Consultancy Skills for Organisational Success
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Consultancy Skills for Organisational Success
- 1. Consultancy Skills Parveen Kumar Chadha Saxbee Consultants
- 2. 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.
- 3. About us • Your role • Your consultancy experience • What you’re hoping to learn from today
- 4. 1. What we mean by consultancy
- 5. 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)
- 6. What we mean by consultancy “…to try to take ownership of an organisation’s 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
- 7. 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.
- 8. Consultants = change What Feasibility - exploration Change implementation Review/evaluation Why Additional capacity, third party objectivity, process skills, access to specific information, ‘bad guy’
- 9. Eras of consultancy • Scientific management • Strategy boutiques • Technology enabled change
- 10. Management Consulting Labour government - £2m pa spend Previous conservative government - £0.5m pa European market (2010) – 25m euros
- 11. 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, it’s 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.
- 12. 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
- 13. Cost Spec/quality Time ‘What are the deliverables?’
- 14. Intervention styles • ‘Expert consultant’ • ‘Process consultant’
- 15. 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
- 16. 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
- 17. 2. Perspectives helpful to consultants
- 18. The organisational context Internal Micro environment Macro environment
- 19. 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)
- 20. • Vision – ambition, aspiration • Mission – purpose, raison d'être • Values – strategic drivers, codes
- 21. ‘Hilltops’
- 23. ‘certainty’ ‘agreement’ high low high low Zone of Ordinary Management: - may be adequate under relatively unambiguous conditions Zone of Extra-Ordinary Management: Under relatively ambiguous conditions - higher levels of awareness and interpersonal skill become critical ‘edge of chaos’
- 24. Cultural web “Culture eats strategy for breakfast” Peter Drucker
- 26. 3. Analytical frameworks and tools
- 27. 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
- 28. 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
- 29. McKinsey 7S Helpful when looking at organisational alignment
- 30. SWOT analysis Strengths Weaknesses Opportunities Threats Helpful to summarise a situation analysis
- 31. Change models How to Change - Stages Unfreezing Refreezing Changing
- 32. Gerry Egan’s ‘Model B’ How to Change - Stages Actions leading to positive outcomes 1. Present 2. Preferred 3. Getting there ‘Blind Spots’ ‘Story’ ‘Leverage’ Agenda Commitment Possibilities Best fit Plan Strategies
- 33. Stakeholder mapping (Mitchell, Agle and Wood 1994) Low interest High power Low power High interest Helpful when shaping perception research and change
- 34. 0 2 4 6 8 10 Price H ard disc D olby 5.1 D VD C onnectivity Processorspeed PS3 X-Box 360 Helpful when looking at business models and positioning Strategy canvas
- 35. 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) Four Actions framework
- 36. 0 2 4 6 8 10 Price Hard disc Dolby 5.1 DVD Connectivity Processorspeed M otion controlableLarge public PS3 X-Box 360 Wii Nintendo’s ‘blue ocean’ response Strategy canvas
- 37. Perceivedintegrity Sharecapital Investordiversity Productrange (investors) Relativecostbase Financial'safety' Political'activity FTfocus Focuson disadvantage Productrange (customers) Regionalpresence Capacity building/facilitation 2007 Gp1-2012 Gp2-2012 Gap analysis (using strategy canvas)
- 38. C.K Prahalad and Gary Hamel’s 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. Core competence Helpful when looking at internal ability
- 39. Value Chain Helpful when looking at internal capability, development and out-sourcing possibilities
- 40. POLITICAL ECONOMIC SOCIAL TECHNOLOGY REGULATORY/ LEGAL ENVIRONMENT PESTEL macro environmental forces Helpful as a basis for organisational design (fit for environment), horizon scanning, scenario planning,
- 41. • 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 Porter’s Five Forces Helpful when looking at competitive positioning, segmentation approaches, customer needs and perception
- 42. 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?
- 43. Creativity approaches 1. Have a process 2. Start with divergent thinking 3. Finish with convergent thinking Helpful for fresh perspectives and buy-in
- 44. 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
- 45. Balanced Scorecard (MI) Strategy Perspective Goals Measures Financial 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 Future Learning & growth NPD, Employee development, Adaptability Helpful when assessing performance, agreeing targets, MBO
- 46. Risk analysis Likelihood High Med Low Low Med Impact High Helpful when evaluating change options and strategies
- 47. Force field analysis Promoting forces Restricting forces Helpful when planning pragmatic change
- 48. Ansoff matrix Existing products New products Existing markets New markets Penetration Product development Market development Diversification Helpful as a basis to discuss strategic options
- 49. Directional Policy Matrix High Medium Low Strong Medium Weak Industry attractiveness Business competitive position Helpful when analysing portfolios and developing strategy
- 51. TGROW - discussion road map In a meeting/discussion – what phrases might one use around each of these five stages? • Topic • Goals • Reality • Opportunities • Wrap-up
- 53. How each style makes decisions PROMOTING • Boldly • Prefers new alternatives • Involves others • Quickly FACILITATING • Facilitating • Reluctantly • Idealistically in terms of people • Prefers to be part of a group decision • Involves others • Concerned about decision’s effect on other people CONTROLLING • Realistically • Willing to take calculated risk • Independently • Prefers effective alternatives ANALYTICAL • Reluctantly • Logically • Slowly • Likes to study alternative possibilities in detail • Carefully
- 54. In bid meetings… Do your homework – think of the questions you might be asked Work in your elevator pitch Don’t make statements you can’t back up Ask questions back – seek to clarify Be honest – if you don’t know something, admit it Take responsibility – show how you will add value Agree follow up actions – and do yours
- 55. The ‘elevator pitch’ The ‘elevator pitch’ is a short summary which quickly and simply explains a product/organisation and, importantly, its value proposition.
- 56. 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
- 57. “A relationship with the customer” “A promise” “essence – identity – experience” Brand
- 59. Competitive Advantage Promotions Pricing Distribution Channels Product quality Customer Service Brand ValuesCopyright Registered Design/logo Patents People, team, knowledge Positioning Time taken to copy D i f f i c u l t y Strategic Tactical
- 60. Branding and the entrepreneur • Brand often linked with entrepreneur • Brands are built – you don’t start with a strong brand • Brand development is a consequence of doing business • Does the brand have ‘stretch’? • Can you protect your brand?
- 61. 10 entrepreneurial branding tips 1. The design of your logo really doesn’t matter. 1. Have a professional website. 2. Blogs are good. 3. Blogs are good, but they’re just one tool. 4. Prepare a one page corporate overview. 5. Participate in local business events. 6. Do what you say you’re going to do. 7. Stand for something. 8. Realize that you’re not in total control of your brand. 9. Branding is as much about your people as anything else.
- 62. Entrepreneurial Marketing • Opportunistic – make the most of an opportunity • Customer focussed • Proactive • Innovation focussed • Resource leveraging
- 63. Executive Presence Model Professional image Social skills Inspirational presenter Future orientation Corporate view Clarity Stories Politically aware Courage Self belief State management Passion
- 64. 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
- 65. Listening (after Nancy Kline) • Pay beautiful attention to the client, don’t even think about interrupting, make sounds only occasionally to indicate understanding or encouragement, keep your eyes on your client’s eyes, don’t ask picky questions, smile occasionally, look interested, be interested and be at ease… …and don’t even think about interrupting. • Clients are capable of sorting out 70% of their own problems
- 66. 5. Plus…
- 68. Zones of debate Zone of ‘comfortable’ debate Zone of ‘uncomfortable’ debate Intuitive core
- 70. Strategy …. is derived from the military, and studies of generalship …. a pattern or plan that integrates an organisation’s 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
- 72. 30%, 60%, 10%
- 73. Personal change process • Denial • Anger • Bargaining • Depression • Acceptance
- 75. 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
- 76. 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) Strategic thinking
- 77. Best books How to Change - Stages • 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
Notes de l'éditeur
- Most people prefer their working life in the arena of certainty. But contexts often don’t make this possible. This is forth Liedtka skill Key message – you and your team may feel more comfortable in the bottom left, but most strategic management is outside of this zone and requires some particular skill levels to do it well.
- Most people prefer their working life in the arena of certainty. But contexts often don’t make this possible. This is forth Liedtka skill Key message – you and your team may feel more comfortable in the bottom left, but most strategic management is outside of this zone and requires some particular skill levels to do it well.
- Make sure we’re all clear about what strategy means/is. Key messages – its about focus/taking a position, making decisions, and keeping everything on message.
- Jean Liedtka’s five components of strategic thinking. We’ll discuss each of them, with the sub-text that senior managers need to understand and be able to work with all five. Key message – strategic thinking is relevant to all of us, and there are five competencies we need to master. We’ll look at all five in turn.