MIASSEI

Amity Business School

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ABS

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MBA, Semester 4

Management in Action Social, Economic & Ethical

Issues

-Teena Bagga

ABS Aim

The course aims at bringing the students closer to reality

by developing their understanding of the professional

prerequisites to practice of management in terms of

required skills and attitude to respond proactively to

rapid discontinuous change in business environment.

Integrative in approach, this course aims at developing

not theoreticians but practitioners who are expected to

sense the ongoing conflict between environmental

change and internal desire of management for stability.

ABS Objective Course Objectives:

Bring students closer to reality by developing their understanding of the professional prerequisites to

practice of management in terms of required skills

and attitude to respond proactively to rapid

discontinuous change in business environment

Develop students the attributes of a consultant.

Develop not theoreticians but practitioners who are expected to sense the ongoing conflict between

environmental change and internal desire of

management for stability.

ABS Learning Outcomes

On completion of this course, students will be able to :

Examine political, economic, geographic and cultural sources that shape a global competitive context

Provide deep understanding and working knowledge of managing a consulting firm

Be able to develop a systematic / structured approach to diagnose management problems.

Develop critical thinking skills through reading and case studies to apply social responsibility concepts

and ethical principles to current business scenario

ABS Module I:

Introduction

Modern Management Practices and Issues

Involved, Outsourcing Management Services

and Evolution of Management Consultancy,

Skills-set Required for Management Consultants.

Consulting and performance counseling.

ABS Module II:

The Process of Management

Consulting

Consulting Proposals. Identification and Definition of

Problem, Fact-Finding Leading to Solution

Development and Implementation, Developing

Strategic and Tactical Plans and Subcontracting,

Pricing of Consultancy, Acquiring and Developing

Talents for Consulting.


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ABS Module III:

In-house Management versus

Management Outsourced

Why a Sense of Skepticism and Unease Towards

Management Consultants. Cost versus Value

of Advice, Separating Consulting Success

from Consulting disaster. Some Revealing

Situations.

ABS Module IV:

Cross Cultural Management

Systems and Processes

Types of organizational culture, Strength of

organizational culture, Function of

organizational culture, Importance of culture to

the organization, Cultural Models, Cross-

Cultural Perspectives, Geert Hofstede and Cross-

Cultural Issues

ABS Module V:

Economic and Social Issues in

Management

Adaptation to Changing Environment in General and

Economic Environment in Particular, Economic Growth

and Change Areas, Emerging Opportunities in Various

Sectors including Social Sector, Management Practice

and Cultural Issues, The global Political Situation, The

Global Competitive Environment and the internal scene

in India, War Game.

ABS Module VI:

Ethical Issues in Management

Relationship among Various Stakeholders,

Reasons for Conflict of Interests Among

Stakeholders, Corporate Governance and Ethics.

Why Unethical Decisions Leading to Conflicts

are Taken, Power and Politics, Initiatives on

Corporate Governance by the Governments.

ABS Assessment

HA 05

Seminar 05

Project 10

Viva 05

A 05

End Term Exam 70

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ABS The Career Structure

Analysts

Consultants

Senior Consultants

Business development managers

Directors/Partners


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ABS

Module 1

Introduction

ABS

Challenges faced

by

Business

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ABS Uncertainty

Uncertainty in the global economy uncertainty in the credit markets,

uncertainty in how new regulations will affect business,

uncertainty about what competitors are doing, and

uncertainty about how new technology will affect the

business

..

uncertainty leads to a short-term focus

we believe that a failure to strategically plan five years

into the future can end up destroying value.

The problem to be solved, therefore, is to balance the need

for a more reactive, short-term focus with the need

for informed, long-term strategies.

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ABS Globalization

Understanding foreign cultures is essential to everything

from the ability to penetrate new markets with existing

products and services, to designing new products and

services for new customers

to recognizing emergent, disruptive competitors that only

months earlier werent even known.

The problem to be solved is to better understand

international markets and cultures through better

information gathering and analysis of what it all means.

Similarly, the incredible degree of government intervention

in nearly all major economies of the world is leading to

much greater uncertainty in the global marketplace, making

international operations ever harder to manage.

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ABS Innovation

Big companies are struggling with innovation A better innovation process is at the top of the agenda for

most CEOs

But the idea of a more innovative culture appears too

frightening to many.

The problem to be solved is how to become more

innovative while still maintaining a sense of control over

the organization.

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ABS Government Policy

& Regulation

A changing regulatory environment is always of concern in certain industries,

Uncertain energy, environmental and financial policy is

complicating the decision making for nearly all companies

today.

Dealing with an unknown regulatory environment is fast

becoming the new normal and companies are deciding to get on

with itwhatever it may bedespite the angst.

The problems to be solved are to understand the meaning of

regulation and government policy in your industry, its

implications for your business, and to develop the

skills necessary to deal with it.

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ABS Technology

The pace of technological improvement is running at an exponentially increasing rate.

the pace today makes capital investment in technology as

much an asset as a handicap

because a competitor may wait for the next-generation

technology, which may only be a year away, and then use it

to achieve an advantage. Whats a CEO to do?

Similarly, the ability for even the best of technologists to

stay informed about emerging technology is in conflict

with the need to master a company's current technology.

The problem to be solved is to develop a long-term

technology strategy while remaining flexible enough to

take advantage of unforeseen technology developments.

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ABS Diversity

A particular subset of human capital planning is found so often in our research that it is worth its own mention.

Diversity brings many challenges, as it makes it far more likely

that people do not agree, and the lack of agreement makes running

a business very difficult.

At the same time, the lack of diversity within many large company

leadership teams leads to a narrow view of an ever-changing and

diverse worldcontributing to groupthink, stale culture and a

tendency to live with the status quo for too long.

The problem to be solved is to first define what diversity (and

were not talking about satisfying government statisticians) really

means in your company, then foster the expansion of differing

ideas and viewpoints while ensuring a sufficiently cohesive

environment that efficiently gets things done.

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ABS Complexity

Theres no doubt that life and business have gotten more complex, even as certain tasks and activities have become easier due to information technology.

The pace of change is quickening.

The global economy is becoming still more connected, creating a much larger and more diverse population of customers and

suppliers.

Manufacturing and services are increasingly targeted at smaller, specialized markets due to the flexibility that IT provides in these

areas. We know from our knowledge of the patterns of evolution

that, in reality, systems tend to become more complex as they

evolve, then become simplified again.

The problem is how to develop better systems-thinking capability so you can design your business models, processes,

products and services in a way that minimizes unnecessary

complexity.

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ABS Information Overload

It is said that the only true constant is change, and in todays world nothing is changing more, or growing faster, than information.

Every day, 2.5 quintillion bytes of data are created.

The ability of companies, much less individuals, to consume and make sense of the information that is

available (and necessary) to make good decisions is

becoming a nearly insurmountable challenge.

The problem to be solved is to deal with this mountain of information with both technology and human

know-how, then to convert this information into valuable

knowledge.

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ABS Supply Chains

Because of uncertainty in demand and the need to stay lean.

companies are carrying smaller inventories than ever.

At the same time, uncertainty in supply, driven by wildly changing commodity prices, an apparent increase in

weather-related disruptions, and increasing competition for

raw materials makes supply chain planning more

challenging than ever.

The problem to be solved is to develop a supply-chain strategy that not only ensures the lowest costs, but also

minimizes the risk of crippling supply-chain disruptions.

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ABS Strategic Thinking

& Problem Solving

The lack of sophisticated approaches to information acquisition,

analysis and the development of unique insight leaves many

companies at a disadvantage;

they lack a long-term strategic imperative and instead jump from one strategy to the next on a year-to-year basis.

Everyday problem-solving competency among todays business leaders is also limiting their ability to adequately deal with the first nine

problems.

This is why corporate managers tend to jump from one fire to another, depending on which one their executives are trying to put out, and in

many cases the fast-changing business environment is what ignites

these fires in the first place.

So what is the problem to be solved? Companies must resolve that strategic thinking and problem solving are the keys to successful

business, then develop a robust capability at all levels.

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ABS

Outsourcing

Management Services

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ABS OUTSOURCING INTRODUCTION

OUTSOURCER COMPANY Services

Organization

Level

Agreement

Service

Level

Agreement

Outsourcing denotes the continuous procurement of services from a

third party, making use of highly integrated processes, organization

models and information systems.

the strategic use of outside resources to perform activities traditionally handled by internal staff and resources Dave Griffiths

ABS

40% to 50% of the top 500 companies in the world is leveraging on outsourcing for most of their business

processes.

Current figures values this robust industry to a staggering $20 billion USD.

On an average global outsourced projects involve about 28% that belong to the hardcore IT sector, 11% to finance sector,

15% to sales and marketing and 9% from administrative sector.

The remaining 22% belong to many other different sectors

such as consumer distress calls, general data segregation jobs,

tourism etc.

Recent trends in outsourcing

ABS Reasons for Outsourcing

Why Outsource? Provide services that are scalable,

secure, and efficient, while improving overall service and reducing costs.

Traditional role - reaction to problem Reduction and control of costs Avoid large capital investment costs Insufficient resources available

Modern role business strategy Allows company to focus on their core

competencies Keeping up with cutting-edge technology Creating value for the organization and its

customers Building partnerships

ABS

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions or processes to a third-party service provider.

Knowledge process outsourcing (KPO) describes the outsourcing of core business activities, which often are competitively important or form an integral part of a company's value chain. Therefore KPO requires advanced analytical and technical skills as well as a high degree of proprietary domain expertise

Types of Outsourcing ABS

Recruitment Process Outsourcing(RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.

Engineering process outsourcing( EPO) EPO offers global consulting and outsourcing services providing end-to-end services in the areas of Engineering and Technical Process Outsourcing.

Legal process outsourcing (LPO) refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company. This process has been marked by the practice of outsourcing any activity except those where personal presence or contact is required.

Types of Outsourcing


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ABS When to Outsource

Grey

Area

Not

Outsourced

In House

if Possible Outsource

Competitive

Strategic Non-Strategic

Non-Competitive

PricewaterhouseCoopers Model

ABS Decision Matrix

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ABS Form a strategic alliance

Tasks in this quadrant are high in strategic importance, but contribute little to operational performance.

So, although you need to retain control of them to ensure they are done exactly as you want, or you get the quality

you want, they are relatively insignificant in terms of cost

or smooth running and so not worthy of full in-house

focus.

This means that you should form a strategic alliance . For example, an auto manufacturer could align with an

advertising agency.

The manufacturer needs to be closely involved in the message and tone of adverts, but advertising has little

impact on the day-to-day operational performance of the

company. 33

ABS Retain

Tasks in this quadrant are high in strategic importance and have a big impact on operational performance.

These tasks should be kept in-house so that your organization keeps maximum control.

In our auto manufacturer, the assembly of cars would be retained as it is strategically critical it should be one of the organization's core competences , in fact and it makes a massive contribution to the smooth running of

the organization.

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ABS Outsource Tasks this quadrant are important for successful operational

performance, but are not strategically important.

These tasks could safely be outsourced. They're simply not worth spending in-house time managing.

For example, the auto manufacturer in the example above could outsource its delivery logistics to a specialist company.

How you deliver cars to dealers is generally not a source of competitive advantage, as it doesn't touch the customer's

experience, but how well it's done has a huge impact on

operational performance.

If transporters are late, stock builds up at the manufacturing plant, and dealers don't have the vehicles they need in their

show rooms for customers to test drive. You can learn more

about outsourcing in Working with Outsourced Suppliers . 35

ABS Eliminate Tasks in this quadrant are not important to your organization's

overall strategy and nor do they make a significant

contribution to its day-to-day operational performance.

Although you might not be able to eliminate these tasks completely, it's important to check why you're doing them.

An example might be running a subsidized staff crche. Although having an in-house childcare facility might help you

to attract certain staff (strategic importance) or reduce

absenteeism caused by childcare problems (operational

performance), does the effort involved justify doing it?

Perhaps it does, but equally, perhaps you might be better off paying your people a little more, so that they can afford to use

independent crches situated nearby.

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ABS Advantages of

Outsourcing

Swiftness and Expertise: Most of the times tasks are outsourced to vendors who specialize in their field. The outsourced vendors also have specific equipment and technical expertise, most of the times better than the

ones at the outsourcing organization. Effectively the tasks can be completed

faster and with better quality output

Concentrating on core process rather than the supporting ones: Outsourcing the supporting processes gives the organization more

time to strengthen their core business process and help in Increased

productivity and Efficiency

Risk-sharing: one of the most crucial factors determining the outcome of a campaign is risk-analysis. Outsourcing certain components of your business

process helps the organization to shift certain responsibilities to the

outsourced vendor. Since the outsourced vendor is a specialist, they plan

your risk-mitigating factors better

Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire individuals in-house; hence recruitment and operational costs

can be minimized to a great extent. This is one of the prime advantages of

offshore outsourcing

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ABS Problems With

Outsourcing Risk of exposing confidential data: When an organization outsources

various services, it involves a risk if exposing confidential company

information to a third-party

Synchronizing the deliverables: In case you do not choose a right partner for outsourcing, some of the common problem areas include stretched

delivery time frames, sub-standard quality output and inappropriate

categorization of responsibilities. At times it is easier to regulate these

factors inside an organization rather than with an outsourced

partner.Selection of supplier !!!

Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract

across international boundaries may pose a serious threat

Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple organizations at a time. In such situations

vendors may lack complete focus on your organizations tasks. Loss of Control!!!

Provider may not understand business environment Provider slow to react to changes in strategy Too dependent on service provider

.

ABS Outsourcing

Implementation Program initiation

Opinions and ideas shared to form draft contract

Program implementation Transferring staff Service Level Agreement (SLA) Establish communications between partners Actual transfer of the service Establish management procedures

Contract agreement Contract fulfillment

ABS So

The guiding principle of outsourcing has been the transfer of a process or function, that is typically not a

core competence of an enterprise, to an organization

that has expertise in that area, allowing the enterprise to

effectively utilize its resources in its core areas of

business.

This principle has dual objectives: Save on cost of operation by acquiring services from a team more

productive that the internal resources (based on their expertise, or their

ability to leverage infrastructure across multiple clients); and

Improve quality and value of operation by acquiring services from an organization with best practices in managing that business activity.

Any outsourcing contract will ultimately be about either or both of these two objectives.

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ABS Onshore Outsourcing

Onshore outsourcing limits the outsourced work within the locality or

the country of origin, making outsourcing providers more accessible

and is nearer to the company itself.

There will be no problem with traveling and it makes communication between you and the outsourcing team more comfortable and

available.

Onshore outsourcing will not impose as much risk as offshore outsourcing, but the benefits that you would enjoy is not as great and

as rewarding as its foreign counterpart.

Aside from that, when it comes to intellectual property rights, you and the outsourcing company that you are working with are covered by the

same legal rules while in the practice of legality and ownership of

intellectual properties.

Onshore outsourcing business can help your company(client) save on office space, cost and be more efficient. The geographical limits may

just allow you to come in contact with the team every day and

supervise their operation.

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ABS Offshore Outsourcing

Offshore outsourcing can be defined as the system of collaborating with an external organization and assigning that

organization to carry out some of your business roles.

Usually the product or the service which has been outsourced

would not be sold in the offshoring location; it would only be

marketed in the outsourcer's country.

Offshore outsourcing gives organizations access to high-

quality services at lower operating costs.

There are basically three main categories in offshore

outsourcing; business process outsourcing (BPO),

infrastructure and technology outsourcing and software

outsourcing.

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ABS Differences in the sourcing

strategy..

Insourcing vs. Outsourcing Managing the complexities of the global delivery

model requires a deep expertise in the local environments and experience with

cross border business operation, making the evaluation of whether to

outsource a project or leave it in-house very different from a purely onshore

sourcing decision.

Structure of the solution The lack of maturity of the offshore industry requires a significant commitment from the enterprise in supporting the

development and growth of the outsourcing solution. Making that commitment,

keeping a eye on the long-view necessitates a strategic sourcing decision,

distinctly different from a domestic sourcing contract.

Due diligence on operating models and supplier selection The level of due diligence required, and the types of issues to address during supplier

selection are substantially different. For example, in offshore sourcing for 24X7

process support, it is imperative to check the availability of 100% captive power

generation. Indeed, its imperative to check for the level of reserve gasoline available.

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ABS Differences in the sourcing

strategy..

Resource deployment/redeployment Offshore Outsourcing transactions rarely include asset and resource transfers from the buyer to the service

provider, whereas in onshore sourcing deals, that is a common point of

negotiation.

Knowledge transfer the transfer of information and training around the buyers IT environment and other relationship parameters are very difficult to do in offshore sourcing. Since this has a direct effect on path to productivity for

service providers, it becomes an important evaluation criterion, as well as a

phase in the sourcing cycle.

Portfolio Assessment and planning the offshoreability of an IT service or

business process is dependent on many factors, and in most enterprises,

transitioning to an offshore model requires early planning. The portfolio

assessment and planning phase is a critical component of a successful

offshore sourcing initiative.

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ABS

Consultancy

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ABS History

Management as a unique field of study Arthur D.Little (1890s) McKinsey & Company

First management and strategy consultancy Founded by James McKinsey in 1926 (Chicago) Hiring of bright young MBAs

Rise of management consultancy after World War II Development of tools for strategic management Boston Consulting Group (1963), McKinsey&Co, Harvard Business

School

Bain&Co - focus on shareholder wealth

Consulting within accountancy and technology firms PwC and IBM

Niche consultancy firms Corporate social responsibiity

ABS Types of firms in the

industry Accountancy firms offering consultancy

Large non-accounting consultancies

Small specialist boutiques

Gurus

Independents

Strategy HR

Marketing

Change

Process and

Operations

Org design

Infotech

Management

consulting

ABS Major consultancies

Bain & Company Boston Consulting Group Deloitte & Touche Ernst & Young A.T. Kearny KPMG Arthur D.Little McKinsey & Co Mercer PriceWaterhouse Coopers


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ABS Different types of consulting

services:

a knowledge-based view Bespoke

Expert economics

Person-to-person

IT enables personal

Build experience

Reward for knowledge creation and

sharing

McKinsey & Company

Productise

Reuse economics

People-to-documents

IT focus

Buy experience

Reward for contribution to document database

Ernst & Young

Competitive strategy

Economic model

KM strategy

Technology

HRM

Example

ABS Why?

The cost of doing it yourself is often more than getting experts in to do it for you, even if their daily rate is high.

It is unsurprising that expertise is not the only reason why clients bringing in consultants.

Clients are quite capable of doing themselves, yet they do not have the time.

Client managers call in consultants because their image of expertise provides security in an inherently insecure and uncertain business world.

Clients can use this expert identity to bolster their own image in an organisation or to provide legitimacy to a decision that the client has

already made.

Consultants also provide a very real succor to clients in that they provide a legal liability for when decisions go wrong.

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ABS What?

The definition of management consultancy is no minor problem. The

Management Consultancies Association (MCA) in the UK defines the role as:

the creation of value for organisations,

through the application of knowledge, techniques and assets,

to improve business performance.

This is achieved through the rendering of objective advice and/or the

implementation of 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)

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ABS What ???

to try to take ownership of an organisations 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

In Nutshell ..

Consulting is about helping an organisation

get from A to B

ABS Attributes of Successful

Consultants Powerful Negotiator

Effective Communicator

Reservoir of Self Control

Understanding of Individual Psychology

Understanding of Group Psychology

Understanding of Organizational Psychology

Complete mastery of the given area.

ABS Barriers common to Consultants

1. Know it all attitude

2. Inability to understand technical language

3. Inadequate background or knowledge

4. Poor organization of ideas

5. Differences in perception

6. Prejudice or bias

7. Personality conflicts

8. Tendency not to listen

9. Resistance to change

10. Lack of credibility

11. Inability to understand Non-Verbal Communication

12. Hostile attitude

13. Lack of feedback

14. Differences in status or position

15. Too many Gatekeepers

16. Overly Competitive Attitude


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ABS Activity List down the consulting firms in India.

Segregated them into three categories:

Strategy and general business consulting firms in India

IT consulting firms in India

HR consulting firms in India

Find out the kind of openings/profiles these firms have for Fresh/Experienced

Management Graduate.

And the competency required for the various profiles.

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ABS Deloittes one firm strategy

The consultancy market has experienced unprecedented

change through the 1990s and over the

last decade. Strong growth over this period has

been driven by waves of new ideas, not least the

introduction of technology in all its forms: from enterprise

resourcing planning systems during the

boom years of the late 90s, through the inflation

and bursting of the internet bubble, a trend towards

offshoring, to todays market where cost reduction

is the service in demand.

Throughout this time, the competitive landscape

has been in flux. Of particular significance

was the major restructure in the early 2000s as

most of the big 5 professional services firms sold

off their consultancy practices in response to market

perceptions and regulatory pressures in the

aftermath of Enron. Ernst & Young, KPMG and

PricewaterhouseCoopers

all sold their consulting

businesses to CapGemini, BearingPoint and IBM

respectively. Deloitte, however, retained its consultancy

business and embarked on a new One Firm

strategy to maximize the opportunity from this

unique positioning.

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This case study outlines how the delivery of an

end-to-end service, involving multiple service lines,

can add exponential value to the client. It also sets

out some of Deloittes lessons learned in organizing

and incentivizing the practice to achieve this.

Traditionally, professional services firms have

gone to market and sold work by service line (for

example: consulting, audit, tax, corporate finance).

This model is not always conducive to offering the

best client service. Firstly, staff working in one area

may not understand the competencies and skills

offered by other parts of the firm, and so will miss

out on opportunities for these to provide more

rounded and complete client advice. Secondly, and

perhaps more seriously, the firms recognition and

reward structures may motivate staff to work in

service silos, delivering as much as possible of an

engagement from within their own team or division,

when perhaps other teams have additional

ABS

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or more relevant skills. The result is rarely the best

outcome for the client, who may receive very different

service depending upon which part of the

firm was originally engaged. It is important to remember

that clients do not care which service line

they are speaking to. They have a challenge and they would like it solved. The best solution to this

challenge will often come from a multi-disciplinary

team, possessing a blend of different skills.

In 2000, Deloitte was perhaps best known as an

audit and financial advisory firm, but consultancy was

also a core and expanding part of the business. Having

retained its consultancy capability, whilst other

firms sold theirs, Deloitte had a valuable differentiator.

In particular, the firm was well positioned to provide

a broad and comprehensive service, supporting the

client from the start of an issue or initiative, through

to the implementation of a solution. Whilst many

firms could compete on advisory services and many

others could compete on implementation and operational

services, few could offer such a full breadth of

support through the lifecycle of the business.

For example, consider a company that has enjoyed

success in its local market, but is now seeking

to develop and grow its business. Typically, this

will trigger a series of questions:

1. Which products and services should be developed?

Where and how should they be

taken to market?

2. What technology systems, processes and

organizational structures will best support

cost effective operations and the planned

strategic changes and growth?

3. How should the company be organized

and located to maximize investment incentives

and to minimize its tax burden?

4. What structure will best meet the companys ongoing financing needs and how

should these needs be secured?

5. How should the organization plan a

Organizations in such a position need a broad

consultancy advisor, and preferably one that can support

them through the journey, from the initial strategy

through to its execution and implementation.

Emphasizing the breadth and integration of our

capability, we moved to a single brand, Deloitte in 2003, and subsequently introduced the One Firm strategy in 2004. Our overall strategy was to focus

on the client, not the service organization, at a time

when other organizations were looking internally at

divesting and rebuilding their consulting businesses

ABS

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Deloittes approach was based on the following strategic choices:

1. Collaborate as one Deloitte team, going to

market with a portfolio of businesses that

can team effectively to serve clients with

distinction.

2. Develop and maintain four world-class

businesses (audit, tax, consulting and corporate

finance).

3. Attract and retain the best people, becoming

known as the place where the best

choose to be.

4. Be a client-centric organization and deliver

exceptional client service with an unrelenting

focus on quality.

5. Own the high ground, leading the profession

in restoring public trust in auditing and

business advisory services.

We planned to drive incremental value for our

clients by leveraging synergies across the different

facets of our capability. The One Firm approach

supported the delivery of more complex engagements.

By offering co-ordinated support across a

variety of different areas, clients received a more

joined up and valuable service. Client relationships

were strengthened and staff benefited from more

challenging and rewarding work.

The One Firm strategy started to break down internal barriers, with staff going to market as

Deloitte for all services, adopting an integrated approach to marketing supported by a high profile

Have you asked Deloitte? campaign. However, embedding this culture needed considerable effort and

required incentives. Our lessons learned include:

The approach requires staff (especially senior managers and above) to understand all

the firms service lines. This does not mean making a technology consultant an expert in

tax, for example, but it does mean that the

technology consultant needs to understand

where we can help clients on tax issues and

who to go to for advice on this internally.

Firm-wide propositions are necessary so that clients can understand the value of

having a broad and end-to-end service

offering at their disposal. We invested in

the development and marketing of propositions

such as Business Critical Programmes, Enterprise Cost Reduction and Finance Transformation. It is key to focus on relationships within current and target

clients. We established

cross-firm client target lists, representing a

balance of industries and organizational maturity.

We targeted and approached these organizations in a co-

ordinated manner, drawing on our full range of competencies.

Forming multi-disciplinary client teams and account development teams gives huge benefits in cross-

fertilization of ideas and skills and understanding of other areas

of the business.

ABS

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lt is important to formally recognize cross service line activity and referrals. Our

assessments of partner and staff performance

recognize sales for any service line as

strongly as the originators own service line. Communication of examples and rewarding of successes is important and needs to

be constantly reinforced.

The co-ordinated approach needs to be

applied at all levels of the organization,

not just partners, in order for it to be

successful.

Deloittes strategy has: ldifferentiated the firm in the market place through unmatched breadth and depth of

services;

created an ability to deliver comprehensive solutions and become advisor of choice for clients;

lntroduced a more collaborative culture; facilitated the delivery of more challenging and interesting engagements;

lthrough the above, created a reputation that has helped the firm to attract and retain

the best talent.

However the market and competitor landscape

continues to evolve and as such so too does

Deloittes strategy and approach to maintain and further expand its position.

Questions

1. In what ways might a consultancy structure

its workforce to maximize its success?

2. What advantages does a consultancy offer

compared to a team of contractors?

3. What are the key advantages of a full service consultancy compared with a more

niche operator?

ABS

Module 2

The Process of

Management Consulting


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ABS The Consulting Process

During a typical consulting intervention, the consultant and the client undertake a set of activities required for achieving the desired

purposes and changes, known as the consulting process.

This process has a clear beginning (the relationship is established and work starts) and end (the consultant

departs).

Between these two points the process can be subdivided into several phases, which helps both the consultant and the client to be

systematic and methodical, proceeding from phase to phase, and

from operation to operation.

Many different ways of subdividing the consulting process, or cycle, into major phases can be found in the literature.

Various authors suggest models ranging from three to ten phases.

We can have a simple five-phase model, comprising entry, diagnosis, action planning, implementation and termination.

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ABS

Entry

Diagnosis

Action Planning

Implementation

Termination

First contacts with clients Preliminary problem diagnosis Assignment Planning Assignment Proposals to clients

Purpose Analysis Problem Analysis Fact Finding Fact Analysis Feedback to client

Developing Solutions Evaluating Alternatives Proposals to clients Planning for implementation

Assisting with implementation Adjusting proposals Training

Evaluation Final Report Settling commitments Plans for follow-up Withdrawal

The Consulting Process

ABS Process

Consulting Proposals.

Identification and Definition of Problem,

Fact-Finding Leading to Solution

Development and Implementation

Developing Strategic and Tactical Plans and Subcontracting

Pricing of Consultancy

Acquiring and Developing Talents for Consulting.

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ABS

Entry

Diagnosis

Action Planning

Implementation

Termination

First contacts with clients Preliminary problem diagnosis Assignment Planning Assignment Proposals to clients

Purpose Analysis Problem Analysis Fact Finding Fact Analysis Feedback to client

Developing Solutions Evaluating Alternatives Proposals to clients Planning for implementation

Assisting with implementation Adjusting proposals Training

Evaluation Final Report Settling commitments Plans for follow-up Withdrawal

The Consulting Process

ABS Entry Initial phase in any consulting process and assignment.

The consultant and the client meet, try to learn as much as possible

about each other

Discuss and define the reason for which the consultant has been brought in, and on this basis agree on the scope of the assignment

and the approach to be taken.

The results of these first contacts, discussions, examinations and planning exercises are then reflected in the consulting contract, the

signature of which can be regarded as the conclusion of this initial

phase.

Entry is very much an exercise in matching.

The client wants to be sure that he is dealing with the right consultant

And the consultant needs to be convinced that he is the right person, or that his firm is the right consulting organization, to address the

problems of this particular client.

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ABS Entry Initial contacts

The consultant makes the contact or The client makes the contact

First meetings and Preparing for initial meetings

Agenda for the first meeting

Agreement on how to proceed

Preliminary problem diagnosis Scope of the diagnosis

Some methodological guidelines, rules, procedures and analytical techniques used in the preliminary problem diagnosis are the same as those of the later diagnosis

Using comparison(Gap Analysis)

The clients involvement

Sources of information

Alternative approaches(problem-identification workshops, Self-diagnosis by individual business owners or managers etc.)

Terms of reference initial statement of the work to be undertaken by a consultant

If terms of reference are used: the clients policy is to do as much analytical and planning work as possible before considering to use a consultant; often this will be the case with assignments dealing with relatively narrow and well-defined technical issues; the client

(usually in the public sector)

If terms of reference are not used: the client (usually in the private sector) prefers to select a consultant, do the preliminary problem diagnosis, and define the scope of the assignment jointly with him or her. The client then confirms the choice on the basis

of a proposal received from the consultant, without using the intermediate stage of drafting terms of reference.

Assignment strategy and plan A fundamental aspect of designing and planning a consulting assignment is the choice of assignment strategy.

The assignment plan, including the strategy that will be followed, is formally presented to the client as a proposal

Proposal to the client aka technical proposal, project document, project plan, contract proposal etc.

Sometime in predetermined format. To facilitates evaluation of alternative proposals received from several consultants.

A proposal submitted to the client is an important selling document.

The consulting contract

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ABS Diagnosis

The purpose of diagnosis is to examine the problem faced and the purposes pursued by the client in detail and in depth, identify the factors and forces that

are causing and influencing the problem.

The consultant should start the diagnostic work with a clear conceptual framework in mind.

Diagnosis is sometimes viewed as equal to collecting, dissecting and analysing vast amounts of data, including a great deal of data that may have no

relevance to the purpose of the assignment.

In principle, problem diagnosis does not include work on problem solutions. This will be done in the next phase, action planning.

Diagnosis may even lead to the conclusion that the problem cannot be resolved, or that the purpose pursued cannot be achieved and the problem is

not worth resolving.

In practice, however, it is often difficult or inappropriate to make a strict distinction between the diagnostic and the action planning and even the implementation phases of the consulting process

Diagnostic work will identify and explore possible solutions.

Requires to Restating the problem and the purpose

Challenge : The human side of diagnosis

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ABS Diagnosis

1. Diagnosing purposes and problems Instead of starting diagnosis by asking Whats wrong here? Whats the matter?, the

consultant should ask first What are we trying to accomplish here? What are we trying to do?

2. Defining necessary facts

Facts should enable the examination of processes, relations, performances, causes and mutual influences, with special regard to underutilized opportunities and

possible improvements.

3. Sources and ways of obtaining facts

records; events and conditions; memories.

4. Data analysis

5. Feedback to the client

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ABS Action Planning

This phase includes developing possible solutions to the problem diagnosed, choosing among alternative solutions, presenting proposals

to the client, and preparing for the implementation of the solution

chosen by the client.

The clients involvement in action planning should be even more active than in the diagnostic phase.

The emphasis is no longer on analytical work, but on innovation

and creativity.

The objective is not to find more data and further explanations for the existence of a problem, but to come up with something new.

Obviously, not all solutions to clients problems will involve totally fresh approaches.

Often there will be no need to develop a new solution from scratch because a suitable one already exists somewhere.

Action planning requires the best talents to be mobilized and all good ideas to be examined; it will be ineffective if the talents within the client

organization do not contribute. 69

ABS Action Planning

Searching for possible solutions Developing and evaluating alternatives

The evaluation technique used will be selected with regard to the nature and complexity of the particular case. It may be a simple break-even analysis,

costbenefit analysis, return on investment analysis, linear programming technique, decision analysis, or some other technique.

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ABS Identification and

Definition of Problem Steps for problem identification, definition and solution- 1. Description of problem(s) to be solved.

2. Objectives and expected results (what is to be achieved, final

product).

3. Background and Supporting information.

4. Budget estimate or resource limit.

5. Timetable (key stages and control dates)

6. Interim and Final reporting.

7. Inputs to be provided by the clients.

8. Exclusions from the assignment (what will not be its object).

9. Constraints and other factors likely to affect the project.

10.Profile and competencies of eligible consultants.

11.Requested consultant inputs into the project.

12.Contact persons and addresses.

ABS FACT-FINDING

LEADING TO SOLUTION DEVELOPMENT AND

IMPLEMENTATION

What should the new solution achieve? What basic purpose? What other purposes? What level of performance? What quality of output? What new product, service, or activity? What behaviour?

How will the new situation differ from the present? Different products, services, or activities. Different methods. Different system(s). Different equipment. Different location. Different way of managing.


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ABS

Are the effects likely to last? Are the clients business and market changing rapidly? Is competition likely to come with better solutions? Is there a possibility that people will revert to present practices? Should further developments be foreseen?

Where could solutions and ideas be found? In the same unit? In the same enterprise? From business partners or friends? In literature? In a research institution? In the consulting firm? From other consultants?

ABS DEVELOPING STRATEGIC AND

TACTICAL PLANS AND SUBCONTRACTING

Strategic Plans Porters Five Forces: Barriers, Buyer Power, Customer Power, Substitutes, Competition.

4Cs: Customers, Cost, Competition, Companies. 4Ps: Product, Price, Promotion, Place. Scenario Planning: Planning done according to the situations.

ABS Tactical Plans Some of the tactical plans used in the management consulting are-

Beneficiary, Target group: Who will actually benefit from the project. Purpose: What purpose is to be accomplished by the project. Result: Project must be result-oriented, what results are estimated to be achieved. Development Objective: It defines a wider perspective, framework. It tell about the ultimate or long term objective.

Immediate Objective: The objective of completion of project successfully and how, the short term objective.

Output: What all delivered by the project and what all has to be delivered by the project.

Indicator of Achievement: Measurement of whether objective is achieved and how successfully. A controllable indicator used.

Actions: A set of actions to achieve and meet objective. Input: Resources to be utilized- both quantitative and qualitative methods.

ABS PRICING OF CONSULTANCY

Final Price

Competitors (Direct & Indirect)

REAL out of pocket costs

What perceived VALUE services

have on potential buyers

Comparable Services

What you want to make per hour of work

ABS ACQUIRING AND DEVELOPING

TALENTS FOR CONSULTING

Recruitment & Selection programs

Diversity & Inclusion strategies

Profiling & Sourcing pratices

On Boarding program design & Implementation

Acquiring Talent

ABS

Developing Talent

Global Leadership

development

Top Talent strategy

Employee Development strategies &

programs

Training Program Design & Delivery

Virtual Executive Coaching

Mentoring Programs

Team Effectiveness


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ABS SUBCONTRACTING Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology. Subcontractors

are hired by the project's general contractor, who continues to have overall

responsibility for project completion and execution within its stipulated

parameters and deadlines.

Subcontracting is a type of work contract that seeks to outsource certain types of work to other companies. This is a step down from general

contracting, which is a contract overseeing a much broader project in many

cases. Subcontracting is done when the general contractor does not have the

time or skills to perform certain tasks.

For example: When a building is being constructed, subcontracting becomes a major deal. A general contractor may take care of a number of tasks,

including the brick-and-mortar construction, but look to subcontractors for

other types of tasks, especially things like plumbing and electrical work.

These disciplines are nearly always subcontracted out.

ABS

Advantages of Subcontracting:

Subcontracting offers a number of advantages.

First, it allows work on more than one phase of the project to be done at once, often leading to a quicker completion.

Second, because subcontractors already have the expertise and equipment to provide the service, it is often much cheaper for them to do

the work than a general contractor who may not have that special

expertise.

Finally, the subcontractor is usually able to work with a general contractor on more than one project, thus creating a savings for both in

the long run as a relationship is formed.

ABS Pricing of Consultancy

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ABS Acquiring and Developing

Talents for Consulting

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MIASSEI

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