Académique Documents
Professionnel Documents
Culture Documents
capital
Network Social
Capital capital
Client Structural
Capital capital
Organizational
Capital
Management consulting
Lecture 6 and 7
Managing knowledge and
knowledge workers
Human Capital – Intellectual Capital
Employee
Human Products and
Knowledge capital services which
Skills Network Social
Capital capital have market
Experience IC value
Client Structural
Communication Capital capital
Organizational
Capital
Performance
Management
Remuneration
and Reward
Structure of Lecture 6 and 7
Human
capital
• Lecture 6 Network
Capital
Social
capital
– Level of analysis
• Organisational perspective Client Structural
Capital capital
– Framework for analysis Organizational
Capital
• Management of knowledge (reactor model)
• Lecture 7
– Level of analysis
• Work process
– Framework for analysis
• Identity model
• HRM issues across both lectures
– Recruitment and selection of consultants
– Promotion policies – ‘up-or-out’ principle
– The boundaries of HRM practices
Objectives
• To understand the characteristics of the management
consulting industry
– History
– Types of organisations
– Types of consultancy activities
• Typology of human capital
– According to the client interface process
– Career structures within management consultancy
– The role of consultants as knowledge brokers
• Typology of client capital Human
capital
– The consulting firm – client relationships Network Social
Capital capital
• The HRM practice focus:
– Recruiting human capital Client Structural
Capital capital
– Managing across boundaries Organizational
Capital
History
• Management as a unique field of study
• Arthur D.Little (1890s)
• McKinsey & Company
– First management and strategy consultancy
– Founded by James McKinsey in 1926 (Chicago)
– Hiring of bright young MBAs
• Rise of management consultancy after World War II
– Development of tools for strategic management
– Boston Consulting Group (1963), McKinsey&Co, Harvard Business
School
– Bain&Co - focus on shareholder wealth
• Consulting within accountancy and technology firms
– PwC and IBM
• Niche consultancy firms
– Corporate social responsibiity
Types of firms in the industry
• Accountancy firms offering consultancy
• Large non-accounting consultancies
• Small specialist boutiques
• Gurus
• Independents
Types of Consultancy services
Strategy HR
Process
Marketing
and Management
Operations consulting
Infotech
Major consultancies
• Bain & Company
• Boston Consulting Group
• Deloitte & Touche
• Ernst & Young
• A.T. Kearny
• KPMG
• Arthur D.Little
• McKinsey & Co
• Mercer
• PriceWaterhouse Coopers
Different types of consulting services: a
knowledge-based view
Example
Ernst & Young McKinsey & Company
Typology of Human Capital
• The consultancy process
• Career structures
• Consultants as brokers of human capital
– Boundary spanning
The consultancy process:
Your experience
• Paired assignment
• Identify a consultancy experience that you have
been part of.
• Characterise the individual stages of the
consultancy process
• Interview your partner and identify:
– Which skills were developed at each stage of the
consultancy process
– Which other knowledge resources did you rely upon
during this process
• Summarise your findings and be prepared to
feed back to the group
The career structure
• Analysts
• Consultants
• Senior Consultants
• Business development managers
• Directors/Partners
The McKinsey Facilitator case
• Specific type of human capital
• Across boundaries
• How would you design the recruitment
process to capture this human capital?
Components of a high performing culture
• Creates environment of
•EQ
trust
• Manages group dynamics
• High awareness of
• emotions
High self knowledge
•SQ • Experience of own
transformational journey
• Sense of vocation
Using external facilitators poses a challenge to many
forms of intellectual capital flows
Clients Facilitators
Facilitator network: HC viewpoint
HC External pool of
facilitators
boundary External
Externalskill
skillexperts
experts
Facilitators
Clients within Clients
clients
Focal Regions
Practice
Group Other
Practice
Groups
Clients
•What we
see and Be-
usually try to haviour
change
Thoughts
•What we
and feelings
cannot see,
make
Values A desire to change
assumptions ends up like most
about and and beliefs
New Year’s
often do not Needs – resolutions if root
address met and unmet causes are not
identified and
addressed
The first step in mindset change is a new level of personal
understanding
•Requires practice
•Requires a choice
•Requires insight
The first step in mindset change is a new level of personal
understanding
•Requires insight
The McKinsey Facilitator case
• How would you design the recruitment
process to capture this human capital?
Facilitator network: OC viewpoint
External pool of
facilitators
External skill
Facilitators experts
within
Clients clients
Focal Regions
Practice
Group Other
Practice
Groups Clients
Clients
External pool of
facilitators
External
Externalskill
skillexperts
experts
Facilitators
Clients within Clients
clients
Focal Regions
Practice
Group Other
Practice
Groups
Clients
Dense: Deep and Structural holes: resilient and Structural holes: Dense:
dyadic trust generalised trust Deep and dyadic trust Resilient and dyadic trust
Books about management
consulting
• Flawless Consulting, Peter Block, ISBN 0-7879-4803-9
• Guerrilla Marketing for Consulting, Jay Conrad Levinson and
Michael W. McLaughlin, ISBN 0-471-61873-X
• Managing at the Speed of Change, Daryl Conner, ISBN 0-471-
97494-3
• Managing the Professional Services Firm, David Maister, ISBN 0-
7432-3156-2
• The Professional Services Firm Bible, John Baschab, ISBN 0-471-
66048-5
• Managing Transitions, William Bridges, ISBN 1-85788-341-1
• Management Consulting: A Guide to the Profession, Milan Kubr
(ed.), ISBN 92-2-109519-3
• The World's Newest Profession: Management Consulting in the
Twentieth Century, Christopher D. McKenna, ISBN 0-521-81039-6