The document outlines the stages of a management consulting engagement: 1) negotiating the engagement between the consultant and client, 2) planning the engagement, 3) conducting the assignment through problem identification, data analysis, solution development, and reporting, 4) evaluating the engagement and providing post-engagement follow-up. Key aspects of each stage are discussed at a high level, including proposal letters, work plans, data collection techniques, and project management.

1. CONSULTING ENGAGEMENT
Kathleen Belle A. Tuzon
BSA 4-11

2. Stages of Management Consulting
Engagement
I. Negotiating the engagement
II. Engagement Planning
III. Conducting a consulting assignement
A. problem Identification and solution
B. Identification of suitable and accurate sources of
information
C. Data Analysis and Diagnosis
D. Solution Development

3. Stages of Management
Consulting Engagement
E. Preparation and presentation of the report
and recommended solution
F. Implementation
G. follow-up evaluation of the implemented
solution
IV. Evaluating the engagement and post-
engagement follow-up

4. I. NEGOTIATING THE ENGAGEMENT
 This involves the stage where the CPA and
the client discuss the proposed professional
consulting services.
 It is the process whereby the client decides
whether or not he wishes to engage the CPA
and the CPA determines whether or not he
can accept that assignment.

5. Proposal Letter
Proposal Letter is a written communication
between the CPA and the client setting forth the
terms and the condition of the proposed
consultancy work.
Proposal Letter will generally include;
 The objectives and benefits of the engagement
 The scope of the work and the role of the CPA
 The approach to the study
 The project organization
 Fees and billing arrangement
 Firm qualifications, where appropriate

6. II. Engagement Planning
Engagement program or work plan
 Contents
The program should contain the following:
1. the objectives and a description of each task to be
accomplished
2. A description of tangible output required at
completion of each task
3. A list of manpower required
4. A list of personnel assigned
5. The starting and completion dates
6. Project costs

7. III.CONDUCTING A CONSULTING
ASSIGNMENT
SOUND PROBLEM-SOLVING
PROCESS
a) Problem identification and desired outcome
b) Identification of suitable and accurate sources of
information and data gathering
c) Data analysis and diagnosis
d) Solution selection
e) Preparation and presentation of the report and
recommended solution
f) Implementation of recommended solution
g) Follow-up evaluation of the implemented solution

8. Internal and external sources
of facts
Sources Facts
Corporate Planning Corporate Objectives
Expansion Plans
Marketing Sales statistics
Invoices and back orders
Planning and Promotional campaigns
Feedback from customers and sales
force on product performance
Research and Development New product Development schedules
Engineering Engineering schedule for products
Accounting Product Pricing and costing
Operating Expenses
Personnel Background on employees

9. Sources Facts
Industry Reports Corporate data and analysis
Industry news
Competition Products and Products literature
Distributors Market conditions
Customer analysis
Customers Profile Facts
Sales
Statistical Data and Abstracts Corporate Statistical Comparisons
Economic/financial data
Securities and exchange comission
facts
Department of commerce facts
Data base retrieval system Product, market and industry news and
analysis
Economic forecasts

10. Fact-Gathering Techniques
 Interviews
 Questionnaires
 Observation
 Document Gathering
 Charting
 Organization Chart
 Data flow Diagram
 System Outflow
 Detail flowchart
 DecisionTable

11. IV. Evaluating the engagement
and Post Engagement follow-up
 EVALUATIONOFTHE ENGEMENT
 Benefits
 It will provide direction for staff training program in
the MAS division
 It will serve as a basis for evaluating on-th-jpb
performance of staff personnel
 It will provide data for determining required
resources for subsequent similar engagements
 It will provide tangible evidence of quality
consciousness consistent with the other areas of a
CPAs practice

12. The evaluation will formally
cover the following:
 Proposal
 Engagement Program
 Work program and schedule
 Source data and documentation
 Reports
 Results

13. PROJECT MANAGEMENT AND
CONTROL
 Project Management means planning,
executing, scheduling and controlling
activities to provide solutions to the identified
problems.

14. A. Project Plan
 Project plan serves a nucleus of a consulting
engagement and provides a guide to staff
assignment and completion dates.
 It also provides the consultant with an
updated status at any point during the
project.

15. Developing the detailed work
plan
 The detailed work plan serves as the blueprint for
execution of the engagement and a means by which
the consultant can monitor project progress
 Components:
 Task identification and description
 Task relationship
 Estimating the work effort and completion time
 Scheduling tasks
 Determining review point
 Staffing the project
 Project costing
 Detailed work plan review

16. B. Organizing the project
Team
C. Project Schedule

17. D. Project Control
GANTT CHART PERT CHART
a bar chart essentially a flowchart, or
network diagram
focus on the time required for each task focus on the sequence of tasks
and their dependencies
between one another
handle sequence and duration manage large and complex
projects with variable duration
tasks
focus on the time required to complete a
task
focuses on relationships
between the tasks
straightforward and are not made for
projects which will experience change
intricate and tolerate great
deals of unknowns

18. E. Documentation Policies
and Guidelines
 What documentation policies and guidelines
should be established for internal use?
 Defined structure
 Timing
 Responsibilities

19. The report format would
include all or part of the
following sections:
I. Statement of the engagement objectives
II. Background information and activities
conducted to analyze the client’s business
III. Findings and Conclusions
IV. Recommendations
V. Benefits of implementing
Recommendations