Amity International Business School

Management in Action Consultancy Evolution of Consultancy

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Consultancy
The MCA defines management consulting as: The creation of value for organisations, through improved performance, achieved by providing objective advice and implementing business solutions.

Consulting involves individuals, whether self-employed or employed, individually or collectively using their knowledge, experience and analytical and/or problem-solving skills to add value into a wide variety of organisations, and therefore to the UK economy as a whole, within a framework of appropriate and relevant professional standards, disciplines and ethics. (IC)

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Consultancy
to try to take ownership of an organisations problems and use research and logic to develop possible options for a way forward. Matt Baumann giving solutions to the problems that companies have.

Jane Ridley

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Consultancy
Management Consulting is the practice of offering business executives third
party advice, expertise, and support with the aim of enhancing the business's performance resulting in an overall increase in the value of the business for its shareholders - and other stakeholders

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The First Consultant

Management Consulting got its start in the late 1880's when Frederick W. Taylor began to perform studies of the time required to complete processes in manufacturing

Evolution of Management Consulting

The first management consulting firm was Arthur D. Little founded in 1886 by an MIT professor of the same name. The firm originally specialized in technology research, although it expanded to general management consultancy in later years. Booz Allen Hamilton was founded in 1914 by Edwin G. Booz a graduate of the Kellogg School of Management at Northwestern University and was the first management firm to serve both private industry and government clients.
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Evolution of Management Consulting

Post-war Years
Post World War II saw a significant increase in the field of management consulting with the Boston Consulting Group, founded in 1963, being the most notable firm to emerge during this period. The impetus for this growth was the realization by both company management and board members that senior staff does not generally possess essential competencies in all functional areas of their business and could benefit from external guidance and assistance. The work performed by Boston Consulting Group and others like it (e.g. McKinsey) during the 1960s and 1970s developed the methodology that would define the field of strategic management consulting from this point forward.

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Evolution of Management Consulting

1980s and 1990s The growth of management consulting has been rapid over the past 20 years, showing a 20 percent increase during the 1980s and 1990s.

Technology consulting has been one of the largest areas of growth.

During the1990s, a number of the larger consulting firms (e.g. PWC, Andersen, KPMG, etc.) started to change their methodology to what can be considered a future-based approach. A future-based approach is commonly employed in those companies undergoing strategic realignment/business transformation and/or a merger that requires alignment of two cultures.

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Evolution of Management Consulting

21st Century trends The consulting industry is cyclical in nature and highly correlated with economic conditions. The industry experienced a period of slow or no growth during the recession periods of 2001-2003 and 2007-2009 but has grown steadily since and has once again stabilized.

New Millennium: New Revenue Model Traditionally, consulting firms charged for time and materials with billing based on number of hours worked, materials supplied, and such out-ofpocket expenses as travel, lodging and living expenses. During the late 1990s and early 2000s, as companies began to notice a lessening of ROI, many clients have asked consulting firms to accept a results-based pricing (aka benefit-sharing) payment arrangement in which the consulting firm will receive a percentage of the value delivered; i.e. the consultant will receive x dollars if s/he can delivers y value.
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Evolution of Management Consulting

The type of services purchased will have a significant impact on the pricing model. For example, if a client purchases business transformation services, they arrange a fixed fee / gain sharing model. If the client purchases staff augmentation work or general project management work, the fee structure will be based on the more traditional time and expense model.

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Models of service
Many consulting firms are organized around two primary structures: Functional - Strategy and transformation, information technology, human resources, and sales; and

Industry - Oil & Gas, retail, automotive, healthcare, environmental, etc.

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Predicted employment change for the industry

According to the U.S. Bureau of Labor Statistics, employment of management consultants is expected to grow by 24 percent during the period 2008-2018, as both private industry, non-profit organizations, and government agencies rely on outside assistance with strategic planning and to enhance operational efficiencies. Employment opportunities are expected in large consulting firms with international expertise, as well as smaller boutique firms specializing in such areas as biotechnology, healthcare, and information technology. Firms will also retain consultants who specialize in green issues to help them lower energy consumption and implement environmentally-friendly policies. consultants will be called upon to offer guidance and advice as companies attempt to work through the required regulatory changes due to the on-going economic, credit, and housing crises. Startup firms also hire consultants to assist with such tasks as organizational development, pricing and marketing strategy, on-boarding new staff, and talent management.

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The Consultancy Mantras

Creative problem solving ability Excellent people skills

Consultants spend much of their time at the clients office, with the top management at the clients office.

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10 Qualities of a Consultant
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Professionalism Time Management Judgment Team Player Communication Skills Knowledge Listening Skills Understanding of Roles and Responsibilities Collective Wisdom Reputation

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The Consultancy Entry Route

Passion Knowledge Qualification

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Applicants Background
Ph.D. and Masters in all fields could and should apply McKinsey and BCG: most suitable for Ph.D. applicants

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Interview Process Leading Consultants

Things they look for 1. Problem-solving skills 2. Leadership ability 3. Past Achievements 4. Personal impact: influence those around you

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Activities of Management Consultants

Scoping client problems Conducting hypothesis of possible solutions Researching and collecting data to investigate and solve specific client problems Synthesizing analyses outputs to build an overall diagnosis Running workshops to facilitate discussions for performance improvement Managing client stakeholders to create "buy-in" to a change initiative Constructing and delivering business presentations, and interim progress reports

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Types of Consulting
Management Consulting Strategy Consulting Human Resources Consulting IT Consulting Corporate Finance & Financial Advisory Consultant Engineers Marketing Consulting Consulting in Politics and the Public Sector Real Estate Consulting

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Management Consultants
Management consultants are business consultants that specialise in providing companies and start-ups with expertise in setup and development, operations, finance, economics, market analysis, marketing, and branding.

The services can range from providing for the needs of a small business start-up to meeting the requirements of a global company expanding into a new market. Common business planning services include feasibility studies, financial planning, market analysis, options appraisal, operational planning, and due diligence.

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Strategy Consultants
Once the management consultant has properly diagnosed the problem, the strategy consultant will provide a solution as well the practical and effective path to implementation of that solution.

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Human Resource Consultants

The core fields around which most HR firms base their consulting methodologies are human capital, health and benefits, merger and acquisitions, communication, retirement, and outsourcing.

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IT Consultants
An IT consultant will often implement, deploy, and administer IT systems on behalf of the company. IT consultation services include security, scalability, redundancy, software development, taking software from development to title, intranet networking, Internet networking, analytics, compliance.

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Corporate Finance Consultants

Corporate Finance Consulting support start-ups, small businesses and public traded companies to achieve the perfect financing structure with the right mixture of debt and equity. In the task of financial questions financial advice is almost indispensable. Financial Consulting assists to make the right decisions. There are several specialised financial consultants active, a lot of which are offering a wide range of services from consulting corporate finance to financial markets to banking services.

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Engineering Consulting
Consulting Engineers are offering value creating knowledge in various industries. Main areas are production as well as the construction sector.

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Marketing Consulting
Marketing Consulting assists firms to sell their products and services. Marketing Consultants have a deep knowledge and a solid experience in how to plan the optimal marketing mix. A well developed marketing strategy is the key to succeed against competitors. The right marketing programe quantifiably leverages new product success rates, customer satisfaction and retention, brand and customer equity.

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Real Estate Consulting

Real Estate Consultants assist acquiring and selling property. They also help to develop Real Estate construction projects e.g. with specailised tennancy solutions. Optimal management policies for corporate real estate are also provided. Connecting Real Estate to the worldwide capital markets is another major capability for Real Estate Consultants as well as technical, commercial and legal due diligences in purchasing processes.

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10 Commandments of Consultancy
Be Flexible Provide tailor-made service Have a people-centred approach Leave a legacy Act responsibly Avoid conflict of interest Practice Value diversity Deliver results on time Maintain confidentiality Display ethical conduct

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The Consultancy Timeframe

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