What is Consulting? Expert Advice and Business Solutions Explained
1. CONSULTING CLUB
EDUCATION
WHAT IS
CONSULTING?
Denis Amaral
14 November 2011
2. Denis Mantelatto Amaral
• Industrial Engineer (production and mechanics)
@ Escola de Engenharia Mauá (Commercial Director @ Mauá Jr.)
• Post-graduated in Information Technology (ERP)
@ FIAP
• Exponential Technologies Executive Program
@ Singularity University (NASA)
• Attending the Master of International Business
@ HULT
• 5 Years Experience in Management Consulting
@ THOMPSON MANAGEMENT HORIZONS
6. What is Consulting
consulting |kənˈsəltiNG|
noun
the business of giving expert advice to other
professionals, typically in business matters.
Interactive process
Executed by people external to the problem
Supply client with changing options
Attend with efficacy
7. The complex reality
External
Competition
and Internal
COMPLEXITY / KNOWLEDGE
Complexity
Ln
Conhecimento e
Competência
Managerial
Gerencial
Competence
Selling a (any) project could T1 T2 TIME
be vital for the company.
8. Change Management
- Economy
- Politics
- Technology
- Society Commitment
GAP
Resistance Acceptance
Skepticism Understanding
Apathy
Time
9. Why people hire consultancies
• Knowledge increasing necessity
• Lack of time / work force
• Organization policies
10. Knowledge increasing necessity
The client does not:
• Know what it needs
• Have the knowledge needed
• Have the competencies
• Administrate its knowledge
11. Lack of time / work force
COMPLEXITY
• Market perception
• Quick changes
• Future projection
KNOWLEDGE
• Enterprise evolution
• Structure and organization
• Processes
12. Organization Policies
• Invisible motives
• Neutral observer (external executive)
• Extra argument to convince CEO
• Conflict solution
14. The consulting professional
• Independency
• Auto-Motivation
• Writing and Speaking Techniques
• Analysis Capacity
• Authenticity
• Ethics
RESOURCES AND/OR
15. Qualities required
• Time management
• Commitment to results
• Interactivity with clients
• Proactivity to anticipate future
• Rationality with data and numbers
• Consolidated values in attitudes
16. Perceived Qualities
• Consulting techniques
• Specialist on the topic
• Human relationship within the industry
• Brand and experience
• Efficient communicator (seller)
Unnecessary technology
Uninteresting problem
Known solution
Inexperienced in business
17. How to become a consultant
• For those who have vast experience in a specific
industry: you have the differential – open your
business;
• For those with less experience but with fitting
profile and education: apply for graduate
schemes;
• For those who did not know what consultancy
was before today: participate actively of the
Hult Consulting Club!
The clients notice special competencies and values of
consultants as a unique opportunity to their businesses.
21. Exploring necessities
• Client seeks consultancies (proposal request)
• Consultants network (fairs or informally)
WHAT IS REQUESTED / WHAT SHOULD BE INVESTIGATED:
- What is the situation?
- What is the problem?
- What are the implicit necessities?
- What is the result awaited?
- What are the real needs?
22. Proposal
• Context
• Curriculum
• Conditions
• Chronogram
• Tasks and Activities
• Methodologies
• Objectives and Expected Return
• Confidentiality term
23. Pricing
• Based on opportunity cost
• Takes reference on client’s managers
• Considers all project expenditures
• Profit is related to risk and use of knowledge
• Compared with competitor’s price
• Vary with region and industry economies
• Differentiated by product deliver or time
24. Product Characteristics
• Clear amplitude and offered specialty (limits)
• Consulting competences
• Client’s necessities recognized
• Effectiveness and Sustainability of solution
• Well-presented in modules and steps
• Shows the time allocated
• Identifies opportunities and expected return
• Establish mutual feedback meetings
Craft Packet
25. Craft
• More Flexible
• Follows client’s culture and architecture
• Closer to client’s business reality
• Longer contracts
• More complex negotiations
• Longer projects
• Lower resistance in change management
• Better relative quality
• Partnership is established
• Vast experience and knowledge
26. Packet
• Work follows a classical pattern
• Use of famous methodologies
• More generic in terms of client’s reality
• Easy contract
• Price seeking
• Short projects
• Lower cost
• Focused on change management
• Client becomes dependent of consultancy
28. Main Services and Segments
• Strategy and Management
• Organizational Structure Change
• Business Process Management
• Human Resources
• Merging and Acquisitions
• Finance
• Information Technology
30. Small Consultancies x Big ones
• One segment • Various segments
• Home office • Own office
• More independent work • Structured work
• Client’s space • Own building
• High involvement with • Low involvement with
client’s business structure client’s business structure
• Lower prices and • Higher prices and classic
unexpected results results
34. Ethics
• Accepting only those client engagements they
are qualified to perform
• Agreeing with the client in advance on the basis
for professional charges
• Developing realistic and practical solutions to
client problems
• Rendering impartial, independent advice
• Safeguarding confidential information
Source: Institute of Management Consultants USA
36. Personal Experience
@ Maua Jr.
Areas:
Engineering Project Sales
@ Thompson Management Horizons
Areas:
Business Process Redesign (FCT)
Project Management (ESPM)
(2010-2011) The fifth biggest private bank of the world:
Standardized the processes of reception, screening and distribution for the
106 buildings of the corporation, and trained the personnel in executing the
tasks in concordance to the internal Service Level Agreements generated by
the project. The greatest challenge was to change the management of a frozen
culture, adapting the modern routines to avoid risks using Key Performance
Indicators.
37. Personal Experience
(2009-2010) The biggest on-shore petroleum extractor of Latin America:
Drew the business’ accounting, finance and stockings processes in all of its
branches all over the country, adapting it to the Enterprise Resource Planning
(ERP) system platform. The stock analysis generated reduction of R$30
million in three years. Also coordinated the accounting reconciliation of the
main office, after an acquisition of a minor enterprise by the client.
(2009) The Brazilian gas syndicate:
Revised the exchanging model of P13-Gas Cylinders (empty canisters for full
ones) of all Brazilian brands, generating a 10% saving to the process.
(2009) A innovated enterprise focused on generating creative strategic
solutions (partner of Thompson):
Cooperated in creating the strategy agenda of investments of the biggest tug
company in Brazil. The challenge consisted of investigating the growth of
Brazilian ports in the next five years.
38. Personal Experience
(2008) An automobile reseller, with more than thirty branches in Brazil:
Cooperated in the implementation of its Shared Services Center, achieving
back-office savings of R$1.5 million per year.
(2006) The biggest gas cylinders supplier of Brazil:
Designed the operational procedures and established a Shared Services
Center based on the “Sarbanes-Oxley” law, thereby generating a R$12 million
savings in the purchasing area on its first year. The greatest challenge was to
reduce the number of employees –approx. 50 people were let go – and
establish institutional politics for the organization. The change management
for the new SSC structure reduced many costs (e.g.: travelling costs by 80%).
39. Business Process Modelling
PLANNING CORE BUSINESS CONTROL
Commercial Contract Financial Cost
Budget
Mgt. Mgt. Mgt. Mgt.
Human Resources
Supply Chain Management
Documents Management
Equipment Management
42. Conclusion: the mission
• Every company has a
mission.
• Every person can
have his/her mission
too.
• For example, a doctor
should fight for the
end of diseases
throughout the
world.
43. Conclusion: The consultant’s
mission.
Intensive
Research
Add Value to Application
Market of Knowledge
Spread Transforming
Knowldge Outputs
Learning
Experience