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HOW TO BE A GOOD

MANAGEMENT CONSULTANT

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Management Consultancy

Management consultancy is the provision to

management of objective advice and assistance relating

to the strategy, structure, management and operationsof an organization in pursuit of its long-term purposesand objectives. Such assistance may include theidentification of options with recommendations; theprovision of an additional resource and/or theimplementation of solutions.

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Pioneers in Consultancy

The first management consulting firm wasArthur D.Little, founded in the late 1890s by the MIT professorof the same name. Arthur D. Little originally specialized

in technical research. but later became a generalmanagement consultancy.

The first pure management and strategy consultingcompany was McKinsey & Company, still considered

a leader in the field. McKinsey was founded in Chicagoduring1926 byJames O. McKinsey

http://en.wikipedia.org/wiki/Arthur_D._Littlehttp://en.wikipedia.org/wiki/Arthur_D._Littlehttp://en.wikipedia.org/wiki/McKinsey_%26_Companyhttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/1926http://en.wikipedia.org/wiki/James_O._McKinseyhttp://en.wikipedia.org/wiki/James_O._McKinseyhttp://en.wikipedia.org/wiki/1926http://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/McKinsey_%26_Companyhttp://en.wikipedia.org/wiki/Arthur_D._Littlehttp://en.wikipedia.org/wiki/Arthur_D._Little

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Qualities needed in a consultant

Skills in writing reports Skills in structuring task Technical knowledge Industry experience

Communication skills Political skills Presentation skills Willingness to take risks

The ability to create a support system and make things recoverif anything goes wrong

Ability to tolerate insecurity Desire to learn continuously

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Commitment to both work and people

Business understanding; Change management skills;

Ownership, management and delivery of solutions to

clients; Project delivery and risk management;

Excellent interpersonal skills;

Ability to transfer skills to others;

Creative and analytical thinking; and

Adherence to a code of conduct and ethical guidelines

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CAs as Management Consultants

According to ICAI

The expression "Management Consultancy and otherServices" shall not include the function of

Statutory or periodical audit,

Tax (both direct taxes and indirect taxes) representationor advice concerning tax matters or

Acting as liquidator, trustee, executor, administrator,arbitrator or receiver,

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It shall include the following

Financial management planning and financial policydetermination.

Capital structure planning and advice regardingraising finance.

Working capital management. Preparing project reports and feasibility studies. Preparing cash budget, cash flow statements,

profitability statements, statements of sources and

application of funds etc. Budgeting including capital budgets and revenue

budgets. Inventory management, material handling and

storage

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Organization structure and behavior, development ofhuman resources including design and conduct oftraining programmes, work study, job-description, jobevaluation and evaluation of work loads.

Systems analysis and design, and computer relatedservices including selection of hardware anddevelopment of software in all areas of services whichcan otherwise be rendered by a chartered accountant inpractice and also to carry out any other professionalservices relating to EDP.

Investment counselling in respect of securities [asdefined in the Securities Contracts (Regulation) Act,1956 and other financial instruments.] (In doing so, the

relevant provisions of the Code of Ethics must be keptin mind).

Acting as registrar to an issue and for transfer of shares/other securities. (In doing so, the relevant provisions of

the Code of Ethics must be kept in mind)

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Quality audit. Environment Audit. Energy Audit Acting as Recovery Consultant in the Banking Sector. Insurance Financial Advisory services under the

Insurance Regulatory Development Authority Act,1999 including Insurance Brokerage.

Acting as advisor or consultant to an issue, includingsuch matters as:-

a. Drafting of prospectus and memorandum containingsalient features of prospectus. Drafting and filing of

listing agreement and completing formalities withStock Exchanges, Registrar of Companies and SEBI.

b P i f bli i b d d i di

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b. Preparation of publicity budget, advice regardingarrangements for selection of ad-media, centers forholding conferences of brokers, investors, etc., Bankers toissue, collection centers, brokers to issue, (underwriters

and the underwriting arrangement, Distribution ofpublicity and issue material including application form,prospectus and brochure and deciding on the quantum ofissue material (In doing so, the relevant provisions of theCode of Ethics must be kept in mind).

c. Advice regarding selection of various agencies connectedwith issue, namely Registrars to Issue, printers andadvertising agencies.

d. Advice on the post issue activities, e.g., follow up steps

which include listing of instruments and dispatch ofcertificates and refunds, with the various agenciesconnected with the work.

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How to start?

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Decide and Plan

The legal structure of the consulting firm-proprietorship, partnership etc

_ Office with the requisite infrastructure including

whether home based or a separate office. Computer with internet usage Support staff

A business plan that will help keep the consultancy

afloat and profitable, marketing and making knownthe expertise available and managing finances

A back up plan if certain things go wrongThe budget within which to operate.

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Market the Consultancy

Scan consultancy opportunities advertised innewspapers and government publications;

Register with business directories and government

resource lists; Contact agencies, contract officers, human resources

personnel, and large consulting firms who are known toreceive consulting contracts;

Network with others and develop a wide range ofcontacts who are willing to refer clients to you. Keep intouch personally;

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Join professional and trade associations to meet othersin your particular area of expertise and to exchangeinformation about your business

Develop your own Web site;

Send specialized mailings to executives who have

recently moved into new positions, either within theirpresent organizations or in new companies;

Write and send news releases or articles of interest toprospective clients.

Develop the skill of Public speaking. Make use of Referrals

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The Learning Process.

Subscribe to newspapers, magazines, newsletters, andperiodicals including Economic Times, FinancialExpress

Access the Internet, bulletin boards, and databases; Join associations, seek leadership positions, offer to

make presentations;

Attend conferences, tradeshows, seminars, and courses. Undertake a market research and analysis

Watch TV business channels -CNBC

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Contract /Proposal

Consulting contracts may vary widely in their formatand their length, depending on the nature and thecomplexity of the project.

A written contract helps to avoid misunderstandings, tooutline the terms of payment and to protect you in caseof disagreements with your client on the nature of theassignment.

A disclaimer clause, if put into the contract wouldabsolve the consultant of happenings /things beyondhis control.

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A few standard articles may be included in writtencontracts:

The name and the location of the parties involved,

The date the contract is signed,

An offer, an acceptance of the offer,

Consideration (i.e. the benefit accruing to the parties),

Signatures of the parties, etc.

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Value for services

Many factors influence the worth of your services. Whensetting your fees, take into consideration thefollowing:

1. The amount that can be taken as a token advance2. Market rate

3. Rarity of the knowledge and extent of specializationrequired

4. Cost plus factor5. Pre-determined rates in case of certain defined

projects

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Some Consulting maxims

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Give the customer a warm fuzzy feeling.

Trust is your best job security.

Diversify instead of holding on to limited clients Be exceptionally easy to find. The clients would feel

more comfortable if you can be contacted at any timeeasily

Discuss problems faced during the course of your workwith the client frequently, as otherwise clients hateunhappy surprises when compared to timely bad news.

Deal in good faith.

Have a good mechanism to deal with housekeeping andpaper work.

Cultivate the skill of communication as it is a huge asset

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Conduct yourself properly and accumulate a list ofcustomers who will speak well about you.

Your references are your reputation in the consulting

world. Make a full disclosure of data, source code,

passwords etc as it is well acknowledged that clientsare comforted by consultants who dont act entitled

to their engagements. The best way to make money is to make money for

your clients.

Learn how to read your client

Your clients are buying your judgment, not just thetime.

Your long-term clients are your best customers

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Learn to manage both your time and project effectively.

Education is the best investment a consultant can

make. Keep yourself updated always. If you have a reputation to steal clients, you will never

be trusted by other professionals.

Be known for your Integrity.

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Management consultancy

Institutes India- www.imcindia.com

US - www.imcusa.org

UK -www.imc.co.uk.

http://www.imcusa.org/http://www.imcusa.org/

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THANK YOU