Management Consultancy

During class notes

First move advantage: you invent a new product and your brand name become as
whole products’ name, such as selpak, nescafe, gillette

Taylorism

Seeking advice: managers didn’t use their money for advice.

regulatory: conflict of interest

Split of financial management and management consultancy (for example, same

person both are accountant and financial management consultant)

first, functional then multi divisional structure

WE ARE RESPONSIBLE FOR FIRST 3 CHAPTER.

Mix blessings: advantages and disadvantages both

There are 2 types of change in both life and business: revolutionary and
evolutionary.

inertia

value equation

competition strategy = Micheal Korter

What is the management consultants’ substitute?

Chapter 1

PERSPECTIVES ON MANAGEMENT CONSULTANCY

Functionalist Perspective: Advising managers on how to improve their organizations.
Also this perspective liken consultancy as a medical doctor.
Critical Perspective: According to this perspective, management consultancy’s
knowledge consists of management fads and fashion that provide to the managerial need
for reassurance in uncertainties. Also it’s focused on the rhetoric of management
consultancy. That means management consultants use their persuasive power to build
legitimacy.

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 Comparing Perspective: We cannot chose a perspective as a correct one because the
real world picture is not black or white.

CHARACTERISTICS OF MANAGEMENT CONSULTANCY

Management consultancy is a service

The product of management consultancy is an intangible experience.

But it some cases it can be measurable and therefore tangible, such as impact of cost
reduction consultancies.

Even clients demand projects where the fees will be directly related to the achieved
results.

It is “co-creation” so consultants rely on intimate access to their client’s knowledge.

It is perishable so cannot be stored.

Management consultancy is directed at managers

Management consultancy is a service directed at the managers of client

organizations. They can be CEO or even presidents of countries.

Management consultancy is about decisions

Management consultancy is not about decisions on personal problems or the

personal opportunities of individual managers.

Business effectiveness is the subject of management consultancy.

Management consultancy is knowledge-intensive

Consultants use intensive knowledge

Management consultancy is based on independence

Consultants need to be independent.

Management consultants shouldn’t have a hierarchical relationship with their clients.

They should avoid an equity relationship. (having a share from client organization)

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