A brief introduction to Management Consulting

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October 8, 2022
Imagine that you’ve been getting a severe toothache for almost a week. You’re unable to chew food
without a constant sharp nagging pain.
You decide to see a dentist who upon inspection tells you that you have a severe cavity and suggests a
root canal. He also recommends a herbal toothpaste and gives you a brochure on how to prevent cavities
in the future.
Well, management consultants work exactly like this dentist but for organizations.
They diagnose problems and prescribe solutions and strategies to improve company health. They help
organizations solve issues that they can’t handle themselves or need specialized advice and expertise for.
CONSULTANCY – Common sense / Creative thinking / Problem identification / Solution seeking
CONFIDENCE SELLING & BUILDING
MORE IMPORTANTLY “HELPING”
BUT NEVER A DOER,
THOUGH A MOTIVATOR, TRAINER, COACHER, TEACHER, PHILOSOPHER,
& not forgetting to be CONCERNED…
Clients hire management consultants primarily as objective third-party analyzers of
an organization, including businesses, government institutions, nonprofits, and
more. Oftentimes, organizations can become so engrossed in their own biases and
perspectives that they can lose the objectivity needed to make the best strategic
and operational decisions.

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Understand the Objective
Understanding what the client is looking for is fundamental to the success of the consulting project.
Consultants spend a significant amount of time with the client’s management team in order to align on
the objective. There are also several discussions about the resources the consultants need, such as
access to financial information and interviews with key employees. Consultants will usually also start
with a hypothesis on potential solutions and think about the right data they need to test their theories.
Gather Data and Research
Management consultants spend a lot of time gathering the right data to support their hypotheses. This
can include going through a company’s internal financial figures, hosting focus groups with third parties,
pouring through industry research reports, interviewing company employees, and more. All this work
usually involves massive files with large amounts of raw data on Excel that need to be structured and
made sense of.
Perform In-Depth Analysis
With the data in hand, management consultants then focus on arriving to the insight they are getting
paid to unravel. Consultants organize the data usually in Excel and extract the key pieces of information
into charts and graphs on PowerPoint. These visualizations often help uncover potential solutions to the
case, which could result in the case going in several unexpected directions. There are also many
discussions within the consulting team regarding the correct interpretation of the data.
Meetings with Clients
Throughout a project, there are many, many meetings between the consultants and the client. These
meetings are not always with the C-suite executives, but point persons that the client appoints to
coordinate with the consulting team (usually VPs, Directors, and etc.). What most non-consultants don’t
know is that by the time the final deliverable is presented to the client, there should be no major
surprises to the client. Consultants provide constant updates every few days or weeks to the point
person, who provides ongoing feedback and guidance and updates his seniors.
Creating Deliverables
PowerPoint and Excel are a management consultant’s best friends. Consultants spend many hours
making sure every detail is perfect and build presentations that are clean and easy to understand but
are also insightful and powerful. A large portion of a consultant’s time goes into creating deliverables
that are constantly checked by senior members of the consulting team and also by junior members of
the client team. These checks result in constant revisions until the presentation is ready to be delivered
to the client’s senior management team.

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Not doing – but motivate, educate, guide the clients to adopt, do and practice the suggested strategies.
PROS CONS
Fantastic Learning Opportunities Lack of Tangible Results
Work with the largest companies in the world Lots of Stress and Expectations
Exposure to top level management Lack of a Creative Environment
- Critical but not creative
Learn from intelligent and driven colleagues
Flexibility and Variety
Different locations and bosses
Wide range of objectives across multiple projects
Projects across various different industries
Amazing Exit Opportunities
5 elemental management functions - Strategic Planning / Operations Administration & Leading /
Personnel Directing / Project Execution / Organizing
Science, pure science and mathematics…managers!
Beyond that, bird’s eye view – looking over the horizon … consultants!
What Are Frameworks and Why Are They Important for
Businesses?
1. Broadly speaking, management consulting frameworks are systemic enterprise tools and/or
principles that consist of a set of critical philosophies that allow managers to carry out a variety
of key tasks in a more feasible manner based on following best practices.
2. More specifically, since businesses have different structures and may operate in different
industries/markets – and may have different departments that are needed to engage in key
projects – management consulting frameworks become a GPS that a company can use to ensure

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that their entire internal systems are on the right track, and follow the company’s overarching
strategic plan).
3. A management consulting framework can help a business know when to change direction based
on analyzing a variety of external and internal factors, including industry state, the state of
different markets, competitive statistics/benchmarks, overall business scorecard data, and
more.
4. Though often used for tactical decisions that exist on the micro scale within a company’s day-to-
day workflow and projects (as opposed to the overarching company strategy), such frameworks
can also be used to alter the overall business strategy.
5. Business management consultant frameworks are crucial tools that can make the requisite
duties of executives, managers, data scientists, and strategists easier by offering key insights on
what is working, what isn’t working, and what needs to change.
Business frameworks are a guide to the destination, but are not all-encompassing, de facto absolutes
that must be inflexibly followed. Despite offering market/industry and business competition
assessments, they cannot make the decisions for a company – the ultimate decision is up to those who
utilize the tools.
There are some very popular, widely used tools and frameworks (below), and some less popular ones that
are used. Most frameworks cover assessments of the market and industry, business competition, internal
assessments, and financial assessments, among other things.
MC is always aware and advocates for the efficacy of Porter’s Five Forces - The Threat of New Entrants /
Competitive Dynamics / Supplier Power / Buyer Power / Buyer power / The Threat Of Substitutes
Analyzes the major marketing variables under a company’s control – the 4 P’s - product, price, promotion,
and placement.
Orients his/her concern over the 3 Cs framework is mainly concerned with strategic factors needed for a
company to succeed, including the company itself (an internal look), competitors (an external look), and
customers/clients.
Focusses on organizational management, the McKinsey 7-S focuses on a firm’s internal systems - “hard”
elements (strategy, structure, systems) that are more concrete and universal, and “soft” elements (shared
values, skills, style, staff) that are more abstract and variable within different enterprises.
Key tools & Techniques, in which a MC relies and need to be proficient at,
A. SWOT, an analytical framework that leverages strategic planning techniques and methodologies
to help an organization analyze its strengths, weaknesses, opportunities, and threats (SWOT).
Strengths
This factor analyzes a company’s advantages, novel products/services within a market, and unique
selling propositions (USPs), while also looking at how customers view the company’s strengths.

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Weaknesses
Weaknesses takes a critical look at how the company can improve, what practices should be
avoided, what factors result in inefficiency – and reduced sales or profits – along with how
customers view the company’s weaknesses.
Opportunities
This factor looks at opportunity costs, market trends, changes in technology and the impact on the
market, and both conspicuous and not so obvious opportunities in relation to the market,
demographics, and products. This element also looks at change in the market associated with
regulations and social/lifestyle alterations in a demographic.
Threats
This element analyzes a company’s obstacles, and looks at both the competition’s threat level, and
changes in the market that could present a challenge to more profits/sales, including changes in
quality standards, changes in technology, social changes, financial debts, and more. This factor
also looks at the specific potential consequences for each threat, and analyzes if such threats
represent serious challenges for the business, or significant obstacles to growth.
B. Key elements of Decisions for market creation / penetration:
Set 1: Objectives / Profits / Market Share / Growth / Brand Positioning / Competitive
Response
Set 2: Pricing strategies;
2.1 Cost-based: Such a strategy creates a pricing strategy based on the cumulative costs per
item, in addition to a profit margin, and thus requires an analysis of the company cost
structure.
2.2 Value-based: Also known as a price-based strategy, this system is based on the value of
the product and is associated with the amount that customers are willing to pay, usually used
in conjunction with a competitor-based analysis.
2.3 Competitor-based: This strategy includes benchmarking, and determines a price based
on the price of competitor products/services.
Set 3: Market;
Market Entry
Market: Market entry can denote entering a new territory or geographical region, or an expansion
into a new product category/industry. Market entry consultants analyze the market by asking several
questions about the customers, the size of the market, how profitable the market is, the regulations,
and the competition, among other things.

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Capabilities: The Company’s capabilities in entering a new market and succeeding is a critical factor
that must be analyzed within the scope of the market entry consulting case. This factor within the
market entry framework entails analyzing how well other companies did in entering the same market,
and how well the company may be able to adapt to the new market, based on their current capabilities
and product lineup.
Financials: One of the most critical factors for a new market entry is whether the company can afford
to enter the market, and the financial incentives to do so. This principle includes analyzing the cost of
entering the market (variable costs, fixed costs, etc.), as well as associated, potential profits, revenue,
and resource requirements, along with investments and the ROI over the long-term.
Entry Strategy: Perhaps the most critical factor in the market entry framework is the actual strategy
for entering the market, including the long-term goals, the final business model, the speed for entry,
whether a joint venture or individual entity will be created, the overarching management system that
will be used, and more. Essentially, this factor looks at both the strategic plan for entry, and the
operational mechanisms for the market entry.
Old adage:
To remember always…a manager can take sides based on experience; a consultant can never
takes sides with any framework.
No One Framework Is The Best – They Are Just Tools
PART 2
What Are The Key Principles Of Consulting?
 Consulting can be defined as conducting practical probability analysis and transmitting
knowledge from professional mentors to mentees in a subtle, complete manner.
 Consulting is guided by various concepts, including awareness, blamelessness, self-belief,
accountability, action, solution focus, challenge, and action. The principles of consulting are to
define the scope, goal, and style of consultation to assist the subject in achieving their objectives
and meeting their requisites.
 Consulting ethics entail faith, honesty, and morality.
 Consulting is a more straightforward phrase for catering to clients’ preferences and meeting
their requirements.
 It is a broader picture of transforming vision into reality via consistent effort.

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The fundamental principles of consulting are organized according to the consulting system, the
consultant, the clients, and the type of consulting situation.
Consultants employ essential ideas to increase the profitability of their work.
Consultants’ To DO LIST to help their clients better.
1. Create a comfortable environment where clients can stand and assess their qualities.
2. Increase client comprehension of their situation.
3. Occasionally disclose customer aims, intentions, and wishes.
4. Conduct probability research and follow up on these newly identified leads.
5. Be solely conforming and yielding to customers.
6. Connect the dots between the customer’s values, goals, and the tactics they use to
accomplish them.
7. Possessing a broad viewpoint and in-depth understanding of estimated reserves and
potentialities.
1. Awareness - being aware of one’s sentiments while subjecting oneself to harsh judgments. It could
refer to possessing a modern shelf of significance or worth.
Clients want consultants to raise their awareness, enabling them to make more informed decisions on
attaining projected goals more effectively. This is because understanding is necessary for the formation
of new patterns. Without awareness of habitual structures, it is nearly hard to work on pattern shifts.
There are several ways for individuals to gain awareness. It might manifest as valuable knowledge, or it
can be actively accumulated to facilitate a shift in perception. A client’s attention is heightened
throughout a captivating consultation session that aids in acquiring a new perspective.
2. Responsibility
Responsibility is a critical principle of consulting since it aids in determining the appropriate direction and
committing to an ongoing effort. Responsibility improves consultation efficiency by allowing for multiple
paths to a goal. The advantage of using responsibility as a consulting principle is that it facilitates direction
setting, accountability, and trust-building.

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The consultant must exhibit model behavior and inspire his supporters to do so effectively
3. Solution Focus
Solution-focused consulting is one of the most effective consulting methodologies. The solution-focused
approach focuses on supporting the mentee in identifying outcomes rather than issues. It emphasizes
resilience over flaws and elucidates promising directions rather than assessing hurdles.
Because solution-focused consulting assists in channeling energy in a beneficial direction by focusing on
stability and progressing toward an explanation, the client will feel motivated and energized rather than
demotivated and demoralized, a sensation you have probably experienced when problems and difficulties
are discussed and analyzed.
4. Action
A collection of real action learning concepts in consulting enables the process to begin. The consultant’s
responsibility is to ensure that the learner grasps these ideas.
It assists in making timely judgments, maintaining a solid work ethic, and engaging in structured learning.
Additionally, the action leaves a lasting impression by emphasizing the purpose of the work performed.
Consulting elicits new perspectives and comprehension. Thus, consultants improve their awareness,
prompting people to develop an action plan and seek fresh opportunities. Consultants guarantee that this
vital energy is channeled into action and a shift in behavioral patterns.
5. Challenge
The bulk of us thrives on good obstacles. We exist to test our limits and remove impediments. This then
develops into a strength booster. Being confronted with obstacles motivates us to work even more
challenging.
Aiming higher than the current vision is critical for landing at the desired location. A consultant supports
the mentee in identifying alternative points of view.
Consulting can be thought of as self-reflection, as it enables learners to become self-aware of their
strengths and weaknesses. When confronted with complex stimuli, one regains equilibrium and explores
new boundaries.
6. Blame-Free
From earlier experience, we can deduce that we advance a mile by making mistakes. Similarly, we are
bound to make errors in consulting, which are explicitly stated as learning milestones.
Clients benefit from the expertise of experienced consultants. They are more inclined to seek advice from
them on various topics, including creative thinking, concept development, and applying theoretical
knowledge to the real world.
The consultant bolsters the solution’s relevance by exposing clients to new perspectives. Conclusions will
inevitably emerge when we focus on philosophical discourse rather than their application. Here,
consultants contribute to establishing a blame-free environment conducive to the consultants’ overall
growth.

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7. Self-Belief
A sense of assurance in whatever task we undertake is critical to completing that work. It is simpler for
people to develop self-belief when they can comprehend, learn from their mistakes, and accomplish goals.
When workers are exposed to new knowledge, there is ample opportunity for self-learning and,
consequently, self-belief in their profession. When a senior or consultant is assisted, they are brimming
with encouragement and accomplish the assignment.
Giving individuals acclaim when they are deserving builds their confidence and dignity. Their increased
confidence results in increased production. Additionally, this aids in the development of their connections,
networking, work-life balance, and general growth.
8. Self-Motivation
Self-motivation is the path to completing tasks under your expectations, investing time and effort in self-
development, and achieving subjective satisfaction.
It’s critical to emphasize here that self-motivation is mainly driven by innate morale, a type of motivation
that results from naturally preferring to succeed and desiring the inherent benefits that accompany it.
On the other hand, extraneous motivation is the path to achievement that results from a desire for
superficial benefits such as riches, sovereignty, significance, or renown. Consultants create an experiential
environment that expedites goal attainment and provides possibilities for self-advancement and self-
motivation.
9. Observation
Observation compels consultants to become active observers to notice the resilience and hazards during
a feat. It identifies areas where individuals may wish to improve or strive harder to overcome their
deficiencies. Observation provides clients with detailed feedback on their technique and performance,
which ultimately helps them improve their abilities.
While observing, we are scanning for patterns, techniques, and strategies in reasoning. We can decipher
instruction and appeal for a prompt and thorough review. We can negotiate, redirect, acclaim, and
reinforce labor strategies through observation.
10. Directing
Directing is the raison d’être of administration. Numerous handling features include supervision, morale,
surveillance, and transmission—all other administrative procedures, such as planning and management.
“Directing” refers to a process or approach for appointing, steering, inspiring, advising, managing, and
governing people to accomplish organizational objectives. It is a continuous managerial cycle that
continues throughout the organization’s life.
According to this notion, an associate should obtain instruction from a consultant regarding the direction
of productivity output. The direction processes are used to manage, guide, interact with, and motivate
clients following their desires, abilities, behaviors, and other contextual factors.

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12 management consultant skills
1. Critical thinking
Critical thinking is the ability to process information and make informed judgments on a
particular subject.
2. Consulting
Consulting skills are a group of skills like collaboration, creative thinking and
communication.
For a consulting role, it’s important to listen to your clients, collaborate with them and
propose solutions.
Consulting may require you to negotiate or persuade clients as well.
Consulting skills nudges one to become the advisor a company might need.
3. Collaboration
Collaboration means the management consultant works with the employees of a
company with the shared goal of improving business performance and reducing
overhead.
4. Process improvement
 Decrease costs
 Reduce waste
 Improve collaboration
 Clarify processes
5. Project management
6. Research
Management consultants often perform investigative work to understand potential
problems within an organization. You might research company databases for historical
data, organizational charts, sales information and system used to understand how a
company can improve. Consider creating a series of questions you hope to answer that

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can support your goals. You may also need to research competitive companies to see
how others solved problems or how they excel in the market. This can show you how
the company you work with might improve.
7. Data analysis
Data analysis is the ability to transform pieces of information into information that
businesses can use to improve performance. Management consultants may review
data, such as the time needed to complete a certain task or how productivity changes
over time. While analyzing data, you may input figures into charts or graphs that you
can use to share with the company's management. This might involve making
predictions for how the data might change if you implement some process changes.
8. Problem-solving
One of the biggest parts of management consulting is proposing solutions to problems.
This means you imagine how a company can more successfully operate while learning
about how they currently operate. Consider analyzing various solutions for each
problem to understand how each change may affect a business. This requires creative
thinking and creating scenarios that can help an organization better solve its problems
and improve business performance.
9. Effectively Communicating
Sharing information with people, often live objectively, effectively, persuasively and
creating confidence and sharing the value.
10. Flexibility
Flexibility is the ability to adapt between tasks and adjust your plans based on obstacles
or changing goals.
11. Time management
12. Business knowledge
Management consultants often use their business knowledge when helping companies
reach their goals.

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Consultants are Questioning People
Framework / Issue Based Q
“Which factors would you consider when tackling this
problem?”
Market-sizing / Guesstimate Q
“How many face masks are being produced in the whole
world today?”
Analytical Q
“If the factory can lower the clinker factor by 0.2,
how much money will they save on production cost?”
Data percept Q
“What insights can you draw from this chart?”
Value Proposition Q
“What factors does a customer consider
when deciding which car insurance company to buy
from?” (Insightful)
Information Q
What kind of data do you need to test this hypothesis?
How do you get data?
High qualities of a management consultant
Listening Aligning Seeking clarity Appreciating
Perceptive Purposive Summarizing Adoptive
Flexible Creative Elucidating Adept
Ethical Critical Observant Silent
Gutful Valued Passive Active
Impartial Immersive Nonchalant Confidence

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Notes: