Advisory and Consulting Books) PDF

BUSINESS CONSULTING AND
ADVICE
Alcides Zenteno Chamber MBA
PROESAD
Distance Higher Education Program
Title: BUSINESS CONSULTING AND ADVICE
Author: Alcides Zenteno Chamber MBA
Interior design: Miriam Tineo Landeo

Cover design: Edward Alarcón Rojas
The content of this publication (text, images and design) may not be
reproduced in whole or in part by any mechanical, photographic, or
electronic means (scanner and/or photocopy) without the written
authorization of the author.
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Presentation
The Universidad Peruana Unión is an educational institution that has been developing a series
of actions, with the purpose of achieving high levels in educational management. active in the
various careers it offers.
Within this context, the Business Consulting and Advice module provides a set of theoretical-
practical knowledge on various topics of business management that allow students to apply a
series of approaches and criteria. consulting theories, methodologies and tools to efficiently
manage consulting processes and how to market your services.
The Business Consulting and Advice module includes the development of four three units
and thirteen learning sessions. In each unit, the result will be found learning process that the
student must develop the topic covered, which will be duly explained. Finally, there will be a
self-assessment system where the student reflects what they have learned.
The module is practical in nature, its fundamental objective is to explain and apply,
appropriately, the various consulting approaches and tools in the field of business. First, it
begins with a focus on the role of the business consultant, the importance of service for
clients, continues with the analysis of the business consulting market and the development
of a professional services marketing plan. Finally, it concludes with the study of the
processes of business consulting and work methodologies that are applied in the field of
business consulting.
Alcides Zenteno Chamber MBA

INDEX
UNIT I13
THE CONTEXT OF BUSINESS CONSULTING
13
Presentation............................................................................................................3
INDEX................................................................................................................5
SUMILLA...........................................................................................................9
COMPETENCE..................................................................................................9
A2D METHOD.............................................................................................11
AFTER READING.........................................................................................11
UNIT I...............................................................................................................13
THE CONTEXT OF CONSULTING...........................................................13
1.1. WHAT IS BUSINESS CONSULTING?...........................................15
1.2. WHO IS A BUSINESS CONSULTANT?.........................................16
1.3. CONSULTANT CHARACTERISTICS............................................17
Patience......................................................................................................17
Objectivity.................................................................................................17
Analytical...................................................................................................17
Specific......................................................................................................17
Creative......................................................................................................17
Management vision....................................................................................17
1.4. WHY USE A BUSINESS CONSULTANT?.....................................18
1.5. TYPES OF CONSULTANTS................................................................19
2.1. CONSULTING DEVELOPMENT....................................................22
2.2. THE GOLDEN AGE OF CONSULTING.........................................23
2.3. EVOLUTION OF BUSINESS KNOWLEDGE................................23
The theory of quality control.....................................................................24
The motivational theory.............................................................................24
Marketing myopia......................................................................................24
Strategy and paradigm...............................................................................24
The competitiveness..................................................................................25
The circles of quality and excellence........................................................25
Business culture.........................................................................................25
The guru industry.......................................................................................25
The Knowledge Society.............................................................................27
The new economy......................................................................................27
The global and digital era..........................................................................27
INVESTIGATE.........................................................................................27
ACTIVITIES.............................................................................................28
3.1. THE CONSULTING COMPANY.....................................................30
3.2. Classification of business consulting services...................................31
ACTIVITIES.............................................................................................31
SELF APPRAISAL...................................................................................32
UNIT II.............................................................................................................35
BUSINESS CONSULTING MARKET........................................................35
4.1. BUSINESS CONSULTING MARKET.............................................37
4.2. REGISTRATIONS (Offer Analysis) OF BUSINESS CONSULTING
SERVICES....................................................................................................38
4.3. CLASSIFICATION OF THE OFFER OF CONSULTING
SERVICES....................................................................................................38
◊ Deloitte...............................................................................................39
◊ BDO Consulting SAC........................................................................39
◊ Macroconsult SA................................................................................39
◊ MAXIMIXE.......................................................................................40
5.1 . IDENTIFICATION OF DEMAND FOR CONSULTING
SERVICES....................................................................................................42
TABLE 5. ECONOMIC AREAS DEMANDING CONSULTING..........43
5.2 DEMAND FOR CONSULTING IN THE PRIVATE SECTOR.......43
a) Private Sector Dimension...................................................................43
b) Economic groups in Peru...................................................................44
c) Purchase procedure............................................................................45
5.3 DEMAND FOR CONSULTING IN THE PUBLIC SECTOR.........45
Purchase procedure....................................................................................45
5.4. CONSULTING CLIENT REQUIREMENTS.......................................46
ACTIVITIES.............................................................................................46
6.1. MECHANISMS FOR ACCESS TO CONSULTING.......................47
6.2. SERVICE OPPORTUNITIES IN BUSINESS CONSULTING........48
UNIT III............................................................................................................50
MARKETING OF PROFESSIONAL SERVICES.......................................50
7.1. CLASSIFICATION OF SERVICES.................................................52
7.2. CONSULTING AS A PRODUCT.....................................................53
7.3. ADDED VALUE OF CONSULTING...............................................54
8.1 . SERVICE COSTS............................................................................56
Time...........................................................................................................56
Calculation of the cost of consulting time.................................................56
8.2 THE “PERCEIVED VALUE” METHODOLOGY...........................58
8.3 THE PRICING STRATEGY.............................................................58
9.1. THE MARKETING PLAN....................................................................60
The structure of the marketing plan must include, at a minimum, the
following elements:...................................................................................60
9.2. KEY STRATEGIES IN THE MARKETING PROCESS OF
CONSULTING SERVICES.........................................................................61
9.3. SPECIFIC STRATEGIES......................................................................62
9.4. SALES AND PROMOTION OF SERVICES...................................65
SELF APPRAISAL...................................................................................67
UNIT IV............................................................................................................68
CONSULTING PROCESSES MANAGEMENT........................................68
10.1 PHASES OF THE CONSULTING PROCESS....................................70
10.2. DESCRIPTION OF CONSULTING PROCESSES.......................71
a) The preparation:.................................................................................71
b) Contact with the client........................................................................71
c) Workplan............................................................................................71
d) Diagnosis............................................................................................71
e) Identifying problems..........................................................................72
10.3. EXECUTION OF THE SERVICE.................................................72
For adequate control of consulting work, the ILO suggests the following:
...................................................................................................................72
10.4. FIELD AND CUSTOMER SUPERVISION.................................73
11.1. QUANTITATIVE ANALYSIS......................................................75
11.2. CONSULTING APPROACHES....................................................76
a) The Harvard approach........................................................................76
b) The process approach.........................................................................76
Process mapping procedure.......................................................................76
◊ c) The growth cycle............................................................................77
The phases that emerge from this analysis are the following:...................77
e) The value chain approach...................................................................78
THE VALUE CHAIN AND BUSINESS.....................................................79
f) The reengineering approach...............................................................79
g) The total quality approach..................................................................79
11.3. Qualitative analysis.........................................................................80
11.4. Development of practical cases......................................................80
Prepare a change agenda............................................................................80
1. Start by Identifying needs and priorities and establishing degrees of
urgency in the organization:......................................................................81
2) Find out where the failures occur? And what needs are pressing?.......82
3) Prepare your change strategy................................................................82
4) Put the change strategy into action.....................................................82
ACTIVITIES.............................................................................................83
12.1. Selection and training of the work team...............................................85
TEAM STRUCTURE...................................................................................87
12.2. Management of work teams...........................................................87
Factors that drive team dynamics..............................................................87
12.3. EVALUATION OF EQUIPMENT PERFORMANCE.................88
Quantitative indicators...............................................................................88
12.4. DEVELOPMENT OF PRACTICAL CASES................................88
13.1. PREPARATION BEFORE PRESENTATION..............................90
13.2. HOW THE PRESENTATION SHOULD BE DONE....................91
14.1. WHAT CONSULTING IS LIKE IN SMEs...................................94
14.2. CONSULTING OPPORTUNITIES IN SMALL BUSINESS.......95
14.3. WHAT APPROACH TO USE IN CONSULTING WITH SMEs?
95
The advisor, as a coach..............................................................................95
The advisor, as a consultant:......................................................................95
The advisor, as performance manager:......................................................96
The advisor, as a mentor:...........................................................................96
ACTIVITIES.............................................................................................96
SELF APPRAISAL...................................................................................96
BASIC.......................................................................................................98
/oas:........................................................................................................................102
SESSION NO. 6: IDENTIFICATION OF OPPORTUNITIES IN BUSINESS

CONSULTING ...49
Presentation............................................................................................................3
INDEX................................................................................................................5
SUMILLA...........................................................................................................9
COMPETENCE..................................................................................................9
A2D METHOD.............................................................................................11
AFTER READING.........................................................................................11
UNIT I...............................................................................................................13
THE CONTEXT OF CONSULTING...........................................................13
1.1. WHAT IS BUSINESS CONSULTING?...........................................15
1.2. WHO IS A BUSINESS CONSULTANT?.........................................16
1.3. CONSULTANT CHARACTERISTICS............................................17
Patience......................................................................................................17
Objectivity.................................................................................................17
Analytical...................................................................................................17
Specific......................................................................................................17
Creative......................................................................................................17
Management vision....................................................................................17
1.4. WHY USE A BUSINESS CONSULTANT?.....................................18
1.5. TYPES OF CONSULTANTS................................................................19
2.1. CONSULTING DEVELOPMENT....................................................22
2.2. THE GOLDEN AGE OF CONSULTING.........................................23
2.3. EVOLUTION OF BUSINESS KNOWLEDGE................................23
The theory of quality control.....................................................................24
The motivational theory.............................................................................24
Marketing myopia......................................................................................24
Strategy and paradigm...............................................................................24
The competitiveness..................................................................................25
The circles of quality and excellence........................................................25
Business culture.........................................................................................25
The guru industry.......................................................................................25
The Knowledge Society.............................................................................27
The new economy......................................................................................27
The global and digital era..........................................................................27
INVESTIGATE.........................................................................................27
ACTIVITIES.............................................................................................28
3.1. THE CONSULTING COMPANY.....................................................30
3.2. Classification of business consulting services...................................31
ACTIVITIES.............................................................................................31
SELF APPRAISAL...................................................................................32
UNIT II.............................................................................................................35
BUSINESS CONSULTING MARKET........................................................35
4.1. BUSINESS CONSULTING MARKET.............................................37
SERVICES....................................................................................................38
4.3. CLASSIFICATION OF THE OFFER OF CONSULTING
SERVICES....................................................................................................38
◊ Deloitte...............................................................................................39
◊ BDO Consulting SAC........................................................................39
◊ Macroconsult SA................................................................................39
◊ MAXIMIXE.......................................................................................40
5.1 . IDENTIFICATION OF DEMAND FOR CONSULTING
SERVICES....................................................................................................42
TABLE 5. ECONOMIC AREAS DEMANDING CONSULTING..........43
5.2 DEMAND FOR CONSULTING IN THE PRIVATE SECTOR.......43
a) Private Sector Dimension...................................................................43
b) Economic groups in Peru...................................................................44
c) Purchase procedure............................................................................45
5.3 DEMAND FOR CONSULTING IN THE PUBLIC SECTOR.........45
Purchase procedure....................................................................................45
5.4. CONSULTING CLIENT REQUIREMENTS.......................................46
ACTIVITIES.............................................................................................46
6.1. MECHANISMS FOR ACCESS TO CONSULTING.......................47
6.2. SERVICE OPPORTUNITIES IN BUSINESS CONSULTING........48
UNIT III............................................................................................................50
MARKETING OF PROFESSIONAL SERVICES.......................................50
7.1. CLASSIFICATION OF SERVICES.................................................52
7.2. CONSULTING AS A PRODUCT.....................................................53
7.3. ADDED VALUE OF CONSULTING...............................................54
8.1 . SERVICE COSTS............................................................................56
Time...........................................................................................................56
Calculation of the cost of consulting time.................................................56
8.2 THE “PERCEIVED VALUE” METHODOLOGY...........................58
8.3 THE PRICING STRATEGY.............................................................58
9.1. THE MARKETING PLAN....................................................................60
The structure of the marketing plan must include, at a minimum, the
following elements:...................................................................................60
9.2. KEY STRATEGIES IN THE MARKETING PROCESS OF
CONSULTING SERVICES.........................................................................61
9.3. SPECIFIC STRATEGIES......................................................................62
9.4. SALES AND PROMOTION OF SERVICES...................................65
SELF APPRAISAL...................................................................................67
UNIT IV............................................................................................................68
CONSULTING PROCESSES MANAGEMENT........................................68
10.1 PHASES OF THE CONSULTING PROCESS....................................70
10.2. DESCRIPTION OF CONSULTING PROCESSES.......................71
a) The preparation:.................................................................................71
b) Contact with the client........................................................................71
c) Workplan............................................................................................71
d) Diagnosis............................................................................................71
e) Identifying problems..........................................................................72
10.3. EXECUTION OF THE SERVICE.................................................72
...................................................................................................................72
10.4. FIELD AND CUSTOMER SUPERVISION.................................73
11.1. QUANTITATIVE ANALYSIS......................................................75
11.2. CONSULTING APPROACHES....................................................76
a) The Harvard approach........................................................................76
b) The process approach.........................................................................76
Process mapping procedure.......................................................................76
◊ c) The growth cycle............................................................................77
The phases that emerge from this analysis are the following:...................77
e) The value chain approach...................................................................78
THE VALUE CHAIN AND BUSINESS.....................................................79
f) The reengineering approach...............................................................79
g) The total quality approach..................................................................79
11.3. Qualitative analysis.........................................................................80
11.4. Development of practical cases......................................................80
Prepare a change agenda............................................................................80
1. Start by Identifying needs and priorities and establishing degrees of
urgency in the organization:......................................................................81
2) Find out where the failures occur? And what needs are pressing?.......82
3) Prepare your change strategy................................................................82
4) Put the change strategy into action.....................................................82
ACTIVITIES.............................................................................................83
12.1. Selection and training of the work team...............................................85
TEAM STRUCTURE...................................................................................87
12.2. Management of work teams...........................................................87
Factors that drive team dynamics..............................................................87
12.3. EVALUATION OF EQUIPMENT PERFORMANCE.................88
Quantitative indicators...............................................................................88
12.4. DEVELOPMENT OF PRACTICAL CASES................................88
13.1. PREPARATION BEFORE PRESENTATION..............................90
13.2. HOW THE PRESENTATION SHOULD BE DONE....................91
14.1. WHAT CONSULTING IS LIKE IN SMEs...................................94
14.2. CONSULTING OPPORTUNITIES IN SMALL BUSINESS.......95
95
The advisor, as a coach..............................................................................95
The advisor, as a consultant:......................................................................95
The advisor, as performance manager:......................................................96
The advisor, as a mentor:...........................................................................96
ACTIVITIES.............................................................................................96
SELF APPRAISAL...................................................................................96
BASIC.......................................................................................................98
/oas:........................................................................................................................102
SUMILLA
The Business Consulting and Advice course belongs to the area of knowledge of
business sciences. It offers a set of approaches, concepts, criteria, methodologies and
tools of business consulting, whose objective is to familiarize professionals from various
fields in the world of consulting.
This course is eminently theoretical-practical. First, the role of the business

consultant is analyzed, why do consulting, It continues with the study of the
consulting market, Then the marketing of professional services is developed, Finally,
it concludes with complementary aspects of process management consulting.
COMPETENCE
At the end of the course, the student will be able to identify business
opportunities in the field of business consulting, develop a service offer
consistent with the market, develop a service plan to achieve professional
goals in the field of consulting, develop skills commercials to sell their product
“knowledge” in a certain area of knowledge, demonstrating in their actions,
critical judgment and ethical-Christian principles.
METHODOLOGICAL GUIDELINES
HOW TO STUDY
DIDACTIC MODULES OR SELF-INSTRUCTIONAL
TEXTS
A2D METHOD
The A2D method for self-taught people, by Raúl Paredes Mo

rales, it is a method that is easy to apply for most students,
even for those who are not self-taught. If the student applies Before reading During
this method, his intellectual work will be faster and more A2D reading After reading
effective.
A2D responds to the initial letters of the 3 steps proposed for
reading a teaching module or any other text.
BEFORE READING
It consists of the preliminary exploration and
must:
Z Take a general look starting with the index,
recognizing units and lessons that are
explained in the teaching module.
Z Write down any doubts that arise during the
overview, to clarify them during or after
reading.
• Adopt a positive attitude.
DURING THE LECTURE

This is the most important phase of the method,
the reading pace is set by each reader. You must
keep the following aspects in mind:
O Keep a positive attitude.
O Actively participate in reading: Taking notes,
underlining, summarizing and outlining.
Z If you do not understand what you read or
find an unknown word, consult your tutor or a
dictionary.
AFTER READING
This phase will strengthen your reading, improving
your comprehension. To do this you must take
into account the following:
O Review the notes taken during reading.
O Organize work and plan your study
schedule. Try to always have it at the same
time.
O Do the work daily. Don't let your tasks pile
up.
Z Try to expand the lessons with
complementary readings.
□ At the end of each chapter, make your
synoptic table or concept map.
Or Create your own summary.
Enrich your
vocabulary to
understand
_________
Better next
readings.
UNIT I
THE CONTEXT OF CONSULTING
Session No. 1 Basic notions of Consulting
Session Nº 2 Evolution and development of knowledge

business development
Session No. 3 Dimension of support services

business consulting
LEARNING UNIT OUTCOME
At the end of the unit, the student identifies and

understands for the field of Business Consulting, den
within the framework of professional career services.
The fear of Jehovah is pure and endures forever, the judgments of truth are
all just,
Psalms 19:9
BASIC
CONSULTING
NOTIONS
In this session you will learn what the role of the consultant
consists of and why clients turn to a business consultant and
what relationship it has with business advice.
Hey Carlos, I want to talk to you about a

decision I plan to make, I plan to enter the
north with my products, the market is growing,
prices are very competitive in this market, but I
need to size the market, quantify the demand
and the risks of entering this market, could you
help me on this topic?
yes_______________________________________
1.1. WHAT IS BUSINESS CONSULTING?
The Institute of Business Consultants in the United Kingdom defines business consulting as follows:
“Service provided by an independent and qualified person or persons in the identification and
investigation of problems related to policies, organization, procedures and methods to take
appropriate measures and provide assistance in the implementation of such recommendations.”
(Quoted in William Cohen 2003)
Business consulting is an advisory service contracted by an organization, provided by trained and
qualified specialists in one or more areas of business knowledge who provide assistance, objectively
and independently, to the client-organization in uncovering business problems. management,
analyze them and recommend solutions for those problems.
It is a service provided by one or more experts knowledgeable in a discipline or area of knowledge
who has sufficient experience and skill to solve a problem posed in their area of knowledge or
specialization.
Even though some authors, when referring to consulting, also do so with advice, there are
differences that are important to highlight, as seen in Table 1.
Consulting and Business Advice

Peruvian Union University
Table 1 Differences between consulting and advice
CHARACTERISTICS CONSULTANCY ADVISORY
More complex, the response The response is faster to the

Needs Identification Method
may take time problem
Scope of service It occurs immediately, it is

It is more complete, provides transitory
greater added value,
methodologies, tools,
procedures
Key role The team The advisor
Impact on the result Big Little
Fee High Low
1.2. WHO IS A BUSINESS CONSULTANT?
The term consultant is generic and applies to any person or organization that provides advice to
decision makers. The expressions “management consultant” or “business consultant” indicate the
sector of intervention of the Consultant, which is assistance to entrepreneurs, managers and other
decision-makers in companies, whether in the private or public sector.
Client organizations that seek the professional guidance of a Consultant have several options to
choose from among a great diversity of Consultant services that show enormous differences in
terms of their background, experiences, competencies, work style, conditions of intervention, quality
of service. and professional standards.
A consultant is any person who gives advice or provides a professional service in an area of
expertise in exchange for remuneration. This means that regardless of your area of interest or
experience, you can become a consultant. Everyone has a unique background, with special
experiences and interests that some individuals or companies require at certain times.
Although the orientation of a consultant is clearly professional, there are cases of successful
consultants with a rather limited academic training. What makes a person a Consultant is the quality
of an expert in a subject or knowledge. The important thing is to have the experience, accreditations
and skills necessary to help others solve a problem that a person or an organization wants to solve.
Unit II
It matters much less where these capabilities were acquired. However, if your intention is to work as
a Management Consultant for a prestigious consulting firm and not on your own, a Master of
Business Administration (MBA) will likely be required.
Only in the second half of the 20th management became an assimilable doctrine
century, the for ordinary mortals, something that could be learned and
taught. There are many here demics and consultants
who associate their names with this “massification.” But
the man who started this evolution was Peter Drucker,
baptized as “Dr.Management”.
1.3. CONSULTANT CHARACTERISTICS
Patience
It is the beginning of the good relationship between the consultant and the client. Consultants, with
more experience, have patience as a virtue and allow people to experiment with them.
Objectivity
Maintain the sense of what you are doing at all times. Problems and disagreements can cause us to
lose the vision and objective of the mission. We must always take into account where our main
contribution goes.
Analytical
The mission of the consultant is to identify the limits of the company and Redefine them. You should
look further back than what is offered.
Specific
Not only should “what to do” be given, it should also be given how and when to do it. You must be
careful when giving opinions and value judgments. Define the intervention limits of the model.
Creative
The client expects to be given alternatives. The good consultant generates interventions that allow
creating and proposing new paths and solutions. Use inventiveness in interviews with the client to
obtain the information you need.
Management vision
It is required to have a prospective vision to anticipate events and make proposals, keeping in mind
the client's perspective.
Additionally, it is required to have technical competence: specialized knowledge of consulting,

integrity and professional solvency.

The purpose of this guide is to help the consultant outline a work methodology to serve his client with the greatest
effectiveness and efficiency possible, trying to help in the decision of making the best alternative and how to
implement it.
1.4. WHY USE A BUSINESS CONSULTANT?
Consultant Guide:
Rosalinda Palacios (2011) mentions, in general, that

Consultants are employed for one or more of the following
reasons:
◊ So that they provide special knowledge and skills.

◊ To provide intensive help on a temporary basis.
◊ To give an impartial point of view.
◊ So that they give the management arguments.
In fact, there are very good reasons why both the government and private companies turn to
Consultants. What's more, they are not just hired once, but many times, and they are highly
recognized. It is very important that you understand exactly what these reasons are.
Signs that indicate the need to hire a consultant.
According to James E. Svatko (1981), the following situations indicate the need to seek external
expertise by hiring a consultant:
◊ Lack of a written business plan.

◊ Low mood impossible to explain.
◊ Constant and stable increases in costs.
◊ Chronic liquidity shortage.
◊ Delays in late shipments of products.
◊ Loss of position in the market.
◊ Overworked staff.
◊ Excessive repetition of work without achieving objectives.
◊ Continuous supply deficiencies.
Unit II
◊ Lack of information about the competition or the market.
The indicated reasons may be present in many forms and be so interrelated that the consultant may
find himself faced with a very complex situation; However, you should strive to maintain a very clear
view of the reasons why your services are used, even if in the course of your task the initial reasons
change or completely new ones are discovered.
1.5. TYPES OF CONSULTANTS
Consultants can be “external” to the organization, (which is the most general case when it is desired
to apply new approaches or techniques for which the organization does not have specialists); or
internal, when managers or specialists from the organization itself are used.
The advantages of “external consultants” are their independence of judgment, impartiality and “non-
commitment” to the organization's problems, they handle experiences from other organizations, and
they have more credibility than the members of the organization. Among the disadvantages are that
they do not know the organizational culture or the company, therefore, they need time to become
familiar with the environment.
The advantage of “internal consultants” is that they are a specialist in some area of the company,
they know the problems in depth, and the disadvantage is that they provide less credibility and
authority than an external consultant and are limited in terms of providing experiences from others.
places. Due to the hierarchy of their functions, they can be:
Senior Consultant: Is one who has extensive experience (usually more than 15 years of experience

in business development cases.
Junior consultant: Is one who has little experience in handling cases of companies and their staff,
(less than 10 years of experience)
The difference between a Senior and Junior consultant is not only in their degree of expertise, but
also in their attitudes, as indicated in table 1. A Junior Consultant asks, What are we going to do? A
Senior Consultant says “this is how I see things.”
ATTITUDES CAPABILITIES
Junior consultant Senior consultant Junior consultant Senior consultant
It is more complete,
Begin to know the provides greater
It occurs immediately, it is
dynamics that interact in added value, Youth
transitory
the market methodologies, tools
and procedures
Know the entire

business group
His knowledge focuses strategy
Superficiality Depth
on company strategies
Its management is
Aligns with what the Is creative in Its management is based
based on “Theories”
client wants to do customer dynamics on tools: it can be canned
Involved in business
Involved with the

Little knowledge of the
environment through Add economic value to
business area, limited to Deliver work on dates
reading current your work,
processes
affairs:
ACTIVITIES
◊ Students access the website of business consulting companies in Peru or Latin America, and
analyze their business model.
◊ Students point out differences between Consulting and Advisory, taking into account the business
model of the previous case
Unit II
Jehovah impoverishes and he enriches, abases and exalts Samuel 2:7
Sessio
EVOLUTION AND
2
n
CONE DEVELOPMENT-
BUSINESS
FOUNDATION AND
CONSULTING
In this session you will learn about how Consulting has evolved in the world and
what the new currents of business thinking are and their impact on business
consulting. sarial.
2.1. CONSULTING DEVELOPMENT
Business consulting has its origins in the industrial revolution, the emergence of the modern factory
and the related institutional and social transformations. Its roots are identical to those of business
management or administration as a separate sphere of human activity and field of learning.
The pioneers of the scientific organization of work, who gave a great impetus to the development of
consulting, are: Frederick. W. Taylor, Frank and Lillian Gilbreth, Henry L. Gantt and Harrington
Emerson. All of them applied the scientific method to solve production problems. They were tireless
lecturers, conducting studies, writing books and articles, organizing practical demonstrations and
providing advice in every imaginable way. At the end of his life, Taylor decided to become a full-
time Business Consultant.
Consulting, which emerged from the scientific organization of work, was based mainly on
productivity and efficiency in factories and workshops, the rational organization of work, the study of
time and movements, the elimination of waste and the reduction of production costs. This sphere
was given the name “industrial engineering.”
The limitations of industrial engineering and the methods of efficiency experts have given rise to a
broadening of interest in other aspects and dimensions of organizations and to the emergence of
new spheres of consulting. Edwin Booz created in Chicago, in 1914, one of the first consulting
companies as they are currently known.
In the 1929s and 1930s, business consulting gained ground not only in the United States and the
United Kingdom, but also in France, Germany, Czechoslovakia, and other industrialized countries.
Despite all this, its volume and scope remained limited.
Consulting on behalf of governments and the army played an important role during World War II.

Milton Friedman, the Nobel Prize winner in economics from the University of Chicago, in a goose sion when referring to
the great English economist, JM Keynes stated about economists: “we are all Keysians”, now for management
scholars, it could be stated similarly: “we are all Druckenians”.
2.2.
THE GOLDEN AGE OF CONSULTING.
THA The golden age of consulting begins with post-war reconstruction, the rapid
expansion of companies combined with the acceleration of technological change,
T?
the emergence of new developing economies and the internalization of global
industry, trade and finance. created particularly favorable opportunities and demands for business
consulting services. During this period, most of the consulting organizations that exist today were
established and this activity achieved the power and technological reputation it enjoys today.
In this period, the expansion of business consulting has been notable from all points of view.
However, important qualitative changes have also occurred. In Western Europe and North America
the consulting market is now a buyer's market: supply exceeds demand and clients can afford to be
selective, ensuring that they use the best of experts and that they get the most for their money.
money.
Developing countries have learned about consulting through international technical assistance or
cooperation, which has been the main source of financing missions undertaken by foreign or
domestic consultants. The newest of the consulting markets and the new frontier for consultants are
the countries of Central and Eastern Europe. Massive privatizations, economic restructuring and the
drive towards competitiveness to catch up with Western companies have had a major impact on the
demand for consulting services.
In Latin America, as a result of the opening of economies to the world, the demand for consulting has
begun to emerge as a local consulting profession. However, the growth and professionalization of
consulting in Latin America is still limited by the lack of experience, although its future is promising;
given that the countries in the region are growing and, in addition, their professionals are forced to
compete not only among themselves but with their global peers.
2.3. EVOLUTION OF BUSINESS KNOWLEDGE

Consulting is linked to the advancement of business knowledge. Below is a brief analysis of how this
knowledge has evolved and its main exponents.
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23
The theory of quality control
W. Edwards Deming and Joseph Juran, the promoters of the Quality movement launched in the
1950s, would only be “heard” among the Japanese and completely forgotten by Westerners (who
would only discover Deming in 1982 when he wrote Out of the Crisis and A Juran, when he published
Planning for Quality, in 1985).
Deming went beyond the “engineering” vision of quality control brought to Japan immediately after
the war by a group of American engineers greatly influenced by the statistical approach of Walter
Shewhart. If quality is, in fact, to occur in practice it has to be led by management, this was Deming's
main message to his audience in Tokyo.
The Japanese would create a Prize -Deming Application Prize- whose first winner was, in 1951, Koji
Kobayashi.
The motivational theory
Douglas McGregor, in 1960, proposed “theory ; At the other extreme (“Y”), everyone's commitment
and competence had to be released, because “the typical human being is not an innate lazy person”
and it is not true that people work effectively “with a stick” – this comes from the motivation and
commitment of people.
Marketing myopia
Marketing would not make sense until a Harvard Business School professor and consultant gave an
air of seriousness to the subject. A famous article in the Harvard Business Review magazine from
July-August 1960 had the controversial title “Myopia in Marketing.”
The article was signed by Theodore Levitt, who was called the “father” of Marketing, when it became
a respected discipline. In that article, Levitt makes a distinction between sales tasks and marketing.
He argued that the central concern of companies should be satisfying customers and not producing
goods and “packaging” them with tricks.
The other stronghold of this discipline was Philip Kotler, to whom we owe expressions such as
“segmentation”, “positioning” and “target definition”. He reinforced Levitt's convictions and gave us
this pearl of definition: Marketing is not cosmetics to sell what you have, but the art of creating value
for the customer. With Marketing Management, from 1967, the author gave the starting point for more
than 25 of his books to this day.
Deming's thought is reflected in the following words: “A well-managed

company is one in which statistical control reduces variableness and
results in uniform quality and a predictable total quantity of production.”
Strategy and paradigm
In the 1960s, an economic historian, Alfred Chandler, in 1962, wrote Strategy and Structure, putting
strategy at the top of the agenda and saying clearly that it should “lead.” Decisions about the
structure of organizations would then be inferred in accordance with the strategy.
Unit II
Five years later, Igor Ansoff published Corporate Strategy and launched the trend of strategic
planning (which would give the Shell group the fame of having anticipated the oil crisis of the 1970s).
Ansoff was vice president of Lockheed, proposed a “practical model for making strategic decisions in
a company.” He definitively separated operational management from strategic management.
Kenichi Ohmae, an unknown Japanese who earned a doctorate in nuclear energy at MIT, would write
Tokyo: The Mind of the Strategist in 1975 (Westerners would only discover it in 1982, with the
translation of the book). The thesis of the McKinsey consultant in Tokyo was that the secret of the
Japanese did not lie in large strategic planning staffs in companies - the key was a talented strategist
who was guided by a strategic triangle: the company, the customers and the competition.
Peter Drucker, for his part, was one of the first to anticipate the “great debacle” of the 1970s
(abandonment of the gold standard, oil crisis, exhaustion of the industrial growth model, “take off” of
the personal computer). In The Age of Discontinuity (1969) he spoke of the emergence of the
“knowledge worker” and its impact on the economy and society.
It was precisely in these years that the idea of “paradigm change” and beginning to “think the
unthinkable” spread with futurists such as Herman Kahn, the Toffler couple (with the first book, The
Clash of the Future), Willis Harman and Oliver Markley (Changing Images of Man), Jay Forrester and
the Meadows couple (who wrote the famous story Limits to Growth), and with the sociologists heralds
of the “post-industrial society”, such as Daniel Bell and Alain Touraine.
The competitiveness
Michael Porter, a Harvard professor, was the driving force behind competitiveness, writing the
concept of “competitive advantage,” which would win over business discourse, and later his 1980
book Competitive Strategy became a “bible.”
Porter proposed the model of the five competitive forces - the entry of new competitors, the threat of
substitutes, the bargaining power of buyers, the bargaining power of suppliers and the rivalry
between competitors - and the concept of generic strategies. According to Porter's theory, a company
can compete via differentiation, cost leadership, or focus. He who chooses well is successful. “Trying
to position itself in the middle leaves the company in a very poor strategic situation.”
The circles of quality and excellence
This time the new theory came from Japan, William Ouchi (who coined the famous title Theory Z, and
subtitled 'The Japanese Challenge') and with The Art of Japanese Management, by Richard Pascale
and Anthony Athos, this book reveals the quality circles applied in Japanese companies.
The response to this dazzle by Japan was immediate. Tom Peters and Robert Waterman,
consultants at McKinsey, produced a report-style report showing that there were successful
companies in America. With Tom Peters (In Pursuit of Excellence, published 1982). The search for
'excellence' was, in its time, a revolutionary message,” he recently confessed to Fast Company
magazine, on the occasion of the upcoming 20-year anniversary of the book's publication.
Business culture
Also, in this period, the idea of “company culture” was born with the book by a social psychologist,
Edgar H. Schein, Organizational Culture and Leadership, in 1985. It was he who wrote: “The
company is an economic vehicle invented by society. Companies have no divine right to survive. But
value systems and philosophies survive. People carry them with them.” Rescuing their ideas,
success results from “aligning them” and promoting “cross-cultural dialogue between them.”
The guru industry
In the first part of the 90s, “best sellers” appeared, many of them published in the American magazine
Harvard Business Review and later transformed into true mass consulting businesses.

Michael Hammer, a computer science professor at MIT in 1990, wrote an original article in the
Harvard Business Review, “Reengineering Work: Don't Automate, Obliterate.” Which said “While the
Industrial Revolution focused on individual tasks, the reengineering revolution focused on the entire
process, focusing on the work of each person.”
Added to reengineering was the appearance of a new approach: “downsizing” in many sectors, in the
first half of the 90s, Gary Hamel and CK Prahalad published an initial article in 1990 in the Harvard
Business Review (“The Core Competence of the Corporation”), - it had a lot of echo in the business
circles. The term became mandatory and led to a change in perspective - from the traditional focus
on the businesses in which the company was historically involved (and the business units it created)
to the identification of the distinctive and differentiating competencies it acquired.
Peter Senge with his work (The Fifth Discipline: Art and Practice of the Learning Organization) and
the natural “extension” to Public Administration of the wave of changes, with the launch of the
“reinvention of government” movement, based on title of a book published by Ted Gaebler and David
Osborne, in 1991.
This change in analysis founded the movement of alienation and “outsourcing” of everything that did
not fit with the core competencies and motivated the search for new business opportunities, based on
the portfolio of identified competencies.
In 1990 again Michael Porter published a very ambitious piece of academic research - The
Competitive Advantage of Nations. The macroeconomic vision and
Unit II
geoeconomic theory that he presents made many governments hire the consulting services of the
Harvard professor and develop a business of creating competitiveness indicators” of the countries.
We owe him the terms such as the geographically and territorially identifiable industrial “cluster”.
Porter “extended” the notion to the field of innovation in “Innovation: Location Matters”, published in
the journal Sloan Management Review (summer 2001 issue), where he reaffirms:
“Our research reveals the high degree of influence of the local environment on the success of an
innovation activity.”
The Knowledge Society
Drucker published, in 1993, The Post-Capitalist Society, in this book he broadly explains the
emerging economy, the knowledge economy, its protagonist (the knowledge worker) and the
implications for organizations. The idea of the “knowledge worker” is old in Drucker - if by “old” we
accept that he discovered this character in the 1950s.
This social group is today 30% of the active population and will be 40% in 2020, according to a study
carried out by Drucker and published by The Economist (2001). The very concept of the knowledge
society has taken root in the last decade. Drucker adds: “in a capitalist system, capital is the critical
resource, and is totally separate from, and even in opposition to, labor.” In the knowledge society, the
key resource is knowledge. Knowledge resides in the person, in the knowledge worker.”
The new economy
The new economy came with the massification of the Internet. A Canadian consultant forges the term
“digital economy” in a work with the same title published in 1996 - The Digital Economy: Promise and
Peril in the Age of Networked Intelligence, by Don Tapscott. A journalist from Wired magazine (at that
time the most cult magazine), Kevin Kelly, published New Rules for the New Economy in 1998,
where the economic laws valid throughout the century were changed backwards.
The global and digital era
The 2000s became intense with globalization, the desire of companies to “go international” was
latent, following a step-by-step approach (from the domestic market to the export market and then to
multinationalization), necessarily slow (involving decades of learning and experimentation) and
tending to “clone” their culture in other places, or should they think “globally” from the beginning and
accelerate that positioning? Influenced by the work of Yves Doz, from INSEAD, he has just published
a book co-authored with a Portuguese, José Santos, and with Peter Williamson, suggestively titled
From Global to Metanational.
The notion arises from the empirical study of cases among which the Finnish companies Nokia and
Linux stand out. This motivated the current of academic research in that Nordic country to be one of
the strongest in this matter.
All these advances in business knowledge brought notable advances in consulting, to the point that
today the business consulting sector has become an entire industry that moves billions of dollars in
the world and is constantly challenging business knowledge with new theories. and gurus who come
from all over the world and not just the US.
INVESTIGATE
◊ What are the latest innovations produced in business knowledge in the world?
Unit I
27
◊ What representative authors in Latin America, including Peru, have made contributions Are you
interested in the advancement of business knowledge and/or consulting?
ACTIVITIES
◊ Students find out the bibliography of three renowned business consultants, both international and
national.

Heaven and earth will pass away, but my words will not pass away.
(Matthew 24:35)
DIMENSION OF
BUSINESS
CONSULTING
SERVICES
In this session you will learn how consulting companies in the
market are organized to provide their services.
3.1. THE CONSULTING COMPANY
Consulting companies are firms made up of professionals who are experts in one or more branches
of business knowledge, whose activity consists of providing practical solutions in one or more fields
of specialization of business knowledge.
Consulting firms vary in size, location, and types of clients they serve. The following are known in
the world:
Firms specialized in general management. These are the big firms like McKinsey and Company,
Booz-Allen & Harnilton or Arthur D. Little, who bill millions and millions of dollars annually in
consulting services.
Large accounting firms with consulting divisions. Like Price Waterhouse, Deloitte, KPMG, most of
these accounting firms provide comprehensive audit and consulting services. They also have a
presence in Latin American countries.
Firms specialized in certain particular business functions, such as market research or human
resources.
Firms specialized in specific industries. These are large national or international firms that only deal
with certain industries or certain types of operations. As an example, one could cite the firm IBM,
which stands out, above all, for its consulting work in technological solutions for the sector.
Most of the consulting firms' activity is concentrated in Lima and most projects are concentrated
mainly in provinces or regions, such as Lima, due to its high proportion of inhabitants, in contrast to
the rest of the regions of Peru;

It also receives investment from the State, but not from international investment organizations.
3.2. Classification of business consulting services
The consulting sector could be divided into business consulting and engineering consulting.
The business consulting sector is further divided into:
◊ Comprehensive consulting; which brings together the consulting firms that serve all areas of
company management (strategy, finance, production, marketing, human resources, technology
information guides).
◊ Marketing consulting; related to the management of the marketing and sales area.
◊ Information technology consulting; manages the software part.
◊ Management systems consulting; advises on the management of quality areas.
◊ Environment, safety, social responsibility, etc. and helps the company obtain the corresponding
certification.
◊ Human Resources Consulting.
◊ Legal and tax consulting; related to legal aspects and the payment of taxes positions.
The engineering consulting sector is characterized by infrastructure works, the areas that are
having the greatest importance are: mining, energy, hydrocarbons, roads, sanitation (water and
tributary treatment) and health (hospitals and equipment).
Apart from the subsectors mentioned, in which consulting companies are specialized, there are
others that are aimed only at SMEs, these being their target client. Industrial institutions and unions
mainly operate in this area, such as Senati, the Ministry of Labor and Social Promotion, regional
chambers of commerce, etc.
ACTIVITIES
◊ Students research five consulting companies specialized by sector and compare the
advantages and disadvantages of their services.
◊ Students propose improvements in consulting services.
I also received
THAT? cooperation.
Unit I
31
SELF APPRAISAL
1. Explain what differences exist between consulting and advice.
2. What is the role of the consultant towards a client?
3. What innovations have occurred in the field of consulting in the last 30 years?
4. Point out the most important characteristics of a consulting service?
5. Mention three new disciplines of business knowledge, applied in the field of business
consulting?

UNIT II
BUSINESS CONSULTING MARKET
Session #4 Offer of consulting services
Session No. 5 Demand for consulting services
Session No. 6 Identification of opportunities in

business consulting
At the end of the unit, students identify business

opportunities, analyze and compare the supply with the
demand for services.
I was young and I have grown old and I have not seen the righteous
forsaken or their descendants begging for bread.
(Psalms 37:25)
THE OFFER OF
BUSINESS
CONSULTING
SERVICES
In this session you will learn to identify the offer of consulting
services, analyze and compare with market opportunities.
4.1. BUSINESS CONSULTING MARKET
The consulting market in general is made up of the supply and demand of specialized
professional services that are offered, both in the global world and at a local level.
In this market, multinational global firms, foreign franchises and large local consulting firms
compete. There are also small consulting companies and independent consultants, which are
usually the largest in number, given the diversification of consulting services that exist in
emerging markets. .
The consulting market is one of the most dynamic sectors, according to William Cohen
(2008), “Consulting, in the world, generates income of around one hundred billion dollars.”
This explosion has been generated by technological advances such as the Internet, which
not only facilitates the consulting process, but also creates a different demand for the
Consultant. On the other hand, the number of independent professionals entering consulting
is increasing, which has increased surprisingly in Latin America, thanks to the opening of the
region's economies and the progressive internationalization of its companies.
In this session we will analyze the consulting market in Peru from two perspectives: supply
and demand.
Consulting, in Peru, only became relevant in the 1990s, with the push for privatization, the
rise of the economy and the opening of the economy of the countries in the region.


SERVICES
One of the elements that contribute to sizing the consulting market in Peru is the amount of billing of
the main companies in the sector: according to data from Perú Tops 2009, in 2008, the income of
these companies amounted to US$648 million. This figure includes income from all business areas
of these companies, which may be different from consulting.
Analyzing the billing data of the main companies in the sector in 2009, according to Peru: The Top
10,000 companies 2010, the distribution of these companies can be deduced according to their
areas of specialization, as shown in the following graph.
Fig. 2 Distribution according to the areas of specialization of main consulting

companies 2009
33% of the main consulting firms in Peru are dedicated to Engineering consulting and the
Information Technology subsector and comprehensive consulting and, to a lesser extent, to
consulting in tax, legal and marketing advice.
The representative organization of these companies is the Peruvian Consulting Association (APC).
This association includes consulting companies in any subsector, its members (around 19
companies) are part of the engineering consulting group, reaching a total of $400/500 million in the
last year. All of these companies serve both the sector public as well as private.
4.3. CLASSIFICATION OF THE OFFER OF CONSULTING SERVICES
Consulting services companies in Peru can be classified into three different categories depending
on the service they offer:
◊ Integral service. They are usually multinational consulting companies or leading companies that
cover high-level areas, such as engineering or implementation of technological solutions.
◊ Total service. They are those that, although they do not have knowledge of each of the areas,
provide all types of consulting thanks to subcontracting.
◊ Specialized. They respond to the needs of the market, specialized in areas specific business
management and small and medium-sized companies belong to this group.
Apart from this offer of consulting services, independent consultants are included, who, for the most
part, are specialized in the area of management and organization, followed by the area of finance
Unit II
and accounting, and legal advice and business structures.
Main Comprehensive Consulting companies
Price Waterhouse Coopers (PWC).
Currently, in Peru, the local firms Price Waterhouse Coopers Sociedad Civil de Responsabilidad
Limitada and Dongo-Soria Gaveglio y Asociados Sociedad Civil are part of the global organization
PWC and receive international technical support.
Areas of specialization: Finance and accounting, expertise and appraisal, Human management:
Management and organization, Production and logistics, Legal and business structures: Labor and
tax advice, projects. E-business.
Ernst & Young21
Ernst & Young was born in 1989 when the Arthur Young firm merged with Ernst & Whinney. From
then on, the company expanded in Latin America and acquired other companies with which it
strengthened its economic areas. Its business areas include: Legal and tax audit Consulting
Corporate finance and outsourcing.
◊ Deloitte
Multinational company with services in: Financial advisory: Corporate finance, restructuring and
transaction services. Tax and legal: Labor and labor-tax advice. - Audit: Computerized audit tools.
Consulting, Information Technologies. Enterprise Risk Services: Assurance of controls, internal
audit, ERM, Social Responsibility and Corporate Governance, security and privacy. Outsourcing.
◊ BDO Consulting SAC
Important North American multinational present in 85 countries and with more than 16,000 related
professionals. In Peru, BDO provides, among others, comprehensive services of: - Tax audit and
consulting. - Business consulting: BPM (Business Process Management) solutions; operations
productivity; assessment of critical business processes; Take Over processes and merger of
businesses and operations; financial, operational, technological and organizational fusion
processes, etc.
◊ SUPPORT Consulting2
This company belongs to Grupo APOYO, one of the leaders in the field of consulting and marketing
in Peru. This Group is made up of APOYO Consulting, APOYO Corporate Communication, APOYO
Opinion and Marketing, and APOYO Publications, among others. Provides economic advisory
services: business advisory and consulting services: economic studies, competition and regulation,
business consulting, financial advisory, public management, telecommunications and real estate
advisory.
◊ Macroconsult SA
The Macroconsult SA Group is one of the most recognized consulting firms in Peru, well known for
having participated in important privatization processes in Peru. He specializes in the
macroeconomic area, economic and social impact studies; regulation and competition; public
policies, reform and modernization of the State, financial consulting, business restructuring; market
studies and business control systems.
Unit II
◊ MAXIMIXE
Peruvian consulting company focused on the SME segment, its largest client, and public sector
entities. It has five strategic divisions: Comprehensive Consulting, Economic Intelligence, Global
Communication, Marketing and Markets and School.
Main Marketing Consulting Companies
They carry out ad hoc, quantitative, qualitative market studies and advice in the area of marketing,
public opinion studies, corporate studies on the media, and marketing consulting.
◊ How much S.A1.

◊ Peruvian Market Research Company (CPI).
◊ Research Companies Corporation (Peruvian company with activity at the national and
international level.
◊ APOYO Opinion and Markets APOYO Group company dedicated to market research and
analysis of public opinion.
Main Human Resources Consulting companies.
Dedicated to the search and selection of executives, implementation and monitoring of

organizational management systems. Employee evaluation, training; career transition and
organizational consulting services.
◊ Campoverde Associate Consultants SA

◊ Manpower
◊ Tasa Worldwide SAC
◊ Adecco Consulting
ACTIVITIES
Students will identify two consulting companies, one with comprehensive services and the other
specialized, making comparisons of service approaches, in order to determine the competitive
advantage of each type of offer.
Unit II
Although I am afflicted and in need, Jehovah thinks of me as help and you
are my liberator: my God, do not delay.
(Psalms 40:17)
DEMAND OF
BUSINESS
CONSULTING
SERVICES
In this session you will learn to identify and analyze the demand
for a business opportunity in the consulting area and the
client's requirements to access that demand.
5.1 . IDENTIFICATION OF DEMAND FOR

CONSULTING SERVICES
Clients, par excellence in the consulting sector, are organizations, which are classified as:
◊ Private sector companies

◊ Government institutions
◊ International cooperation agencies
◊ Individual people.
The business structure of a country can be classified by size (small, medium and large) or by its
capital, discriminating between local and foreign companies, or multinationals.
Large companies mainly demand strategic or business consulting (which includes the area of
Information Technology) trying to maintain or increase their competitiveness; specialized consulting
(maritime transportation, engineering; and human resources consulting). Small businesses have
other needs, aimed primarily at the legal, accounting and tax area.
Despite the external crisis of 2008 and the crisis that the large global consulting firms experienced
due to the scandals arising from their audit areas; The need for growing competitiveness in the
business sector generated by economic globalization and the entry into the Peruvian market of
important multinational consulting firms have contributed to energizing, in recent years, the
consulting market in Peru.
The market niche that consulting companies generally target is large and medium-sized companies
and the government sector, to cover consulting expenses. The following table lists the sectors that
demand consulting services.

“In Peru, the nationality of a company or the country and training institution of an entrepreneur is very important when
hiring services or personnel. In this way, given the distrust that a 100% Peruvian consulting firm
would convey and despite the good training of consultants in the country, this sector is little
developed and is a field conquered by international companies.”
TABLE 5. ECONOMIC AREAS DEMANDING CONSULTING
Agroindustry, prod. food, drinks, tobacco

Trade
Banking, insurance, administrators
Pension Funds -AFP
Public institutions
Industry, diverse manufacturing
Transport
Hospitality/tourism/restaurants
Various services Fishery
Business associations NGO
Metal industry and machinery Chemistry, rubber and plastic
Mining, oil and energy Telecommunications
Textile and clothing Leather and footwear
Construction Wood, furniture and paper
Health Municipalities
Agriculture, livestock and forestry Education
International organizations Craft
Other unions/unions
Non-metallic mineral industry
5.2 DEMAND FOR CONSULTING IN THE Agriculture, livestock and forestry
PRIVATE SECTOR International organizations
Fishery
Basic metal industry
a) Private Sector Dimension NGO
Chemistry, rubber and plastic
The market for consulting services in Peru can be sized
by studying the size of the Peruvian business sector, between medium and large companies, since
they are the ones that need formal advice.
The Peruvian business fabric is mainly made up of micro and small businesses. sas, this sector is
not a regular buyer of specialized consulting services, so the analysis refers to medium and large
companies.
According to the Ministry of Production (Produce), the total number of formal MYPEs in 2011
amounted to 1,282,514, which represents 99.3% of the national formal business universe. Only
0.7% of the total companies are made up of medium and large companies.
TABLE 3. PERU: DISTRIBUTION OF FORMAL COMPANIES ACCORDING TO SIZE

RANGE (2011)
Business segment No. Companies %

Microbusinesses 1221343 94.5%
Small company 61171 4.7%

Total MYPE 1282514 99.3%

Medium and large company 9610 0.7%
Total companies 1292124 100.0%
Source: Sunat: Single Taxpayer Registry 2011
Preparation: PRODUCE - Mype Economic Studies Department
From this table, it can be deduced that 94.5% of Peruvian companies have less than 10 employees:
which reduces the market size of the consulting sector that mainly It is mainly aimed at larger
companies. Potential small businesses com Providers of tax advisory services constitute 4.7% of
Peruvian companies; and medium and large companies only 0.7%. Although due to the great
economic growth that the country has experienced in recent years, this situation can radically
change in the medium term.
The differences in behavior between large companies and small or medium-sized ones are clearly
evident: while the former have managed to establish na that has positioned them strategically in the
market and has helped them to continue to grow and not depend on a local market with low
purchasing power, the latter survive to exist and grow together (clusters).
b) Economic groups in Peru
The business structure in Peru is highly concentrated, made up of holding companies that can to
become an economy led by a few, but insignificant in number, when compared to the 98.35% of
small businesses established in Peru.
In Peru, family-type business prevails. Thus, due to the existence of holdings and the survival of
clusters, in Peru there are business groups that lead the ranking of companies in total income, in
addition to size and existing volume, constituting going a great importance in the development of the
Peruvian economy.
Table 4 Main economic groups in Peru
Financial services sector

Credicorp. It is the largest financial holding company in Peru,
formed from the spin-off of the financial companies of the Romero
Group, with more than 30 companies throughout Latin America.
Food and beverage category

Glory. It is made up of companies from productive and commercial
sectors, electrical energy distribution and cargo transportation. It
owns 80% of the dairy and derivatives market, 33% of the sugar
market, 18% of the cement market and 80% of the paper and
cardboard market.
Unit II
44
Engineering field:
Graña y Montero (G&M).
The Graña y Montero economic group constitutes the oldest and
largest construction corporation in Peru. It manages six main
companies in the country: GyM in the construction sector; GMD, a
company specialized in information technology issues; GMP,
oilfield services company; GMI, project engineering; Concar, in
charge of the operation and maintenance of roads and Larcomar,
dedicated to rentals of commercial premises, parking lots and
static advertising.
c) Purchase procedure
In the private sector there is a lot of flexibility in contracting services, there is no defined
purchasing model, according to a survey on the selection mechanisms of consulting services,
55% of respondents select consultants via recommendations or personalized search of the client
through virtual systems and specialized directories, promoted by institutions of recognized
prestige. Likewise, it was found that success depends on the satisfaction of former clients and
contacts, as well as the prestige gained.
5.3 DEMAND FOR CONSULTING IN THE PUBLIC SECTOR
The public sector constitutes a large buyer for the consulting sector; in 2008 alone, the demand
for consulting financed with public resources exceeded 129 million dollars, 48% higher than the
previous year.
The State demands a variety of consulting services, from engineering works to executive search
consultancies.
The mechanism to be able to participate with the State is bidding. Through these tenders, the
State awards the most suitable company, depending on the type of project, to carry it out through
a transparent selection process, in order to obtain better results.
The hiring of consultancies is carried out through public processes (awards and tenders)
governed by the State Contracting and Acquisitions Law, LCAE (Law 26850 of 1998) and its
regulations (DS No. 013-2001-PCM).
CONSUCODE (Superior Council of State Contracting and Acquisitions) is the governing body
that promotes the management of Public Administration, for the benefit of state and private
entities, society and national development. The OSCE being the Supervisory Body of State
Contracting.
Purchase procedure
In order to participate in the processes of contracting consulting services by the State, it is

necessary for the consulting company to register in the National Registry of Suppliers (RNP),
through SEACE, which is the body in charge of developing, managing and operate this registry.
This registration is valid for one year and only companies that are legally incorporated in the
country can be registered.

The way to call a selection process is through its publication in SEACE and, in some cases,
invitations are also required. PROMPYME also disseminates this information among micro and
small businesses.
There are various types of selection processes whose classification is based directly on the
estimated cost of the good or service (if the cost increases, the time to participate increases):
◊ Public tender
◊ Public contest
◊ Public Direct Award
◊ Selective Direct Award
5.4. CONSULTING CLIENT REQUIREMENTS
James Svatko made such an analysis of the relationship between consultant and client that it
allowed him to recommend that companies answer the following questions before deciding whether
or not to hire a consultant. As a consultant, you should also answer these five questions before
presenting a formal proposal to a client:
◊ Can it add anything worthwhile to the company's overall performance?

◊ Will your expertise bring the company closer to its goals?
◊ Can it make the company work more efficiently?
◊ Will it save the company time?
◊ With the available budget, can you do a comprehensive and effective job?
If your proposal doesn't demonstrate that you can do all of this for your client, restructure it or don't
present it at all.
ACTIVITIES
◊ Students form groups and analyze local supply and demand for a consulting service proposed
by the course teacher.
Unit II
46
Everything has its time, and everything desired under heaven has its hour.
(Proberbs 3:1)
ID
OF OPPORTUNITIES
IN CONSULTING
BUSINESS
In this session you will learn how to discover opportunities and add value
to a consulting service
6.1. MECHANISMS FOR ACCESS TO CONSULTING
Business consulting offers opportunities for many professionals who make the decision to work
independently; people get into consulting in very different and sometimes strange ways.
There are stories behind each consultant that could well be worth knowing as they did, in Peru, the
most renowned consultants such as Hernando de Soto or Felipe Ortiz de Zeballos, to name a few
names, constitute models of learning in consulting.
Felipe Ortiz de Zeballos, who runs one of the most important consulting companies in Peru with
participation in several countries in the region, always says that he began writing his own articles in
an economic magazine, where he made known his impressions, later the magazine was welcomed
and he was able to venture into consulting, having the users of his own magazine as clients.
Hernando de Soto, current president of the Institute of Freedom and Democracy, is another case of
seeing, in the informal or marginal economy, an opportunity to generate wealth for the country that
was able to capture it in a book, “The Other Path,” he later wrote. “the mystery of capital”, which
revolutionized the concept of property, with which he was able to extend his services as an
international consultant to other countries in Peru, which had the same problem as Peru de Soto is
one of the Peruvian characters most recognized by governments. from other countries. In 1999,
Time magazine chose de Soto as one of the most outstanding Latin American innovators of the
century. Forbes magazine highlighted him as one of 15 innovators “who will reinvent your future.”
The Economist magazine identified the Liberty and Democracy Institute among the two most
important public policy research centers in the world.

Strategic vision: in consulting, it refers to the ability of a consultant to size a problem and place it in its real context. A
consultant needs that ability to advise his client, focusing on the problem
from another perspective.
6.2. SERVICE OPPORTUNITIES IN

BUSINESS CONSULTING
In Peruvian organizations and in the business system as a
whole, we can see:
◊ Lack of strategic vision

◊ Lack of training plans
◊ Inadequate cost control
◊ Inadequate sales organization
◊ High warehouse costs
◊ Working capital needs
◊ Long-term financing need
◊ Need to form high-performance teams
◊ Innovate work methods
◊ Expansion plans
◊ Fixed asset investment plans
◊ Valuation of brands and other intangibles
◊ Pricing methods
◊ Evacuation of performance and potential
◊ Salary plans
◊ Need to evaluate markets
◊ Need to evaluate strategies
◊ Justify investment decisions
◊ Need to evaluate talent in people
◊ Need to improve organizational practices
◊ Need to restructure debt
◊ Design of administrative tools
◊ Personnel training
◊ Improvement of work environment and work relationships
◊ Strengthening organizational culture and change plans
◊ Strategic alliances, etc.
ACTIVITIES
◊ The students, formed in groups, will prepare a list of business opportunities in consulting, by
sectors that will be designated by the course teacher.
Unit II
SELF APPRAISAL
1. Identify what factors to take into account in the market analysis to provide a consulting service?
2. Establish the differences between the types of consulting services offered?
3. Explain the most outstanding characteristics of the demand for business consulting services?
4. Why is it said that SMEs are not targets for consulting firms?
5. What advantages does consulting offer in the public sector?

UNIT III
MARKETING OF PROFESSIONAL SERVICES
Session No. 7 The consulting service as

product
Session No. 8 Setting professional fees

them
Session No. 9 Services marketing plan

professionals
At the end of the unit, the student will be able to

analyze the consulting market and structure Create a
service marketing plan to attract customers.
Because it is better that you suffer doing good, if the will of God so wills, than
doing evil.
(I Peter 3:17
THE CONSULTING
SERVICE AS A
PRODUCT
In this session you will learn how to effectively apply the tools
service marketing tools to attract clients' interest in consulting
services.
7.1. CLASSIFICATION OF SERVICES
In a market you can observe a diversification of services: Banks;

real estate, educational services, public services, recreational
services, food services, health services, business services,
transportation services, etc.
Sánchez Gallego, professor at IESE in Spain, in an article

published in Harvard Deusto Business (1992), classified services
in four dimensions in relation to the use of resources and their
relationship with the context. This subdivision suggests three
basic characteristics:
◊ The degree of utilization of labor.

◊ The degree of organization/customer interaction.
◊ The degree of capital utilization
According to this classification, up to four main types of services

can be observed: in Fig. 3
TYPES OF SERVICES

◊ Massive services that have as a common factor the use of intensive labor, are generally large
and complex organizations, where reciprocally there is also a greater assimilation capacity to
apply management and technology models. information guides. Example: financial services
(banks, insurance, AFPs), insurance educational qualifications, leisure centers, public services,
retail and wholesale services.
◊ Service factories.- They have, as a common factor, the use of intensive capital in greater
proportion to human resources; Consequently, the degree of interaction that is duce between
the organization and the client, is low. This group of services includes airlines, hospitals,
transportation in general, the hotel industry, and entertainment and/or entertainment centers
(casinos, games, shows, etc.).
◊ Retail services.- They are generally small businesses, concentrated on a few clients, generally
regional, due to this characteristic they present a strong interest. ration with organization vs.
customer. The services they provide are small scale; They are generally widely dispersed.
Medical care centers belong to this group of services; mechanical repair and maintenance
workshops, beauty centers, cosmetics, gyms, etc.
◊ Professional services.- These are all those services provided by the various professions. liberal
nes such as lawyer, doctors, engineers, consultants, etc., here because of the service highly
specialized service they offer and the degree of interaction of the organization vs. customer is
quite high, therefore the need to create an image of trust and credibility is essential for the
success of this type of services. This type of services includes consulting services.
Key success factors in professional services companies:
a. The image and prestige of a name and/or brand are more important than information.
infrastructure.
b. Customer selection is a factor of competitive advantage.
c. The location does not matter much, but rather the speed and quality of information available to
serve the client.
d. The consulting service is very specialized and is usually aimed at a mere selective fall.
e. The service is very personalized, buyers of consulting services constitute They are a very
sophisticated group with very complex needs.
7.2. CONSULTING AS A PRODUCT
For a consulting service to have an impact on the market, it must be converted into a product, this
means:
◊ Model its presentation as a product would be, determine its value in terms of
Unit III
53
benefit for the buyer.
◊ Establish its packaging and label, that is, if what you are going to offer is a training service, it is
important that you highlight the sales angles of the product.
◊ Detail its characteristics and the methodology that will help achieve the client's desired
objective.
◊ Your name, etc. that is attractive and of high value to the buyer, example:
10 Effective Ways How to Get

Paid Like an Expert;
Flexible adaptable for any type of

company concerned with having a healthy
portfolio.
7.3. ADDED VALUE OF CONSULTING
Consulting, as it is a highly specialized service, provides added value since it is “knowing how to do
something” (Know today). It is difficult to conceive the practice of consulting without the background
and experience of the Consultant.
Consulting provides practical solution alternatives to solve a common problem. complex to decide
or carry out, helps pave the way where there is uncertainty and a lot of risk to make a decision.
Consulting, contrary to what is conventionally believed about how expensive it can be when hiring
the services of a consultant, implies obtaining long-term profitability, since there is much research
that shows that the investment in knowledge ment has high long-term investment returns.
The training and expertise of Consultants help uncover business opportunities. gocios, due to the
broad approach it has on business management. Experienced consultants know how to approach
problems and turn them into opportunities.
ACTIVITIES
◊ Students will be able to write a brief for a consulting service and label it as a product. for
commercialization in the market.

Behold, I stand at the door and knock, if anyone hears my voice and opens the door, I
will come in to him and will dine with him and he with me.
(Revelation 3:20)
Sessio
8
n
COSTS AND FEES

PROFESSIONALS
In this session you will learn about allocating the costs of a service and how
to correctly apply a pricing strategy when selling a consulting service.
8.1 . SERVICE COSTS

The tax legal relationship.- The tax obligation, subjects of the tax obligation, according to a report by
the CAD Ciudadanos al Día dated March 31, 2006, 89% of the direct tax. This type of tax is not
transferable, the subject identified as the liable party in the regulation is the one obliged to pay, for
example: income tax.
The costs of the service, in a consultancy, are easy to afford if they are direct costs, however,
consulting as a service has a lot of added value that is not always easy to afford. In this session we
will review the quantitative variables that are involved in the costing of services, as well as the
qualitative variables, which have to do with added value.
Time
The first step to calculate the cost of a consulting service is to calculate the time necessary to carry it
out. This calculation is based on a work plan and estimates of the time needed for each specific task.
These estimates can only be made if the assigned work plan is sufficiently accurate and detailed. For
example; The diagnostic phase usually takes the consultant 20 man hours, depending on the
information collection method used.
In cases where it is difficult to accurately assess time, due to the nature of a problem, it is important
that only orientation data be handled at the beginning of the task. Clients, who understand the nature
of the consultancy, will accept such an agreement.
Calculation of the cost of consulting time
The cost of the consultants' intervention time is a fixed direct cost in any case. The cost of
supervision and control of work, as well as various management activities

administrative technical support, are assumed as direct indirect costs and the consulting company
will have to decide which will be the most appropriate way.
In the modern consulting approach, fees are shared with the client. Under this approach,
consultants charge a percentage of the value they generate for the company. prey and if the
result is negative, the consultant's fee is punished, although this practice has a lot of resistance,
there are consultants who work under this modality.
In large projects, which involve different categories of consultants, it is possible to calculate the
intervention time of each consultant and their price corresponding to the category (Senior, Junior,
Assistant), so that the client knows how much they have to pay for each consultant category, as we
know, the differences in fees can be considerable and the price of a consultancy can skyrocket, if a
large part of the work is carried out by the most expensive staff of the consulting company.
In our market, the common practice is to pay for the entire service, the client does not like to have
problems with the costs and they give the consulting company autonomy to manage their time and
that of their consultants within the deadline agreed with the clients to deliver the consulting results. In
that case, the consultant will use this information as internal management information to decide what
type and magnitude of fees he or she will be able to work with.
Other expenses
This item considers expenses other than direct labor costs; they can be included as general
expenses or charged directly to the client. It is advisable to clearly establish, with the client, who
must know exactly what type of expenses will have to be reimbursed.
Classic billable or reimbursable expenses are:
Strategic vision: In consulting, it refers to the ability of a consultant to size a

problem and place it in its real context. A consultant needs that ability to
advise his client, approaching the problem from another perspective.
Unit II
◊ Travel expenses and per diem of the consultants assigned to the tasks.
◊ The special services (third parties) that they contract (for example; printing, purchase of special
equipment, long distance communications, messaging, etc.
◊ The expenses that the consultants anticipate will incur in their travel to and from the client's
premises or for local transportation, during the performance of the mission.
In international consulting these billable expenses can be quite high, reaching up to a 25 to 30%
discount on fees. Well, even provide an allowance for travel accommodation for family members, if
the consultant has to work abroad for a long period. Expenses defined as billable are not part of the
consultant's fees, but rather a separate additional item in the total budget of the assigned
intervention and in the invoices presented to the client.
8.2 THE “PERCEIVED VALUE” METHODOLOGY

It is the perception that is formed in the consumer's head when he incorporates the product or
service offer in his mind. This is manifested in three or four main attributes that lead the consumer to
his purchasing decision.
When the client buys a consulting service, they do not have an idea of how much to pay for the
service, the only way to know is through several quotes, even so, when they receive consulting
offers, the price variations can be very distant. This is where the customer's perceived value for the
product comes into play.
We know that the client values a consulting company for the image, prestige and reputation of its
consultants at the first level of decision, the higher their reputation and experience in the topic they
wish to address, the greater the perceived value, likewise, The more urgency the client has about
acquiring the consultancy, the greater the value proposition of the service; In this case, it plays an
important role in setting the prices of the service; the type of buyer, the customer's perception and
the urgency of the customer's service.
At this point, the purchasing attributes perceived by the client are determinants of the price, and are
generally carried out in separate negotiations with the clients, through qualitative research,
interviews with clients who have purchased the services, the consulting company can analyze
satisfaction with the value of the services. In this way, the three or four basic drivers that incline you
towards the decision to purchase a consulting product will emerge.
8.3 THE PRICING STRATEGY
The prices of consulting services, as they are intangible, have a high weight on the client's perceived
value in relation to the consulting product they are purchasing. Not all clients have the same
perception of a certain product. There are very informed clients who value the quality and the image
of a consultancy and they hardly buy a consultancy at a low price, because they consider it to be of
dubious quality.
Some common pricing strategies applied in the consulting industry are:
a. Perceived value: Expresses when what the client is willing to pay for the consultancy is greater
than the real price of the service.
b. Discriminated prices: Expresses the price differences that are established in the market. ced by
customer segments so, for example, there are consultancies for cor poratives and consultancies
for SMEs, corporate clients pay higher prices than small businesses. There is also price
discrimination by economic sector. mico to which the client-organization belongs, since it is well

known that the mining and hydrocarbon sector, consultancies aimed at that client segment
usually have higher prices than retail trade.
c. Skim prices: This is the price set at the upper end of the market. In consulting it is said that the
prices mostly established are skimming, since they are oriented to clients-organizations with high
income capacity.
d. Low prices: Prices established for the lower end of the market. In consulting, low prices generally
occur for high-volume or high-frequency products, for example: recruitment and selection
services for positions with higher turnover. market.
e. The market situation of the industry in general: If in the market there is a greater supply of the
service in relation to demand, it is most likely that prices will decrease. null or are lower and vice
versa, then the pricing strategy to be applied will be defensive, offering greater added value.
f. Product life cycle: As in any business, a consulting product also has a life cycle, innovative
products and traditional products; Innovative products have a higher value than conventional
ones due to a matter of perceived value, for example; Traditional selection services have a lower
price than online evaluation services.
g. Risk of not contracting the service on behalf of the client: If the client's urgency for treat the
service is high and there are not many bidders with the desired characteristics, the service is
usually set higher, and vice versa.
ACTIVITIES
h. Students pay for the service of a consulting service analyzing and determining ning the pricing
strategies that would best contribute to the usefulness of the service.
59 Consulting and Business Advice

See that no one repays another evil for evil, but always continue
good, for one another, and for all (I Thessalonians 5:15)
MARKETING PLAN
FROM THE
CONSULTING
SERVICE
In this session you will learn how to structure a marketing plan for a consulting service and how to
achieve positioning and preference in the market.
9.1. THE MARKETING PLAN
In the commercial management of a product or service, the marketing plan constitutes a highly
valuable tool for decision making.
The development of a marketing plan answers two basic questions:
◊ How are we really in the market?

◊ Where do we want to go, according to our possibilities and the existing opportunities in the
market?
The structure of the marketing plan must include, at a minimum, the following elements:
I. Market analysis
◊ Attractiveness in the business sector

◊ Current and potential market size
◊ Potential demand
◊ Main market barriers
II. Competitive business analysis
◊ Analysis of the consulting business portfolio

◊ Direct and indirect competitors
◊ Customer rating scale
◊ Prospects for new product entry
◊ Evaluation of resources and potential
II. Customer analysis.
Unit III
60
◊ Product and customer profitability analysis ◊ Pareto analysis.
IV. Strategic marketing design
◊ Market objectives and indicators

◊ Marketing guidelines strategies
◊ Operational marketing strategies
V. strategy implementation
◊ Commercial management modeling

◊ Marketing budget
◊ Marketing plan execution schedule
◊ Monitoring and evaluation plan
9.2. KEY STRATEGIES IN THE MARKETING PROCESS OF CONSULTING

SERVICES
The key strategies, in the service marketing process of a consulting company, include the definition
of three major strategies:
Focus:
Focusing involves deciding who to sell a consulting product to? In this regard, we must
define three main aspects:
a. Tangibilize the service: What type of solution do we provide? For this, it is important to convert
the need into a specific solution or benefit for the client.
b. Sizing the market: How many potential buyers are there for the product we want to sell?
c. Segment: What types of organizational clients are we going to serve? Detail the ca
characteristics of each segment, in terms of:
◊ At what stage of its development is the company?

◊ What is your organizational culture?
◊ Who makes the decision and how do they make the decisions?
◊ How often do you purchase these solutions?
◊ Who provides similar services to our organization? etc

◊ Image
What image do we want to give to our service?
In professional services it is even more important to develop a brand image concept than in mass
products, since it is an intangible, where credibility turns out to be a key factor for the business. The
most successful consultants are always concerned about their brand, they know that to sell they
need their prestige and reputation.
Building a prestigious brand is not easy in consulting; it requires intense work to search for notable
and differential skills that only adequate preparation and time will enhance.
There are several factors that can help create a prestigious brand in a consulting firm:
◊ The professional quality of the team of consultants

◊ The integrity of managers and professionals
◊ Work practices
◊ Favorable awareness among citizens
◊ Respect in the professional sector
◊ Treatment and communication with clients
◊ Confidence in the consulting cases carried out
◊ The innovations produced in your sector
Communication
Creating the right messages is as important as choosing the most appropriate means of
communication; the communication strategy must be carefully analyzed, taking into account the
brand positioning attributes of the consulting company and the positioning gaps found in the market.
Thus, for example, if the company's competitive advantage is its strength in international support,
and the market gap is in marketing channels, that means that competitors are very entrenched and
cannot achieve coverage in other territories, the opportunity may be establish messages in mass
media, which have greater coverage to try to reach the total market
The key factors to take into account in communication are:
◊ The differential advantages of the consulting product

◊ The characteristics of potential customers of the product
◊ Customer purchasing procedures
◊ The promotional impact of the media
9.3. SPECIFIC STRATEGIES
In services marketing it is important to define four key elements:

a. The concept of the service: What service format to offer?
b. image concept: What attributes to highlight about the product?
c. Distribution: How to get the consulting product to the market?
d. Communication: What media should we use to publicize our product?
Service concept:
Decisions about the consulting product have to do with the following:

to. What is the value proposition for potential buyers of our product? Examples:
◊ High return on investment (%)

◊ Savings in inventory costs (in U$)
◊ Improvement in process efficiency (%)
◊ Waste reduction (%)
◊ Customer satisfaction (%)
In the end, every promise is translated into figures, amounts, dollars, percentages of increase or
decrease in comparison, with respect to the initial situation.
b. What features or benefits do customers highlight about our product in relation to other proposals
on the market? Example: (speed, flexibility, seriousness, prestige, res responsibility, trust, etc.).
c. What gap exists between the customer's perception and the promise of our service?
d. Should the product go alone or does it require accessories? (example: consulting + training tion).
Positioning strategy
The idea of positioning reflects what you, as a consultant, want your clients and potential buyers to
identify with. One way to position a product or company is to think of your company when you hear
its name and then create the communication vehicles that help us achieve the desired positioning.
Within the world of consulting, it is probably more complex to create positioning that arouses the
interest of potential clients, since it is an intangible, therefore, positioning a professional service
requires creating a competitive angle and achieving enormous credibility in its field. of specialization.
Some key positions of global consulting firms are: Mac Kinsey in management consulting), PWC
and, KPMG (audit and tax consulting), DBM (resources

humans). In Peru, the Grupo Apoyo brands in consulting and Macroconsult (economics) can be
cited as the most relevant. All of these brands are associated with key positions in the world of
consulting.
Key factors to take into account in positioning:
a. What is the style of company that we want to project in the minds of our customers? potential
buyers?
b. Are our competitive advantages clear and sustainable in relation to other brands on the market?
c. How are we going to carry out communication so that it has a high impact on our target market?
Distribution strategy
Answer the question: What information channels will be used to deliver our services to our target?
The consulting services industry offers a wide range of possibilities:
g. B2 B
a. Promoters h. Parnetship
b. Public relations i. Events
c. Internet j. Physical facilities
d. Social networks k. Service retailers
e. Associations l. Educational institutions
f. Franchises
There are some consulting services that are very sensitive to distribution,
such as recruitment and selection services, others are very sensitive to
public relations (consulting). Currently, more consulting companies use events as a channel to offer
their services, while others seek to find greater support by having an international franchise, etc.
◊ The decision, generally in the first years, is based on the cost/benefit analysis; the most
experienced consulting firms use it as a global business strategy.
9.4. Sale and promotion of services
Customer prospecting: How to identify potential customers?
Rapp, Stan and Collins (1991) propose, in their book maximarketing, 6 ways to prospect
clients:
Unit III
64
1. Fishing: It is the most common prospecting method of all, it is when the advertisement is
placed in a newspaper, magazine, on a radio or television program, etc. The idea is that
the potential client is caught by the notice.
2. Mining: When searching, through a sample of clients, those that may represent “veins”
of gold for the consulting company, example: Peru Tops business directories, telephone
yellow pages, list of members of professional associations , etc.
3. Screening: Through publications of specialized guides, such as directori The company

classifieds, business associations, seek to sift the market with potential clients who have
similar characteristics to current clients.
4. Niches: When it is possible to identify, in the market, potential niches that can represent
a market opportunity, for example: the microfinance sector, whose rebound in Peru has
been dizzying in the last decade.
5. Database: The company can build its own database, from the relationship with its
customers or lost sales, it can obtain records of its customers, track their purchases and
keep track of them.
The sale of consulting services, today, demands much more personalized service, being in
the “photo” is important to attract the client's interest, the internet plays a relevant role in
prospecting and relationship with the client, there are increasingly more consultancies
linked to social networks and virtual bus products can satisfy your clients with customized
products, for example: virtual training, virtual evaluations, etc...
9.4. SALES AND PROMOTION OF SERVICES
The consulting company can use the direct or indirect method or a combination of both to
promote its services.
Direct methods:
a. References: In the field of consulting companies, the most important channel is referrals, 70% of
the sales of international consulting firms come from referrals from other clients.
b. Develop network of key contacts: (Cross-sell services through other professionals sionals, key
contacts in organizations, etc.
c. Promotion: Preferably direct it through sponsorship of seminars, funding of scholarships,

participation in events and fairs.
d. Develop as a public opinion leader in the segment being served, adopt take a controversial
position on some public or professional issues: In the world of consulting, being in the “photo of
tomorrow's newspapers” is very important to have a market presence.
e. Develop database marketing to broaden and deepen customer engagement. tes.
Indirect methods:
a. Participation in community social activities.

b. Have a blog. Consultants are continually publishing articles on special blogs. cialized or
magazines and newspapers of national or international circulation.
c. Participate in specialized fairs on topics in your field of specialization; There are several human
resources fairs in the world, as well as other disciplines where there is the possibility of
establishing contact with potential clients.
d. Join associations of companies that provide similar services, such as associations of international
market research companies, etc.
e. Use your consultants as speakers at business events.
f. Publish: The most successful consultants usually publish books that represent record sales.
ACTIVITIES
g. Students develop a service marketing plan for a market opportunity. cade found in the consulting,
applying all the concepts learned in this session.
Unit III
66
SELF APPRAISAL
1. What are the basic components of a marketing plan?
2. What aspects should we take into account when marketing professional services?
3. What criteria do consultants use to pay for their services?
4. How does a consultant's reputation impact the perceived value of the service?
5. What relevant strategies are used to position a consulting service?
Unit II
UNIT IV
CONSULTING PROCESSES MANAGEMENT
Session #10 Consulting processes

Session No.
11 Tools used in consulting
Session No.
12 The work teams
Session No.
Presentation to the client
13
At the end of the unit, the student will be able to analyze

the consulting market and structure Create a service
marketing plan to attract customers.
Faith is then the certainty of what is hoped for, the conviction of what is not seen.
(Hebrews 11:1)
THE PROCESSES
IN CONSULTING
BUSINESS
In this session you will learn about and explain the processes of a
consultancy and determine its main components.
10.1 PHASES OF THE CONSULTING PROCESS

The following model describes the consultative process, taken from the ILO (Kurb 2000) on
the business consulting profession:
A) Preparation
• Contact with the client
• Preliminary review
• Work planning
• Consulting contract
B) Diagnosis
• Analysis of the impact of the problem
• Findings
• Analysis and support of facts
Customer information
C) Proposed Solution
• Preparation of solutions
• Options evaluation
• Client proposal
• Planning the application of the
D) Application (implementation)
• Contribute to the app
• Settings
• Training
D) Conclusion
• Preparation of the final report
• Establishing commitments
• Monitoring plans
• withdrawal

The most important activity of a consultant is listening. Peter Drucker used to say that he did not consider himself a
great consultant, but rather that he knew how to listen more than others and, therefore, he could interpret things
better and give an opinion that was more in line with reality.
10.2. DESCRIPTION OF CONSULTING PROCESSES

a) The preparation:
During this phase, the consultant and the client meet, try to learn as much as
possible about each other, examine and define the reason for using the
consultant and, on that basis, agree on the scope of the service and the
approach to be adopted.
The results of these first agreements and the delivery of services are then reflected in the consulting
contract, the signing of which is considered the completion of this initial phase.
Preparations are a kind of adaptation. The client wants to ensure that they are dealing with the right
consultant and the consultant wants to be convinced that the person or their consulting company is
competent to perform the service.
b) Contact with the client
Before undertaking a consulting mission, the consultant must know exactly what the client expects
from him. This is why, during the initial meetings, the consultant encourages the client to say as
much as possible about his or her personal perception of the problem that needs to be solved and
the work that the consultant will need to perform. However, there is no guarantee that the client's
perception and description of the problem are correct and that the consultant receives complete and
unbiased information. Before beginning to plan the intervention and propose a specific job to the
client, the consultant must carry out his own independent diagnosis of the problem.
c) Workplan
This plan includes the definition of the objectives and the agreed methodology to be applied in the
work. The definition of the consulting objectives is the starting point on which all work must revolve
to solve a problem.
The consultant must first ask: What are we trying to achieve? what is this What are we trying to do?
This will help avoid a) the conventional impulse to start by gathering data and analyzing the
situation and b) striving to achieve a solution to the wrong problem.
d) Diagnosis
The second phase of the consulting process is an in-depth diagnosis of the problem to be solved,
based on an investigation and analysis of the facts. During this phase, the consultant and client
cooperate to determine what type of change is needed.
The diagnostic work must start from a clear conceptual framework: a) The diagnosis encompasses
data collection and analysis; and b) An effective diagnosis is limited to determining ned data and
concentrates, in a coherent manner, with the objectives of the project. Furthermore, the diagnosis
must clearly reflect the causes of the problem; other relationships matter. tes, the client's
possibilities for solving the problem, and possible directions of future action.
Unit II
e) Identifying problems
The ILO suggests, to identify problems, five main dimensions or characteristics. following cases:
1. Substance or identity. Discover the substance or identity of the problem (low performance to;
shortage of competent personnel; lack of ideas on how to invest leisure capital SW; desire to
improve after-sales services). It must be determined based on compa rations, how it is used
and how it is justified Why do we say that performance is low? Low, compared to what level? It
is necessary to describe the various symptoms of the problem.
2. Physical location in the organization. In what dependency (divisions, departments, subsidiaries)

of the organization and in what physical units (plants, buildings, warehouses, offices? cinas)
has the problem been observed? What other agency or units are or could be affected? How
widespread is the problem within the organization? Does it affect external relationships (for
example, with customers or suppliers)?
59
3. Possession of the problem. Which people (directors or managers, personnel specialists nal,
workers) are affected by the existence of the problem and have a primary interest in solving it?
Who could create difficulties?
4. Absolute and relative magnitude. How important is the problem in absolute terms? cough (for
example: magnitude of loss of work time or money, volume of underutilized production capacity,
possible future profits)? How important is it in relative terms (for example: compared to other
pro problems or with the total turnover)? How does the dependency or unit in which it has
already been observed affect the people who have the problem? What does it matter What
importance does it have for the organization as a whole? What benefits will the organization
really gain if the problem is resolved?
5. Chronological perspectives. Since when has the problem existed? Has it been observed once,
or several times, or is it periodic? How much appearance does it appear? What is your ten
dence: Has your problem stabilized, or is it getting worse or better? What do you foresee? What
can be done about the future evolution of the problem?
6. Do you suspect there will be problems in the future?
10.3. EXECUTION OF THE SERVICE
Consulting requires a lot of empowerment, in the intervening consultants, for decision-making and
control of practical activities. An intervention operates as a relatively independent project, with most
decisions made on the fly by the senior consultant or team leader, in agreement with the client.
◊ Establish the “execution journal”. This is an essential record of activities while after the task is
executed. It is written every day, in the afternoon, with a summary of the important events of the
day and the progress made.
◊ Schedules. The executing consultant must adjust to the organization's work schedules.
customer zation. Schedule time taking into account the layout of the areas, since it is important
to have sensitivity, foresight and reaction.
◊ The executing consultant has to be sensitive to all aspects, the supervisor must verify them.
This sensitivity is linked to self-control. The consultant will stumble in frustration nes and must
Unit II
endure them with patience and good humor.
◊ Favors offered by clients. The consultant must be prudent, knowing when to receive and not
receive a gift from the client. Normally, at the end of the project there is no problem.
10.4. FIELD AND CUSTOMER SUPERVISION
◊ The supervisor visits the site of the intervention with the frequency imposed by the
circumstances. tances. Visits become more frequent when the consultant in charge is new or
when the intervention is going through a difficult period. All interested parties must know the
dates of the visits in advance, so that interviews can be arranged and other arrangements
made.
◊ The supervisor reviews progress made, relative to policies and interests. broader ses of the
client-organization and the consultative organization.
◊ In relation to the client, the supervisor verifies whether he or she is satisfied with the overall
progress. nature of the intervention, the contribution made by the team responsible for carrying
it out, and the relationships that have been established between the consultants and members
of the client's staff; if it has fulfilled all obligations and made the agreed contributions to the
intervention.
ACTIVITIES
◊ Students plan and organize the intervention of a consulting project, pointing out a list of activities
to be carried out and following the phases of the consulting process.
Unit II
If you endure discipline, God treats you like children because what son is
the one whom the father does not discipline?
(Hebrews 12:7)
TOOLS
USED
IN CONSULTING
In this session you will learn what tools are applied in a
consulting process and what approaches are used by
consultants.
11.1. QUANTITATIVE ANALYSIS

The quantitative approach uses mainly statistical tools or mathematical formulas, which seek
to explain the situation of a particular fact.
There are various quantitative tools that can be used in a consultancy, the type of tool is
determined by the type of work, the information that you want to obtain or analyze.
The most common quantitative tools used are:
◊ Statistical analysis
◊ Regression and correlation models
◊ Analysis of financial ratios
◊ Analysis of productivity ratios
◊ Sample and probabilistic analysis
◊ Operations analysis
◊ Standard costs
◊ ABC costing
◊ Calculation of the optimal purchase lot
◊ Factorial analysis
◊ six sigma
◊ Capital expenditure analysis techniques, etc.

One of the tools most used by management consultants is brainstorming, a tool that is also
successfully applied in innovation consulting.
Process consultants prefer to work with statistical tools, while human resources consultants
work with qualitative models, interviews and dynamics.
11.2. CONSULTING APPROACHES

In a consultancy, the consultant's experience prevails in the knowledge about the
methodology that must be applied in each consulting job, however, there are
various generic approaches that can be applied by consultants, the most
widespread are:
a) The Harvard approach
This approach consists of six steps:
◊ Define the central problem

◊ Make a list of relevant factors
◊ Make a list of feasible solutions with advantages and disadvantages of each.
◊ Examine and analyze each alternative
◊ Make a list of conclusions
◊ Make recommendations
“A consulting approach represents, in essence, a working method, to achieve a purpose, in consulting, the
approaches used respond to the expertise of the consultants, who determine, for each case, what method and what
tool to apply, having as a frame of reference the contributions made by
other specialists.”
b) The process approach
Maps that are a representation of the situation of a business,

its relationships and interpretation of recurrences are known as
process mapping technology.
GLOSSAR
The maps allow: i) Generate actions to achieve greater
Y efficiency in that activity and ii) Apply standardization criteria
that allow acting with simplicity, rationality and economy.
Process mapping procedure
◊ The most relevant should be mapped.
◊ Management problems are process problems.
◊ Mapping processes is a way to discover the causes of problems and produce changes.
Unit II
◊ Mapping a process is equivalent to reconstructing the common sense of the components of a

business community.
◊ Make an inventory of breaks, their frequencies and economic value.
◊ Distinguish the main and secondary work cycles in the structure of a process.
◊ Point out waste and sources of opportunity in the structure of a process.
◊ Point out waste in the relevant work cycles, man hours, lost sales didas expressed
quantitatively.
Fig. 4 Process mapping scheme
The previous figure shows the process mapping of the approval of a personal loan, where three
levels can be observed: an input of information, the process and the output of the approved credit
documentation.
◊ c) The growth cycle
Through this approach, what we seek to analyze is what stage the organization is in. zation that is
being diagnosed in a consultancy, the growth cycles They set guidelines that companies develop in
each phase, according to their growth.
The phases that emerge from this analysis are the following:
◊ The courtship stage: when you have the idea but it has not yet been developed.
◊ Infant stage: These are the beginnings of the company, everyone is worried about selling.
◊ Go go stage: The company already has customers and can breathe well.
◊ Adolescent stage: The company increases its sales and begins to expand.
◊ Maturity stage: the company acquires stability in its sales.
◊ Stage of bureaucracy: the company in the bureaucratic trap.
◊ Decline stage: The company is in constant restructuring.

Fig. 5 Cycles of organizational life
d) The McKinsey approach
Approach developed by Peters and Watterman (1996), they consider the competitive analysis of the
company, based on seven critical factors:
1. The strategy,
2. The structure
3. systems and procedures
4. The management style

5. shared values (culture)
6. El Steffi (quality of management staff, middle management)
7. The differential strengths and abilities of the corporation
Following this approach, a company will be competitive to the extent that there is a set of values
oriented to change, a successful management style with modern philosophies, a strategy
compatible with its environment and with its capabilities and abilities, and a management Steffi
committed to company mission.
e) The value chain approach
The value chain constitutes a generic model of the company, it turns out to be an abstract vision of it
in terms of the activities that the company develops, in order to generate value. In this approach,
five primary activities are distinguished: (inbound logistics, operations, outbound logistics, marketing
and service) and four support activities: (business infrastructure, human resources management,
technological development. logic and provisioning).
Each primary activity uses materials, human resources and technology provided by the respective
supporting activities. The set of these nine activities “interconnect tadas”, constitutes the VALUE
Unit IV
78
CHAIN. (See fig. 3)
Fig. 6 Value chain diagram
THE VALUE CHAIN AND BUSINESS

GENERAL DIRECTION, FINANCE, INFRASTRUCTURE, POLICY AND HUMAN RESOURCE METHODS
INFORMATION TECHNOLOGY SUPPLY POLICY
What buy, How are they How are they How are you How I know A
in what organized the organized the organized the deliver the ND N
quantities products in products in sellers orders I
At what prices store the store, the display of They are reasonable V
is selling the products. the times
what is owed He
sell merchandising
Fig. Diagram of the value chain of a the advertising
commercial company
f) The reengineering approach
This reengineering approach, devised by Michael Hunmer, proposes reviewing the company's entire
business system and redesigning management's work; This concept (.) Indicates that each and
every one of the parts and/or processes that intervene in the achievement of business objectives
must be rethought, thus avoiding systematizing part of the process that does not provide added
value to the final product and/or service. .
Two models underpin the reengineering methodology and they are: The wheel of global change and
the framework of references.
The global change wheel is based on the “business system diamond”, which describes four
elements that make up a complete business system: i) business processes, ii) jobs and
organizational structure, iii) systems administration and iv) beliefs and behaviors.
The Texas Instruments framework adapted Hanmer's “business system diamond” and improved it
by adding a circle and three key elements: customers, technology, and culture. According to this
criterion, the processes, organizational structure, positions, administrative systems, beliefs and
behaviors must be aligned to meet customer needs. A business process constitutes a set of
activities that provides information, adds value and produces valuable results for customers.
g) The total quality approach
The European Foundation for Quality Management (EFQM) uses certain principles to evaluate
those companies that apply for the European quality award, these are:
1. Leadership and management commitment

2. Strategies and policies
3. The quality and commitment of people
4. Resource management

5. Process management
6. Employee satisfaction
7. The impact on society
8. Customer satisfaction
11.3. Qualitative analysis

This method consists of observation and effective attention, which are used to establish knowledge
of a reality, some unfounded judgments and others with value are obtained, identifying emotions
and moods, practices and breakdowns.
The qualitative analysis techniques used in consulting are the same ones widely used in scientific
research:
• The interview
• The observation
• Focus groups
11.4. Development of practical cases
Executive agenda to successfully manage an organizational change process
Carrying out a process of organizational change is a task that can be more complex than expected,
if one does not know how to properly identify priorities and manage the risks of uncertainty caused
by the change, even more so if this change still comes from the union of two different cultures
and/or when the organizational culture is rooted in beliefs and values that constitute serious barriers
to organizational change.
Organizations in general have a culture, a way of doing business that is deeply rooted in their
people, in many cases, when it reaches “extremes” in which the organization loses competitiveness
because of this. It is necessary to break molds or work schemes inherited from previous
administrations that have become obsolete with the passage of time or due to the entry of stronger
competitors in the market, etc. In such circumstances, having leaders with the ability to “break the
mold” to choose the course indicated by market trends and the international economy is a decisive
factor, which in turn requires audacity and prudence to assume the process of transformation of its
organizational culture, as a necessary condition for survival, to weather the winds against and in
favor that changes bring, especially in implementation.
It is clear that not all managers have the necessary wrist to lead this process, the “success of the
past” causes complacency, it does not stimulate changes in an organization, someone needs to
break the “status quo”, so that someone pays attention to these things.
Some company managers are only pushed to change their approach or way of acting when they
feel threatened by something. This is the first mental barrier that an organization must overcome to
start a change process.
Prepare a change agenda
The change agenda must be clear and explicit enough to be able to manage each of the processes
involved in organizational change management.
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1. Start by Identifying needs and priorities and establishing degrees of urgency in the
organization:
◊ If it is productivity, how much should it be increased?

◊ If it is in the managers, what management skills do we have to improve?
◊ If it is in the workforce, where should we reduce and where should we enhance?
◊ If it is in the work environment, what policies or rules do we need to change to improve the
productivity of our employees?
◊ If it is structural, in which people do we need to have greater empowerment?

2) Find out where the failures occur? And what needs are pressing?
◊ What need is there for changes in the work of the steering group?
◊ What need is there to create a different work environment in the management group?
◊ What need is there to have a faster decision process?
◊ What need is there to reduce supervisory controls?
◊ What need is there to make teams more multifunctional?
◊ What need is there to develop greater participation and cooperation of the workforce?, etc. etc
3) Prepare your change strategy
Any process of organizational change requires re-examining four important aspects:
◊ Organizational objectives
Start by validating the objectives, rethink, if necessary, everything keeping in mind spective, the
medium and long term.
◊ The functions of the management team
◊ Analyze the new roles, know what new competencies you need to develop in the organization that
are in line with the competitiveness of your sector? What criteria are you going to use to
evaluate performance as a group?
◊ The company's policies and strategic plans

◊ Validate one by one, there are many policies and strategies that act more as barriers than as
strengths, remember that strategies are the result of mental processes exi people Remember
that policies and strategies are only useful if they contribute to achieving objectives.
◊ The management team

◊ Rather than looking for names or credentials, look for talents and management skills, with Call on
specialists in this topic to help you “hunt” for the talent your project requires.
4) Put the change strategy into action
◊ Have your management team come up with a list of objectives, and establish a consensus to
communicate to the rest of the organization.
◊ Establish an executive agenda with all the steps to follow such as who should nejar what?, to
whom to delegate what? The idea is that the team assumes leadership to reorganize its own
area, division or business.
◊ Encourage a self-critical spirit. The equipment must have sufficient flexibility to incorporate to give
new things to the team, as well as to abandon what it needs, eliminate the barriers that make the
organization rigid such as controls, inspections or frequent and repeated authorizations.
◊ Set, in your agenda, how the reviews will be (weekly, monthly, quarterly, semi-annual). tral) to
evaluate managerial performance.
◊ Set specific objectives, also in the field of financial planning, resources must always be managed
with criteria of economy (not austerity).
◊ Choose change agents who have an assertive leadership profile, so that they work side by side
with sector managers (or functional heads).
Unit II
◊ Establish interdepartmental meetings as a way to find cooperation and commitment to the

objectives of the strategic agenda.
◊ Establish a committee of subject matter experts to continue managing the change process.
In all phases, a dose of humility is required in the steering committee to recognize and learn to
break paradigms; above all, the commitment to learn must always prevail. Remember that the best
way to kill a new idea is by saying “no” to everything that is coming in the future or by postponing a
decision.
ACTIVITIES
Students analyze the case presented and apply it to a specific case of an organization.

Where there is no wise direction, the people will fall, but in the multitude of counselors
there is security
(Proverbs 11:14)
ROLE OF WORK
TEAMS
In this session you will learn how work teams are formed in consulting and what work styles
predominate in a consulting team.
12.1. Selection and training of the work team

Work teams play a key role in a consulting process, as it is a highly specialized service, the
team members involved in the consulting must be appropriately selected, taking into account
their competencies and abilities according to the work to be carried out. .
Normally, in the labor market, there is a large supply of professionals who act as
independent consultants, they venture into consulting without proper preparation as
consultants, bringing many complications, because a consultant requires not only
knowledge, but other skills and competencies.
Deloitte is one of the consulting companies in the world recognized for the
management of its human capital.
Deloitte's human capital is characterized by: knowledge, diversity and
multidisciplinarity.
The firm is fully committed to your personal and professional development.
Some basic skills that are considered basic in a consultant are:
◊ The technical expertise of the consultant in the field being

intervened, which is given by years of experience in that work.
◊ The multidisciplinary training of the consultant, especially when it comes to bosses

of the project, these consultants are required to have a general vision of the project, not only
that which is framed in the consulting that is being carried out.
◊ Communication skills both oral and written.
◊ Strong analytical spirit, necessary to deepen the analysis of problems.
◊ Listening ability and tolerance to pressure.
◊ Passion for the challenges and challenges involved in making contributions in consulting.
◊ Self-discipline.
◊ Strong sense of cooperation and social sensitivity to interact with professionals and clients of all
levels.
Training of the consulting team
The organization of consulting teams is structured by projects or activities. The members who
usually intervene are:
◊ The project director is the highest level position in the consultancy, he acts in co-direction with
the client, normally his duties are:
◊ Choose the consulting team members for the projects to be carried out.
◊ Establish contacts with your peer, the client.
◊ Designate roles for project teams.
◊ Lead the team of professionals involved in the project.
◊ Coordinate the actions that result from the direction of the consulting project.
◊ Inform the client at the corresponding management level of the results of the pro projects.
◊ Responsible for the fulfillment of services in each work unit.
◊ Intervene in the preparation of reports, supervising their processing and control. quality in
reports.
Project manager is usually the second consultant involved in the execution of the project. There
may be more than one project manager depending on the magnitude of the project. His or her main
duties are to apply the approved methodologies between the consultant and the client, directly
supervising the work of the project. professionals or specialists. Supports the project leader in
everything related to the representation of the consultancy before the client, answering for the
results of their applications and recommendations, as well as the operation of the field work,
Fig.7 Team structure in consulting projects
Unit IV
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TEAM STRUCTURE
First level communication
2nd level communication

Communication 31 level
◊ Professionals or specialists: According to the nature of the work, higher and lower level
specialists can intervene, which have the category of senior, when they are experienced (with
more than 8 years of experience) and junior (when they are less than five years ), in this
category are statisticians, processing technicians, sociologists, etc.
◊ Coordinators: The intervention of these professionals is when it is required to designate field

personnel in different territories, their main task is to ensure compliance of the activities
programmed in the consultancy by the operational staff, representing contacts the main
consultant before the client in the territory where the project is being carried out.
◊ Field personnel: According to the specialty of the work, enumerators, interviewers and
promoters can intervene.
12.2. Management of work teams

The production of the work teams, in a consulting project, is vital for the expected results, what
characterizes a good consulting exercise is when it is possible to collectively harmonize all the
capabilities, emotions and expectations of the members of the team. project and make them work
so that their contribution to the project is the highest.
All studies on experiences in consulting work teams show the importance of team spirit, which must
prevail in a project team.
Building and leading teams requires a mix of skill and strategy.
Factors that drive team dynamics
◊ Give few but precise instructions for the team to comply with, special staff cialized needs ample
room to act. The effectiveness of teams is measured by their ability to contribute, in that sense
the rules should not be put before contri bution.

◊ Clearly set team rewards, this is very important, they can be incen professional or economic
tives.
◊ Give freedom of action, to the point that it does not infringe the work of the team.
◊ Allow the team to take risks. Team dynamics consist of exploring the risks faced by each
initiative, accepting that not all team decisions will be correct, therefore, a team will share the
goal and responsibility for the strategy developed and the results of its decisions.
◊ It is important to combine personal aspirations with the common objectives that I invoke. profit
from the project. This combination is what allows the entrepreneurial spirit to flourish. team
player and innovator.
◊ Achieve an appropriate combination of people, responsibilities and reflective capabilities left in

the contributions.
◊ Ensure that information flows naturally to be shared and understood by everyone in the decision-
making process, listening to opinions and encouraging any contribution.
12.3. EVALUATION OF EQUIPMENT PERFORMANCE
The performance of a consulting team can be measured quantitatively and qualitatively.
The most outstanding quantitative aspects are:
◊ How was your treatment in teamwork and with clients?

◊ What ability did you demonstrate in interacting with other work groups?
◊ Did you demonstrate problem-solving ability, how did you face obstacles, did you do it
individually or as a team?
◊ Management skills: What leadership skills did you show with the team?
◊ Ability to diagnose problems: Were you accurate in your analysis of the problems?
Quantitative indicators
◊ Personnel productivity ratio, measured by the cost-effectiveness of the investment intervention

of the consultant.
◊ Ratio of downtime due to uncoordinated activity.
◊ Customer satisfaction index.
◊ Consultant man hours used in the project.
◊ Defect rate by activities.
12.4. DEVELOPMENT OF PRACTICAL CASES

Form your consulting team to carry out a particular project, determining the technical criteria taken
Unit IV
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into account in the selection and training.

See, I command you to be strong and courageous, do not fear, nor be dismayed,
because your god will be with you wherever you go.
(Joshua 1,9)
THE PRESENTATION
BEFORE THE CUSTOMER
In this session you will learn how to organize and present
your work, to attract the interest of your clients.
13.1. PREPARATION BEFORE PRESENTATION

Once the field consulting work has been completed, the next step is the presentation of the
reports and studies, both written and oral, which is the support of the study before the
executive level of the client-organization.
The presentation of a consulting report can last between half an hour and two hours, when
they are very complex and require a lot of explanation of the facts.
The presentation is usually done by the project manager, with the team leader or a senior
specialist, each of whom takes a role in the presentation.
Before the presentation, all necessary preventive measures must be established to make the
presentation a success; At this point, coordination with the client-organization is very
important to define the dates of the presentation, the resources to be used, as well as the
times of the interventions.
Communication cannot be effective unless it gets people's attention. The problem is

that currently we are overwhelmed with both advertising and electronic information.
Each year 2 billion web pages, 18 thousand magazines and 60 thousand books
THA appear. new (Kotler 2003) the 80 essential concepts of marketing.
T?

Guidelines to keep in mind when preparing before the presentation:
◊ Establish the programmatic agenda of the meeting in advance.

◊ Make sure the presentation is scheduled within the established time.
◊ Coordinate intervention times
◊ The team of consultants must be prepared to provide proactive responses, avoiding conflict
zones.
◊ The presentation must be related to the executive summary, and this must ensure that it is
distributed among all users,
13.2. HOW THE PRESENTATION SHOULD BE DONE
Each consulting company has its own style of making its presentation, some consultants are more
approachable to questions, others are more self-disciplined with their time, while some prefer to
speak little and answer questions, there are others who are very extroverted, the key A good
presentation lies in good preparation before the exhibition.
What should be taken into account before a presentation?
◊ First, you should prepare your report in a short summary of two or three pages.
◊ The background of the study, what led you to do the consultancy?
◊ Cite the objectives of the consultancy: Why was the consultancy carried out? What is the
purpose? expected agreement from the consultancy?
◊ Point out how the presentation is structured: Where has the consultancy placed the greatest
emphasis?
◊ Explain the facts in a timely manner and the technical basis that underlies it, as well as the
suggestions established for each problem.
◊ Show data in cause/effect relationship, with respect to impact on results two so that the
audience notices the impact of the problem, it is advisable to use figures, quantities, US$
percentage variation (%).
◊ Establish conclusions, four or five at most.
◊ Cite the recommendations, four or five at most.
◊ Each exhibition must be accompanied by illustrative tables that explain the nature nature of a
problem being talked about.
◊ It is important to cite the source, as well as the methodological basis that supports a figure or
data.
◊ Finally, be very neat in each of the interventions, considering that, for
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On the client side, there are the specialists whose opinions are not always going to be very
friendly. You must be prepared to give agile, well-documented responses, avoiding entering a
conflict zone.
An effective presentation is one that manages to captivate the audience, makes the audience interested in listening
to it, and spreads the spirit of others. Not all consultants are good communicators, only a few manage to captivate
crowds. Tom Peters is described as the guru of gurus, due to his great ability to mobilize crowds.
ACTIVITIES
Continuing with the development of its case, each working group must organize its presentation
tation and sell their idea, where everyone must take on a part of the project and develop their
business and presentation skills.

The wise man fears and turns away from evil, but the foolish man is
insolent and confident.
Proverbs 14,16)
THE CONSULTING
IN SMEs
In this last session you will learn to identify opportunities for consulting in small businesses in Peru.
14.1. WHAT CONSULTING IS LIKE IN SMEs
Despite the great needs seen in small business consulting, there is little general conviction of the
benefits of consulting and great lack of knowledge about topics that are specialized in consulting.
Small businesses generally pay attention to short-term activities, and are more demanding of tax,
accounting and legal advice; Specialties such as improving production processes and marketing are
not present in small companies, these being the ones most associated with the competitive
development of companies.
According to results obtained in a field study carried out by CONFIEP (2011), the problems that
most limit the use of consulting by SMEs are due to:
In Peru there are around 700 thousand small businesses, of which 500 thousand are family
businesses, SMEs in Peru represent 99% of formal companies, 42% of participation in GDP
and generate more than 100,000 jobs. , although the average income per worker is low.
(Confiep 2011)
◊ The lack of knowledge of companies about the benefit of consulting.
◊ The limited development perceived by companies in the business consulting
market.
◊ The bad experiences they have received in consulting previously.
◊ The low quality of consulting.

◊ The lack of coincidence between the services offered by the consultants.

◊ The requirements and the particular reality of companies.
◊ The high costs in relation to the profit of the companies.
◊ Companies do not consider consulting as a priority within their management system.
14.2. CONSULTING OPPORTUNITIES IN SMALL BUSINESS
SMEs, in general, suffer from a series of weaknesses in their management; a study carried out by
Produce (2011) revealed the following most notable weaknesses:
◊ 70% are informal, because they fear becoming formalized and thus paying taxes.
◊ 80% of the workforce is not specialized.
◊ Management is in the hands of the family and, eventually, it is not prepared to take over. look at
the reins of the business.
◊ He has no succession plans.
◊ It has no strategic perspective.
◊ He has many problems affording his products.
◊ Poorly planned debt.
◊ Low productivity in the use of assets.
◊ Deficient capitalization process, among others.
All these shortcomings constitute opportunities or windows to be able to provide consulting services
in SMEs, although with a format that is suitable for this type of client, which is explained in the
following section.

There are a variety of counseling approaches that can be used, taking into account the degree of
specialization of the service:
The advisor as tutor.- Through this approach, advisors help to:
◊ Accelerate the pace of learning by helping the client to think through the process.
◊ Increase technical competence in intensive one-on-one sessions.
◊ They motivate growth in experience
The advisor, as a coach
◊ Teach by examples,
◊ Motivates to action,
◊ Frequently engages in on-the-job training and demonstrates how to perform a certain activity.
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The advisor, as a consultant:
◊ Offer persuasive arguments.

◊ Share perceptions between individuals.
◊ Create strengths and act on weaknesses.
◊ Resolve conflicts.
The advisor, as performance manager:
◊ Clarify goals and action plans.

◊ They identify strengths and limitations.
◊ Help develop strategies to improve performance.
◊ The advisor, as a performance manager, is more focused on working with people. you to
achieve results.
The advisor, as a mentor:
◊ Communicate goals and values.

◊ It focuses on the development of political understanding.
◊ Show interest in business development.
The SME consultant may occasionally act as a mentor to someone who is starting a business. As a
Consultant or Performance Evaluator, when the SME client is an established business that is
growing.
In short, an effective advisor is flexible and takes on a variety of roles, depending on their client's
needs and skill level.
ACTIVITIES
◊ The students write and support a consulting project for an SME, having Take into account the
steps learned in chapters 2 and 3.
SELF APPRAISAL
1. Identify the basic consulting processes determined by the ILO
2. Explain what the diagnosis consists of? What aspects must be taken into account when
preparing it?

3. What tools are appropriate to be used in a consultancy on a study? market share of a product or
service?
4. In which cases is it appropriate to use the process approach in consulting?
5. What aspects should be taken into account when selecting a work team for a consulting
project?
6. What aspects should be avoided when presenting a consulting work?
7. What consulting strategy is most appropriate for a small business in crisis?
Unit IV
98
BIBLIOGRAPHICAL
BASIC
1. Philip Kotler (2005) The 80 essential concepts of marketing from A to Z editorial

Pearson
2. Valencia Soriano (2009) The consulting market in Peru – economics and commercial office of the
Spanish embassy
3. William Cohen (2003) How to be a Successful Consultant, Norma Editorial
4. Kubr, M., Business consulting, Third edition, Mexico City, Editorial Limusa SA de CV, 2000.
5. Japan International Technical Cooperation Agency (2006) Secretary of Economy Module 1 SME
consulting
COMPLEMENTARY
6. General Directorate of economic studies, evaluation and territorial competitiveness aná lysis
SMEs 2011 Produce Ministry of production
7. Maxi Marketing - Rapp, Stan e Collins, Tom - Editora Makron Books Os
8. Publication Peru Tops 2011 and 2009 The 1000 companies with the highest income in Peru
9. Management in the 95 years of Peter F. Drucker recovered from dministracionenred.edu.
do/descargas/uasd/ADM%20112131551/PETER%20DUCKER%20LECTURA.pdf
10. International Labor Organization (2011) Phases of organizational consulting
11. Interview with Felipe Ortiz de Zevallos, President of the Apoyo group published by Fernan do
Guinea Naranjo, Amrop International Peru Editorial (2004)
12. James E. Svatko, Senior Editor, Small Business Reports February 1981 Page. 61
13. Guillermo Sanchez Gallego “Strategic planning in the development of services” article ass
published in HDB High Management (1990) pg. 291
14. Biography of Hernando de Soto taken from: http://www.elcato.org/special/friedman/
desoto/bio.html
15. Interview with Peter Drucker by Felipe Ortiz de Zevallos debate magazine (1994)
16. CONFIEP Presencia Magazine No.159 article about small businesses and the challenges
faced by the possible crisis.

AJehis:
Unit IV
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Unit II
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Unit II
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BUSINESS CONSULTING AND

Alcides Zenteno Chamber MBA

Interior design: Miriam Tineo Landeo

UNIVERSIDAD PERUANA UNIÓN - Faculty of Business Sciences

Legal deposit made

Alcides Zenteno Chamber MBA

SESSION NO. 6: IDENTIFICATION OF OPPORTUNITIES IN BUSINESS

This course is eminently theoretical-practical. First, the role of the business

The A2D method for self-taught people, by Raúl Paredes Mo

DURING THE LECTURE

THE CONTEXT OF CONSULTING

Session No. 1 Basic notions of Consulting

Session Nº 2 Evolution and development of knowledge

Session No. 3 Dimension of support services

LEARNING UNIT OUTCOME

At the end of the unit, the student identifies and

Hey Carlos, I want to talk to you about a

1.1. WHAT IS BUSINESS CONSULTING?

Consulting and Business Advice

Table 1 Differences between consulting and advice

CHARACTERISTICS CONSULTANCY ADVISORY

More complex, the response The response is faster to the

Scope of service It occurs immediately, it is

Key role The team The advisor

Impact on the result Big Little

Fee High Low

1.2. WHO IS A BUSINESS CONSULTANT?

1.3. CONSULTANT CHARACTERISTICS

Additionally, it is required to have technical competence: specialized knowledge of consulting,

Consulting and Business Advice

1.4. WHY USE A BUSINESS CONSULTANT?

Rosalinda Palacios (2011) mentions, in general, that

◊ So that they provide special knowledge and skills.

Signs that indicate the need to hire a consultant.

◊ Lack of a written business plan.

◊ Lack of information about the competition or the market.

1.5. TYPES OF CONSULTANTS

Consulting and Business Advice

in business development cases.

Junior consultant Senior consultant Junior consultant Senior consultant

Know the entire

Involved with the

2.1. CONSULTING DEVELOPMENT

Consulting and Business Advice

2.3. EVOLUTION OF BUSINESS KNOWLEDGE

The theory of quality control

The motivational theory

Deming's thought is reflected in the following words: “A well-managed

Strategy and paradigm

The circles of quality and excellence

The guru industry

Consulting and Business Advice

The Knowledge Society

The new economy

The global and digital era

Consulting and Business Advice

3.1. THE CONSULTING COMPANY

Consulting and Business Advice

3.2. Classification of business consulting services

The business consulting sector is further divided into:

◊ Information technology consulting; manages the software part.

◊ Management systems consulting; advises on the management of quality areas.

◊ Human Resources Consulting.

◊ Students propose improvements in consulting services.