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Level 7 Professional Consulting

Managing Consulting Interventions

Unit 7030 SAMPLE

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Understanding consultancy interventions

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First Published 2013

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Introduction Level 7 Professional Consulting

© Blueprint Education and Training Services Limited 1

Introduction

This workbook is one of a series designed to support the Level 7 range of Professional Consulting qualifications.

The main purpose of the workbook is to support you through your learning in respect of unit 7030: Managing consultancy interventions.

How to use this workbook

To help you with your learning this workbook has been split into sections designed to take you through the essential knowledge required for the unit above. The workbook has been split into three sections:

Section 1 Types of consultancy interventions

Section 2 The Consultancy Cycle

Section 3 Managing the Consultancy Cycle

Throughout the workbook you will see that there are activities for you to complete. Whilst these do not form any part of the formal assessment process, they are there to help you consolidate your thoughts and develop you as a consultant by applying what you have learned to your consultancy experiences.

To get the best from your studies you should try to complete each activity, even if you do this in note form as a memory jogger. You will find these consolidation activities useful when tackling the formal assignments.

Unit Assessment

At the end of this workbook you will find the assignment that is the formal assessment for the unit covered by this workbook. You will find full instructions on how to complete the assignment and the format you should use to present your work.

You will also be required to complete an assignment submission form which includes an authenticity statement and reflective learning review statement. If you have a workplace mentor there is space for them to comment on should you wish them to do so.

This form must be presented to you tutor along with your assignment

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Introduction Level 7 Professional Consulting


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Section 1 Level 7 Professional Consulting


Types of consultancy interventions

In this section we will look at different types of consultancy interventions and possible approaches to adopt. You will learn about:

The nature of consulting


Consultancy models and approaches

Intervention styles and behaviours

The nature of consulting

FEACO (the European Federation of Management Consulting associations) defines management consultancy as:

"The creation of value for organisations, through the application of knowledge, techniques and assets to improve performance. This is achieved through the rendering of objective advice and or the implementation of business solutions."

This typically includes identifying and investigating problems and opportunities, recommending appropriate action and assistance with the implementation of the recommendations.

An alternative but broadly similar definition is provided by the Institute of Consulting:

"The provision to businesses of objective advice and assistance relating to the strategy, structure, management and operations of an organisation in pursuit of its long-term purposes and objectives. Such assistance may include the identification of options with recommendations; the provision of additional resources; and/or the implementation of solutions."

The most common reason for using consultants is the need for skills or knowledge that the business lacks. Other reasons include previous experience of a similar issue; the ability to offer an independent viewpoint and original thinking on the issues.

Consultancy projects can last a few hours or several years depending on the nature of the project. They can involve an individual or they may need a team

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of hundreds. They can be based at one site or across several international borders.

Management consultants are called into organisations for a variety of reasons:

the need for urgent advice turning around a badly performing department or company dealing with change management marketing of a new product design and installation of a national IT system for the government

Within organisations, internal consultants tend to be specialists often enlisted into project teams.

Many consultants tend to specialise in one or more areas such as information technology, corporate strategy, change management, human resources and marketing or in a particular industry. At present the bulk of the revenue for the major firms is derived from financial services and public sector work.

The consultancy market The worldwide market for management consultancy is currently estimated at over $400 billion. Approximately one tenth of that work is generated by UK-based consultancy firms. (Source: Plunkett Research 2014)

The UK and Germany are by far the largest markets in Europe, each representing 27% of the total. France represents about16% of the total European market of (Source: FEACO 2007)

According to the Management Consultancies Association’s UK Consulting Industry Statistics Report 2012 the UK consulting industry is worth £8.5bn and employs more than 80,000 consultants. (Source: MCA 2012)

Within the UK, IT and outsourcing-related consulting account for half of all fee income. Financial services work generates about 25 per cent of UK fee income and the public sector and retailing represent about 12 per cent each.

The recession created a climate of consolidation/merger among the largest consulting organisations, and there has been the emergence of a number of niche consultancy firms working in specific sectors or offering a particular type of consultancy. Whilst lacking the global reach and technological resources of the big firms, they are often able to offer more competitive rates and deep vertical expertise.

In the UK the impact of the recession on the consulting sector was mixed. General growth in the market slowed with real drops in the area of consulting provided to the public sector but with some gains in other areas where clients were seeking advice on maximising production, raise performance and cut costs. In the US there was a similar situation.

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Despite being heavily affected by the global recession of 2007-09 the sector has gradually returned to health with significant growth forecasted as client businesses return to health and profitability and seek to invest in projects suspended during the recession.

The industry is in significant growth in emerging nations where economic growth has been fast such as India and Latin America.

With globalisation and high growth in consulting markets in emerging nations (India/China) there is increasing competition from offshore IT service providers who have access to a highly skilled but low cost work force.

Types of consultancy firm Consulting Practices can be broadly divided into four main types: generalist, strategy, Human Resource and niche firms.

Generalist Mostly large consulting firms offering a wide range of services from strategy consulting and human resources to IT and in some cases providing outsourcing services on a global basis.

Many of these firms grew out of audit firms, e.g. Accenture, Atos KPMG Consulting, Cap Gemini Ernst & Young: some developed within IT service companies e.g. IBM Business Consulting Services, Hitachi Consulting, Logica CMG and Computer Sciences Corporation. Some were established specifically as consulting firms, e.g. PA Consulting Group.

Strategy Consulting

Within this category are firms like McKinsey and Bain. Smaller than the generalists in the UK, the majority of these organisations are American. As the term suggests, they primarily offer strategic advice to companies on a project-by-project basis.

Human Resource Consulting

These firms offer specialist advice ranging from reviews of salaries and benefits to development of leadership skills. They include organisations like Hay Group, Mercer Human Resource Consulting, Towers Perrin, Watson Wyatt and Penna Consulting.

Niche firms Much of the growth in UK consulting is a result of consultants leaving the larger firms and setting up their own consultancy firms in a particular sector or offering a specialist service.

Types of consultant

Consultants may be external or internal. External consultants are not employees of the client organisation, they are either employed by an

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organisation that specifically provide consultancy services, or may be ‘an independent’, for example, a freelance, self-employed individual. Many independent consultants will set up their own limited company under which they operate or they may belong to a specific agency that specialises in matching consultants to clients. Internal consultants are employees of the ‘client organisation’. Their role may be very specific, such as an IT consultant, or HR Business Partner, providing specialist consultancy services to one or more parts of the organisation. In other cases, internal consultants may be part of a team that manage a variety of organisational change-related projects, or belong to teams formed to implement very specific projects. This has become increasingly popular within the public sector in recent years, for example, the NHS ‘Lean Thinking’ projects designed to introduce lean manufacturing techniques into the NHS to achieve improved performance. Although there are some differences between the role of internal and external consultants, there are many more similarities.

Activity 1

Describe what you think the main differences are between internal and external consultants and the impact this may have on the consultant.

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The key difference is one of employment status, and this can sometimes cause difficulties for the internal consultants as they may not be perceived as having the same level of expertise as an independent consultant, or may be put under pressure to conform to requirements that may not be in the best interests of the project or the problem being managed. Another difference may be that the internal consultant does not need to ‘market’ their services in order to gain business in quite the same way as an external consultant. There are, however, many similarities and much of the work undertaken by an internal and external consultant will be identical, although the context in which the consultant works may mean a degree of modification is required. For example, an external consultant will usually need to respond to tender invitations for client opportunities by developing a business proposal and then ‘pitch’ or sell it. Whilst the internal consultant may not do this exactly, they will almost certainly have to produce a business case for their proposals which will then need to be ‘sold’ to the senior management of the organisation.

Activity 2

Think about your own role as a consultant. Using the information you have so far read, how would you describe yourself and what you do?

You should have been able to identify whether you are an internal or external consultant.

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You may also have been able to describe the specific specialisms you provide consultancy services for, and any particular industry sectors you work in.

The Consultancy Cycle

The Consultancy Cycle, often referred to as the consultancy process, is the way that consultancy interventions are planned and managed.

There are many versions of the consultancy cycle described in a variety of text books the most commonly referred to are explained below.

In their book Client Centred Consulting (1992) Cockman, Evans and Reynolds described the consultancy cycle as having seven distinct phases, each with a specific purpose.

Adapted from Client Centred Consulting Cockman, Evans and Reynolds 1992

Phase 2 CONTRACTING Scoping, proposal, contract

Phase 3 DATA COLLECTION

Phase 4 DIAGNOSIS Data analysis

Phase 5 OPTIONS Options and recommendations

Phase 6 IMPLEMENTING Taking action, managing change

Phase 7 DISENGAGING Evaluation final reporting Keeping in touch

Phase 1 ENGAGEMENT Initial contact

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In his book Management Consulting– A Guide to the profession, Milan Kubr 2007, builds on the work of Cockman, Evans and Reynolds, recognising that not all consultancy interventions are identical but that the majority follow a similar pattern. He describes the consultancy cycle/process as having five phases.

Adapted from Management Consulting 2007 – a Guide to the profession, Milan Kubr

Other models exist some have as many as nine or ten stages and are adaptations to suit particular types of consulting interventions, such as pure research consultancy or interventions that are specifically project based such as the model shown below.

4 IMPLEMENTATION

3 ACTION

PLANNING

5 TERMINATION

2 DIAGNOSIS

1 ENTRY

First contact with clients Preliminary problem diagnosis Assignment planning Assignment proposal Consulting contract

Purpose analysis Problem analysis Fact finding Fact analysis and synthesis Feedback to client

Developing solutions Evaluating alternatives Making proposals to clients

Planning for implementation

Assisting with implementation Adjusting proposals Training

Evaluation Final report Settling commitments Plans for follow-up

Withdrawal

Marketing Initial contact

Preliminary meeting

Proposal

Pitch, negotiation

Entry project charter

Project phase

Reporting

Implementation and follow-up

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Activity 3

Compare and contrast the various consultancy cycle models described above. Make some notes on your thoughts.

The Cockman, Evans and Reynolds model shows more clearly that the processes of data collection, analysis, options and implementation may in fact be cyclical in their own right, requiring an element of reiteration. The diagnosis stage in the Kubr model clearly shows the importance of establishing the need to understand the purpose the client needs to achieve as well as the problem itself, as this provides an overall context for the consultancy intervention and what any specific problem solution should be aiming towards. This is vital, as the approach to the consultancy intervention and any solutions must aim to support the business as a whole. This is what is meant by having a client focus. You should have identified that there are many common similarities between them all, and the importance of tailoring the cycle to meet the individual nature of the intervention. For the purpose of this course, we will use the Kubr five-phase model, and the phases referred to in workbooks will relate to:

1. Entry

2. Diagnosis

3. Action planning

4. Implementation

5. Termination

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The type of intervention agreed between consultant and client varies with the nature of the project or problem to be solved.

Whatever the client needs, the nature of a consultancy intervention is likely to fall under one of the following types:

Business planning and development

Common outcomes required are centred on business growth or diversification into new products, markets or sectors.

Marketing research This may be gathering market intelligence or focusing on a specific piece of research. The consultant is engaged for their specific skill.

Strategy development Many companies know that they face a tough market, but do not have the time or expertise to properly identify the changes taking place and what they can do about them to stay competitive.

Sales and/or marketing campaigns

Specific activities over a given period of time to produce defined returns or deliverables are a common use of consultancy time.

HR This may cover recruitment, talent management, HR processes and policies, industrial relations, change management or specific advice on legal and regulatory responsibilities.

Information systems development

Most organisations collect lots of different information on customers, markets, employees etc., but do not capitalise on what they gather by using it to learn or change. Consultants can take an objective view on what needs to be collected, stored and used.

Technical or operational

Science, IT, media, engineering, environmental science, biomedical issues etc., many organisations need high level, current technical input on a short or medium-term basis and engaging a consultant is a cost-effective and flexible way to do this.

Some consultancy projects may be a combination of one or more of these types of interventions.

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As well as seeking to determine the type of intervention required, the consultant must also consider the model or approach that will be best suited to the problem and the client.

Consultancy models and approaches

There are three main approaches identified by Edgar Schein in his 1987 book, Process Consultation: Expert, Doctor-patient and Process consulting.

Expert This normally involves the client using an expert to work on a clearly defined technical or task-related project. The client normally diagnoses the problem and presents it to the consultant who, in turn, provides a solution.

Doctor-patient Here there is more involvement from the consultant in actually diagnosing the problem, although he is dependent upon the client providing accurate information. The client also bears a greater responsibility for implementing the solution.

Process consulting

In this role the consultant works with the client to identify how best to fix the problem. They may still need to take on an ‘expert’ role and use their wider knowledge and specialist skills, but ultimately the organisation takes ownership of the problem and its resolution.

This is very much more a joint process of diagnosing the problem and is more likely to help the client resolve similar problems in the future. The client is often more committed since he is more involved in finding the solution.

We can see that these approaches very much depend on the extent to which the consultancy intervention is likely to be task orientated or process orientated.

The consultant as a technical expert

The consultant as a process facilitator

Task orientation Process orientation

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Source Marguiles, N. and Raia, A (1972)

The task-orientated approach emphasises the role of the consultant as a technical expert and the consultant assesses the problem through the collection and analysis of data making recommendations.

In contrast in the process orientated approach the consultant is much more of a problem sensor and facilitator creating and managing a process that enables the client to identify and solve their own problems.

This concept can be taken further by looking at the concept of non-directive versus directive consultancy models.

Source Lippitt, G. and Lippitt, R (1978)

Here we can see that the greater the level of involvement the consultant has the more of a directive role they will take.

Client

Consultant

Process counsellor

Fact finder

Alternative identifier and linker

Joint problem solver

Trainer educator

Informational expert

Advocate

Objective observer

Observes problem solving process and raises issues mirroring feedback

Gathers data and stimulates thinking

Identifies alternatives & resources for client and helps assess consequences

Offers alternatives and participates in decisions

Trains client

Provides policy or practice decisions

Proposes guidelines, persuades or directs in the problem solving process

Raises questions for reflection Non-directive

Directive

CONSULTANCY ROLE

LEVEL OF CONSULTANT ACTIVITY IN PROBLEM SOLVING

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Intervention styles and behaviour

Consulting style describes the behaviour which is adopted by consultants in interaction with clients. A prevailing view on consulting style is that it can be broken down into four categories:

Acceptant Style - helping the client by empathic listening and by providing emotional support to enable them to discover what is blocking them from solving the problem. This is essentially a non-judgemental style designed to encourage the client to find their own solutions. Catalytic Style - helping the clients clarify existing situation or gather more data, reflect on it to make a diagnosis of the problem. The client will be encouraged to generate their own options for solutions. Confrontational Style - helping the client by calling attention to the discrepancies between what they say and what they actually do in practice. For example the client may believe their customer service is good but this may not actually be the case. The idea is that once the discrepancies are pointed out to the client they will be able to move on to problem resolution. Prescriptive Style e - Listen to the client’s problem, collect data they require, analyse it, and present it with a solution or recommendation.

The prescriptive style is probably the most traditional style of consulting, as it implies that the client may not have most of the skills or knowledge to either identify the problem or possible solutions. This is often the case.

Activity 4

Think about your own role as a consultant. Using the information you have read so far, how would you describe yourself and what you do?

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Choosing the right approach

Deciding which approach is the best one to take is very dependent on:

the nature of the intervention

the skills, knowledge and experience of the client

The concepts discussed above are ones that help consultants understand the different approaches that could be adopted or potential types of consultant behaviours for a given situation.

The trick is knowing which one is suitable for the specific client and type of problem, and maintaining the ability to respond flexibly and change as the client or problem changes and develops.

If, for example, the client is clear about the problem and is seeking a consultant to be “a pair of hands” and undertake a clear, specific and well-defined task such as installing a new network system, then the consultant is clearly being engaged for their technical expertise on a task basis and they will be much more task orientated than process orientated.

On the other hand, if the client simply knows they have a problem but is uncertain why and cannot therefore decide what to do about it, the consultant would need to adopt a more non-directive process approach, perhaps using acceptance or catalytic styles. However, this would very much depend on the client’s abilities and skills, if these were low then the consultant would need to be much more directive and prescriptive.

Although these theories and concepts are developed by a number of different “gurus” and don’t always overlay on top of each other neatly, pulling the various concepts together helps the consultant determine the nature of their role and relevant approaches and behaviours.

The table of the following page pulls the various options, concepts and theories together with practical examples. SAMPLE



Nature of intervention Lippitt and Lippitt Theory

Maguiles and Raia Theory

Schein’s approach theory

Style/ behaviour

Consultant is asked to define the problem working on his own with little client involvement.

Directive Task Expert Confrontational Prescriptive

Consultant is employed to undertake specific task e.g. produce marketing plan/new system etc.


Consultant is employer as interim manager


Consultant is asked to help client identify problem causes - client heavily involved

Non-directive Process Doctor patient/Process consulting

Acceptant Catalytic

Consultant is asked to help client identify solution - client heavily involved


Acceptant Catalytic

Consultant is asked to help client design new system or process


Acceptant Catalytic

Consultant is asked to identify problem then assist client in finding solutions

Both in different stages of the intervention

Task then Process

Expert, then Doctor patient/Process consulting

Confrontational Prescriptive Acceptant Catalytic

Consultant is asked to help client identify problem then propose the solution

Both in different stages of the intervention

Process then task

Doctor patient/Process consulting, then Expert

Acceptant Catalytic Confrontational Prescriptive SAMPLE



The Consultancy Cycle In this section we will cover the Consultancy Cycle, which examines the typical inputs and deliverables at each stage of the process, along with the risks and issues which may arise. You will learn about:


Entry phase

Diagnosis phase

Action-planning phase

Implementation phase

Termination phase


Section 1 reviewed the consultancy cycle and a number of different models. For the purpose of this workbook we will use the Kubr five phases model to explore in more detail the activities that occur at each stage and the potential risks and strategies that can be adopted at each stage.

4 IMPLEMENTATION

3 ACTION

PLANNING

5 TERMINATION

2 DIAGNOSIS

1 ENTRY

First contact with clients Preliminary problem diagnosis Assignment planning Assignment proposal

Consulting contract

Purpose analysis Problem analysis Fact finding Fact analysis and synthesis Feedback to client

Developing solutions Evaluating alternatives Making proposals to clients Planning for implementation

Assisting with implementation Adjusting proposals Training

Evaluation Final report Settling commitments Plans for follow-up Withdrawal

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Entry phase

The entry phase is the period between the invitation to discuss a possible consultancy assignment and the award of a contract to the consultant. It is very much a matching exercise between the client, their needs and preferences and the skills and approach of the consultant or consultancy firm. Kubr suggests that the entry phase will involve:

first contact with clients

preliminary problem diagnosis (agreeing the brief and its scope)

assignment planning

assignment proposal

consulting contract

In essence this is about agreeing the brief and its scope, planning the assignment, preparing a proposal and presenting the proposal.

First contact with clients

Making initial contact

Briefly identifying the nature of the assignment

Identifying if the assignment is within the remit and competence of the consultant

Preliminary problem diagnosis

Identifying the real nature of the problem and required outcomes

Identifying all major stakeholders

Getting a feel for the client organisation, size, structure and culture

Identifying client resources needed/available

Assignment planning Identify key activities

Construct outline timetable

The skills required

Composition and availability of consulting team (if required)

The amount of professional time required

Pricing of the work

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Assignment proposal Identifying any required proposal formats and time scales

Formal written proposal covering:

o Client requirements

o Overall aim

o Objectives

o Outcomes

o Approach adopted

o Time plan

o Price

o Terms and conditions

Presentation or pitch

Consulting contract Negotiation

Acceptance of terms

Legally binding contract

How much pre-assignment diagnostic work is required at this stage will depend on the nature of the assignment and the extent to which the client is able to define their problem or issue. This may need to include a short review of some critical data provided by the client, or sector-wide data or some further problem identification meetings with the clients and key employees. Bearing in mind that the consultant is rarely able to charge for this part of the process, a balance needs to be struck between providing ‘free consultancy’ and sufficiently identifying the client needs to enable a proposal to be produced. An opportunity to conduct a more detailed review of the problem is usually included in the assignment plan and proposal. Key risks associated with this stage of the consultancy cycle include:

Failing to define the problem correctly - this would cause significant problems, as it would mean that any proposal, and subsequent outcomes may not be in line with client’s expectations. In cases where the client has been uncertain about the problem and accepts a poorly conceived proposal, they may very well end up with solutions that provide little or no benefit to them.

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Not gaining the trust of the client - an inability to gain the trust and confidence of the client in the early stages will inevitably lead to rejection of any proposal or being excluded from any shortlist. Consultants need to have good interpersonal skills and be able to establish rapport quickly. Failing to understand the nature of the customer - not understanding who all the major stakeholders are in any assignment (client, shareholders, customers, employees) will lead to a narrow understanding of the problem and implications of potential solutions, which could result in solutions that do not meet the need. Lack of appreciation of the client’s organisational structure and culture will result in solutions that may not be within their capability, capacity or value set. Underestimating the size or scope of the problem - this can prove disastrous for both the client and the consultant or their firm. It will inevitably lead to a poorly planned assignment which may need to be re-scoped at an early stage with unforeseen costs to the client – or financial losses for the consultant if additional unfunded resources need to be committed. Incorrectly pricing the proposal - this can occur because the size and scope of the assignment has not been recognised, or due to a lack of understanding on the consultants part of their firm’s pricing structure. Having proposal rejected for administrative reasons - there are many tales from both the private and public sector about the amount of proposals that are never considered because of some administrative defect. Perhaps they were received after the deadline – or were addressed incorrectly to a named individual rather than the required anonymous address. Poor contract terms - failing to clearly identify how an assignment might be terminated early, under what circumstances and what compensation is due, can leave the consultant in a difficult position if the client ‘changes their mind’ part-way though. Similarly, a client that does not meet their responsibilities such as providing access to information prevents the consultant from continuing and this can result in cessation and loss of earnings. Consideration needs to be given to which nation’s legal system applies, and whether a cap on liability damages should be included.

Most of these risks can be avoided if the consultant adopts a structured approach to the initial entry stages, and develops good interpersonal skills using both open and probing questions. Understanding techniques for establishing rapport are essential and are described in more detail in other workbooks.

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Using techniques such as stakeholder analysis can be helpful in terms of identifying stakeholder and developing appropriate communication strategies with the client. Developing a checklist of things to discuss with clients, identifying the system for proposals and having a good framework for writing proposals will all help. Internally, the consultant needs a thorough knowledge of their own pricing structures, availability of key resources such as other staff and business terms and conditions.

Diagnosis phase

The diagnosis phase, as described by Kubr, is primarily concerned with obtaining a clear understanding of the purpose the client wishes to achieve, the problem, collecting and analysing data, making sense of it and feeding back the results to the client. Although it may have been necessary to undertake a preliminary analysis of the client’s needs and problems during the entry phase, this will have been limited by its nature, so a more in-depth review needs to be undertaken at this stage. Strictly speaking, the act of generating solutions should be distinct and separate from diagnosis, but in reality this is a fuzzy dividing line. However, it is important to avoid the temptation to focus diagnosis with a solution in mind as this will become a limiting factor in generating information about the problem and is a real risk to achieving a good issue diagnosis. Key activities at this stage are:

Purpose analysis In-depth identification of what any solution must achieve (its purpose) and required outcomes

Identify specific constraints

Stakeholder analysis

Review of structure/culture

Problem analysis Review of the specific problem from the point of view of:

o Technical

o Systemic

o Workflows

o Current quality levels etc.

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Fact finding Identify information needed

Identify data collection methods

Data collection

Fact analysis and synthesis

Using analytical methods i.e. calculus, trend analysis etc.

Using models to make sense of information and relate it to problem e.g. PEST, SWOT, Pareto, Value chain, root cause analysis etc.

Feedback to client Keeping client informed

Advising and agreeing what the data collected means in relation to the problem

The main risks at this stage are poor problem understanding, information overload and incorrect analysis. Simple computational errors can be checked, but fundamentally the consultant has to make decisions at this stage about the real nature of the problem and the value of information and begin to formulate conclusions, cross-checking and validating as required. Other risks include not being able to access data or information. This may be because the client or their employees are unwilling to share this information fearing it may put them or the organisation in a bad light, or because it is commercially sensitive. In some cases the client may not wish employees to be aware that consultants are being used and this can impede the effective collection and analysis of data. Discussing these issues in preliminary meetings, and setting out clearly the data and information gathering requirements in any proposal will help to rectify this. Consultants that are successful at this stage construct a research plan clearly identifying the information needs, methods of data collection and appropriate tools of analysis. Having a good personal toolkit of such methods is essential. SAMPLE



Action planning phase

The action planning stage is where the consultant brings their experience, skills and knowledge to bear on the problem and focuses on the activities of:

Developing solutions Using problem solving techniques e.g. brainstorming etc.

Generating options

Identifying costs, skill requirements etc. of options

Evaluating alternatives

Matching options to clients required outcomes

Risk and sensitivity analysis

Using models such as scenario analysis, decision matrix, decision trees etc.

Making decisions

Making proposals to clients

Reporting

Presentations

Planning for implementation

Preparing implementation plans or project definitions

Specific tools and techniques for these are discussed in more detail in other workbooks, but key to being successful at this stage is the consultant’s ability to have developed sensible conclusions from the information collected during the diagnosis phase and to have maintained an open mind about a variety of possible solutions. The more successful consultants will engage the client in the process of developing solutions and in critiquing options as this aids understanding and buy-in. There is nearly always more than one possible solution and the consultant needs to explain to the clients the relative merits, costs and risks of each one. Making or recommending a choice to the client is much easier if the initial stages of the consultancy cycle have been managed well, as the consultant and client will both have gained a clear understanding of the desirable outcomes and constraints that any solution must satisfy.

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Similarly, the consultant should have developed a clear understanding of the capacity and capabilities of the client organisation, including its culture, internal politics and abilities to manage and cope with change, all of which may have a bearing on final recommendations. A simple decision matrix may be all that is required to make the final choice. Depending on the nature of the assignment the consultant may be required to produce a formal written report at this stage. Key risks at this stage are:

Generating the wrong solutions

There is little worse than a client rejecting the consultant’s proposals because they don’t achieve the benefits the client was hoping for. Good problem, purpose, and outcomes identification in the initial stages will reduce this risk.

Generating solutions that the client cannot implement

In the majority of cases clients will seek to implement solutions with perhaps little or no support from the consultant. Failing to have understood the nature and structure of the organisation may mean that recommended solutions cannot be implemented because of:

Lack of capacity

Lack of capability

Cost too high

Clash with organisational culture

Unacceptable disadvantages to certain stakeholders

Loosing objectivity and independence

Working closely with clients can lead to a loss of independence if the consultant begins to be submerged within the client organisation. The consultant then risks becoming part of the ‘political system’ of the client and persuaded by the client or its key personnel to adopt their own pet solutions or ideas, which may not be the most appropriate.

Short-termism Ideally, solutions should provide a real, lasting and sustainable benefit to the client and should avoid being a quick fix.

Consultants should consider the future environment or situations the client might reasonably be expected to face. This can be done using a model such as PESTLE or SWOT.

If the benefits of solutions are time limited in some way you then should point this out to the client.

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In the main most risks in this stage of the consultancy cycle can be avoided by:

having gained a good understanding of the client and their organisation

having followed a structured approach to diagnosing and analysing the

problem

generating a wide range of options

undertaking an analysis of risks and sensitivities

involving the client in the process

Implementation phase

As previously mentioned, some consultancy interventions do not require the consultant to actively participate in the implementation itself, perhaps the solution is relatively straightforward or the client prefers not to incur the additional cost. However, this is not always the case and the consultant may be involved in a number of ways:

developing a project implementation plan

training client’s own team in systems, procedures needed to implement

the recommendation etc.

providing ongoing support in the form of questions and answers or

coaching

leading a client’s implementation team(s)

actually doing the implementation

Techniques that smooth the implementation process are:

Gaining ownership and commitment

This is essential to successful implementation and is easier to achieve if the client has been involved and informed throughout the process as they will have developed a clear understanding of what needs to be done and why.

Creating a clear communication strategy with the client and important stakeholders throughout the assignment is essential

Linking the benefits of the recommendations to the values and culture of the organisation will assist, as will using techniques such as workshops, internal focus groups, and facilitation sessions.

The commitment of the client, those who will ultimately be implementing the solution and those affected by it must be gained.

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Ensure quality and accountability

Implementation needs to be managed with a degree of quality and transparency. This means that implementation plans must be of a high standards and should have:

Clear roles and processes – project managers, project sponsors, change champions etc.

A project definition/charter – should be produced setting out aims, objectives, outcomes, processes and timescales etc.

A critical path action plan – a clear activity plan using Gantt or PERT will be required to ensure all activities take place at the right time.

Have management and reporting processes to manage aspects of time, quality and cost.

Remaining flexible and adaptable

When things fail to go according to plan there are three basic strategies;

Do nothing - it may be that the issue or its impact is so small that it is not worth the time and energy dealing with it.

Change how to do things – this is about making changes to the plan and this must achieve a balance between time, cost and quality. If the pain of implementation becomes greater than the benefits to be gained, impetus will wither and die.

Change what to do – this may mean renegotiating the scope of the intervention.

Encouraging learning and development

Encouraging the clients own team/employees to be involved in all stages will increase their learning and skills and capacity to implement successfully.

Learning can take place naturally throughout the process or by creating specific opportunities through team learning, academies, dedicated training sessions, and so on.

Engendering an attitude of forgiveness so that ‘blame’ does not become an issue with individuals too afraid to participate for fear of failure.

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Key risks to successful implementation are:

Quality of the recommendation is weak perhaps because the analysis was too narrow, was subjective or based on opinion rather than fact. The rule here is to consult and analyse widely, for example, consider the effects on customers too. No detailed consideration of consequences leading to unforeseen and insurmountable obstacles. Systems thinking tells us that a change in one system/process will invariably have a knock-on effect elsewhere. This can largely be avoided by involving the client at early stages and undertaking good sensitivity and risk analysis, even if this is done at a simple “what if” scenario sessions. Unconvincing reasons for change can prevent the acceptance of recommendations or sabotage their implementation. The benefits of the implementation must be seen to clearly outweigh the pain of changing the status quo caused by implementation. The politics and power consequences have been incorrectly assessed. In all change scenarios there are perceived “winners” and “losers”. Those who feel they have something to lose are likely to be more resistant to change. It is important for consultants to identify these issues early on in the assignment and consider the human consequences so that strategies are devised to overcome them. The change does not fit with the culture and norms of the organisation, making it either unacceptable or difficult to implement. Confusing compliance with commitment will prevent a change from sticking. People need to be emotionally committed to the change as well as intellectually committed. They have to believe in it, not just accept that it makes sense. Psychological aspects of change have been ignored leading to implementation failure. People may express a variety of reactions to change particularly if it is perceived to be imposed.

Some useful change management theories and models that help effective consultants are:

Kübler-Ross grief cycle

The positive change cycle

Lewin’s force field analysis

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Kübler-Ross grief cycle The Kübler-Ross (1973) grief cycle shown in the chart below demonstrates the roller-coaster ride of activity and passivity as the person wriggles and turns in their desperate efforts to avoid the change.

The initial state before the cycle is received is stable, at least in terms of the subsequent reaction on hearing the bad news. And then, into the calm of this relative paradise, a bombshell bursts causing the grief cycle to start:

Shock stage: initial paralysis at hearing the bad news

Denial stage: trying to avoid the inevitable

Anger stage: frustrated outpouring of bottled-up emotion

Bargaining stage: seeking in vain for a way out

Depression stage: final realization of the inevitable

Testing stage: seeking realistic solutions

Acceptance stage: finally finding the way forward

A common problem with the cycle is that people get stuck in one phase. A person may become stuck in denial, never moving on from the position of not accepting the inevitable future. Good consultants recognise this when it happens and facilitates the process. A good communication strategy throughout the consultancy intervention will also help. The positive change cycle Just as there is a negative cycle of emotions experienced when the change is not to the liking of the person in question, so also is there a positive cycle. Not all people experience change as a bad thing: many, if not most, will benefit from the change, whilst others just find change in itself intriguing and exciting.

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The stages can be summarised as:

Uninformed optimism - in the first stage of positive change, the person is excited and intrigued by the change. They look forward to it with eager anticipation, building a very positive and often over-optimistic view, for example that it will be much easier for them and resolve all of their current issues. For a time after the change (sometimes sadly short), there is a ‘honeymoon period’, during which they are positively happy with the change. Informed pessimism - the honeymoon period does not last for ever and the rose-tinted glasses start to fade as the untidiness of reality starts to bite. The person finds that things have not all fallen into place, that other people have not magically become as co-operative as they expected, and that things are just not as easy as they had expected. This pushes them over into a period of gloom when they realise that perfection, after all, is not that easy to attain. This may evidence itself in mutterings and grumblings, but still does not reach the depths of the depression stage of negative change perception (unless the person flips into a delayed negative cycle). Informed optimism - before long, however, their original optimism starts to reassert itself, now tinted by a resignation to the reality of the situation. After all, things are not that bad, and a positive sense of potential begins to creep back. As they look around them and talk to other people, they make realistic plans and move forward with an informed sense of optimism. Completion - eventually, things reach a relatively steady platform of realistic and workable action. The person is probably happier than they were before the change started and, with their realistic vision, have the potential to reach giddier heights of happiness as they achieve more of their potential.

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As a consultant it is important to understand these various change models so that as an effective change manager you are able to determine the stages and how this may temporarily affect the behaviour of individuals or teams involved in the implementation. Lewin’s force field analysis Lewin’s (1952) Force field analysis is a useful technique for looking at all the forces for and against a plan. It helps assess the importance of these factors and decide whether a plan is worth implementing. Where you have decided to carry out a plan, force field analysis helps you identify changes that you could make to improve it, or identify possible resistance factors. To carry out a force field analysis:

1. Describe your plan or proposal for change in the middle.

2. List all forces for change in one column, and all forces against change in another column.

3. Assign a score to each force, from 1 (weak) to 5 (strong)

Plan Upgrade companywide information gathering process from manual to automated system

Cost of technology Staff dislike automation Potential disruption Costly

Information available more quickly Accurate and consistent information Free up people time to do more interesting tasks

AGAINST FOR

4

4 4

5

2

2 4

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Termination phase

This is the phase where the consultant withdraws from the consultancy assignments and will include activities such as:

evaluation

final report

settling commitments

plans for follow-up

withdrawal

Professional consultants place importance on the termination process, as lasting impressions are very important. These can lead to future work with the client, or referrals to other clients. Successful termination should include a process of evaluation of the assignment, if for no other reason it ensures that both parties have the same idea about its success and the outcomes achieved. This may be essential if there is any dispute about fees. In the main though, it provides an opportunity for the client to reconfirm the wisdom of their original decision and enhances the reputation of the consultant or their firm. Whilst reporting should be an on-going process if the consultant is to add real value to the organisation and maintain a strong relationship with the client, there is a merit in a ‘final report’. It is important that this is delivered on time and in the format the client is expecting. It provides a recognisable ‘full stop’ to the project even though the relationship may continue afterwards. After the formal output of the project has been delivered, there are several reasons for keeping in touch with the client. Unless agreed as part of the contract, implementation of the deliverable will be the responsibility of the client. However, they may need advice or support with this. If it has not been formally agreed with the client, it makes good business sense to contact the client anyway once the initial project work is completed to check on how things are going. New projects and contracts often come out of this kind of friendly follow-up. Of course, as a professional consultant you will want some feedback on how the client views your work: what went well; what did not go so well. This will help you to develop your skills and competencies and you may also be able to use the feedback as a testimonial or other kind of endorsement.

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The risks of not managing this phase well are:

the consultant disengages too early or too late leaving the client in the lurch or overstaying their welcome

the value of the assignment is not understood or appreciated by the

client

lessons to be learned are not identified and taken on board for the future

the client does not settle their account, this could be because they

have not realised the assignment has finished or the consultant forgets to ask for them, or because there is a dispute about what has been achieved

the consultant’s reputation is not enhanced, or the client does not feel

that employing consultants is a valuable exercise Most of these risks can be avoided by developing a termination strategy that evaluates the assignment, celebrates success and provides a full stop to the assignment whilst maintaining the relationship. Activity 5

Think back to a simple project you have been involved with (you do not necessarily need to have been the principal consultant here). Draw up a Consultancy Cycle for this project, indicating briefly the main features or actions at each stage.

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The remaining workbooks will look in more detail at the important skills of managing the client relationships, data analysis and project management. At this stage you should have a good overview of the Consultancy cycle and its various stages. It should also be obvious what could go wrong at the various stages, and these pitfalls represent risks that the competent consultant needs to be able to identify, and develop appropriate strategies to deal with. Activity 6 Review the stages in the Consultancy Cycle and in the notes section below. Identify possible pitfalls and risks for each stage.

Pitfalls/risks

Entry

Diagnosis

Action planning

Implementation

Termination

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Managing the Consultancy Cycle In this section we will look at ways in which the overall consultancy cycle can be managed, and the importance of doing so. You will learn about:

The importance of managing the consultancy cycle Models for managing the consultancy cycle Choosing the right model

The importance of managing the consultancy cycle

The specific and more detailed topic of project management is discussed in Unit 7009, and the purpose of this unit is to raise awareness of the need for management in the consulting process. Management in simple terms means the act of getting people together to accomplish desired goals. Management comprises planning, organising, resourcing, leading or directing, and controlling an organisation (this could be a whole organisation or groups of individuals) or effort, for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Mary Parker Follett (1868–1933), who wrote about management in the early twentieth century, defined management as “the art of getting things done through people”. It is also possible to think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, Henri Fayol considers management to consist of five functions:

1. Planning: deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.

2. Organising: making optimum use of the resources required to enable the

successful carrying out of plans.

3. Leading/motivating: exhibiting skills in these areas for getting others to play an effective part in achieving plans.

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4. Coordinating: is the act of making different people or things work together for a goal or effect.

5. Controlling: monitoring - checking progress against plans, which may

need modification based on feedback.

Activity 7

Consider the five functions of general management and make notes about how they can be used in consultancy interventions. Planning:

Organising:

Leading/Motivating:

Coordinating:

Controlling:

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You may have identified many ways that general management functions can be used. They should have included:

Planning: planning plays a key part in any consultancy intervention and plans need to be made for the intervention as a whole, for specific cycle phases, and for implementation actions. It is possible to use formal processes such as PRINCE2. Essential to any planning process is:

the identification and setting of clear objectives or targets

devising an appropriate monitoring and evaluation progress

creating a communications strategy for keeping the client

informed

Organising: many resources may be required during the life of the consultancy intervention and these could be human or other physical resources. They may include the resources of the organisation you work for as well as the resources of the client. This would include identifying appropriate personnel who may make up a consultancy/project team for the intervention. This might consist of fellow consultants, the clients own employees and administrative support. Leading/Motivating: Clients may need to be “led” and motivated throughout different stages of the intervention, as will any project team. Coordinating: Once resources (human or otherwise) have been identified they must be co-coordinated so that they are able to work together. Controlling: all stages of the consultancy cycle need to be monitored to ensure they are going according to plan, that is to say, the desired results are achieved at the right place, in the right way and at the right time.

It should be possible to use one or more of the five general management functions to develop appropriate strategies for managing each stage of the consultancy cycle. If a consultancy intervention is to be successful, i.e. meet the client’s objectives, it must be properly managed and all the concepts of management in general terms will need to be applied. This means that the entire process (consultancy cycle) must be managed from initial contact to follow up, and not just any individual specific project phase or element.

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Consultancy interventions that are well managed tend to:

Meet client’s objectives

Stay within budget

Get completed on time and in shorter time frames than those not

managed

Models for managing the intervention

As well as choosing the right approach to adopt (e.g. task-v-process) an appropriate model for managing the totality of the consultancy cycle is required. Some common models and methods include:

Milestone planning

Gantt charts

Critical Path Analysis

DIMAC and DMADV

Computer project planning software

Milestone planning Milestone planning is goal/results orientated planning and usually consists of a short one page document that details what should be achieved and by when.

xx/xx/xx Produce proposal and quote for client xx/xx/xx Contact agreed and signed off xx/xx/xx Initial data collection completed

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Gantt charts A Gantt chart is a graphical representation of the duration of tasks against the progression of time. Activity Week

1 2 3 4 5 6 7 8 9 10 11 12

Initial meeting with client

Draft proposal

Discuss draft with client and manager

Client to sign contract

Design survey form

Distribute survey to all staff

Collate results

Critical Path Analysis and PERT Charts Critical Path Analysis and PERT are powerful tools that help you to schedule and manage complex projects. They were developed in the 1950s to control large defence projects, and have been used routinely since then. As with Gantt Charts, Critical Path Analysis (CPA) helps you to plan all tasks that must be completed as part of a project. They act as the basis both for preparation of a schedule and of resource planning. The benefit of using CPA over Gantt Charts is that Critical Path Analysis formally identifies the links and dependencies between tasks enabling critical tasks which must be completed on time for the whole project to be completed on time to be highlighted. It also identifies which tasks can be delayed for a while if resource needs to be reallocated to catch up on missed critical tasks. Generally speaking, CPA and PERT are likely to be used to manage the whole consultancy cycle when the intervention is extremely complicated. However, they are more likely to be used for the specific ‘project type’ elements of the cycle including analysis, design and implementation. DMIAC and DMIAV These methods have been developed as part of the Six Sigma process, which was developed as a quality tool to assist the lean manufacturing process, although in recent times this has also been used in service-based industries, with varying success. Six Sigma has two key methodologies: DMAIC and DMADV, both inspired by Deming's Plan-Do-Check-Act Cycle. DMAIC is used to improve an existing business process; DMADV is used to create new product or process designs.

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The basic DMAIC methodology consists of the following five steps:

1. Define process improvement goals that are consistent with customer demands and the enterprise strategy.

2. Measure key aspects of the current process and collect relevant

data.

3. Analyse the data to verify cause-and-effect relationships.

4. Improve or optimise the process based upon data analysis.

5. Control to ensure that any deviations from target are corrected before they result in defects, using pilots for initial testing before going ‘live’.

The basic DMADV methodology consists of the following five steps:

1. Define design goals that are consistent with customer demands and the enterprise strategy.

2. Measure and identify CTQs (characteristics that are Critical to

Quality), product capabilities, production process capability and risks.

3. Analyse to develop and design alternatives, create a high-level

design and evaluate design capability to select the best design.

4. Design details, optimise the design, and plan for design verification. This phase may require simulations.

5. Verify the design, set up pilot runs, implement the production

process and hand it over to the process owners. As is the case with CPA these models may not always be appropriate to manage the whole cycle, except in cases where the client has clearly defined the problem and requires a more expert technical approach. Computer project planning software There are many off-the-shelf software programmes that will undertake project planning, for example, ™Microsoft Project. Many organisations use such software as they are able to produce plans in a variety of formats such as milestone plans, Gantt charts and CPA charts.

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Choosing the right model

Choosing the right model to manage the consultancy intervention – i.e. the whole cycle - will very much depend on the type of intervention and the approach to be used. For example, an intervention which requires the consultant to take a more non-directive process-based approach may not be capable of having all the individual tasks clearly set out and identified and may therefore need to focus on achieving outputs such as identifying the problem, identifying desirable goals, and identifying barriers to success. A more typical intervention where the consultant is the expert and is expected be very hands-on and undertake most of the work, will be very task orientated and would require planning models that focus on tasks and activities.

Congratulations on completing this workbook.

You should now undertake the assignment. You will find the assignment together with help notes in the

unit assessment centre on the learning portal. SAMPLE

Level 7 Professional Consulting


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Bibliography Lewin, K (1952) Field Theory in Social Science, Tavistock, London. Lippitt, G. & Lippitt, R. (1978) The consultancy process in action. California: University Associates. Kübler-Ross, E. (1973) On Death and Dying, Routledge, Kubr, M. (2007) Management Consulting A Guide to the Profession, International Labour Organisation International, Bookwell, New Delhi. Margulies, N. and Raia, N P. (1972) Organizational development: Values, process, and technology : McGraw-Hill Schein, E. H. (1987). Process consultation volume II: lessons for managers and consultants. California: Addison-Wesley. Websites http://www.prince2.com http://www.isixsigma.com http://www.mca.org.uk http://www.feaco.org http://www.iconsulting.org.uk SAMPLE

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POSITIVE ABOUT PEOPLE

186 Kempshott Lane Basingstoke

RG22 5LB

0845 8620 140 www.managers.gb.com

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