MODELS, THEORIES AND APPROACHES OF CONSULTANCY

David Biggs

Agenda

Understand method driven v laissez-faire approaches in consultancy Understand the contribution that different disciplines can give to consultancy Have knowledge about techniques and models in consulting especially in terms of:
matrix

based models mnemonic based models issues models of consultancy

Method driven v Laissez faire

Laissez faire consultancy is when a new method of conducting the work is created from scratch for each new assignment Method driven consultancy is when each project uses the same methodology and procedures Most projects and sometimes consultancies sit on a continuum between laissez-faire and method driven consultancy

Method driven v Laissez faire

Method driven v Laissez faire

1.

2.

The danger with method driven consultancy is twofold: If the methodology does not develop then it may become obsolete The methodology may be poached by others and then offered at a cheaper rate, which invariably means that to compete, rates must decline to remain competitive

Group Exercise

Individual consultants prefer different levels of method Spend 5 minutes in pairs thinking of the following and what levels of method they would prefer using the continuum from Biggs (2010):
New

recruits Junior consultants (with 1 years experience) Young but experienced consultants (with 4 years experience) Managing consultants (with 10+ years

Disciplines in consulting

Consultancies employ many different experts in fields such as human resource management to engineers One particular consultancy listed a staggering 459 unique services and skills (Biggs, 2010) Diverse disciplines invariably have different techniques A combination of different experts for a project give consultancies clear advantages as they combine different disciplines

Consultancy techniques

Consultancy techniques are often published as it leads to increased revenue for the firm (Saint-Martin, 2000) Obolensky (2001) listed the many models as: Matrix based formulations models Mnemonic letter based models Issues and themes models Other models include value chain analysis, supply and demand analysis and financial models

Matrix based formulations models

The Boston Consulting Group Growth-Share Matrix (adapted from Henderson, 1970)

Matrix based formulations models

The Johari window (adapted from Luft & Ingram, 1955)

Matrix based formulations models

Addressed by receiving staff opinion unknow n to management know n to management know n to staff

Public Image
Addressed by honest & open management

Blind Spots

unknow n to staff

Hidden aspects of the organisation

Unknown aspects of the organisation

Addressed by consultancy

The Johari window applied to organisations (Biggs, 2010)

Mnemonic letter based models

Company Customers

Relative Competitive Advantage

Competitors
The 3 Cs Framework (adapted from Ohmae, 1982)

Mnemonic letter based models

Product

Price

Promotion

Place

The 4 Ps Framework (adapted from Biswas & Twitchell, 2001; p.175)

Mnemonic letter based models

7-Ss Framework

McKinseys 7 S model

Structure

Strategy
Shared Value Skills

Systems

Style

Staff

Mnemonic letter based models

OPPORTUNITIES

STRENGTHS

WEAKNESSES

THREATS

SWOT analysis (adapted from Biswas & Twitchell, 2001; p.196)

Issues and themes models

Potential Entrants
(Threat of new entrants)

Buyers
(Bargaining power of buyers)

Suppliers
(Bargaining power of suppliers)

Substitutes Industry Competitors

(Rivalry among existing companies) (Threat of Substitute products and services)

Porters five forces (adapted from Obolensky, 2001; p.311)

Other models Value chain

Summary

Most projects/consultancies on a continuum that has increasing use of established methods Different disciplines can be combined together in a Gestalt manner that the whole is greater than its parts Consultancy techniques are widely published to maximise potential clients Techniques can be classified and often have a common basis

Further reading

Biggs, D.M. (2010), Management Consultancy: A guide for students London: Cengage Ltd Chapter 4
Biswas, S. and Twitchell, D. (2001), Management consulting: a complete guide to the industry, 2nd Edition. New York: John Wiley & Sons Markham, C. (2004), The Top Consultant: Developing Your Skills for Greater Effectiveness. London: Kogan Page Ltd; 4 Rev Ed edition Obolensky, N. (1994), Practical Business Reengineering: tools and techniques for achieving effective change. London: Kogan Page Ltd