OVERVIEW OF MANAGEMENT

ADVISORY SERVICES
PRESENTORS: FOB
EVOLUTION
OVERVIEW OF MAS BY CPAS
TRADITIONAL AREAS OF CPA FIRM

Accounting
system Income tax Management
Auditing design and work consultancy
installation
WHY MANAGEMENT CONSULTANCY?

CPA firms
engage in
audit

Natural area of
development of
Management
a public
consultancy accountant

Provide
extremely useful
services to
business
managers
DEVELOPING TRENDS
OVERVIEW OF MAS BY CPAS

DEVELOPING TRENDS

Specialization Improvement Change in the

Technical
in different of business management
Development
areas education culture
OVERVIEW OF MAS BY CPAS
FUTURE PROSPECT
 Management consulting will become even
more specialized
 Insight provider, creator and sharer of
information
 Management consultancy firms will tend to
remain small or quite large
 Sophisticated marketing

 Career attraction in management consulting

OVERVIEW OF MAS BY CPAS
THE CONSULTING INDUSTRY (definitions)

 InformationTechnology (IT)
 Consulting and system integration

 Corporate strategy

 Operations management

 Human resources management

 Outsourcing
3 MAIN FACTORS IN GROWTH

 Increase demand

 Continued demand for information

technology spending
OVERVIEW OF MAS BY CPAS

IT Firms

Accounting
firms
offering
MAIN consultancy

TYPES OF
CONSULTI
NG FIRMS
Major
consulting
only firms

Independents

OVERVIEW OF MAS BY CPAS
CAREER STRUCTURE
 Analyst
 Consultants
 Senior Consultants/Managers
 Business Development Managers
 Directors/Partners
•Most experienced
consultant
•Responsible for the
development of the
organization
•Leads strategic
development
•Over-all responsibility for
•Data Gathering
•Evaluation and
recommendations of the
client business
•3-5 years of experience
•Leads a consulting team
•Dealing with the client team
•Ability to take
responsibility in running
small consultancy project
•5-10 years of experience
•Developing firms product
•Responsible for building
relationship with its client
•Involved in some large,
complex consulting
projects
 OVERVIEW OF MAS BY CPAS
MANAGEMENT CONSULTING
 Independent and objective advisory
service provided by qualified persons to
clients
 Recommend solutions or suggested
actions with respect to the issues involved
 Helps to effect constructive change in the
organization
OVERVIEW OF MAS BY CPAS

TWO TYPES OF ENCOUNTERS

1. Consultations •Providing advice and
information during a short
2. Engagements time frame
•Information provided is
orally
•Information are qualified to
limitations

•Analytical approach and

process is applied in a
study or project
OVERVIEW OF MAS BY CPAS
WHY USE MANAGEMENT
CONSULTANTS?
Professional Temporary
Independent Advisory Professional Agent of
Viewpoint • possesses Service Change
• see the true special • less • catalyst for
nature of the knowledge, expensive change
problems skill and • temporary
• distinguish variety of professional
feasible and personal help
infeasible attributes
• unbiased • introduce
suggestion new ideas
into the
organization
CHAPTER 2
Areas of Management
Advisory Services -
Part I
TYPES OF MAS ENGAGEMENTS
a) Nature of the Problem
b) Service Delivery Area
c) Phases of the Analytical Process
d) Techniques and Methodologies
Applied
e) Industry(or nature of
organization)
f) Geographical Area
NATURE OF THE PROBLEM

a. Corrective Situation in which

conditions have
worsened.
b. Progressive Existing situation
that can be
improved.
c. Opportunistic
Situation in which a
future opportunity
exists.
SERVICE DELIVERY AREAS
o functions or activities in which the problem
exists.

Example:
1. General Management

2. Manufacturing
3. Personnel General Accounting

4. Finance and Accounting Cost Accounting

Capital Investment
PHASES OF
ANALYTICAL PROCEDURE

a. Identifying objectives
b. Defining the problem
c. Finding out the facts
d. Developing the solution
e. Implementing the solution
TECHNIQUES AND
METHODOLOGIES APPLIED

Example:
Capital Investment planning can
be aided by a discounted cash
flow model.
INDUSTRY OR NATURE OF ORGANIZATION

GEOGRAPHICAL AREAS
AREAS OF MS PRACTICE
1. Management functions of analysis, planning, organizing
and controlling.

2. Introduction of new ideas, concepts and methods to

management.

3. Improvement of policies, procedures, systems, methods

and organizational relationships.

4. Application and use of managerial accounting, control

systems, data processing, and mathematical techniques
and methods.

5. The conduct of special studies, preparation of

recommendation.
TYPES OF CONSULTANCY WORK
A. Business planning and development or Project
feasibility studies
B. Information systems consulting
C. Management / Operations audit
D. Business process improvement / reengineering
E. Others such as
1) Marketing Research
2) Marketing Strategy Development
3) Developing promotional campaign
4) Planning sales force activity
5) New product development
6) Developing proposal for financial support
7) Staff Recruitment
8) Exporting and international market
BUSINESS PLANNING AND DEVELOPMENT
(PROJECT FEASIBILITY)

o Effective consultant can use the project

proposal to establish exactly what the
client wants and to manage his or her
expectations about what can
realistically be achieved.
INFORMATION SYSTEMS CONSULTING
Information needed:
Business’s external situation and its
internal state.

MANAGEMENT / OPERATIONS AUDIT

Operational Audit are conducted to
evaluate the effectiveness and/or efficiency of
operations.
BUSINESS PROCESS IMPROVEMENT /
REENGINEERING
o It is the complete redesign of a process with
an emphasis on finding creative new ways to
accomplish an objective.

o It involves developing new ways to perform

existing activities and ways to stop
performing non-value adding activities.
OTHER TYPES OF CONSULTANCY WORK

MARKETING RESEARCH
o Process through which managers
discover the nature of the competitive
environment in which they are operating.

TWO TYPES:
1. Primary Research
a. Quantitative Research
b. Qualitative Research
2. Secondary Research
OTHER TYPES OF CONSULTANCY WORK
MARKETING STRATEGY DEVELOPMENT
 Defines the approach the business will take
in order to get the customer’s attention and
get them to spend their money on the
business’s products or services

DEVELOPING PROMOTIONAL CAMPAIGNS

 Any program of activities dedicated to
informing customers about a product,
stimulating their interest and encouraging
purchase.
OTHER TYPES OF CONSULTANCY WORK

PLANNING SALES FORCE ACTIVITY

 Overall organization of the team
 Sales team training
 Sales team motivation
 Planning sales campaigns
OTHER TYPES OF CONSULTANCY WORK
NEW PRODUCT DEVELOPMENT
 Understanding the customer’s needs through market
research
 Technical advice on product development

 Identifying and contacting suppliers of critical

components
 Development of marketing and PR campaigns to
support the launch
 Developing promotion campaigns to get distributors on
board
 Financial planning and evaluation of the return on new
product investment
OTHER TYPES OF CONSULTANCY WORK
DEVELOPING PROPOSALS OF FINANCIAL
SUPPORT
 Evaluation of the business’s investment
needs
 Identification of funding providers and how
they might be contacted
 Developing an understanding of the criteria
employed by funding providers and how
these might be addresses
 Developing communications with funding
providers
OTHER TYPES OF CONSULTANCY WORK
STAFF RECRUITMENT
 Assessing the firm’s human resource
requirement and identifying skill and knowledge
gaps
 Creating advertisements to attract the right
people
 Development assessment criteria, interview
procedures and psychometric testing of
candidates
 Advice on the reimbursement packages new
recruits will expect
OTHER TYPES OF CONSULTANCY WORK
EXPORTING AND INTERNATIONAL
MARKETING
IN PARTICULAR THE CONSULTANT CAN
SUPPLY:

 An
overall insight into regional, social and
macroeconomic development

 Ananalysis of the growth and evolution of

specific markets

 An evaluation of consumer needs and

requirements and how these are being
satisfied currently
IN PARTICULAR THE CONSULTANT CAN
SUPPLY:

 Information on regulatory and legal issues

 Details
of the existing supply structure and
competitors present

 Aninvestigation into distribution channels and

possible partners

 Informationon advertising and promotional

opportunities
CHAPTER 3
Areas of Management
Advisory Services-
Part II
I. TRADITIONAL SERVICE

Planning

Managemenc
Management
unting Controlling
Accounting

Decision
Making
I. TRADITIONAL SERVICE
B. Design and Appraisal of Accounting System

1. Development of an accounting system for newly-organized

firm
2. Revision, partial or complete, of an existing accounting
system
3. Extension of the present accounting system to cover new
business activities.
4. Accounting service in general
5. Accounting Machines installation
6. Internal Control Studies and Installation

C. Financial Management- related services

D. Project Feasibility Studies
II. EMERGING CONSULTANCY SERVICES
Global Risk Management Solution
 Managing totality of risks-financial, operational
and systems, and strategic to improve financial
and business performance.
1. Financial Risk Management
2. Strategic Risk Management
3. Operational and Systems Risk
Management
4. Compliance Risk Management
5. Internal Audit Services
II. EMERGING CONSULTANCY SERVICES
Transaction Services
 Involves services related to mergers, acquisition,
divestitures, joint ventures, spin-off and strategic
alliance

Financial Advisory Services

 CPA’s provide financial, economic and strategic
advice to companies with complex business
problems and disputes.
II. EMERGING CONSULTANCY SERVICES
Project Finance and Privatization
 Involves management advisory services related to
partnership between the public and private sectors in
delivering infrastructure and services or privatization
and project finance.

Valuation Services
 Guide clients through complex business
transaction such as acquisition or divestiture of
investment, debt structuring and finance-raising,
entry to major stock exchange, mergers.
II. EMERGING CONSULTANCY SERVICES
Business Recovery Services
 CPA’s provide services to troubled business by
emphasizing on the implementation and
rationalization and recovery programs designed
to rebuild value.

Dispute Analysis and Investigations

 Environmental analysis, real estate damage,
investigative services, construction disputes,
investigative services, economic and financial
analysis.
II. EMERGING CONSULTANCY SERVICES
Computer Risk Management
 Help client understand and manage their
business risks relating to implementation and use
of technology

Application Software Selection and

Implementation
 Assist clients in prioritizing their needs, identifying
the right software and tailoring it to meet their
specific requirement.
DETERMINING SCOPE OF SERVICE
1. Responsibility to establish scope of
services
2. Independence
3. Competence
4. Requirement for specialization
5. Identification and Resolution of client’s
basic problems
6. Referrals
7. Code of Professional Ethics
TYPES OF CLIENTS SERVED
Contact
Clients

Ultimate Intermediate
Clients Clients

Types of
Clients
Served

Indirect Primary
Clients Clients

Unwitting
Clients
GROUP OF CLIENTS THAT CPA’S CAN
PROVIDE MAS

1. Privately-owned Business firms

2. Governmental Agencies and Organization
3. Not-for-Profit Nongovernment Organization
4. Professional Association
5. Others
THE DECISION TO USE AN
ACCOUNTANCT
A. What can I offer the client business that will
enhance its performance and help achieve its
objectives?

B. Why will my contribution be more valuable than

that which existing managers and potential
recruits can contribute?

C. How can I communicate to the client business

than what I offer is valuable?
PROVISIONS
Provision of Information
• Information is valuable to a business
• It has a cost
• Information is a resource that must be managed
Provision of Specialist Expertise
• Require the application of technical knowledge and
an ability to use specialist analysis techniques
Provision of a New Perspective
• Managers are not decision making automata
• 'cognitive maps', 'mindsets', or 'dominant logics' are
used by managers to see their managerial world
• Consultant can offer a fresh mind to an issue
PROVISIONS

Provision of Support for Internal Arguments

• Disagreements arise over a wide range of issues
• Conflicts of opinion take a variety of form

Provision of Support in Gaining a Critical

Resource
• Organization must attract resources in order to
survive
• One of the manager's most critical function is
attracting resources on behalf of the firm
• Consultant can be of great value in structuring a
proposal and advising on how it might be delivered
PROVISIONS

Facilitating Organizational Change

• Organizations change all the time

• Managers change their roles and responsibilities
• Change usually meets resistance
• Sometimes organizations call for change as the
primary goal of the consulting exercise
 FACILITATING
ORGANIZATIONAL CHANGE

Sometimes
organizations
Managers
Organizations Change call for change
change their
change all the usually meets as the primary
roles and
time resistance goal of the
responsibilities
consulting
exercise
Dayag, Daisy
Dela Cruz, Hazel
Manongdo, Rudith Ann
Padilla, Jefferson
Zambrano, Judy Mae