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Management Consultancy
DBA 7770

 Doctor of Business Administration
Graduate School of Management

      Dr. Dolhadi Zainudin
Class Objectives
   Status of client engagement for
    consultancy work
       Include consultant review with
        GSM/coordinator
   Overview of existing consultancy
    processes by various authors
   Presentation of final consultancy report
    and list of submission to GSM
Introduction
Schein (1988, 1999) proposed three models of the role of business
consultants:
(1) the ―purchase model‖ (in which the client purchases a
   particular expertise or skill that the client knows is currently
   lacking in its organisation;
2) the ―doctor-patient model‖: in which the client is uncertain of
   the problem and the role of the consultant is to diagnose the
   problem and prescribe a solution that alleviates the pain being
   experienced by the client; and
(3) the ―process consultation model‖: which involves the
   creation of relationships that enables clients to perceive and
   understand the problems with a view to the clients solving the
   problems by themselves
CONSULTING APPROACHES
   The purchase of Information Model-
    Purpose: help client to solve known
    problem
       client has correctly diagnosed the problem,
        the cause of it and expecting outcome
CONSULTING APPROACHES
   The Doctor –Patient Model -
    Purpose:consultant‘s job is to discover the
    real problem for client
       client has intrepreted the area of problem and
        someone need to help the client to identify
        the true cause of it
CONSULTING APPROACHES
   Process Consultation Model -
    Purpose : help client to identify the cause
    of it and find appropriate solution for such
    cause
       Client does not even know the area of the
        problem
Status of client engagement



    What your level of engagement with the
     client/s or potential client ?
Literature Review on Consultancy
processes
    Fink (2005, p. 48.) cites that over the last forty years in
     management consulting, a process has developed which
     consists of the following seven steps: awareness
     creation, lead management, prospect management,
     proposal submission, contract negotiation and signing,
     case management, and case review

    The prime goals of this process are to acquire new
     consulting engagements, to satisfy the respective
     clients, and, eventually, to foster the acquisition of
     follow-up projects
Literature Review on
Consultancy processes

Pfannkuch and Wild (2000) as being ―a generic
  description of a statistical empirical problem-solving
  cycle.‖ It consists of five steps—problem, plan, data,
  analysis,conclusions—and covers some aspects of the
  prospect, proposal, and case phases.
However, there is no emphasis on making potential
  clients aware of the consultant‘s service offering, on
  the techniques used to get in contact with the client,
  on the design of the contract, and on the review of
  the project.
Literature Review on
Consultancy processes

Berding‘s and Kleider‘s (2007, p. 403) bird‘s
  eye view on the consulting process:
―(1) The client‘s problem is posed and
  analysed.
(2) An appropriate statistical model is
  developed and formulated.
(3) The statistical solution is worked out, and
(4) finally translated into the client‘s solution
Literature Review on
     Consultancy processes

   Unwin (2007, p. 352) cites the CRISP model for data
    mining. It consists of six phases: business
    understanding, data understanding, data presentation,
    modeling,evaluation, and deployment.
   Business understanding includes some aspects of the
    proposal phase. Data understanding and presentation,
    modeling, and evaluation are part of the case-phase.
    Deployment includes a review of the project as
    documented explicitly in CRISP-DM substeps (Weihs
    2007, p. 432).
    Note: CRISP Model- standard model for data mining
PHASES IN CONSULTING PROCESS
CRISP-DM Model
Engel and Hoonhout (2007, p. 418):
1. Define and measure. Determine the
  user‘s expectation and needs.
2. Analyze and design. Analyze and design
  statistical methods.
3. Verify. Evaluate whether the user‘s
  expectations are met.
Fink and Löwenbein(2009) mentioned that , A
   typical ―formal proposal‖ consists of
• a description of the initial situation of the client,
• a definition of the client‗s complication, i.e., the gap
   between his current and desired positions,
• an explanation of the approach and the tools and
   techniques that the consultant will use in order to
   close the gap,
• a chart of the project organization,
• a road map on timing and budgeting, and
• an appendix with references and biographies.
Kakabadse et al. (2006) describe the idea as suggesting
   that consultancy must first been seen in terms of
   process. Since, Kubr (1996) identified two basic roles of
   business
consultants:
(1) the ―resource role‖ (helping clients with their problems
   by using the consultants‖ experience and knowledge);
   and
(2) the ―process role‖ (helping clients to solve their own
   problems by making them aware of appropriate
   organisational processes).
Evaluating the effectiveness of consulting
The effectiveness of a business consultancy should
  be assessed for at least three reasons:
(1) To validate consulting as a business tool:
  Because consulting is only one of many actions
  that an organisation can take to improve its
  performance and profitability, consulting must be
  formally compared with alternative business
  tools.
(2) To justify the costs incurred in consulting:
  Thorough quantitative justification of
     the costs of consulting is required to resist cuts
      in consulting budgets in times of economic
      stringency.
(3) To improve the design of consulting:
  Objective evaluation of consulting
 programs is required to ensure that business
  consultancy is continuously improved to
  provide better value and increased benefits to
  clients
Thank you

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Mgt 7770 management consultancy

  • 1. Management Consultancy DBA 7770 Doctor of Business Administration Graduate School of Management Dr. Dolhadi Zainudin
  • 2. Class Objectives  Status of client engagement for consultancy work  Include consultant review with GSM/coordinator  Overview of existing consultancy processes by various authors  Presentation of final consultancy report and list of submission to GSM
  • 3. Introduction Schein (1988, 1999) proposed three models of the role of business consultants: (1) the ―purchase model‖ (in which the client purchases a particular expertise or skill that the client knows is currently lacking in its organisation; 2) the ―doctor-patient model‖: in which the client is uncertain of the problem and the role of the consultant is to diagnose the problem and prescribe a solution that alleviates the pain being experienced by the client; and (3) the ―process consultation model‖: which involves the creation of relationships that enables clients to perceive and understand the problems with a view to the clients solving the problems by themselves
  • 4. CONSULTING APPROACHES  The purchase of Information Model- Purpose: help client to solve known problem  client has correctly diagnosed the problem, the cause of it and expecting outcome
  • 5. CONSULTING APPROACHES  The Doctor –Patient Model - Purpose:consultant‘s job is to discover the real problem for client  client has intrepreted the area of problem and someone need to help the client to identify the true cause of it
  • 6. CONSULTING APPROACHES  Process Consultation Model - Purpose : help client to identify the cause of it and find appropriate solution for such cause  Client does not even know the area of the problem
  • 7. Status of client engagement  What your level of engagement with the client/s or potential client ?
  • 8. Literature Review on Consultancy processes  Fink (2005, p. 48.) cites that over the last forty years in management consulting, a process has developed which consists of the following seven steps: awareness creation, lead management, prospect management, proposal submission, contract negotiation and signing, case management, and case review  The prime goals of this process are to acquire new consulting engagements, to satisfy the respective clients, and, eventually, to foster the acquisition of follow-up projects
  • 9. Literature Review on Consultancy processes Pfannkuch and Wild (2000) as being ―a generic description of a statistical empirical problem-solving cycle.‖ It consists of five steps—problem, plan, data, analysis,conclusions—and covers some aspects of the prospect, proposal, and case phases. However, there is no emphasis on making potential clients aware of the consultant‘s service offering, on the techniques used to get in contact with the client, on the design of the contract, and on the review of the project.
  • 10. Literature Review on Consultancy processes Berding‘s and Kleider‘s (2007, p. 403) bird‘s eye view on the consulting process: ―(1) The client‘s problem is posed and analysed. (2) An appropriate statistical model is developed and formulated. (3) The statistical solution is worked out, and (4) finally translated into the client‘s solution
  • 11. Literature Review on Consultancy processes  Unwin (2007, p. 352) cites the CRISP model for data mining. It consists of six phases: business understanding, data understanding, data presentation, modeling,evaluation, and deployment.  Business understanding includes some aspects of the proposal phase. Data understanding and presentation, modeling, and evaluation are part of the case-phase. Deployment includes a review of the project as documented explicitly in CRISP-DM substeps (Weihs 2007, p. 432).  Note: CRISP Model- standard model for data mining
  • 14. Engel and Hoonhout (2007, p. 418): 1. Define and measure. Determine the user‘s expectation and needs. 2. Analyze and design. Analyze and design statistical methods. 3. Verify. Evaluate whether the user‘s expectations are met.
  • 15. Fink and Löwenbein(2009) mentioned that , A typical ―formal proposal‖ consists of • a description of the initial situation of the client, • a definition of the client‗s complication, i.e., the gap between his current and desired positions, • an explanation of the approach and the tools and techniques that the consultant will use in order to close the gap, • a chart of the project organization, • a road map on timing and budgeting, and • an appendix with references and biographies.
  • 16. Kakabadse et al. (2006) describe the idea as suggesting that consultancy must first been seen in terms of process. Since, Kubr (1996) identified two basic roles of business consultants: (1) the ―resource role‖ (helping clients with their problems by using the consultants‖ experience and knowledge); and (2) the ―process role‖ (helping clients to solve their own problems by making them aware of appropriate organisational processes).
  • 17. Evaluating the effectiveness of consulting The effectiveness of a business consultancy should be assessed for at least three reasons: (1) To validate consulting as a business tool: Because consulting is only one of many actions that an organisation can take to improve its performance and profitability, consulting must be formally compared with alternative business tools.
  • 18. (2) To justify the costs incurred in consulting: Thorough quantitative justification of  the costs of consulting is required to resist cuts in consulting budgets in times of economic stringency.
  • 19. (3) To improve the design of consulting: Objective evaluation of consulting  programs is required to ensure that business consultancy is continuously improved to provide better value and increased benefits to clients