Basic Consulting Skills Community Consulting Club University of Michigan Business School.

Basic Consulting Skills

Community Consulting ClubUniversity of Michigan Business School

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C O M M U N I T Y

C O N S U L T I N

GAgenda

Pegging the Scope DownAnalyzing the IssuesDeveloping a Work PlanWorking in a Consulting TeamQ&A

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C O M M U N I T Y

C O N S U L T I N

GAgenda

Pegging the Scope DownAnalyzing the IssuesDeveloping a Work PlanWorking in a Consulting Team

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C O M M U N I T Y

C O N S U L T I N

GPegging the Scope Down

Understand what the problem actually isMeet early with client to sort this outDevelop a statement of the problem

A question or a clear hypothesis As specific as possible Focused on action

Draft the engagement letter

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• The Red Cross does not know what its educational courses are costing

• What costing systems can the Red Cross put in place to find cost of courses?

• Build a simple and quick system that the Red Cross can put in place in order to better price its courses and manage its course mix

Pegging the Scope Down

Fact

Too General

Specific,Focused on

Action

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Define Problem SpaceContext (Situation): Why is this an issue at this

time? Are there other issues bearing on the problem?Constraints (Complication): What is not in the

scope? What solutions are not acceptable?Who exactly is the Client? To whom will we make

the presentation? Who will take the decision?

Define Deliverables (Resolution)

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The engagement letter• If you defined the problem, the problem space

and the deliverables, there’s little else to do• Clearly define expectations from both sides• Signed by team and client: a statement of

commitment from both sides• There’s no ‘right’ way to do this

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Heading Description

Define what resources you will need from the client, and specify the time per week you will require from them. If possible, describe the role each individual will play on your team

Prerequisites for successful project

Describe in 1 page what activities the team will undertake over the duration of the project. Identify the need for customer or supplier interviews/surveys as early as possible

Work plan/approach to the project

In 1 paragraph, define your assessment of the current situation at your client, key issues the team is going to address, and the benefit of resolving the issues

Impact/benefit of the project to the client

Engagement Letter

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C O M M U N I T Y

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GAgenda

Pegging the Scope DownAnalyzing the IssuesDeveloping a Work PlanCreating a Good PresentationWisdom of the Ancients

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GAnalyzing the Issues

There is no ‘right’ way to do this. Different consulting firms have different approaches. Use what works.

Brainstorm and build an “issue tree”

Ensure it is MECE Mutually Exclusive and Collectively Exhaustive

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Issue Tree Example

Increase attendanceat given pricing

level?

Change pricing?

How can the Art Center

increase revenues?

Explore alternaterevenue streams?

Change nature ofcollection?

Explore alternatemarketing channels to broaden audience

Sub-idea 3

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C O N S U L T I N


Prioritize and focus on issues based on impact, team interests, ease of analysis

Increase attendanceat given pricing

level?

Change pricing?

How can the Art Center

increase revenues?

Explore alternaterevenue streams?

Change nature ofcollection?

Explore alternatemarketing channels to broaden audience

Sub-idea 3

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Why bother with the darn tree?Helps divide projectRoad map for analysis and data collectionEnsures completeness (prevents blindsiding)

(It will also help you with case interviews)

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C O M M U N I T Y

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GAgenda

Pegging the Scope DownAnalyzing the IssuesDeveloping a Work PlanCreating a Good PresentationWorking in a Consulting Team

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C O M M U N I T Y

C O N S U L T I N

GDeveloping a Work Plan

Identify key issues from analysisWhat is our initial hypothesis for a solution?What analysis do we need to perform to test the

hypothesis? What data is available? What data is required? How

can we fill the data gaps?What are the end products for each analysis?

Who will do each task? By when? Check work plan weekly

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GDeveloping a Work Plan

General Advice Be end product driven, think also about slide

output Ask “So What?” Be data driven: all opinions are equal Focus on what is achievable Don’t try to boil the ocean

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Principles Comments

Be realistic about end product precision limits

Scrutinize precision of input data– beware of “polishing dirt”

Look for 80/20, “killer analyses”

Avoid trying to boil the ocean– which analyses will nail the answer/ provide the most insight?

Continually question the hypotheses

Re-evaluate hypotheses every day and adjust work plan – regularly check ideas with client

End-product driven Hypothesize the answer(s) and plan the quickest path to robustly “prove” or disprove it

Planning Critical Analyses

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GStory-board the Product

MAIN MESSAGES

• Save $x million through China move• Hold price while monitoring competitive

conduct• Conduct lean transformation

INDUSTRY TREND SCENARIOS

Customers

OEMs

Suppliers

Structure ConductPerform-ance

_____

_____

_____

_____

_____

_____

_____

_____

_____

PROJECTED FINANCIALSEBITDA

2002 2003 2004 2005

COST SAVINGS ANALYSIS

SGAFOHVOHLabor

Material

-x%

PRICING STRATEGY: ROIC ISOQUANT

Price

Market share

Today

Competitor variable cost

GAME THEORY VS. COMPETITOR XEBITDA payouts

Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

IMPLEMENTATION PLAN

May June July …

PRODUCTION RAMP-UP SCHEDULE

2003 2004 2005

Product

1234

MAIN MESSAGES



MAIN MESSAGES




Customers

OEMs

Suppliers


_____

_____

_____

_____

_____

_____

_____

_____

_____


Customers

OEMs

Suppliers


_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____


2002 2003 2004 2005


2002 2003 2004 2005


SGAFOHVOHLabor

Material

-x%


SGAFOHVOHLabor

Material

-x%-x%


Price

Market share

Today



Price

Market share

Today



Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2


Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

IMPLEMENTATION PLAN

May June July …

IMPLEMENTATION PLAN

May June July …


2003 2004 2005

Product

1234


2003 2004 2005

Product

1234

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C O M M U N I T Y

C O N S U L T I N

GAgenda

Pegging the Scope DownAnalyzing the IssuesDeveloping a Work PlanWorking in a Consulting TeamQ&A

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C O M M U N I T Y

C O N S U L T I N

GHigh-functioning Teams

Trust presume competence

Flexible roles needs of project

Clear ownership delegated responsibilities

Know when to escalate delays, roadblocks

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C O M M U N I T Y

C O N S U L T I N

GAgenda

Q&A

Basic Consulting Skills Community Consulting Club University of Michigan Business School.

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