McKinsey & Company – Strategic Business Units (SBUs)<br />McKinsey & Company – Business strength matrix<br />Brandenburg and Nalebuff – Value Net<br /><br />
  67. 67. Analysing Cases<br /><br />
  68. 68. Case 1: LightBox Inc.<br />I am the CEO of a light-bulb manufacturer. I have developed an ever-lasting light-bulb. <br />How much should I sell it for? <br />What will the increase in our share-price be?<br /><br />
  69. 69. Additional Information<br />It cost £20 million to develop the product.<br />It costs £5 to make the product<br />Normal Lightbulbs<br />Cost £0.5 to manufacture<br />Are sold to distributers for £0.25<br />Who sell to retailers for £0.50<br />Who sell to the customer for £0.75<br />What about the markets?<br />Cannibalisation?<br />Government?<br /><br />
  70. 70. Case 2: Three<br />The Company<br />Hutchison Whampoa<br />Owned by Li KaShing ($20bn)<br />Family interests of $630bn<br />Owns ports, telecoms, property (Hong Kong)<br />The Context<br />3G Telecoms: video & music over the phone<br />1999: UK first gov. to sell 3G licences<br />2000 – 2005: Followed by most others<br /><br />
  71. 71. Case 2: Three<br />The Decision<br />Should Hutchison buy a 3G licence in the UK?<br />How much should they pay for it?<br />What strategic issues should they look out for?<br /><br />
  72. 72. Links <br /><br /><br /><br /><br /> <br /> <br /><br /><br />
  73. 73. Contact Us<br /><br /><br /><br />+91 9898269489<br />