Launching A Management Consulting Practice (2009)

9,542 views

Published on

A description of the nature of the management consulting profession and the requirements for launching a successful consulting practice. Includes client service, marketing and selling and practice management, as well as a discussion of the Management Consulting Competency Framework.

Published in: Business, Health & Medicine

Launching A Management Consulting Practice (2009)

  1. 1. Launching a Management Consulting Practice A Webinar Conducted by Mark R. Haas CMC, FIMC IMC USA Academy for Professional Development October 20, 2009
  2. 2. Desired Outcomes 1. Understand Management Consulting  Profession, Industry, Consultant, Client 2. Understand How to Become a Consultant  Competency framework  Starting a consulting business 3. Understand How to Be a Consultant  Marketing and selling services  Delivering consulting services  Managing the consulting business 4. Decide If Consulting Is For You  Lifestyle, risks, alternatives, benefits and costs 10/20/2009 Institute of Management Consultants USA 2
  3. 3. Part 1: Understand Management Consulting  Why Does Management Consulting Exist?  What is Management Consulting?  Where Does a Consultant Work?  What Does a Consultant Do?  How Is Consulting Changing? 10/20/2009 Institute of Management Consultants USA 3
  4. 4. What Type of Consultant Can You Be?  Generalist vs. specialist  Industry vs. functional discipline  Process vs. content  Diagnostic vs. implementation  Customized vs. pre-packaged solutions  A mix of the above 10/20/2009 Institute of Management Consultants USA 4
  5. 5. Consulting Experiences Vary Considerably  Facilitate kickoff planning for US military’s World War IV “Cognitive Dominance” strategy  Assess operations and advise reorganization of the world’s largest biomedical research enterprise  Facilitate planning to recover commercial operations after nuclear terrorism in LA  Reorganize a major city school system  Advise on governance and operations at an environmental nonprofit  Develop a business plan/strategy for health care startup  Revitalize administration and programs for a national volunteer organization 10/20/2009 Institute of Management Consultants USA 5
  6. 6. Business and Consulting are Changing Fast  Flat world  Commoditization  Interdependency  Speed  Demographics A management consultant needs to be on top of all of these emerging trends 10/20/2009 Institute of Management Consultants USA 6
  7. 7. Part 2: How to Become a Consultant  The “What” and “How” of consulting  Consulting competency framework  Professionalism and ethics  The consultant’s reputation  Certification 10/20/2009 Institute of Management Consultants USA 7
  8. 8. Consulting is More than Just Knowledge Consulting Competencies and Ethics Technical Discipline “What” Sector Specialization Professional Associations Consulting Skills “How” Consulting Behaviors Consulting Ethics 10/20/2009 Institute of Management Consultants USA 8
  9. 9. Consulting Competency Framework 10/20/2009 Institute of Management Consultants USA 9
  10. 10. Market Knowledge and Capability  Expertise in a technical discipline  Experience in an industry sector  What a consultant has to “know”  This is the “what” of consulting, necessary but insufficient to effectively support management 10/20/2009 Institute of Management Consultants USA 10
  11. 11. Consulting Competencies  Core consultancy tools, techniques and skills  Essential to deliver management consulting services  Specifics vary by type of consulting services provided  What a consultant should be able to “do” 10/20/2009 Institute of Management Consultants USA 11
  12. 12. Consulting Skills and Behaviors  Entry level prerequisites for a successful consultant  Enables ability to acquire consulting competencies  Acquisition based on commitment to life long learning  What a consultant should “be” 10/20/2009 Institute of Management Consultants USA 12
  13. 13. Ethics and the Reputation of Consultants 10/20/2009 Institute of Management Consultants USA 13
  14. 14. Value of Certification  Consulting is unlicensed – for now  The Certified Management Consultant (CMC®) is evidence of meeting international standards  More than 10,000 CMCs worldwide  Instant network to other accomplished consultants  A CMC does not guarantee consulting success  Expectation to contribute to the profession 10/20/2009 Institute of Management Consultants USA 14
  15. 15. Part 3: How to Be a Consultant  Understand the consulting enterprise  Starting a consulting business or joining a firm  Why clients pick you and not other consultants  Networks and pipelines to generate leads  From lead to prospect to client  Delivering consulting services  Managing a consulting practice 10/20/2009 Institute of Management Consultants USA 15
  16. 16. The Consulting Enterprise Networks Professional Development marketing services Consultant Client fees Practice selling Management 10/20/2009 Institute of Management Consultants USA 16
  17. 17. Starting and Managing a Consulting Business  Considerations  Lifestyle  Risk  Personal style  Work style  Skills  Choices  Business organization and size  Project costing, cost recovery and setting fees  Practice management  Technology and resources  Networks 10/20/2009 Institute of Management Consultants USA 17
  18. 18. The Consultant’s Clients  Who are they?  Why do clients use consultants?  Insight into industry or process  Independence and objectivity  Specialized expertise or access  Facilitation and process skills  Supplemental skilled resources  Clients really buy confidence, not competence  Why do clients pick specific consultants? 10/20/2009 Institute of Management Consultants USA 18
  19. 19. How Do I Get Clients?  Your organization/industry  Your business network  Teaming/subcontracting  Friends and family  Cold to warm calling  Advertising, publicity  Pro bono work Marketing and managing a client pipeline is a critical part of the business of consulting 10/20/2009 Institute of Management Consultants USA 19
  20. 20. Networks  Networks you design and build  Professional associations and trade groups  Online communities  Specialized by discipline, industry, position  Where to spend your time effectively  Geographic and discipline network groups  Mastermind groups  Tools and Services  LinkedIn  Facebook 10/20/2009 Institute of Management Consultants USA 20
  21. 21. Lead Generation Pipeline 10/20/2009 Institute of Management Consultants USA 21
  22. 22. Moving Prospects Through the Pipeline  Convergence of Need + Capability + Passion  Clearly Identify Client Needs  Match Your Capability With Client Need  Everyone Should Be Enthusiastic  Finding the Qualified Buyer  Discussions With Prospects  Submitting the Proposal  Negotiating the Project  Closing the Sale The best proposals are conclusions, not explorations 10/20/2009 Institute of Management Consultants USA 22
  23. 23. From Proposal to Agreement to Engagement Proposal Elements How to Acquire Capability?  Understanding of Need  ?  Proposed Approach  ?  Personnel Experience  ?  Corporate Experience  ?  Technology, Process, Data  ?  Management Controls  ?  Client Provided Items  ?  Performance Evaluation  ? 10/20/2009 Institute of Management Consultants USA 23
  24. 24. The Consultant’s Recurring Dream Charles Russell, Meat’s Not Meat ‘Till It’s In The Pan (1915) 10/20/2009 Institute of Management Consultants USA 24
  25. 25. Delivering Services  Establish the relationship  Formalize project plan and outcomes  Manage staff, cost, quality, schedule  Conduct research and ask staff  Complete and validate the diagnosis  Develop findings and recommendations  Review and reconcile findings with client  Implement recommendations Communicate,  Evaluate and manage performance Communicate,  Conclude the engagement Communicate 10/20/2009 Institute of Management Consultants USA 25
  26. 26. More Challenges Beyond the Engagement  Staffing your firm  Teaming with others  Subcontracting  Passive income  Pro bono work  Resolving problems  Unexpected opportunities Network, Network, Network 10/20/2009 Institute of Management Consultants USA 26
  27. 27. Challenges of Managing a Small Firm  Get the Work  Do the Work  Manage the Business  Learn and Grow . . . Simultaneously 10/20/2009 Institute of Management Consultants USA 27
  28. 28. Part 4: Is Consulting Right for You?  Why Are You Considering Consulting?  What is Your Long Range Plan?  Are You Committed to Consulting as a Profession?  Can You Meet Each Criterion?  Business Goals  Lifestyle Goals  Client Acceptance  Contingency Plans 10/20/2009 Institute of Management Consultants USA 28
  29. 29. Use a Typical Consulting Process to Decide if Consulting is Right For You Where Am I Going? Who Am I? How Will How Do I I Know? Get There? 10/20/2009 Institute of Management Consultants USA 29
  30. 30. Who Am I? Am I Right for Consulting?  Personality  Curiosity  Perception of risk  Sense of urgency  Work environment  Tolerance for ambiguity  Breadth of experience  Analytical skill and interest  Depth of general and business knowledge  Commitment to consulting as a profession 10/20/2009 Institute of Management Consultants USA 30
  31. 31. Where am I Going? Stages of Consultant Development Stage Early Advanced Mastery Expertise Provides technical skills/ Secures, designs, and Can secure, design, and manage experience to a project. manages small consulting large, complex, team-based Developing skills defined projects. Practices skills consulting projects. Meets highest by Common Body of consistent with Common Body international standards of Knowledge and of Knowledge and Competency competence, including IMC USA Competency Framework. Framework CBK and CF Scope Narrow specialty in a Applies expertise across Creates new approaches to technical discipline / industries and disciplines applying expertise across industries industry and disciplines Organization Tactical support to middle General business advice to Broad strategic advice to senior managers managers and executives managers and executives/Board of focus Directors Value to Client Solves technical/tactical Recommends and implements Sought by and considered a problems, often limited in solutions to client needs. partner by executives. Long term scope or solution space Anticipates emerging client engagements and retainer needs and helps resolve. relationships are the norm Commitment to May belong to technical Member of IMC USA and Member of IMC USA and bound to and/or trade associations bound to IMC USA Code of IMC USA Code of Ethics. Has Profession and to IMC USA. Does not Ethics. Has enough skills and obtained CMC® certification. subscribe to a formal code experience to obtain CMC® Actively contributes to profession of ethics/enforcement. certification Experience Up to 3-5 years as an 5-15 years as an external or Greater than 15 years as an external or internal internal consultant with internal or external consultant consultant experience managing increasingly large complex projects 10/20/2009 Institute of Management Consultants USA 31
  32. 32. How Do I Get There? What is Your Plan to Become a Consultant?  Education/Training  Experience  Affiliation  Certification/Licensing  Business Form  Lifestyle  Reality Check  Opportunity Costs 10/20/2009 Institute of Management Consultants USA 32
  33. 33. How Will I Know? Success Measures of Professional Consultants?  Your Formal Plan  Identify and Develop Consulting Skills and Behaviors  Prepare and Confirm Business and Marketing Plans  Test by Partnering With Experienced Consultants  Evaluation of Progress Against Plan  Business Goals  Lifestyle Goals  Client Evaluation  Contingency Plans  Satisfaction 10/20/2009 Institute of Management Consultants USA 33
  34. 34. Consulting Can Be a Rewarding Profession  You know about consulting as a profession  You have the basics of how to become a consultant  You appreciate what it takes to be a consultant  You can now decide if consulting is right for you  You have resources available to help you  Bibliography (with pre-reading materials)  Associations (particularly IMC USA)  People (other consultants and your business associates) 10/20/2009 Institute of Management Consultants USA 34
  35. 35. Thank You for Your Attention Mark R. Haas CMC, FIMC is President of Research and Organization Management, Inc., a Bethesda, MD based management consulting firm. ROM provides executive- level organization assessment, performance management, strategy development and execution management, primarily for science, technology and R&D-focused clients. Mark has advised federal agencies, nonprofits, trade associations, national labs, oil companies, state agencies, colleges, banks, and professional service firms. He is a Certified Management Consultant, author, expert witness, facilitator, invited speaker, and lead quality (Baldrige) examiner. His projects range from facilitating planning recovery from nuclear terrorism and development of military strategy, to improving leadership and operations for biomedical research programs and environmental nonprofits. He is listed in Who’s Who Among Emerging Leaders and Who’s Who in America and holds degrees from Colgate and Harvard Universities. Mark has a commercial pilot’s license and instrument rating, used to be a decent golfer, spends too much time reading about history of science and, in the 1980’s, he and his wife quit their jobs and took a year-long trip around the world. He is immediate past Board Chair, and former Ethics Chair, and a Fellow of the Institute of Management Consultants USA, the professional association and certifying body for management consultants in the US. www.rominc.com mhaas@rominc.com (301) 320-5889 10/20/2009 Institute of Management Consultants USA 35

×