Consulting in General Management and Strategic Management

Corporate Strategy and Corporate Planning 1. Nature and scope of Consulting in Corporate Strategy and General Management Basic goals and mission The business policy and strategy Overall planning Structuring and control of organization 2. Reasons why an all-around consultant is needed Overall performance Growing dissatisfaction of the staff Generally bleak prospects of the industrial sector The business is in crisis Other symptoms of a much deeper general management problem affecting the whole organization The above reasons indicate lack of organizational strategic direction. The ultimate objective of private sector organizations and therefore the guiding principle underlying all decisions should be the creation of shareholder value. 3. The special nature of general management The most prominent characteristics of problems handled in general management consulting are: Long term Multifunctional Interdisciplinary 4. Diagnosing Organizations Problem identification Data gathering Data analysis Evaluation and selection of alternatives Feedback to client thru reports 5. Organizational level of intervention When done at the chief executive level or his management team the consultant: Is provided an excellent introduction to the organization? Will have rapid access to key data? Will get a true picture of the operating style of top management?

Will get support from the top echelon of the organization?

Some questions the consultant should look into: How top management is perceived by the workforce? Is the supervisory level in need of help to improve its performance?

6. Consulting style The consultant should be aware of the following: Managements personal interest, self-image and authority Not to give an impression that he is criticising any particular person That there is a risk that his proposal could be rejected and must act accordingly That participative consulting is desirable

7. Corporate Strategy (Defined in terms of the search for competitive advantage) Should it be handled by a formal Planning Department in the organization or by the top management team? 8. Strategic Vision In what business are we in? Rational and not a result of wishful thinking Positioning the organization for the future Path finding Expressed in goals that are understandable to the people in the organization, influence and motivate people to achieve those goals by the organizational leadership.

9. Industry and competitor analysis: Determining competitive advantage A competitive advantage is a key dimension of survival and success in environments where organizations must compete with each other. Tools: A. B. C. D. Porters Five Key Forces Kenichi Ohmaes Key Success Factors Value-chain analysis The ADL Strategic Planning Model

10. Technology in Corporate Strategy

The use of technology to achieve competitive advantage Establishing and/or maintaining R&D unit in the organization

11. The Environment of Business The Political environment The Economic environment The Social environment The Technological environment 12. Emergent Strategy Make appropriate changes when changes are needed.

13. Implementing Strategy Strategies are written documents and must be implemented to give substance and meaning to the strategies conceived, otherwise they will remain as mere plans but have no flesh.

14. Consistencies with Internal Capabilities The need to match the strategy with the available competencies within the organization should be considered by the consultant in his recommendation to the client.

15. Company Transformation Strategies Strategies are needed when the following happens: Mergers, acquisitions, divestments, downsizing, and change in ownership structure. 16. Processes, systems and structures Changes in how old processes, systems and structures, like reorganization should be handled with utmost care as personalities will be involved and can them emotionally. 17. Decision making systems and practices In every organization there is a need to clarify who decides what and should be understood by each one in the organization to avoid confusion and finger pointing.

18. Management information system

The objective in having an effective and efficient MIS is to provide the organization as a whole a competitive advantage by making information needed by each of the functional areas in the organization readily available.

19. Organizational structure The right size The right structure The right people 20. Corporate culture and management style This is the soft and intangible side of organizations: What should be retained? What to reinforce? What to discard?

21. Corporate governance Management represented by the Chief Executive The Board of Directors The shareholders 22. Improving and applying the standards Is the organization world class?