consultancy skills dr simon haslam fmr research ltd
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Consultancy Skills
Dr Simon Haslam
FMR Research Ltd
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Our aim
To learn about consultancy in an organisational context. What consultancy involves, the key competencies and abilities, and the tools and techniques helpful to a consultant.
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About us
• Your role
• Your consultancy experience
• What you’re hoping to learn from today
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1. What we mean by consultancy
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What we mean by consultancyThe 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)
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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
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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.
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Consultants = changeWhat
Feasibility - exploration
Change implementation
Review/evaluation
Why
Additional capacity, third party objectivity,
process skills, access to specific information, ‘bad
guy’
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Eras of consultancy
• Scientific management
• Strategy boutiques
• Technology enabled change
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Management ConsultingLabour government - £2m pa spend
Previous conservative government - £0.5m pa
European market (2010) – 25m euros
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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.
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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
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Cost
Spec/quality Time
‘What are the deliverables?’
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Intervention styles
• ‘Expert consultant’
• ‘Process consultant’
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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
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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
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2. Perspectives helpful to consultants
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The organisational context
Internal
Micro environment
Macro environment
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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)
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• Vision – ambition, aspiration
• Mission – purpose, raison d'être
• Values – strategic drivers, codes
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‘Hilltops’
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‘certainty’
‘agreement’
high
low
high low
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‘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 levelsof awareness and interpersonal skillbecome critical
‘edge of chaos’
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Cultural web
“Culture eats strategy for breakfast” Peter Drucker
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Kubler-Ross model
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3. Analytical frameworks and tools
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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
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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
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McKinsey 7S
Helpful when looking at organisational alignment
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SWOT analysis
Strengths Weaknesses
Opportunities Threats
Helpful to summarise a situation analysis
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Change modelsHow to Change - Stages
Unfreezing
Refreezing
Changing
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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
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Stakeholder mapping(Mitchell, Agle and Wood 1994)
Low interest
High power
Low
power
High interest
Helpful when shaping perception research and change
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0
2
4
6
8
10
Price
Hard d
isc
Dolby
5.1
DVD
Connec
tivity
Proce
ssor
spee
d
PS3
X-Box 360
Helpful when looking at business models and positioning
Strategy canvas
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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
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0
2
4
6
8
10
PS3
X-Box 360
Wii
Nintendo’s ‘blue ocean’ response
Strategy canvas
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Per
ceiv
ed in
tegr
ity
Sha
re c
apita
l
Inve
stor
div
ersi
ty
Pro
duct
ran
ge(in
vest
ors)
Rel
ativ
e co
st b
ase
Fin
anci
al 's
afet
y'
Pol
itica
l' ac
tivity
FT
focu
s
Foc
us o
ndi
sadv
anta
ge
Pro
duct
ran
ge(c
usto
mer
s)
Reg
iona
l pre
senc
e
Cap
acity
build
ing/
faci
litat
ion
2007 Gp1-2012 Gp2-2012
Gap analysis (using strategy canvas)
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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
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Value Chain
Helpful when looking at internal capability, development and out-sourcing possibilities
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POLITICAL ECONOMIC
SOCIAL TECHNOLOGY
REGULATORY/LEGAL
ENVIRONMENT
PESTEL macro environmental forces
Helpful as a basis for organisational design (fit for environment), horizon scanning, scenario planning,
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• 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
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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?
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Creativity approaches
1. Have a process
2. Start with divergent thinking
3. Finish with convergent thinking
Helpful for fresh perspectives and buy-in
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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
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Balanced Scorecard (MI)Strategy
PerspectiveGoals Measures
FinancialShareholder satisfaction
ROC, EVA, Cash, Sales growth, Cost reduction
CustomerCustomer satisfaction
Retention
Development
Acquisition
InternalHigh quality people & processes
Cycle time, Quality, Cash conversion, Service levels
Future Learning & growthNPD, Employee development, Adaptability
Helpful when assessing performance, agreeing targets, MBO
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Risk analysis
Likelihood
High
Med
Low
Low Med
Impact
High
Helpful when evaluating change options and strategies
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Force field analysis
Promoting forces Restricting forces
Helpful when planning pragmatic change
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Ansoff matrix
Existing products
New products
Existing markets
New markets
PenetrationProduct
development
Market development Diversification
Helpful as a basis to discuss strategic options
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Directional Policy Matrix
High Medium Low
Strong
Medium
Weak
Industry attractiveness
Businesscompetitiveposition
Helpful when analysing portfolios and developing strategy
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4. Our personal contribution
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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
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Dominant
(assertive)
Unassuming
Expansive
Contained
(emotionally controlled)
Recognition
(Expressive)
Affiliation
(Amiable)
Security
(Analyser)
Achievement
(Driver)
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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
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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
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The ‘elevator pitch’ The ‘elevator pitch’ is a short summary which quickly and simply explains a product/organisation and, importantly, its value proposition.
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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
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“A relationship with the customer”
“A promise”
“essence – identity – experience”
Brand
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58
Repetition builds reputation
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Competitive Advantage
Promotions
Pricing
Distribution Channels
Product quality
Customer Service
Brand ValuesCopyright
Registered Design/logo
Patents
People, team, knowledge
Positioning
Time taken to copy
Difficulty
Strategic
Tactical
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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?
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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.
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Entrepreneurial Marketing
• Opportunistic – make the most of an opportunity
• Customer focussed
• Proactive
• Innovation focussed
• Resource leveraging
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Executive Presence ModelProfessional
image
Social skills
Inspirational presenter
Future orientation
Corporate view
Clarity
Stories
Politically aware
Courage
Self belief
State management
Passion© DTC Ltd
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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
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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
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5. Plus…
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Zones of debateZone of ‘comfortable’ debate
Zone of ‘uncomfortable’ debate
Intuitive core
Source: Cliff Bowman
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…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
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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
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Complexity TheoryDraws 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
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30%, 60%, 10%
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Personal change process
• Denial
• Anger
• Bargaining
• Depression
• Acceptance
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Strategy formation?
Analysis
Understanding what’s going
onCreativity
Doing somethingdistinctiveabout it
Learning
Adapting to changingconditions
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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
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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)
Strategic thinking
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Best booksHow 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