STAGES OF MANAGEMENT CONSULTING ENGAGEMENT PART II

STAGES OF MANAGEMENT CONSULTING ENGAGEMENT PART IIIII. Conducting a Consulting AssignmentChoose the alternative solution that yields the best fit or value relative to the established criteria.

Optimizing Approach it employs one of the mathematical techniques such as linear programming, integer programming, and dynamic programming.Satisficing Approach - it consists of a search among the alternative solution that acceptably satisfies desired performance criteria.

APPROACHES IN AN ENVIRONMENT OF CERTAINTY

Maximum Approach Identifying the worst outcomeChoosing the alternative with the greatest worst outcome.Minimax ApproachComputing the maximum opportunity loss.Computing the alternative solution.

APPROACHES IN AN ENVIRONMENT OF UNCERTAINTY

Maximax ApproachIdentifying the best outcomeChoosing the solution alternative with greatest best outcome.Rationality ApproachApplying these equal possibilities to the outcome.Choosing the alternative solution having the highest expected payoff.

APPROACHES IN A RISK ENVIRONMENTExpected Value CalculationWeighting the outcomes for the states of nature by the probabilities of occurrence.Adding up the weighted outcomes the expected value of the payoff.Choosing the solution the alternative having the maximum expected payoff.Decision tree approach This is suitable to problem situations in which a series of sequential decisions must be made.

Monte Carlo Simulation ApproachThis approach is used in complex situations where analytical method cannot be applied.

Other Risk Environment ApproachesProbabilistic approaches based on queuing theory and game theory.

This stage will involve the designing of:1. Outputs2. Inputs3. Conversion Processes4. Resource and Data bases5. Organization GUIDELINES FOR SOLUTION DEVELOPMENTThe selected solution should be directly related to the objectives that the client desires to achieves.2. Maintain a comprehensive view of the problem situation and how it relates to the overall organization. 3. Search for all the important relationships involved in the situation.4. Employ systematic procedures and methodologies while maintaining an openness to creative insights.1. The presentation should normally be made orally and accomplished by audio visual aids and a written report.2. Facts and arguments should be presented in a clear, concise, and nontechnical manner.3. Do not overwhelm the client with numerous details and unnecessary discussion of data analysis techniques.4. Be ready however to describe briefly the significance of any gathered fact and the purpose of any technique employed.5. Volunteer information concerning the risk that a recommended solution entails and the difficulties that are expected in implementing the solution.6.Interim presentations and written reports should be made throughout the solution development phase.The CPA:

1. Should evaluate the clients capacity to develop and carry out plans for the recommend program or system and2. May recommend that a client hire additional qualified personnel to perform some of the many tasks required.Activities of Implementation PhaseQualified PersonnelEconomic Review

Operational Review

Future Performance Review

IV. Evaluating the Engagement and Post-engagement Follow-upEvaluation of the EngagementBenefits:

Evaluation of the EngagementCoverage:

To uncover deficiencies early and to make the necessary modificationsPost-engagement Follow-up