Launching A Management Consulting Practice (2009)
-
Upload
research-and-organization-management-rom -
Category
Business
-
view
7.036 -
download
1
description
Transcript of Launching A Management Consulting Practice (2009)
Launching a Management
Consulting Practice
A Webinar Conducted by
Mark R. Haas CMC, FIMC
IMC USA Academy for Professional DevelopmentOctober 20, 2009
Desired Outcomes
1. Understand Management Consulting
Profession, Industry, Consultant, Client
2. Understand How to Become a Consultant
Competency framework
Starting a consulting business
3. Understand How to Be a Consultant
Marketing and selling services
Delivering consulting services
Managing the consulting business
4. Decide If Consulting Is For You
Lifestyle, risks, alternatives, benefits and costs
210/20/2009 Institute of Management Consultants USA
Part 1: Understand Management Consulting
Why Does Management Consulting Exist?
What is Management Consulting?
Where Does a Consultant Work?
What Does a Consultant Do?
How Is Consulting Changing?
10/20/2009 Institute of Management Consultants USA 3
What Type of Consultant Can You Be?
Generalist vs. specialist
Industry vs. functional discipline
Process vs. content
Diagnostic vs. implementation
Customized vs. pre-packaged solutions
A mix of the above
10/20/2009 Institute of Management Consultants USA 4
Consulting Experiences Vary Considerably
Facilitate kickoff planning for US military’s World War IV “Cognitive Dominance” strategy
Assess operations and advise reorganization of the world’s largest biomedical research enterprise
Facilitate planning to recover commercial operations after nuclear terrorism in LA
Reorganize a major city school system
Advise on governance and operations at an environmental nonprofit
Develop a business plan/strategy for health care startup
Revitalize administration and programs for a national volunteer organization
510/20/2009 Institute of Management Consultants USA
Business and Consulting are Changing Fast
Flat world
Commoditization
Interdependency
Speed
Demographics
10/20/2009 Institute of Management Consultants USA 6
A management consultant
needs to be on top of all of
these emerging trends
Part 2: How to Become a Consultant
The “What” and “How” of consulting
Consulting competency framework
Professionalism and ethics
The consultant’s reputation
Certification
10/20/2009 Institute of Management Consultants USA 7
Consulting is More than Just Knowledge
10/20/2009 Institute of Management Consultants USA 8
Consulting Competencies and Ethics
“How”Consulting Skills
Consulting Behaviors
Consulting Ethics
“What”Technical Discipline
Sector Specialization
Professional Associations
Consulting Competency Framework
910/20/2009 Institute of Management Consultants USA
Market Knowledge and Capability
Expertise in a technical discipline
Experience in an industry sector
What a consultant has to “know”
This is the “what” of consulting, necessary but
insufficient to effectively support management
1010/20/2009 Institute of Management Consultants USA
Consulting Competencies
Core consultancy tools, techniques and skills
Essential to deliver management consulting services
Specifics vary by type of consulting services provided
What a consultant should be able to “do”
1110/20/2009 Institute of Management Consultants USA
Consulting Skills and Behaviors
Entry level prerequisites for a successful consultant
Enables ability to acquire consulting competencies
Acquisition based on commitment to life long learning
What a consultant should “be”
1210/20/2009 Institute of Management Consultants USA
Ethics and the Reputation of Consultants
1310/20/2009 Institute of Management Consultants USA
Value of Certification
Consulting is unlicensed – for now
The Certified Management Consultant (CMC®) is
evidence of meeting international standards
More than 10,000 CMCs worldwide
Instant network to other accomplished consultants
A CMC does not guarantee consulting success
Expectation to contribute to the profession
1410/20/2009 Institute of Management Consultants USA
Part 3: How to Be a Consultant
Understand the consulting enterprise
Starting a consulting business or joining a firm
Why clients pick you and not other consultants
Networks and pipelines to generate leads
From lead to prospect to client
Delivering consulting services
Managing a consulting practice
10/20/2009 Institute of Management Consultants USA 15
The Consulting Enterprise
16
Professional
Development
Practice
Management
Client
marketing
selling
services
fees
Consultant
Networks
10/20/2009 Institute of Management Consultants USA
Starting and Managing a Consulting Business
Considerations Lifestyle
Risk
Personal style
Work style
Skills
Choices Business organization and size
Project costing, cost recovery and setting fees
Practice management
Technology and resources
Networks
1710/20/2009 Institute of Management Consultants USA
The Consultant’s Clients
Who are they?
Why do clients use consultants?
Insight into industry or process
Independence and objectivity
Specialized expertise or access
Facilitation and process skills
Supplemental skilled resources
Clients really buy confidence, not competence
Why do clients pick specific consultants?
1810/20/2009 Institute of Management Consultants USA
How Do I Get Clients?
Your organization/industry
Your business network
Teaming/subcontracting
Friends and family
Cold to warm calling
Advertising, publicity
Pro bono work
10/20/2009 Institute of Management Consultants USA 19
Marketing and managing a client pipeline is
a critical part of the business of consulting
Networks
Networks you design and build
Professional associations and trade groups
Online communities
Specialized by discipline, industry, position
Where to spend your time effectively
Geographic and discipline network groups
Mastermind groups
Tools and Services
2010/20/2009 Institute of Management Consultants USA
Institute of Management Consultants USA
Lead Generation Pipeline
2110/20/2009
Moving Prospects Through the Pipeline
Convergence of Need + Capability + Passion
Clearly Identify Client Needs
Match Your Capability With Client Need
Everyone Should Be Enthusiastic
Finding the Qualified Buyer
Discussions With Prospects
Submitting the Proposal
Negotiating the Project
Closing the Sale
22
The best proposals
are conclusions,
not explorations
10/20/2009 Institute of Management Consultants USA
From Proposal to Agreement to Engagement
Proposal Elements
Understanding of Need
Proposed Approach
Personnel Experience
Corporate Experience
Technology, Process, Data
Management Controls
Client Provided Items
Performance Evaluation
How to Acquire Capability?
?
?
?
?
?
?
?
?
2310/20/2009 Institute of Management Consultants USA
The Consultant’s Recurring Dream
10/20/2009 Institute of Management Consultants USA 24
Charles Russell, Meat’s Not Meat ‘Till It’s In The Pan (1915)
Delivering Services
Establish the relationship
Formalize project plan and outcomes
Manage staff, cost, quality, schedule
Conduct research and ask staff
Complete and validate the diagnosis
Develop findings and recommendations
Review and reconcile findings with client
Implement recommendations
Evaluate and manage performance
Conclude the engagement
10/20/2009 Institute of Management Consultants USA 25
Communicate,
Communicate,
Communicate
More Challenges Beyond the Engagement
Staffing your firm
Teaming with others
Subcontracting
Passive income
Pro bono work
Resolving problems
Unexpected opportunities
2610/20/2009 Institute of Management Consultants USA
Network,
Network,
Network
Challenges of Managing a Small Firm
27
Get the Work
Do the Work
Manage the Business
Learn and Grow
. . . Simultaneously
10/20/2009 Institute of Management Consultants USA
Part 4: Is Consulting Right for You?
Why Are You Considering Consulting?
What is Your Long Range Plan?
Are You Committed to Consulting as a Profession?
Can You Meet Each Criterion?
Business Goals
Lifestyle Goals
Client Acceptance
Contingency Plans
10/20/2009 Institute of Management Consultants USA 28
Use a Typical Consulting Process to Decide if Consulting is Right For You
29
Who Am I?
How Do I Get There?
How Will I Know?
Where Am IGoing?
10/20/2009 Institute of Management Consultants USA
Who Am I?Am I Right for Consulting?
Personality
Curiosity
Perception of risk
Sense of urgency
Work environment
Tolerance for ambiguity
Breadth of experience
Analytical skill and interest
Depth of general and business knowledge
Commitment to consulting as a profession
10/20/2009 Institute of Management Consultants USA 30
Where am I Going?Stages of Consultant Development
31
Stage Early Advanced Mastery
Expertise Provides technical skills/
experience to a project.
Developing skills defined
by Common Body of
Knowledge and
Competency Framework.
Secures, designs, and
manages small consulting
projects. Practices skills
consistent with Common Body
of Knowledge and Competency
Framework
Can secure, design, and manage
large, complex, team-based
consulting projects. Meets highest
international standards of
competence, including IMC USA
CBK and CF
Scope Narrow specialty in a
technical discipline /
industry
Applies expertise across
industries and disciplines
Creates new approaches to
applying expertise across industries
and disciplines
Organization
focus
Tactical support to middle
managers
General business advice to
managers and executives
Broad strategic advice to senior
managers and executives/Board of
Directors
Value to Client Solves technical/tactical
problems, often limited in
scope or solution space
Recommends and implements
solutions to client needs.
Anticipates emerging client
needs and helps resolve.
Sought by and considered a
partner by executives. Long term
engagements and retainer
relationships are the norm
Commitment to
Profession
May belong to technical
and/or trade associations
and to IMC USA. Does not
subscribe to a formal code
of ethics/enforcement.
Member of IMC USA and
bound to IMC USA Code of
Ethics. Has enough skills and
experience to obtain CMC®
certification
Member of IMC USA and bound to
IMC USA Code of Ethics. Has
obtained CMC® certification.
Actively contributes to profession
Experience Up to 3-5 years as an
external or internal
consultant
5-15 years as an external or
internal consultant with
experience managing
increasingly large complex
projects
Greater than 15 years as an
internal or external consultant
10/20/2009 Institute of Management Consultants USA
How Do I Get There?What is Your Plan to Become a Consultant?
Education/Training
Experience
Affiliation
Certification/Licensing
Business Form
Lifestyle
Reality Check
Opportunity Costs
10/20/2009 Institute of Management Consultants USA 32
How Will I Know?Success Measures of Professional Consultants?
Your Formal Plan
Identify and Develop Consulting Skills and Behaviors
Prepare and Confirm Business and Marketing Plans
Test by Partnering With Experienced Consultants
Evaluation of Progress Against Plan
Business Goals
Lifestyle Goals
Client Evaluation
Contingency Plans
Satisfaction
10/20/2009 Institute of Management Consultants USA 33
Consulting Can Be a Rewarding Profession
You know about consulting as a profession
You have the basics of how to become a consultant
You appreciate what it takes to be a consultant
You can now decide if consulting is right for you
You have resources available to help you
Bibliography (with pre-reading materials)
Associations (particularly IMC USA)
People (other consultants and your business associates)
10/20/2009 Institute of Management Consultants USA 34
Thank You for Your Attention
10/20/2009 Institute of Management Consultants USA 35
Mark R. Haas CMC, FIMC is President of Research and Organization Management,
Inc., a Bethesda, MD based management consulting firm. ROM provides executive-
level organization assessment, performance management, strategy development and
execution management, primarily for science, technology and R&D-focused clients.
Mark has advised federal agencies, nonprofits, trade associations, national labs, oil
companies, state agencies, colleges, banks, and professional service firms. He is a
Certified Management Consultant, author, expert witness, facilitator, invited speaker,
and lead quality (Baldrige) examiner.
His projects range from facilitating planning recovery from nuclear terrorism and development of military
strategy, to improving leadership and operations for biomedical research programs and environmental
nonprofits. He is listed in Who’s Who Among Emerging Leaders and Who’s Who in America and holds
degrees from Colgate and Harvard Universities. Mark has a commercial pilot’s license and instrument rating,
used to be a decent golfer, spends too much time reading about history of science and, in the 1980’s, he and
his wife quit their jobs and took a year-long trip around the world. He is immediate past Board Chair, and
former Ethics Chair, and a Fellow of the Institute of Management Consultants USA, the professional
association and certifying body for management consultants in the US.
www.rominc.com
(301) 320-5889