Consultancy Skills

Dr Simon Haslam
FMR Research Ltd

Our aim
To learn about consultancy in an
organisational context. What consultancy
involves, the key competencies and abilities,
and the tools and techniques helpful to a
consultant.

About us
Your role
Your consultancy experience
What youre hoping to learn from today

1. What we mean by
consultancy

What we mean by
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)

What we mean by
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

Consulting is
about helping an
organisation get
from A to B

perhaps without
knowing at the
outset where A is,
where B is, the
appetite for the
journey or your
role in it.

Consultants = change
What
Feasibility - exploration
Change implementation

Review/evaluation
Why

Additional capacity, third party objectivity,

process skills, access to specific information, bad
guy

Eras of consultancy
Scientific management

Strategy boutiques
Technology enabled change

Management Consulting
Labour government - 2m pa spend
Previous conservative government - 0.5m pa
European market (2010) 25m euros

Sourceforconsulting.com identified six key client trends:

1. Context the globalisation of clients will be a crucial source
of growth, but at the same time, it will reshape the industry.
2. Purchase increasing use of multinational purchasing models
will impact the historic influence of relationships.
3. Resources clients are choosing to staff more projects internally
which, before they might have hired external consultants to do.

4. Delivery instead of competition primarily being between familiar

enemies, its now between firms and freelancers.
5. Outcome the majority of firms now sit in the middle between advice
and implementation.
A new basis of differentiation is needed: outcomes.
6. Margin fee rates among multinational companies have dropped by
10-15 per cent.

Key Stages in Consulting

1. Opportunity development
2. Agreeing Terms of Reference
3. Information gathering

4. Interpretation and insight development

5. Sign-off
6. Aftercare

What are the deliverables?

Cost

Spec/quality

Time

Intervention styles
Expert consultant

Process consultant

Hands on hands off

7.

Help them think through their own ideas

6.

Add options to their ideas

5.

Advise them what to do

4.

Tell them what to do

3.

Show them how to do it

2.

Do it with them

1.

Do it for them

Competence framework
Institute of Consulting

1.0

Client Focus

2.0

Building and Sustaining Relationships

3.0

Applying Expertise and Knowledge

4.0

Achieving Sustainable Results

5.0

Market Capability and Knowledge

2. Perspectives helpful to
consultants

The organisational context

Internal
Micro environment
Macro environment

In one application, sensemaking is

approached as the ability or attempt to
make sense of an ambiguous situation.
More exactly, sensemaking is the process
of creating situational awareness
and understanding in situations of high
complexity or uncertainty in order to make
decisions. It is "a motivated, continuous
effort to understand connections (which
can be among people, places, and events)
in order to anticipate their trajectories and
act effectively
(Klein, as referenced in Wikipedia)

 Vision ambition, aspiration

Mission purpose, raison d'tre

Values strategic drivers, codes

Hilltops

low

agreement

high
high

certainty

low

edge
of
chaos

low

agreement

high

Zone of Extra-Ordinary Management:

Under relatively ambiguous
conditions - higher levels
of awareness and interpersonal skill
become critical

Zone of Ordinary Management:

- may be adequate under relatively unambiguous
conditions

high

certainty

low

Cultural web

Culture eats strategy for breakfast Peter Drucker

Kubler-Ross model

3. Analytical frameworks
and tools

Process guidance
Start with the client deliverables, process, perspective
Pull together secondary data asap
Primary data follows

Facilitate external perspective/bring something new

Share understanding during process
Keep eyes on triangle and keep in touch

Process guidance (2)

Make your client look good
Expect to over deliver
Invoice promptly
Seek formal feedback quickly
Note, but take a light touch with, follow-up opportunities

McKinsey 7S

Helpful when looking at organisational alignment

SWOT analysis
Strengths

Opportunities

Weaknesses

Threats

Helpful to summarise a situation analysis

How to Change - Stages

Change models
Unfreezing

Refreezing
Changing

How to Change - Stages

Gerry Egans Model B

1. Present
Blind Spots

2. Preferred

3. Getting there

Agenda

Story

Best fit

Possibilities

Commitment

Strategies
Plan

Leverage

Actions leading to positive outcomes

Stakeholder mapping
(Mitchell, Agle and Wood 1994)

Low interest

High interest

High
power
Low
power
Helpful when shaping perception research and change

Strategy canvas
10
8
6

PS3

X-Box 360

ed

ity
ss

or
s

pe

ct
iv
Pr
oc
e

C
on
ne

D
VD

1
D
ol

by

5.

c
di
s
H
ar
d

Pr
i

ce

Helpful when looking at business models and positioning

Four Actions framework

Re-shaping the value curve results from the
consideration of four actions
Raise means increasing the strength of a existing factor

Reduce means reducing the prominence of an existing

factor (cost saving)
Create means introducing a new factor to your recipe.
Eliminate means making a factor in your current recipe
redundant (cost saving)

by
1

5.

di
s

DV
Co
D
nn
Pr
ec
oc
t iv
es
ity
s
or
M
ot
sp
io
ee
n
d
co
nt
ro
la
bl
La
e
rg
e
pu
bl
ic

Do
l

Ha
rd

Pr
ic
e

Nintendos blue ocean response

Strategy canvas

10
8
6
PS3

4
2
0
X-Box 360

Wii

2007
Gp1-2012
Gp2-2012

Capacity
building/facilitation

Regional presence

Product range
(customers)

Focus on
disadvantage

FT focus

Political' activity

Financial 'safety'

Relative cost base

Product range
(investors)

Investor diversity

Share capital

Perceived integrity

Gap analysis

(using strategy canvas)

Core competence
C.K Prahalad and Gary Hamels view is that
strategy should focus on an organisation
recognising what it is fundamentally good at,
and building from this. They provide access to a
wide variety of markets, contribute significantly to
end product benefits and are difficult for competitors
to imitate.

Helpful when looking at internal ability

Value Chain

Helpful when looking at internal capability, development

and out-sourcing possibilities

PESTEL macro environmental forces

POLITICAL

SOCIAL

ENVIRONMENT

ECONOMIC

TECHNOLOGY

REGULATORY/
LEGAL

Helpful as a basis for organisational design (fit for

environment), horizon scanning, scenario planning,

Porters Five Forces

Rivalry amongst those in the industry
Bargaining power of suppliers
Bargaining power of buyers
Threat of new entrants
Threat of substitute products or services
Bargaining power of buyers

Helpful when looking at competitive positioning,

segmentation approaches, customer needs and
perception

Decision making - options

Suitability does it achieve what we want?
Feasibility have we the resources/

capability?
Acceptability can we live with the
consequences of this action?

Creativity approaches
1. Have a process
2. Start with divergent thinking

3. Finish with convergent thinking

Helpful for fresh perspectives and buy-in

Metrics
What get measured gets done
what gets rewarded gets done better.

Perverse outcomes can

we live with the

consequence of our choice
of CSF/KPI/objective

Balanced Scorecard (MI)

Strategy
Perspective

Goals

Measures

Shareholder
satisfaction

ROC, EVA, Cash,

Sales growth, Cost
reduction

Customer

Customer
satisfaction

Retention
Development
Acquisition

Internal

High quality
people &
processes

Cycle time, Quality,

Cash conversion,
Service levels

Learning & growth

NPD, Employee
development,
Adaptability

Financial

Future

Helpful when assessing performance, agreeing targets, MBO

Risk analysis
High

Likelihood

Med

Low
Low

Med
Impact

High

Helpful when evaluating change options and strategies

Force field analysis

Promoting forces

Restricting forces

Helpful when planning pragmatic change

Ansoff matrix
Existing
products

New
products

Existing
markets

Penetration

Product
development

New
markets

Market
development

Diversification

Helpful as a basis to discuss strategic options

Directional Policy Matrix

Industry attractiveness
High

Medium

Low

Strong

Business
competitive
position

Medium

Weak

Helpful when analysing portfolios and developing strategy

4. Our personal
contribution

TGROW
- discussion road map

Topic
Goals
Reality
Opportunities
Wrap-up

In a meeting/discussion what phrases

might one use around each of these five
stages?

Expansive

Recognition

Affiliation

(Expressive)

(Amiable)

Dominant

Unassuming

(assertive)

Achievement

Security

(Driver)

(Analyser)
Contained
(emotionally controlled)

How each style makes decisions

PROMOTING

FACILITATING

Boldly

Facilitating

Prefers new
alternatives

Reluctantly

Involves others

Prefers to be part of a group decision

Quickly

Involves others

Idealistically in terms of people

Concerned about decisions effect on

other people

CONTROLLING

ANALYTICAL

Realistically

Reluctantly

Willing to take
calculated risk

Logically

Independently

Prefers effective
alternatives

Slowly
Likes to study alternative
possibilities in detail
Carefully

In bid meetings
Do your homework think of the questions you might
be asked
Work in your elevator pitch
Dont make statements you cant back up

Ask questions back seek to clarify

Be honest if you dont know something, admit it
Take responsibility show how you will add value
Agree follow up actions and do yours

The elevator pitch

The elevator pitch is a short summary which quickly
and simply explains a product/organisation and,
importantly, its value proposition.

Your elevator pitch

Addresses a problem
Outlines your solution/value proposition
(what you do to help others).
Brief
Easy to understand
Emotional hooks
Say what you want

Brand
A relationship with the customer

A promise

essence identity experience

Repetition builds reputation

58

Competitive Advantage
D
i
f
f
i
c
u
l
t
y

Patents
Copyright
Brand Values
Registered Design/logo

Strategic

Distribution Channels

People, team, knowledge

Positioning

Tactical

Product quality
Pricing
Customer Service
Promotions
Time taken to copy

Branding and the

entrepreneur
Brand often linked with entrepreneur
Brands are built you dont start with a
strong brand
Brand development is a consequence of
doing business
Does the brand have stretch?
Can you protect your brand?

10 entrepreneurial
branding tips
1. The design of your logo really doesnt matter.
1. Have a professional website.
2. Blogs are good.
3. Blogs are good, but theyre just one tool.
4. Prepare a one page corporate overview.
5. Participate in local business events.
6. Do what you say youre going to do.
7. Stand for something.

8. Realize that youre not in total control of your brand.

9. Branding is as much about your people as anything else.

Entrepreneurial Marketing
Opportunistic make the most of an opportunity
Customer focussed
Proactive
Innovation focussed
Resource leveraging

Executive Presence Model

Stories

Professional
image
Social
skills

Politically
aware

Inspirational
presenter

Courage

Future
orientation

Self belief

State
management
DTC Ltd

Corporate
view
Passion

Clarity

Questioning 8 views
1. Questioning for whose benefit?
2. Open-ended to explore
3. closed to verify

4. Why raises level of (but intrusive)

5. How homes in on practicalities/detail
6. Have you considered quegestions
7. Prefixing reduces the threat of questions
8. Checking understanding - powerful

Listening (after Nancy Kline)

Pay beautiful attention to the client, dont even think

about interrupting, make sounds only occasionally to
indicate understanding or encouragement, keep
your eyes on your clients eyes, dont ask picky
questions, smile occasionally, look interested, be
interested and be at ease
and dont even think about interrupting.

Clients are capable of sorting out 70% of

their own problems

5. Plus

Zones of debate
Zone of comfortable debate

Zone of uncomfortable debate

Intuitive core

Source: Cliff Bowman

What is Strategy
is the creation of a unique and
valuable position, involving a different
set of activities (few needs of many
customers or broad needs of a few)
requires you to make trade-offs in
competing to choose what not to do.
involves creating fit among a
companys activities.

Strategy
. is derived from the military, and studies of
generalship
. a pattern or plan that integrates an organisations
major goals, policies and action sequences into a
cohesive whole
James B Quinn
.... is to do with the matching of the activities of the
organisation to the environment in which it
operates
Gerry Johnson & Kevan Scholes

Complexity Theory
Draws on
Chaos Theory (small changes)
Complex Adaptive Systems (no boundary or architect)
Dissipative Structures (need energy to maintain)
What
Complicated where the answer isnt obvious
Challenges
How organisations assimilate information

How this fits with consultancy project objectives

30%, 60%, 10%

Personal change process

Denial

Anger

Bargaining

Depression

Acceptance

Strategy formation?
Understanding
whats going
on

Analysis

Creativity

Learning

Adapting to
changing
conditions

Doing something
distinctive
about it

DP Matrix factors
Business Unit Strength

Industry Attractiveness

Market share

Market growth rate

Brand strength

Market size

Production capacity

Industry profitability

Profit margins/income

Industry rivalry

Growth in market share

Marco-env (PESTEL)

Distribution channel access

Strategic thinking
1.

Systems perspective mental model of the

complete system for value creation (and
implications)

2.

Intent focused to be more determined and

less distractible

3.

Thinking in time past/present/future in mind

at the same time

4.

Hypothesis driven creative and critical

thinking

5.

Intelligent opportunism being responsive to

good opportunities (changing environment)

How to Change - Stages

Best books

Peter Block Flawless Consulting

Peter Block - (field book for the above)

Edgar Schein Process Consultation Revisited

Mike Cope 7Cs of Consulting

Plus, tons of stuff on the web, Business Balls etc