Management ConsultancyDBA 7770 Doctor of Business AdministrationGraduate School of Management Dr. Dolhadi Zainudin
Class Objectives Status of client engagement for consultancy work Include consultant review with GSM/coordinator Overview of existing consultancy processes by various authors Presentation of final consultancy report and list of submission to GSM
IntroductionSchein (1988, 1999) proposed three models of the role of businessconsultants:(1) the ―purchase model‖ (in which the client purchases a particular expertise or skill that the client knows is currently lacking in its organisation;2) the ―doctor-patient model‖: in which the client is uncertain of the problem and the role of the consultant is to diagnose the problem and prescribe a solution that alleviates the pain being experienced by the client; and(3) the ―process consultation model‖: which involves the creation of relationships that enables clients to perceive and understand the problems with a view to the clients solving the problems by themselves
CONSULTING APPROACHES The purchase of Information Model- Purpose: help client to solve known problem client has correctly diagnosed the problem, the cause of it and expecting outcome
CONSULTING APPROACHES The Doctor –Patient Model - Purpose:consultant‘s job is to discover the real problem for client client has intrepreted the area of problem and someone need to help the client to identify the true cause of it
CONSULTING APPROACHES Process Consultation Model - Purpose : help client to identify the cause of it and find appropriate solution for such cause Client does not even know the area of the problem
Status of client engagement What your level of engagement with the client/s or potential client ?
Literature Review on Consultancyprocesses Fink (2005, p. 48.) cites that over the last forty years in management consulting, a process has developed which consists of the following seven steps: awareness creation, lead management, prospect management, proposal submission, contract negotiation and signing, case management, and case review The prime goals of this process are to acquire new consulting engagements, to satisfy the respective clients, and, eventually, to foster the acquisition of follow-up projects
Literature Review onConsultancy processesPfannkuch and Wild (2000) as being ―a generic description of a statistical empirical problem-solving cycle.‖ It consists of five steps—problem, plan, data, analysis,conclusions—and covers some aspects of the prospect, proposal, and case phases.However, there is no emphasis on making potential clients aware of the consultant‘s service offering, on the techniques used to get in contact with the client, on the design of the contract, and on the review of the project.
Literature Review onConsultancy processesBerding‘s and Kleider‘s (2007, p. 403) bird‘s eye view on the consulting process:―(1) The client‘s problem is posed and analysed.(2) An appropriate statistical model is developed and formulated.(3) The statistical solution is worked out, and(4) finally translated into the client‘s solution
Literature Review on Consultancy processes Unwin (2007, p. 352) cites the CRISP model for data mining. It consists of six phases: business understanding, data understanding, data presentation, modeling,evaluation, and deployment. Business understanding includes some aspects of the proposal phase. Data understanding and presentation, modeling, and evaluation are part of the case-phase. Deployment includes a review of the project as documented explicitly in CRISP-DM substeps (Weihs 2007, p. 432). Note: CRISP Model- standard model for data mining
Engel and Hoonhout (2007, p. 418):1. Define and measure. Determine the user‘s expectation and needs.2. Analyze and design. Analyze and design statistical methods.3. Verify. Evaluate whether the user‘s expectations are met.
Fink and Löwenbein(2009) mentioned that , A typical ―formal proposal‖ consists of• a description of the initial situation of the client,• a definition of the client‗s complication, i.e., the gap between his current and desired positions,• an explanation of the approach and the tools and techniques that the consultant will use in order to close the gap,• a chart of the project organization,• a road map on timing and budgeting, and• an appendix with references and biographies.
Kakabadse et al. (2006) describe the idea as suggesting that consultancy must first been seen in terms of process. Since, Kubr (1996) identified two basic roles of businessconsultants:(1) the ―resource role‖ (helping clients with their problems by using the consultants‖ experience and knowledge); and(2) the ―process role‖ (helping clients to solve their own problems by making them aware of appropriate organisational processes).
Evaluating the effectiveness of consultingThe effectiveness of a business consultancy should be assessed for at least three reasons:(1) To validate consulting as a business tool: Because consulting is only one of many actions that an organisation can take to improve its performance and profitability, consulting must be formally compared with alternative business tools.
(2) To justify the costs incurred in consulting: Thorough quantitative justification of the costs of consulting is required to resist cuts in consulting budgets in times of economic stringency.
(3) To improve the design of consulting: Objective evaluation of consulting programs is required to ensure that business consultancy is continuously improved to provide better value and increased benefits to clients