Management Consultancy Chapter 8

1. Stages of Management Consulting
Engagement
Part II

2. Solution Development
-it is the third phase of the problem-solving process. The steps
involved in this phase are:
• Generation of solution alternatives
• Evaluation of solution alternatives
• Choice of the preferred solution alternative
• Detailed development of the selected solution

3. 1. Generation of Alternative Solutions
- The first step in the solution development phase is to generate
and thoroughly search for solution alternative.
• Pattern Recognition and Matching Approach
• Brainstorming
• SCAMPER Approach
• Delphi Approach

4. 2. Evaluation of Solution Alternatives
• After the alternatives are identified, they must be evaluated to
determine the most preferred solution. The areas of
consideration by which each alternative solution may be
analyzed are:
• Economic Feasibility
• Operational Feasibility
• Technical Feasibility
• Scheduling Feasibility
• Legal Feasibility
• Other Evaluation Factors

5. 3. Choice of the Most Preferred Solution
“Choose the alternative solution that yields for the best fit or the
value relative to the established criteria.”
This rule can be easily applied when factors can be quantified and
related by an explicit decision model and when values concerning
the future situation are known with complete certainty.

6. Approaches in an Environment of Certainty
- In a certainty environment, there is only one event and therefore
only a single outcome for each action. Two approaches may be
used in choosing preferable solution alternative:
• Optimizing approach which typically employs one of the
mathematical techniques,
• Satisficing approach which is used when the optimizing approach
can’t be applied.

7. Approaches in an Environment of Uncertainty
- Since the environment of uncertainty does not provide sufficient
information to assign probabilities to the future states of nature,
the decision approaches are not so refined.
• Maximin approach
• Minimax approach
• Maximax approach
• Rationality approach

8. Approaches in a Risk Environment
- The probability distributions associated with the potential states
of nature is known in a risk environment.
1. Expected value calculation
2. Decision tree approach
3. Monte Carlo Simulation approach
4. Other risk environment approaches

9. 4. Detailed Development of Selected Solution
-The selected solution will undergo detailed design and
refinement. Its implementation must be carefully planned in order
to minimize required time and costly mistakes.
-This stage will involve in designing of:
• Outputs
• Inputs
• Conversion processes
• Resource and data bases
• Organization

10. Guidelines for Solution Development
1. The selected solution should be directly related to the
objectives that the client desires to achieve.
2. Maintain a comprehensive view of the problem situation and
how it relates to the overall organization. Always focus on the
key issues and concerns.
3. Search for all the important relationships involved in the
situation.
4. Employ systematic procedures and methodologies while
maintaining an openness to creative insights.

11. Preparation and Presentation of the Report and Recommended
Solution
1. The presentation should normally be made orally and
accomplished by audiovisual aids and written report.
2. Facts and arguments should be clearly presented.
3. Do not overwhelm the client with numerous details.
4. Be ready however to describe briefly the significance of any
gathered fact.
5. Volunteer information concerning the risks that a
recommended solution entails.
6. Interim presentations and written reports should be made
throughout the solution development phase.

12. Implementation
1. Development of a work plan
2. Establishment of controls over implementation activities
3. Selection and training of needed personnel
4. Installation of needed facilities
5. Development of standard and documentation
6. Testing of solution being implemented
7. Follow-up and evaluation of implemented solution

13. Follow-up and Evaluation of Implemented Solution
-A thorough post-implementation evaluation should be conducted
shortly after the solution has been fully implemented. Report
should be prepared as written documentation of the evaluation
and presented to management.
Each review and evaluation should focus on these areas:
1. Economics
2. Operations
3. Future Performance

14. • Economic Review
-should involve the comparison of
• The actual benefits and cost of the new system
• The expected benefits and costs that were developed during the system
design phase
• Operational Review
• Focuses on the actual use of the implemented system by the intended
users. An evaluation of operation after implementation should consider
how well they function, with particular emphasis on inputs, error rates,
timeliness of outputs and its utilization.
• Future Performance Review
• Identifies potential improvements to the implemented system and
estimates the effort required to implement these improvements.

15. Evaluating the Engagement and Post-Engagement Follow-up
Evaluation of the Engagement
Several benefits may be realized through and effective formal
evaluation program:
1. Provide direction for staff training program in the MAS division
2. Serve as a basis for evaluating on the job training performance
of staff personnel
3. Provide data for determining required resources for subsequent
similar engagements
4. Provide tangible evidence of quality consciousness consistent
with other areas of CPA’s practice

16. Evaluation will formally cover the following:
1. Proposal
2. Engagement Program
3. Work program and schedule
4. Source data and documentation
5. Reports
6. Results

17. Post-engagement Follow-up
Sometimes programs and systems appear to operate effectively
during the first few months after implementation but later run
into difficulty because of some reasons like
1. Change in operating conditions
2. Design may prove to be faulty
It is important that a CPA will provide observation of the programs
installed for a sufficiently long period to uncover deficiencies early
and to make the necessary modifications.