Consultancy Skills Dr Simon Haslam FMR Research Ltd.

transcript

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 you’re hoping to learn from today

1. What we mean by consultancy

What we mean by consultancyThe 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 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

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 = changeWhat

Feasibility - exploration

Change implementation

Review/evaluation

Additional capacity, third party objectivity,

process skills, access to specific information, ‘bad

guy’

Eras of consultancy

• Scientific management

• Strategy boutiques

• Technology enabled change

Management ConsultingLabour 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, 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.

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

Spec/quality Time

‘What are the deliverables?’

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

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'être

• Values – strategic drivers, codes

‘Hilltops’

‘certainty’

‘agreement’

high low

‘certainty’

‘agreement’

high low

Zone of Ordinary Management:- may be adequate under relatively unambiguous conditions

Zone of Extra-Ordinary Management:Under relatively ambiguous conditions - higher levelsof awareness and interpersonal skillbecome critical

‘edge of chaos’

Cultural web

“Culture eats strategy for breakfast” Peter Drucker

Kubler-Ross model

3. Analytical frameworks and tools

Process guidanceStart 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 Weaknesses

Opportunities Threats

Helpful to summarise a situation analysis

Change modelsHow to Change - Stages

Unfreezing

Refreezing

Changing

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

Strategies

Stakeholder mapping(Mitchell, Agle and Wood 1994)

Low interest

High power

High interest

Helpful when shaping perception research and change

Hard d

Connec

tivity

X-Box 360

Helpful when looking at business models and positioning

Strategy canvas

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

X-Box 360

Nintendo’s ‘blue ocean’ response

Strategy canvas

tivity

2007 Gp1-2012 Gp2-2012

Gap analysis (using strategy canvas)

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

Value Chain

Helpful when looking at internal capability, development and out-sourcing possibilities

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,

• 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

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

PerspectiveGoals Measures

FinancialShareholder satisfaction

ROC, EVA, Cash, Sales growth, Cost reduction

CustomerCustomer satisfaction

Retention

Development

Acquisition

InternalHigh quality people & processes

Cycle time, Quality, Cash conversion, Service levels

Future Learning & growthNPD, Employee development, Adaptability

Helpful when assessing performance, agreeing targets, MBO

Risk analysis

Likelihood

Low Med

Impact

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

New markets

PenetrationProduct

development

Market development Diversification

Helpful as a basis to discuss strategic options

Directional Policy Matrix

High Medium Low

Strong

Medium

Industry attractiveness

Businesscompetitiveposition

Helpful when analysing portfolios and developing strategy

4. Our personal contribution

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

Dominant

(assertive)

Unassuming

Expansive

Contained

(emotionally controlled)

Recognition

(Expressive)

Affiliation

(Amiable)

Security

(Analyser)

Achievement

(Driver)

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

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

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

“A relationship with the customer”

“A promise”

“essence – identity – experience”

Repetition builds reputation

Competitive Advantage

Promotions

Pricing

Distribution Channels

Product quality

Customer Service

Brand ValuesCopyright

Registered Design/logo

Patents

People, team, knowledge

Positioning

Time taken to copy

Difficulty

Strategic

Tactical

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?

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.

Entrepreneurial Marketing

• Opportunistic – make the most of an opportunity

• Customer focussed

• Proactive

• Innovation focussed

• Resource leveraging

Executive Presence ModelProfessional

Social skills

Inspirational presenter

Future orientation

Corporate view

Clarity

Stories

Politically aware

Courage

Self belief

State management

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, 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

5. Plus…

Zones of debateZone of ‘comfortable’ debate

Zone of ‘uncomfortable’ debate

Intuitive core

Source: Cliff Bowman

…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 company’s activities.

What is Strategy

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

Complexity TheoryDraws on

Chaos Theory (small changes)

Complex Adaptive Systems (no boundary or architect)

Dissipative Structures (need energy to maintain)

‘Complicated’ – where the answer isn’t 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?

Analysis

Understanding what’s going

onCreativity

Doing somethingdistinctiveabout it

Learning

Adapting to changingconditions

DP Matrix factorsBusiness 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

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

Best booksHow 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

Consultancy Skills Dr Simon Haslam FMR Research Ltd.

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