HR CONSULTING- PROFESSION AND PRACTICE

MODULE 1

Consulting- Firms and Professions: Business consulting; The changing consulting

industry, global trends and acceptance of Consultants; Consultants - Types,
competencies and Values; Consulting as a profession; HR consultancy – scope,
application, effectiveness; Top Consulting Firms in the world – services offered,
future of consulting companies; The new business consulting ecosystem – model,
drawbacks.

CONSULTING

Specialist advice and services provided by a third-party to help businesses maximise

the efficiency of their HR operations and implement appropriate new policies and
procedures in the best way possible. They are often valued by companies for their
ability to bring an outsider’s objective view

DEFINITION OF CONSULTING

The Management Consultancy Association of India defines management consulting

as "an advisory service contracted for and provided to business, public and other
undertakings by specially trained and qualified persons .

BUSINESS CONSULTING

Business consulting refers to both the industry, and the practice of, helping
organizations improve their performance, primarily through the thorough analysis of
existing business problems and development of plans for improvement.
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Providing information

Provide specialist
resource

Provide expert
PRINCIPAL
opinion
WAYS OF
CONSULTING Develop action plan

Doing diagnostic work

Improve system and

methods

CONSULTANT

A consultant is a professional who provide expert advice in a particular area

such as business, law, education, regulatory compliance, human resource, marketing
or any other specialized area.

TYPES OF CONSULTANT

Internal consultant – someone who operates within an organization but is available to

be consulted on areas of specialism by other departments or individuals

External consultant – someone who is employed externally (either by a firm or some

other agency) whose expertise is provided on a temporary basis, usually for a fee. As
such this type of consultant generally engages with multiple and changing clients
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TYPE OF
CONSULTAN
T

STRATEGY
TECHNOLOGY
IT
MARKETING

LEGAL OPERATION
HR FINANCIAL

 Operations Consultants

An operations consultant can help you create and implement a new way of doing
that. Some consultants specialize in business process re-engineering, meaning
that they come in and map out your existing processes, analyze opportunities for
reducing the number of steps in that process while maintaining quality, and re-
engineer your processes in a way that reduces steps and costs.

 IT Consultants

IT Consultants job is to recommend Computer Hardware, Software and Networks

to build high performing systems and workflow. This also provides technical
expertise in areas of information systems design, software programming and
development. Technology consultants are having specialization in different areas
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and are also called as information system consultant, system applications

consultant, data management consultants and network consultants.

 Management and Strategy

If you're looking to expand your markets geographically, extend your product

portfolio, reorganize your middle market company to promote efficiency and
cost-effectiveness, buy out a smaller competitor, or increase your overall
capabilities, then hiring an experienced management consultant can make perfect
sense. Firms such as McKinsey & Company are famous for helping clients
develop and execute better strategies

 Marketing Consultants

Marketing Consultants job is to focus on developing strategies in order to

successfully promote, sell and distribute goods and services to targeted
consumers. On a larger scale, marketing serves as a viable means of getting a
new brand name, service or product into the public and transforming it into a
lucrative business. Companies, therefore, seek expertise of marketing consultants
in order to discover creative techniques for launching and for sustaining their
business.

 Public Relations or PR Consultants

Public relations (PR) is the practice of managing the flow of information between
an individual or an organization and the public. Your role will be to build
reputation or a point of view about the company which you serving in front of
investors, partners, public and employees. In other words, you control what other
thinks about company’s leadership, products, or of political decisions.
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 Strategy Consultants

Helping organizations figure out any problem in their operations and work
strategy and to improve their performance, primarily through the analysis of
existing organizational problems and development of plans for improvement.
Otherwise known as management consultative for the company where in you can
play a key role in technology implementation and workflow management.

 Technology Consultants

Delivering software solutions that improve business performance of the clients

and the strategic know-how and understanding of key technology drivers to plan
the adoption, development and integration of advanced technology into client’s
business. This helps by providing a scalable architecture and enable the client
business to gain competitive advantage over the others.

 Legal Consultants

This identifies, prevents and solves legal issues facing a company or a client. Its
specialization includes legal consultation in employment, banking, contract,
corporate, intellectual property, tax, real estate, information technology or trust.

 Social Media Consultant

Role of Internet marketing agency or a Social Media Consultant is to help

companies to increase traffic to their websites by methods of search engine
optimization and content and by social media marketing. Your role will be to build
strong online presence of the client and build a brand online, by using various
social media platforms like social networks and social media. Keep yourself up
to date with new and changed capabilities offered by the web.
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COMPETENCIES AND VALUES COMPETENCIES

Core competencies are a specific type of competency. They identify the strengths
and key values shared by everyone in the organization, regardless of the job they
perform. Supporting those shared core competencies enable an organization to
differentiate itself in a competitive marketplace and define the behaviours that
support those differentiators.

Values identifies the beliefs or ideals shared by everyone in the organization

whether they are organizational or personal. Our values define the things we believe
are important, meaningful, and right.

CONSULTING COMPETENCIES

Customer service

Critical thinking
Problem solving
Decision making
Adaptability
Ethical Behaviour
Flexibility
Interpersonal skills

CONSULTING VALUES

Openness
Continuous Improvement
Cooperation
Professional Integrity
Responsibility
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CONSULTING AS A PROFESSION

A professional consultant gives expert advice to businesses and organizations. The

U.S. Bureau of Labour Statistics expects the profession to grow by 83 percent
between 2008 and 2018, much faster than the average growth for all jobs.

Consultants work with all types of organizations and industry sectors, including
technology, marketing and non-profits. Consultants may work as independent
contractors and often work for several different clients. Some consultants begin their
careers as research associates or junior analysts. Professional consulting firms may
hire consultants with a master's degree and several years of field experience.

 Technology Consultants

Technology consultants are independent professionals who provide support for

specific product lines. They usually obtain training and certification in specific
hardware and software platforms. Organizations hire technology consultants when
their internal resources and expertise are insufficient. Technology consultants
analyze an organization's existing setup and make suggestions.

 Management Analysts

Management analysts are professional consultants who look at an organization's

structure, policies and practices. Some management analysts focus on increasing
profitability, while others specialize in reducing turnover. Many projects are specific
and detailed. A consumer goods manufacturer may hire a management analyst to
address declining market share. An analyst may find a problem with the company's
sales approach.

 Market Research

Professional consultants who specialize in marketing figure out what products and
services consumers need. Organizations hire market research consultants to help
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develop product development strategies. Market research consultants may help

identify appropriate pricing and supply chain strategies. One of a market research
consultant's responsibilities is analyzing the organization's competition.

 Training

Some professional consultants specialize in training corporate staff. Training

may focus on developing effective communication and presentation skills.
Consultants could also train executives and middle management on effective
leadership styles. For instance, a consultant might have to retrain managers in
organizations that transition from traditional to flat structures.

HR CONSULTANCY

Human resources consultants ensure that an organization’s human capital serves the
best interests of the company. By creating and developing a human resources model
specific to the organizations that hire them, human resources consultants work to
ensure that the company is effectively using its personnel to achieve its stated goals,
while also ensuring the workforce is operating at a high level of productivity and
efficiency.

Duties/Responsibilities of HR Consultant

Advising management on the administration of human

resources policies and procedures
Serving as internal consultants by analyzing
a company’s current HR programs and
recommending solutions
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COMPETENCIES OF HR CONSULTANT

Self-confidence: HR consultants must be sure of

themselves if they are to impart their wisdom and
know-how on others.

Theoretical and practical knowledge: They must have

the experience necessary to understand what solutions
have worked in the past and about how to improve upon
past mistakes.
Ability to explain ideas and concepts in a simplified
manner: HR consultants understand complex ideas in HR,
but they must be able to simplify and explain problems and
solutions in terms everyone can understand.
Ability to improvise: Because organizations are always
evolving and changing, HR consultants must be able to
foresee and implement multiple solutions.

Excellent listening skills: Before solutions can be

discovered, problems need to be fully understood.
Therefore, HR consultants must carefully listen to the
needs of their clients as to implement solutions that
address their specific needs.
Trustworthy: HR consultants must be able to develop a
strong relationship with their clients, and to do so they
must display integrity as to build trust.
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SCOPE

Professional management consultants may be asked to provide objective advice that

will help an organization plan, solve business problems or manage change, including
business start-up, growth or expansion, renewal, reorganization, diversification,
downsizing, disposal of assets, planning, review of operations, launching new
corporate initiatives or projects, and/or acquiring and implementing technology

APPLICATION

 Outsourcing HR Functions

Outsourcing certain HR functions is one of the biggest advantages/benefits of

human resource consultancy. Several human resources consulting firms offer
ample HR functions to companies such as basic payroll to managing advanced
measures like benefits administration and much more. Letting human resource
consulting firms handle some HR tasks can save you money and lift the
performance of your own HR department.

 Employee benefits

Ensuring proper coverage of employee benefits is not only difficult but also
time consuming. These are some of the functions that can be given to human
resource consultancy firms. By doing so, companies will ensure that their
overall HR responsibilities are carried out with ease.

 Implementation of HR Tech

Human resource consultancy firms can help bigger organizations in the proper
implementation of HR tech. Needless to say that setting up a proper department
for technology in the HR domain separately for your organization is indeed a
daunting task. The human resource consulting group will provide you with the
technology, help set it up, and then train your employees on how to use it. If
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needed, they’ll help maintain it as well. If you’re ready to seriously upgrade your
company, human resource consulting groups will help with this step.

 Human capital management

Another major benefit of using human resource consultancy firms is the proper
implementation and functioning of human capital management. The firms can
help in implementing employee rewards programs and by improving a
company’s talent acquisition process as well as employee management.

 Business communications

Ensuring proper functioning of business communications is also a significant

aspect of business. A human resources consultancy firm can help in assessing
the overall attitude of the employees. From studying employee satisfaction,
happiness, behaviors, and more, human resource consulting firms can help you
find out what your workers are happy with, what they desire, and what they
dislike.

 Recruitment

An effective and efficient recruiting and hiring process is a must for companies
to remain competitive. Failure to attract top talent will hurt your ability to grow
as a company. Outsourcing recruiting to an HR consultant will give you a third
party perspective when hiring, helping you hire the right people for the job
without bias. HR consultants can also help reduce employee turnover issues
and provide strategies to keep your top talent from leaving.
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 Honest performance assessment

HR consultants are highly effective at helping companies assess performance of

organizations. They can help you implement systems and offer training and
coaching to your employees to help them improve in key areas. Often a quality
outside perspective is key to helping companies take performance to the next
level.

 Reduce stress on management

Having an outside perspective and a third party to confide in can help

management make the best decisions possible. HR consultants can coach and
work with management to handle a variety of HR issues and help improve
overall daily operations.

SERVICES OFFERED BY HR CONSULTANCY

Financial
Information technology
Management
Human Resources
Legal
Hotel and Hospitality industry
Others – Advertising/Marketing/Public relations,
Environmental, Energy, Politics and the Public Sector,
Real Estate, etc
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TOP CONSULTANCY

 McKinsey & Company

The story McKinsey was founded in Chicago in 1926 by James McKinsey, a
professor of accounting at the University of Chicago. The firm started out by
offering consulting services on accounting principles as a management tool.
McKinsey’s second partner was Andrew Thomas Kearney, who went on to found
A.T Kearney. McKinsey grew quickly especially in Europe in the 1940s and
1950s. But in the 1960s, competitors like the Boston Consulting Group and Bain
& Company started competing with McKinsey by marketing specific branded
products, such as the Growth-Share Matrix, and by selling their industry expertise.
In the 1970s the firm therefore shifted its focus to industry specialisation from
geographic expansion. Today the firm employs 26.000 staff across 120+ offices
and generates $8.8bn in revenues. Many of McKinsey’s alumni went on to be
CEOs of major corporations including Morgan Stanley, Google and Boeing.

 Boston Consulting Group

The story Bruce Henderson founded the Boston Consulting Group (BCG) in 1963
after working 18 years for the manufacturing company Westinghouse Corporation.
Initially, BCG was a subsidiary of the Boston Company, before becoming
independent in 1975. When BCG started, the traditional consulting approach was
to look at a company's specific internal issues. But Henderson decided to take
another approach and decided to focus on external factors such as markets and
competition instead. This approach led to new important business concepts still
used today such as the "cash cow," the "experience curve," and “time- based
consumption.” Throughout the 1960s, BCG grew and develop overseas. It suffered
a slight setback in 1973 when BCG vice-president Bill Bain left the company to
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found his own consulting firm, Bain & Co. During the 80s it continued to expand,
with a radical boost in the mid-90s in growth. The early 2000s because of the
economic crisis and rise in technology put BCG under threat. The firm remains
one of the most prestigious strategy houses in the world with $5.6bn in revenues
and offices all over the world.

 Oliver Wyman

The story in 2007, three global consultancies (Mercer Delta, Mercer Management
Consulting and Mercer Oliver Wyman) combined to form Oliver Wyman. Mercer
Oliver Wyman was the oldest of these firms. It was founded as Oliver, Wyman &
Company in 1984, and was then acquired by Marsh & McLennan Companies
(MMC). MMC also acquired Temple, Barker & Sloane in 1987 and Strategic
Planning Associates in 1989. These two companies merged in 1990, becoming
Mercer Management Consulting in 1992. MMC also acquired Delta Consulting in
2000. In 2007, MMC merged its subsidiaries under the name Oliver Wyman.
Recently, Oliver Wyman has been growing at a rapid rate, largely thanks to a series
of acquisitions made in 2008. It also managed to build a very strong reputation
for itself in the financial services sector as well as in digital strategy. Currently,
the firm holds over 60 offices in 27 countries.
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MODELS AND DRAWBACKS

 MODELS

 Reputation

Whether consulting firms like it or not, their industry has a reputation. Many
firms choose to believe they are insulated from any problems that may ensue
from this. Well- known firms believe their brands will differentiate them;
smaller ones think their client relationships and the quality of their work will
protect them. In reality, no organisation can entirely escape the way clients view
the collective industry.

 Isolation

Clients buy consulting in an imperfect market. Although clients believe they

are responsible for their choice and use of consultants, they also think their
responsibility is compromised where they do not have access to sufficiently
reliable information. It is a case of buyer beware, but only if you know what to
be wary of. Yet clients rarely share views on consulting performance with each
other. This seems ironic in an environment in which consulting firms are falling
over each other to publish books, articles and papers on every conceivable client
issue. Yet quantity of information is of course no guarantee of quality. Little of
the “thought leadership” or “industry practice” material offered helps clients
make informed choices

 Metamorphosis

Consulting is not a profession: there is no governing body which sets standards

and certifies qualified consultants. Qualifications exist, as do trade associations,
but participation is entirely voluntary. Would you go to an unqualified doctor?
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Would you ask an untrained lawyer for his or her opinion? At the moment,
clients rely on the brand of a consulting firm to provide them with the confidence
that they are buying a high-quality product, but this focus on individual firms,
at the expense of the industry as a whole, is unsustainable.

 Relationship

Clients are accustomed to treating consulting projects as discrete and self-

contained. But there are three reasons why this is changing: the remit of central
procurement departments has, for the first time, been extended to cover
professional services; clients are increasingly using several suppliers for
projects where before they might have used only one; and new governance rules
are being established that seek to make consulting firms keep the promises they
make of working “in partnership”.

 Portfolio

A corollary to complexity is that clients need to manage their consulting

projects not in isolation, but as part of a portfolio. They need to balance costly
projects against cheaper ones, and difficult ones focused on long-term benefits
against simpler ones designed to produce immediate results. A big component
of success in using outsiders is getting things lined up internally too.

 Career

Consulting used to be a career. However, as a result of the downturn in the early

2000s, many consultants left their firms, some to join clients, others to become
freelance or to find non-consulting jobs. In common with many other industries,
consulting never really offered a job for life. Nevertheless, good consulting
relies on good experienced consultants.
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 Life cycle

When it comes to actual consulting projects, clients invest too much time in the
preparatory stages and too little in adapting to changes during the course of a
project. Time, budgets and quality standards are typically set from the outset
and ignore the way in which projects change during the course of their life:
governance, management style and mind-set need to be adaptable over time,
not set in stone.

 DRAWBACKS
 Morale

The biggest downfall in an employee’s mind is when an outsourced employee is

brought in. This means less wages, job losses and pay cuts. Lower morale means
lesser productivity.

It can also instigate the feeling of rebelliousness within the employees. This can also
lead to the working employees asking the organisation about why wasting money on
outsourced employees instead of giving out proper wages to the workforce.

 Lack of in house expertise

Another main disadvantage of outsourcing human resources from other companies

is the lack of onsite experience and expertise. If a new consultant is hired, there is
always a learning period which acts as an incubation period for the employee, where
the employee learns about the organisation.

If this period is skipped, they have a higher risk of implementing changes that does
not follow the philosophies and motives of the company. This can ultimately cost
the company and may incur a large amount of loss to the company.
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 Confidentiality:

Any HR consultant worth talking will try to ask you about confidentiality agreement.
As an outsourced employee, try to do your job, and prevent such consultants getting
hold of confidential information about other employees. This is company
information and such information should be kept safe. Try to insist that no sharing
of confidential information will occur or walk away from such consultant.

 Loss of human factor

Reduction of face to face interaction with employees is the greatest drawback of

outsourcing human resources. Employers would like to see a familiar face within the
environment rather than talking on the phone when something happens. Such
exchange is not a positive exchange. Employers tend to prefer people who are
present at the office trying to calm down the problem rather than calling them up
asking advices through the phone. As a part of human nature, people tend to be more
careful talking face to face. This creates a sense of security within each other.
Employees also need to be assured that their personal information is with a safe
person rather than a hoax.

GLOBAL TRENDS AND ACCEPTANCE OF CONSULTANTS

 Multi-Sourcing
Companies today, are not limited to a single consultant firm. There is a
growing trend amongst clients to switch away from the mega-deal with one
consultant, and pressure to get multiple firms to collaborate on projects.
Clients may feel that, no one firm can handle either the scale or complexity
of their large projects, and they may require a partnership with five or six
firms. Clients may cut projects down into small pieces, which they gave to
specialist firms.
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The conclusion is that, clients want consultants to work together. They

don’t expect one firm to supply everything. Multi-Sourcing intensifies
competitiveness among consultancies, which makes consultancies to offer
better services.

 Fast Growth
The business world is desperate for consulting help. With excess staff being
cut down, most organizations lack in the technical, strategic and project
management skills to handle the benumbing rate of technological and
market change. The consulting industry is trying its best to accommodate
the demand. Big consulting firms are inhaling new employees, gulping up
smaller firms and merging with peers.

 Offshoring
In addition to a boom in the number of consulting firms, the size of
individual firms is growing in response to the other industry trend: one-stop
shopping. Providers that can’t compete on size will still try to offer one-
stop shopping by outsourcing a chunk of a client’s project to another firm,
while maintaining responsibility for the overall project.

 Premium Hiring
Top consulting firms such as Bain, BCG and Ernst & Young are hiring fresh
engineer graduates like never before, and most of these have almost doubled
the number of offers they made in this campus placement season in the
country’s top institutes. Lately, many of the consulting firms are getting a
lot of work in the engineering space and this is pushing the demand for the
engineers at colleges such as IIT’s and NIT’s.
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Theoretically, in the next few years, consulting could be driven more by

collaboration than competition. That is, more cross-working between
different consulting firms, which hopefully will result in a better product
for the client.