chapter 4 techniques

8/3/2019 Chapter 4 Techniques

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MODELS,

THEORIES AND

APPROACHES OF

CONSULTANCY

David Biggs


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Agenda

Understand method driven v laissez-faireapproaches in consultancy

Understand the contribution that different

disciplines can give to consultancy

Have knowledge about techniques and modelsin consulting especially in terms of:

matrix based modelsmnemonic based models

issues models of consultancy


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Method driven v Laissez faire

Laissez faire consultancy is when a newmethod of conducting the work is created fromscratch for each new assignment

Method driven consultancy is when eachproject uses the same methodology andprocedures

Most projects and sometimes consultancies siton a continuum between laissez-faire andmethod driven consultancy


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The danger with method driven consultancy istwofold:

1. If the methodology does not develop then it

may become obsolete

2. The methodology may be poached by othersand then offered at a cheaper rate, which

invariably means that to compete, rates mustdecline to remain competitive


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Group Exercise

Individual consultants prefer different levels ofmethod

Spend 5 minutes in pairs thinking of the

following and what levels of method theywould prefer using the continuum from Biggs(2010):

New recruits Junior consultants (with 1 years experience)

Young but experienced consultants (with 4 yearsexperience)

Managing consultants (with 10+ years


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Disciplines in consulting

Consultancies employ many different expertsin fields such as human resource managementto engineers

One particular consultancy listed a staggering459 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 theycombine different disciplines


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Consultancy techniques

Consultancy techniques are often published asit 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


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Matrix based formulationsmodels

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


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The Johari window (adaptedfrom Luft & Ingram, 1955)


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The Johari window applied toorganisations (Biggs, 2010)

Public Image Blind Spots

Hiddenaspects of theorganisation

Unknownaspects of theorganisation

knownto staff

unknownto staff

unknown t omanagement

known tomanagement

Addressed byreceiving staff opinion

Addressed byhonest & openmanagement

Addressed by

consultancy


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Customers

Competitors

Company

RelativeCompetitiveAdvantage

The 3 Cs Framework

(adapted from Ohmae, 1982)


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Product Price

Promotion Place

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


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Structure

Systems

Style

Staff

Skills

Strategy

Shared

Value

McKinseys 7 S model


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OPPORTUNITIES

STRENGTHS WEAKNESSES

THREATS

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


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Issues and themes models

IndustryCompetitors(Rivalry among existing

companies)

Suppliers(Bargaining power of

suppliers)

PotentialEntrants

(Threat of new entrants)

Buyers(Bargaining power of

buyers)

Substitutes(Threat of Substitute

products and services)

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


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Other models Value chain


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Summary

Most projects/consultancies on a continuumthat has increasing use of establishedmethods

Different disciplines can be combined togetherin a Gestalt manner that the whole is greaterthan its parts

Consultancy techniques are widely publishedto maximise potential clients

Techniques can be classified and often have acommon basis


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Further reading

Biggs, D.M. (2010), Management Consultancy:A guide for students London: Cengage Ltd Chapter 4

Biswas, S. and Twitchell, D. (2001), Managementconsulting: 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: KoganPage Ltd; 4 Rev Ed edition

Obolensky, N. (1994), Practical Business Re-engineering: tools and techniques for achieving effective

change. London: Kogan Page Ltd

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