Consultancy Skills - nebula.wsimg.com
Transcript of Consultancy Skills - nebula.wsimg.com
Consultancy Skills
Our aimTo learn about consultancy in an organisational context.
What consultancy involves, the key competencies and
abilities, and the tools and techniques helpful to a
consultant.
About us
• Your role
• Your consultancy experience
• What you’re hoping to learn from today
1. What we mean by consultancy
What we mean by consultancy
The MCA defines management consulting as: “The creation of value for
organisations, through improved performance, achieved by providing objective advice and
implementing business solutions.”
“Consulting involves individuals, whether self-employed or employed, individually or
collectively using their knowledge, experience and analytical and/or problem-solving
skills to add value into a wide variety of organisations, and therefore to the UK
economy as a whole, within a framework of appropriate and relevant professional
standards, disciplines and ethics.” (IC)
What we mean by consultancy
“…to try to take ownership of an organisation’s problems and use
research and logic to develop possible options for a way forward.”
Matt Baumann
“giving solutions to the problems that companies have.”
Jane Ridley
Consulting is about
helping an organisation
get from A to B…… perhaps without
knowing at the outset
where A is, where B is,
the appetite for the
journey or your role in
it.
Consultants = change
What
Feasibility - exploration
Change implementation
Review/evaluation
Why
Additional capacity, third party objectivity,
process skills, access to specific information, ‘bad
guy’
Eras of consultancy
• Scientific management
• Strategy boutiques
• Technology enabled change
Management Consulting
Labour government - £2m pa spend
Previous conservative government - £0.5m pa
European market (2010) – 25m euros
Sourceforconsulting.com identified six key client trends:
1. Context – the globalisation of clients will be a crucial source
of growth, but at the same time, it will reshape the industry.
2. Purchase – increasing use of multinational purchasing models
will impact the historic influence of relationships.
3. Resources – clients are choosing to staff more projects internally
which, before they might have hired external consultants to do.
4. Delivery – instead of competition primarily being between familiar
enemies, it’s now between firms and freelancers.
5. Outcome – the majority of firms now sit in the middle between advice
and implementation.
A new basis of differentiation is needed: outcomes.
6. Margin – fee rates among multinational companies have dropped by
10-15 per cent.
Key Stages in Consulting
1. Opportunity development
2. Agreeing Terms of Reference
3. Information gathering
4. Interpretation and insight development
5. Sign-off
6. Aftercare
Cost
Spec/quality Time
‘What are the deliverables?’
Intervention styles
• ‘Expert consultant’
• ‘Process consultant’
Hands on – hands off
7. Help them think through their own ideas
6. Add options to their ideas
5. Advise them what to do
4. Tell them what to do
3. Show them how to do it
2. Do it with them
1. Do it for them
Competence framework
© Institute of Consulting
1.0 Client Focus
2.0 Building and Sustaining Relationships
3.0 Applying Expertise and Knowledge
4.0 Achieving Sustainable Results
5.0 Market Capability and Knowledge
2. Perspectives helpful to consultants
The organisational context
Internal
Micro environment
Macro environment
In one application, sensemaking is approached as the ability or attempt to make sense of an ambiguous situation. More exactly, sensemaking is the process of creating situational awareness and understanding in situations of high complexity or uncertainty in order to make decisions. It is "a motivated, continuous effort to understand connections (which can be among people, places, and events) in order to anticipate their trajectories and act effectively“
(Klein, as referenced in Wikipedia)
• Vision – ambition, aspiration
• Mission – purpose, raison d'être
• Values – strategic drivers, codes
‘Hilltops’
‘certainty’
‘agreement’
high
low
high low
‘certainty’
‘agreement’
high
low
high low
Zone of Ordinary Management:
- may be adequate under relatively unambiguous
conditions
Zone of Extra-Ordinary Management:
Under relatively ambiguous
conditions - higher levels
of awareness and interpersonal skill
become critical
‘edge
of
chaos’
Cultural web
“Culture eats strategy for breakfast” Peter Drucker
Kubler-Ross model
3. Analytical frameworks and tools
Process guidanceStart with the client – deliverables, process, perspective
Pull together secondary data asap
Primary data follows
Facilitate external perspective/bring something new
Share understanding during process
Keep eyes on ‘triangle’… and keep in touch
Process guidance (2)
Make your client look good
Expect to over deliver
Invoice promptly
Seek formal feedback quickly
Note, but take a light touch with, follow-up opportunities
McKinsey 7S
Helpful when looking at organisational alignment
SWOT analysis
Strengths Weaknesses
Opportunities Threats
Helpful to summarise a situation analysis
Change modelsHow to Change - Stages
Unfreezing
Refreezing
Changing
Gerry Egan’s ‘Model B’How to Change - Stages
Actions leading to positive outcomes
1. Present 2. Preferred 3. Getting there
‘Blind Spots’
‘Story’
‘Leverage’
Agenda
Commitment
Possibilities
Best fit
Plan
Strategies
Stakeholder mapping(Mitchell, Agle and Wood 1994)
Low interest
High
power
Low
power
High interest
Helpful when shaping perception research and change
Strategy canvas
0
2
4
6
8
10
Price
Har
d dis
c
Dolb
y 5.
1DVD
Conn
ectiv
ity
Proce
ssor
spee
d
PS3
X-Box 360
Helpful when looking at business models and positioning
Re-shaping the value curve results from the consideration of
four actions
‘Raise’ means increasing the strength of a existing factor
‘Reduce’ means reducing the prominence of an existing factor
(cost saving)
‘Create’ means introducing a new factor to your recipe.
‘Eliminate’ means making a factor in your current recipe
redundant (cost saving)
Four Actions framework
Strategy canvas
0
2
4
6
8
10
Price
Har
d dis
c
Dolb
y 5.
1DVD
Conn
ectiv
ity
Proce
ssor
spee
d
Mot
ion c
ontrol
able
Large
pub
lic
PS3
X-Box 360
Wii
Nintendo’s ‘blue ocean’ response
Perc
eiv
ed in
tegrity
Share
capita
l
Investo
r div
ers
ity
Pro
duct ra
nge
(investo
rs)
Rela
tive c
ost base
Fin
ancia
l 'safe
ty'
Polit
ical'
activ
ity
FT
focus
Focus o
n
dis
advanta
ge
Pro
duct ra
nge
(custo
mers
)
Regio
nal p
resence
Capacity
build
ing/facilita
tion
2007 Gp1-2012 Gp2-2012
Gap analysis (using strategy canvas)
C.K Prahalad and Gary Hamel’s view is that strategy should
focus on an organisation recognising ‘what it is fundamentally good at’, and building from this. They
provide access to a wide variety of markets, contribute
significantly to end product benefits and are difficult for
competitors to imitate.
Core competence
Helpful when looking at internal ability
Value Chain
Helpful when looking at internal capability, development and
out-sourcing possibilities
POLITICAL ECONOMIC
SOCIAL TECHNOLOGY
REGULATORY/
LEGALENVIRONMENT
PESTEL macro environmental forces
Helpful as a basis for organisational design (fit for environment),
horizon scanning, scenario planning,
• Rivalry amongst those in the industry
• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of new entrants
• Threat of substitute products or services
• Bargaining power of buyers
Porter’s Five Forces
Helpful when looking at competitive positioning, segmentation
approaches, customer needs and perception
Decision making - options
Suitability – does it achieve what we want?
Feasibility – have we the resources/
capability?
Acceptability – can we live with the
consequences of this action?
Creativity approaches
1. Have a process
2. Start with divergent thinking
3. Finish with convergent thinking
Helpful for fresh perspectives and buy-in
Metrics
What get measured gets done…
…what gets rewarded gets done better.
Perverse outcomes… can
we live with the
consequence of our choice
of CSF/KPI/objective
Balanced Scorecard (MI)Strategy
Perspective
Goals Measures
FinancialShareholder
satisfaction
ROC, EVA, Cash,
Sales growth, Cost
reduction
CustomerCustomer
satisfaction
Retention
Development
Acquisition
Internal
High quality
people &
processes
Cycle time, Quality,
Cash conversion,
Service levels
Future Learning & growthNPD, Employee
development,
Adaptability
Helpful when assessing performance, agreeing targets, MBO
Risk analysis
Likelihood
High
Med
Low
Low Med
Impact
High
Helpful when evaluating change options and strategies
Force field analysis
Promoting forces Restricting forces
Helpful when planning pragmatic change
Ansoff matrix
Existing
products
New
products
Existing
markets
New
markets
PenetrationProduct
development
Market
developmentDiversification
Helpful as a basis to discuss strategic options
Directional Policy MatrixHigh Medium Low
Strong
Medium
Weak
Industry attractiveness
Business
competitive
position
Helpful when analysing portfolios and developing strategy
4. Our personal contribution
TGROW
- discussion road map
In a meeting/discussion – what phrases might one use around each of these five stages?
• Topic
• Goals
• Reality
• Opportunities
• Wrap-up
Dominant
(assertive)
Unassuming
Expansive
Contained
(emotionally controlled)
Recognition
(Expressive)
Affiliation
(Amiable)
Security
(Analyser)
Achievement
(Driver)
How each style makes decisions
PROMOTING
• Boldly
• Prefers new alternatives
• Involves others
• Quickly
FACILITATING
• Facilitating
• Reluctantly
• Idealistically in terms of people
• Prefers to be part of a group decision
• Involves others
• Concerned about decision’s effect on other
people
CONTROLLING
• Realistically
• Willing to take calculated
risk
• Independently
• Prefers effective
alternatives
ANALYTICAL
• Reluctantly
• Logically
• Slowly
• Likes to study alternative possibilities in
detail
• Carefully
In bid meetings…
Do your homework – think of the questions you might be
asked
Work in your elevator pitch
Don’t make statements you can’t back up
Ask questions back – seek to clarify
Be honest – if you don’t know something, admit it
Take responsibility – show how you will add value
Agree follow up actions – and do yours
The ‘elevator pitch’The ‘elevator pitch’ is a short summary which quickly and simply
explains a product/organisation and, importantly, its value
proposition.
Your elevator pitch
• Addresses a problem
• Outlines your solution/value proposition (what you do to help others).
• Brief
• Easy to understand
• Emotional hooks
• Say what you want
“A relationship with the customer”
“A promise”
“essence – identity – experience”
Brand
58
Repetition builds reputation
Competitive Advantage
Promotions
Pricing
Distribution Channels
Product quality
Customer Service
Brand ValuesCopyright
Registered Design/logo
Patents
People, team, knowledge
Positioning
Time taken to copy
D
i
f
f
i
c
u
l
t
y
Strategic
Tactical
Branding and the entrepreneur
• Brand often linked with entrepreneur
• Brands are built – you don’t start with a strong brand
• Brand development is a consequence of doing
business
• Does the brand have ‘stretch’?
• Can you protect your brand?
10 entrepreneurial branding tips
1. The design of your logo really doesn’t matter.
1. Have a professional website.
2. Blogs are good.
3. Blogs are good, but they’re just one tool.
4. Prepare a one page corporate overview.
5. Participate in local business events.
6. Do what you say you’re going to do.
7. Stand for something.
8. Realize that you’re not in total control of your brand.
9. Branding is as much about your people as anything else.
Entrepreneurial Marketing
• Opportunistic – make the most of an opportunity
• Customer focussed
• Proactive
• Innovation focussed
• Resource leveraging
Executive Presence ModelProfessional
image
Social
skills
Inspirational
presenter
Future
orientation
Corporate
view
Clarity
Stories
Politically
aware
Courage
Self belief
State
management
Passion© DTC Ltd
Questioning – 8 views
1. Questioning for whose benefit?
2. Open-ended to explore…
3. …closed to verify
4. ‘Why’ – raises level of (but intrusive)
5. ‘How’ – homes in on practicalities/detail
6. ‘Have you considered…’ – quegestions
7. Prefixing reduces the threat of questions
8. Checking understanding - powerful
Listening (after Nancy Kline)
• Pay beautiful attention to the client, don’t even think about interrupting, make sounds only occasionally to indicate understanding or encouragement, keep your eyes on your client’s eyes, don’t ask picky questions, smile occasionally, look interested, be interested and be at ease…
…and don’t even think about interrupting.
• Clients are capable of sorting out 70% of
their own problems
5. Plus…
Zones of debate
Zone of ‘comfortable’ debate
Zone of ‘uncomfortable’ debate
Intuitive core
Source: Cliff Bowman
…is the creation of a unique and valuable
position, involving a different set of activities
(few needs of many customers or broad needs
of a few)
…requires you to make trade-offs in competing
– to choose what not to do.
…involves creating ‘fit’ among a company’s
activities.
What is Strategy
Strategy
…. is derived from the military, and studies of generalship
…. a pattern or plan that integrates an organisation’s major goals, policies and action sequences into a cohesive whole
James B Quinn
.... is to do with the matching of the activities of the organisation to the environment in which it operates
Gerry Johnson & Kevan Scholes
Complexity Theory
Draws on
Chaos Theory (small changes)
Complex Adaptive Systems (no boundary or architect)
Dissipative Structures (need energy to maintain)
What
‘Complicated’ – where the answer isn’t obvious
Challenges
How organisations assimilate information
How this fits with consultancy project objectives
30%, 60%, 10%
Personal change process
• Denial
• Anger
• Bargaining
• Depression
• Acceptance
Strategy formation?
Analysis
Understanding
what’s going
onCreativity
Doing something
distinctive
about it
Learning
Adapting to
changing
conditions
DP Matrix factorsBusiness Unit Strength Industry Attractiveness
Market share Market growth rate
Brand strength Market size
Production capacity Industry profitability
Profit margins/income Industry rivalry
Growth in market share Marco-env (PESTEL)
Distribution channel access
Strategic thinking
1. Systems perspective – mental model of the complete system for value creation (and implications)
2. Intent focused – to be more determined and less distractible
3. Thinking in time – past/present/future in mind at the same time
4. Hypothesis driven – creative and critical thinking
5. Intelligent opportunism – being responsive to good opportunities (changing environment)
Best books
How to Change - Stages
• Peter Block – Flawless Consulting
• Peter Block - (field book for the above)
• Edgar Schein – Process Consultation Revisited
• Mike Cope – 7Cs of Consulting
Plus, tons of stuff on the web, ‘Business Balls’ etc