2013
Managing Consultancy
Cycle and Interventions
Islah M. Farooqui
5/15/2013
TABLE OF CONTENTS
Defination---------------------------------------------------------------------------------------------------------------------------------3
Types Consulting firms-------------------------------------------------------------------------------------------------------------4
Types of Consultants-----------------------------------------------------------------------------------------------------------------4
Consultancy Cycle---------------------------------------------------------------------------------------------------------------------5
Entry Phase---------------------------------------------------------------------------------------------------------------------------6
Risks associated with this phase---------------------------------------------------------------------------------6
Diagnosis Phase--------------------------------------------------------------------------------------------------------------------7
Risks associated with this phase---------------------------------------------------------------------------------8
Planning Phase---------------------------------------------------------------------------------------------------------------------8
Risks associated with this phase---------------------------------------------------------------------------------9
Implementation Phase---------------------------------------------------------------------------------------------------------9
Risks associated with this phase--------------------------------------------------------------------------------10
Termination Phase--------------------------------------------------------------------------------------------------------------10
Risks associated with this phase--------------------------------------------------------------------------------11
Types of Consultancy Interventions----------------------------------------------------------------------------------------12
Consultancy Models and Approaches-------------------------------------------------------------------------------------13
Role of Consultant-------------------------------------------------------------------------------------------------------------------14
Intervention Styles and Behaviour-----------------------------------------------------------------------------------------15
Islah M. Farooqui Page 2
“Every man, however wise, needs the advice of some
sagacious friend in the affairs of life”. (Plautus)
Definition
Management consulting, over the last century has played a vital role in providing
professional solutions for organisations wishing to operate more effectively and
efficiently, to improve their performance, and find the best way for them to operate.
“Management consulting is an independent professional advisory service assisting
manager and organisations to achieve organisational purposes and objectives by solving
management and business problems, identifying and seizing new opportunities,
enhancing learning and implementing changes”. (Kubr, 2002)
In past decades, management consulting has become a growing occupation, which
includes individual consultants or a team. These individuals could either be self employed
or working for a consulting firms. Consulting firms will provide advice on, business
strategies, operational techniques, time management and many other areas, where they
may act as facilitator, problem solvers, advisers and executive.
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Consulting firms
These firms can be divided in to six types
Generalist firms
Strategy firms
Human resource firms
Information technology firms
Financial firms
Niche firms
Consulting firms
These firms can be divided in to six types
Generalist firms, are large firms offering a wide range of services from strategy
consulting and human resources to IT and outsourcing on a global basis.
Strategy firms, are often smaller than the generalist firms and offer strategic
advice to companies on a project-by-project basis.
Human resource firms, offer specialist HR advice on areas such as personnel
policy, job evaluation and industrial relations.
Information technology firms, these firms offer specialist IT advice such as
defining information needs, computer feasibility studies and making hardware
evaluations.
Financial firms, offer specialist advice including the installation of budgetary
control systems, profit planning and capital and revenue budgeting.
Niche firms, are often set up by an experienced consultant with an area of
expertise; these are smaller practices with up to 100 consultants, specialising in
particular industry or sector.
Types of consultants
There are mainly two types of consultants
External consultants who are employed by consulting firms with specific
speciality. These consultants are often self employed or independent.
Internal consultants who are professionals already working for an organisation in
finance, human resources or information technology.
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External and internal consultant role difference
External consultant:
Credibility through brand status and previous experience.
Broad business perspective, bringing new ideas.
Limited organisation-specific knowledge.
Perceived as objective.
Special and specific expertise.
Low investment in final success.
Meets client’s agenda.
Needs time to understand the people – may misinterpret actions and
interpersonal dynamics.
On the clock” – timed, expensive, rare and rationed.
Internal Consultant:
Credibility through history of interactions within the business
Deep organisational perspective
Understands its culture, language and deeper symbolic actions
Perceived as an organisational ‘agent’
Same experience without any expertise.
High investment in final success
Meets corporate agenda – which may not be client’s
Knows the people, but may have preconceptions
Free, accessible, and available
Because internal and external consultants add different value, clients need to assess their
needs and make a choice based on the contributions each makes. The table below
suggests some criteria to use in making the best choice (Hascall)
Use external consultants when Use Internal Consultant when
To support development of strategy or To support implementation of strategic
facilitate corporate-wide initiatives or key priority, or intervention as an operational
priorities focus
Do not have internal expertise Have the internal expertise
Deep expertise is needed Broad generalist knowledge is needed
An outside, neutral perspective is Knowledge of the organization and
important business is critical
New, risky alternatives need validation Speaking the jargon or the language of the
from organization and the culture is important
an outside expert
Internal does not have status, power or A sensitive insider who knows the issues is
authority to influence senior management needed
or
the culture
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CEO, President or senior leaders need Need to sustain a long-term initiative
coach, where internal ownership is important
guide or objective sounding board
Initiative justifies the expense Cost is a factor
Project has defined boundaries or limits Follow-up and quick access is needed
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CONSULTANCY CYCLE
The Consultancy Cycle often referred to as the Consultancy Process, “is the process
carried out by consultants while helping a client during any interventions”.
The Consultancy Cycle or process may consist of up to ten phases. Here we will look in to
work carried out by Milan Kubr 2002 in his book Management Consultation, “A guide to
the profession”.
KUBR FIVE PHASE MODEL CONSULTANCY CYCLE:
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Entry Phase
“First impression is the last impression”.
Entry is the initial phase in any consulting process, and requires a great deal of
concentration and organisation. This phase is very much an exercise in “matching”
between client and consultant. Clear definition and understanding of the problem, the
skills required to resolve this problem, the techniques and strategies that will be used as
well as the resources required are also established at this stage.
Kubr suggest that entry phase will involve following.
1) Initial contact.
After initial contact has been made, the consultant will prepare for
the first meeting with the client to discuss how he intends to
initiate his work.
2) Preliminary problem diagnosis
The Consultant will discuss his action plan to tackle the client’s
problem and how his approach will provide the client with the best
solution.
3) Assignment planning
Detailed action plan that needs to be carried out, along with skills
and resources required, time scale, and financial cost of this project.
4) Assignment proposal
Once agreed, the consultant will submit a detailed action plan in
writing covering all aspects of project during and after its
completion. A presentation may be required by client and stake
holders.
5) Consulting contract
Once the final proposal is accepted by the client, a binding contract
will be required for legal reasons.
Risks associated with this stage and how to avoid them
Unable to understand or define the Organised and structured first meeting,
problem correctly, which will lead to wrong with a systematic and constructive
approach and solutions suggested. questionnaire will help to avoid such
disaster.
Unable to gain the clients trust and Professional, innovative, organised
confidence during initial contact may lead structured approach will leave a lasting
to disapproval of consultant’s proposal. impression on client.
Underestimating the size and nature of the Quantitative analysis and research work
problem, This will be the result of failing to will help the consultant to better
define and understand the problem understand the size and scope of problem
Islah M. Farooqui Page 8
correctly during initial contact. at hand.
Unable to understand nature and needs of Utilise techniques and analysis on hand,
end user or customer. such as stake holder analysis of major stake
holders in this project.
Other common risks could be poor Use of the correct techniques, analysis and
contract terms and condition, an-organised, structured approach during
underestimating the cost of the project for the initial contact will help the consultant
both client and consultant. to understand the full scale of problem at
hand. As a consequence, the anticipated
costs, terms and conditions will be more
realistic and achievable.
Diagnosis:
This phase is the first fully operational phase of consultancy cycle. It requires the
gathering of information, data, statistics and other information to fully understand the
nature and cause of the problem. Any solutions recommended by the consultant will be
entirely dependent on how, when, where and who collects this data. Kubr (2002)
considers this phase as important as there is a need to maintain a positive client -
consultant relationship. It is important that the client is provided with feedback
regarding the consultant's progress and the investigative approach to prevent any
confrontation from the client's side.
Key activities at this stage are as follow
1) Purpose
Consultant will identify the main purpose of the problem, what
restrictions he may face, and what obstacles he needs to overcome.
This will help to plan a purpose built solution for the client’s
problem.
2) Problem analysis
Consultant will use both academic and operational tools to
understand a problem or a specific part of that problem.
3) Fact finding
What, where, when, and how will be questions the consultant
should be able to answer whilst gathering facts and data. This will
help to define and understand the problem at hand.
4) Fact analysis and synthesis
Consultant will utilise his experience to analysis all the data that has
been collected while using PEST, SWOT, or value chain etc models.
5) Feedback to client
As a good practice, the consultant should always keep his client up
to date with progress after all relevant data has been collected and
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analysed. This will help both parties to better understand each
other’s approach to the problem at hand and how a suggested
solution will help the client in near future.
Risks associated with this stage and how to avoid them
Under or overestimating size of Using a quantitative and qualitative
problem and data collection required. data collection approach will help to
get a general feeling and
understanding of problem on hand.
This will help to decide on the method
and techniques required to collect real
data required for the problem.
Using wrong approach or tool to Using similar problems elsewhere will
analyse the data collected. help to better understand the problem.
Consultant’s previous experience will
also help.
Collection of wrong data or barriers in This can be avoided during the initial
collecting the data will lead to stage, by defining the techniques, tools
misinterpretation of the problem at and approaches the consultant will use
hand plus an increased lead time for the during the project and the people who
project. will be involved as part of this process.
Unable to keep the client up to date on Having a good personal toolkit and
project progress. interpersonal skills will help the
consultant to communicate. The use of
Gantt chart will help to identify
important tasks and key dates.
Planning Phase
Planning is the most important phase after diagnosis in the consultancy cycle. Even
though both these phases interrelate with each other, their approaches are worlds apart.
To plan the perfect execution of a solution, the consultant will need to use all his
imagination and creativity while utilizing the data that was collected during the diagnosis
phase. Hence previous experience with similar problems will be more than useful.
Activities involved during this phase
1) Developing solutions
2) Evaluating alternatives
3) Making proposals to clients
4) Planning for implementation
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The Consultant will start developing solutions using previous experience, existing
solution elsewhere, and analytical techniques with the help of data collected during
diagnosis phase. On many occasions, the consultant will provide more than one solution
to the client’s problem and will indicate and explain all the risks associated with each
alternative solution. Once a decision has been made over the choice of solution,
preparation for implementation will begin. At this stage, a consultant will highlight
conditions that will be necessary to implement and achieve the desired result from the
solution. This will involve highlighting senior staff or management that might be involved
during the process, hence a report or a presentation will be required.
Risks associated with this stage and how to avoid them
Use of wrong problem solving techniques, Following a structured approach to
may either delay result or in understanding the problem and data
misinterpretation of solution. collection will help to minimise such issues.
Underestimating client’s resources and A good understanding of the client and
capacity to implement the solution. their organisation will help the design and
utilisation of the correct tools and
techniques for the suggested solution.
Working on a quick fix for short term Generates a wide range of options for the
period only. solutions that can be implemented.
Delay and mistakes in proposal due to Recheck the proposals before submission,
administrative errors. This could be costly by giving yourself enough time. Use of
to the consultant. professional tools, such as Microsoft
Project.
Implementation Phase
In many consulting projects, this phase may not be required, as the solution to be
implemented is simple enough for the client to take charge. Others may require the
consultants input and involvement until the end.
In many cases, the consultant will be required to be part of implementation process as
the client does not possess the expertise and experience to implement the solutions
recommended. This will involve the consultant in implementation planning, acting as
team leader of the implementation team, training staff and management team, etc.
Techniques that will help during the implementation process are:
Gaining ownership and commitment
Ensure quality and accountability
Remaining flexible and adaptable
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Encouraging learning and development
On many occasions, the consultant is required to manage or help the client with the
change management. Certain solutions will, or may affect many or all staff and stake
holders in an organisation. At this stage, a consultant may utilise three famous change
management theories for an effective implementation.
Kubler-Ross grief cycle
The positive change cycle
Lewin’s force field analysis
Risks associated with this stage and how to avoid them
Underestimating resistance from prospective customers during change
management.
The change implemented may conflict with the organisations cultural norms.
Unable to translate the change in a positive manner to the prospective
customer.
Unable to keep all members of client’s organisation up to date with the
change and its effect on them.
Use of the wrong techniques and tools during training, may increase the
client’s anxiety and trust in the implementation of the solution suggested.
The risks above can be avoided by use of change management theories such as “The
positive change cycle”. A well organised diagnosis phase will help give a better
understanding of the solution required by the client and that it will suits its needs.
Therefore the techniques and tools used by the consultant will be vital at that stage. The
design of a project implementation plan that will highlight training and coaching that the
client’s member will require and the right tools to implement the recommended solution,
will help in implementing the change management in more positive manner. The
consultant can also provide ongoing support and coaching to help the client get the most
out of the solution implemented.
Termination Phase
As the name implies, this is the final phase of the consultancy cycle, which brings to an
end all or most of the operational parts of client and consultant relationship.
The termination phase is used to evaluate not only the results achieved through the
desired solution, but also to evaluate the client consultant relationship throughout the
consultancy cycle. Both parties will evaluate the success of their project through its,
results and outcomes, expected pitfalls and side effects during the termination phase.
The consultant will be required to submit a final report on the client’s project, explaining
Islah M. Farooqui Page 12
the reasons for its success, settling any residual commitments and plans for a follow up if
required before finally ending their operational involvement.
The client and consultant relationship will play a vital role during this final phase, as any
future business, reference and referrals will depend upon a satisfactory outcome of this
project. As per Kubr (2002), the client and consultant can take a view on whether the
implementation has been a failure, success or something in between. The repeat
business for the consultant will depend upon the circumstances and situations under
which the client - consultant relationship terminates.
Risks associated with this stage
Consultant’s early departure from the project due to a misunderstanding or
confusion between client and consultant.
SWOT analysis not utilised to its full potential for future references.
Unable to resolve any disputes before the end of project to avoid any financial
difficulties.
Evaluation report was unable to serve its purpose, due to being incomplete or
in conflict with client’s interest.
Consultant was unable to leave a lasting impression on the client, which may
cost good reference or future business from the client.
All good things have to come to an end and a well planned, organised termination
strategy will help the consultant in avoiding the risks above. Communication,
communication and communication is the most important and vital tool the consultant
can use during the whole project. Most risks are generated due to miscommunication,
poor data and not keeping each party up to date throughout the process.
Therefore a plan, strategy, or tool to improve communication between consultant, client
and members of the client’s organisation can help avoid unexpected surprises.
Islah M. Farooqui Page 13
Types of consultancy interventions
Lippitt and Lippitt (1986) suggested: "One should not intervene to in-fluence a group
unless the impact will be at least neutral, if not positive, for each individual in the group".
Consultancy interventions must define the kind of approach a consultant may take in
order to help client resolve its problems. These interventions will be agreed between the
parties during initial contact and drafting of the proposal. It will determine the
consultant’s, boundary line limitations and approaches, the members of clients
organisation involved and many others who will influence the outcome of this project.
There are numerous interventions that a consultant will use during the cycle of a project,
e.g, procedural, relationship, experimentation, perspective and cultural intervention. Its
effect and approach will be determined by the nature of the project and clients needs.
The following categories of interventions will be part of the consultant’s project and in
some cases; more than one intervention may be required.
1) Business planning and development
2) Marketing research
3) Strategy development
4) Sales and /or marketing campaigns
5) HR
6) Information systems development
7) Technical or operational
Islah M. Farooqui Page 14
Consultancy models and approaches
Expert
The client communicates the problem to the consultant and he executes a
solution by using specialist knowledge (Wickham, 2008). Client will seek out a
consultant with the expertise appropriate to a technical or task related project.
This model will provide an immediate result but will do little to sustain
development over time, as client diagnosis the problem and a consultant will
provide a solution.
Doctor –patient
In this relationship, the consultant works as the "doctor", diagnosing the
individual problems of the client and then uses a systematic approach based on
his/her own experiences to create a plan for change (Schein, 1987). The
consultant’s involvement in diagnosing the problem during this model is far
greater than the Expert model, but has to rely on the client to provide correct and
accurate information.
Process consulting
The consultant simply acts as a catalyst directing and redirecting activities to help
the organisation achieve the best outcomes based on its needs, thus making the
change happen (Schein, 1987). The consultant does not push a particular solution
to the client and it is the client who makes the ultimate choice of solution to
pursue (Wickham, 2008). This is a client centred approach, where the consultant
acts a facilitator while working with the organisation to find internal methods for
resolving issues and implementing change whilst utilising the existing resources
within the organisation.
Islah M. Farooqui Page 15
Role of Consultant
The choice of approach consultant will take, highly depend on whether the consultancy
intervention will be task oriented or process oriented. The higher the level of
involvement by a consultant, a more directive role he will play during interventions. Such
decisions are very critical for the success of project at hand, as it will identify rules and
regulations of engagement from consultant’s point of view. The consultant will utilise his
technical expertise while collecting and analysing data collected to provide a solution for
the client’s problem, whilst during the process oriented approach, the consultant will act
as a facilitator in providing a process which enables the client to identify and solve his
own problems.
Below diagram shows role of the consultant in many forms, his/her involvement and
approaches that may be adopted compare to client.
Islah M. Farooqui Page 16
Intervention styles and behaviour
“Style always dictates change in behaviour”, while “Consulting Style” defines the change
in behaviour a consultant will adopt in order to interact with client effectively and
efficiently.
Four categories of consulting style
Acceptance Style
A non judgmental style, which helps the client to find a solution by themselves.
Catalytic Style
This style helps the client to generate more than one solution to the current
problem by an in-depth analysis of the current data to hand, which may then lead
to a more vital data collection.
Confrontational Style
As the name implies, the consultant will force his client into confronting problems
he or she didn’t realise or acknowledge existed. This style requires good
interpersonal skills, leadership and commitment from both parties.
Prescriptive Style
This is a more traditional consulting style that requires the consultant to start
from scratch, i.e completing a full consultancy cycle.
Islah M. Farooqui Page 17
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