- •In praise of the fourth edition
- •CONTENTS
- •FOREWORD
- •The concept of consulting
- •Purpose of the book
- •Terminology
- •Plan of the book
- •ABBREVIATIONS AND ACRONYMS
- •1.1 What is consulting?
- •Box 1.1 On giving and receiving advice
- •1.2 Why are consultants used? Five generic purposes
- •Figure 1.1 Generic consulting purposes
- •Box 1.2 Define the purpose, not the problem
- •1.3 How are consultants used? Ten principal ways
- •Box 1.3 Should consultants justify management decisions?
- •1.4 The consulting process
- •Figure 1.2 Phases of the consulting process
- •1.5 Evolving concepts and scope of management consulting
- •2 THE CONSULTING INDUSTRY
- •2.1 A historical perspective
- •2.2 The current consulting scene
- •2.3 Range of services provided
- •2.4 Generalist and specialist services
- •2.5 Main types of consulting organization
- •2.6 Internal consultants
- •2.7 Management consulting and other professions
- •Figure 2.1 Professional service infrastructure
- •2.8 Management consulting, training and research
- •Box 2.1 Factors differentiating research and consulting
- •3.1 Defining expectations and roles
- •Box 3.1 What it feels like to be a buyer
- •3.2 The client and the consultant systems
- •Box 3.2 Various categories of clients within a client system
- •Box 3.3 Attributes of trusted advisers
- •3.4 Behavioural roles of the consultant
- •Box 3.4 Why process consultation must be a part of every consultation
- •3.5 Further refinement of the role concept
- •3.6 Methods of influencing the client system
- •3.7 Counselling and coaching as tools of consulting
- •Box 3.5 The ICF on coaching and consulting
- •4 CONSULTING AND CHANGE
- •4.1 Understanding the nature of change
- •Figure 4.1 Time span and level of difficulty involved for various levels of change
- •Box 4.1 Which change comes first?
- •Box 4.2 Reasons for resistance to change
- •4.2 How organizations approach change
- •Box 4.3 What is addressed in planning change?
- •Box 4.4 Ten overlapping management styles, from no participation to complete participation
- •4.3 Gaining support for change
- •4.4 Managing conflict
- •Box 4.5 How to manage conflict
- •4.5 Structural arrangements and interventions for assisting change
- •5 CONSULTING AND CULTURE
- •5.1 Understanding and respecting culture
- •Box 5.1 What do we mean by culture?
- •5.2 Levels of culture
- •Box 5.2 Cultural factors affecting management
- •Box 5.3 Japanese culture and management consulting
- •Box 5.4 Cultural values and norms in organizations
- •5.3 Facing culture in consulting assignments
- •Box 5.5 Characteristics of “high-tech” company cultures
- •6.1 Is management consulting a profession?
- •6.2 The professional approach
- •Box 6.1 The power of the professional adviser
- •Box 6.2 Is there conflict of interest? Test your value system.
- •Box 6.3 On audit and consulting
- •6.3 Professional associations and codes of conduct
- •6.4 Certification and licensing
- •Box 6.4 International model for consultant certification (CMC)
- •6.5 Legal liability and professional responsibility
- •7 ENTRY
- •7.1 Initial contacts
- •Box 7.1 What a buyer looks for
- •7.2 Preliminary problem diagnosis
- •Figure 7.1 The consultant’s approach to a management survey
- •Box 7.2 Information materials for preliminary surveys
- •7.3 Terms of reference
- •Box 7.3 Terms of reference – checklist
- •7.4 Assignment strategy and plan
- •Box 7.4 Concepts and terms used in international technical cooperation projects
- •7.5 Proposal to the client
- •7.6 The consulting contract
- •Box 7.5 Confidential information on the client organization
- •Box 7.6 What to cover in a contract – checklist
- •8 DIAGNOSIS
- •8.1 Conceptual framework of diagnosis
- •8.2 Diagnosing purposes and problems
- •Box 8.1 The focus purpose – an example
- •Box 8.2 Issues in problem identification
- •8.3 Defining necessary facts
- •8.4 Sources and ways of obtaining facts
- •Box 8.3 Principles of effective interviewing
- •8.5 Data analysis
- •Box 8.4 Cultural factors in data-gathering – some examples
- •Box 8.5 Difficulties and pitfalls of causal analysis
- •Figure 8.1 Force-field analysis
- •Figure 8.2 Various bases for comparison
- •8.6 Feedback to the client
- •9 ACTION PLANNING
- •9.1 Searching for possible solutions
- •Box 9.1 Checklist of preliminary considerations
- •Box 9.2 Variables for developing new forms of transport
- •9.2 Developing and evaluating alternatives
- •Box 9.3 Searching for an ideal solution – three checklists
- •9.3 Presenting action proposals to the client
- •10 IMPLEMENTATION
- •10.1 The consultant’s role in implementation
- •10.2 Planning and monitoring implementation
- •10.3 Training and developing client staff
- •10.4 Some tactical guidelines for introducing changes in work methods
- •Figure 10.1 Comparison of the effects on eventual performance when using individualized versus conformed initial approaches
- •Figure 10.2 Comparison of spaced practice with a continuous or massed practice approach in terms of performance
- •Figure 10.3 Generalized illustration of the high points in attention level of a captive audience
- •10.5 Maintenance and control of the new practice
- •11.1 Time for withdrawal
- •11.2 Evaluation
- •11.3 Follow-up
- •11.4 Final reporting
- •12.1 Nature and scope of consulting in corporate strategy and general management
- •12.2 Corporate strategy
- •12.3 Processes, systems and structures
- •12.4 Corporate culture and management style
- •12.5 Corporate governance
- •13.1 The developing role of information technology
- •13.2 Scope and special features of IT consulting
- •13.3 An overall model of information systems consulting
- •Figure 13.1 A model of IT consulting
- •Figure 13.2 An IT systems portfolio
- •13.4 Quality of information systems
- •13.5 The providers of IT consulting services
- •Box 13.1 Choosing an IT consultant
- •13.6 Managing an IT consulting project
- •13.7 IT consulting to small businesses
- •13.8 Future perspectives
- •14.1 Creating value
- •14.2 The basic tools
- •14.3 Working capital and liquidity management
- •14.4 Capital structure and the financial markets
- •14.5 Mergers and acquisitions
- •14.6 Finance and operations: capital investment analysis
- •14.7 Accounting systems and budgetary control
- •14.8 Financial management under inflation
- •15.1 The marketing strategy level
- •15.2 Marketing operations
- •15.3 Consulting in commercial enterprises
- •15.4 International marketing
- •15.5 Physical distribution
- •15.6 Public relations
- •16 CONSULTING IN E-BUSINESS
- •16.1 The scope of e-business consulting
- •Figure 16.1 Classification of the connected relationship
- •Box 16.1 British Telecom entering new markets
- •Box 16.2 Pricing models
- •Box 16.3 EasyRentaCar.com breaks the industry rules
- •Box 16.4 The ThomasCook.com story
- •16.4 Dot.com organizations
- •16.5 Internet research
- •17.1 Developing an operations strategy
- •Box 17.1 Performance criteria of operations
- •Box 17.2 Major types of manufacturing choice
- •17.2 The product perspective
- •Box 17.3 Central themes in ineffective and effective development projects
- •17.3 The process perspective
- •17.4 The human aspects of operations
- •18.1 The changing nature of the personnel function
- •18.2 Policies, practices and the human resource audit
- •Box 18.1 The human resource audit (data for the past 12 months)
- •18.3 Human resource planning
- •18.4 Recruitment and selection
- •18.5 Motivation and remuneration
- •18.6 Human resource development
- •18.7 Labour–management relations
- •18.8 New areas and issues
- •Box 18.2 Current issues in Japanese human resource management
- •Box 18.3 Current issues in European HR management
- •19.1 Managing in the knowledge economy
- •Figure 19.1 Knowledge: a key resource of the post-industrial area
- •19.2 Knowledge-based value creation
- •Figure 19.2 The competence ladder
- •Figure 19.3 Four modes of knowledge transformation
- •Figure 19.4 Components of intellectual capital
- •Figure 19.5 What is your strategy to manage knowledge?
- •19.3 Developing a knowledge organization
- •Figure 19.6 Implementation paths for knowledge management
- •Box 19.1 The Siemens Business Services knowledge management framework
- •20.1 Shifts in productivity concepts, factors and conditions
- •Figure 20.1 An integrated model of productivity factors
- •Figure 20.2 A results-oriented human resource development cycle
- •20.2 Productivity and performance measurement
- •Figure 20.3 The contribution of productivity to profits
- •20.3 Approaches and strategies to improve productivity
- •Figure 20.4 Kaizen building-blocks
- •Box 20.1 Green productivity practices
- •Figure 20.5 Nokia’s corporate fitness rating
- •Box 20.2 Benchmarking process
- •20.4 Designing and implementing productivity and performance improvement programmes
- •Figure 20.6 The performance improvement planning process
- •Figure 20.7 The “royal road” of productivity improvement
- •20.5 Tools and techniques for productivity improvement
- •Box 20.3 Some simple productivity tools
- •Box 20.4 Multipurpose productivity techniques
- •Box 20.5 Tools used by most successful companies
- •21.1 Understanding TQM
- •21.2 Cost of quality – quality is free
- •Figure 21.1 Typical quality cost reduction
- •Box 21.1 Cost items of non-conformance associated with internal and external failures
- •Box 21.2 The cost items of conformance
- •21.3 Principles and building-blocks of TQM
- •Figure 21.2 TQM business structures
- •21.4 Implementing TQM
- •Box 21.3 The road to TQM
- •Figure 21.3 TQM process blocks
- •21.5 Principal TQM tools
- •Box 21.4 Tools for simple tasks in quality improvement
- •Figure 21.4 Quality tools according to quality improvement steps
- •Box 21.5 Powerful tools for company-wide TQM
- •21.6 ISO 9000 as a vehicle to TQM
- •21.7 Pitfalls and problems of TQM
- •21.8 Impact on management
- •21.9 Consulting competencies for TQM
- •22.1 What is organizational transformation?
- •22.2 Preparing for transformation
- •Figure 22.1 The change-resistant organization
- •22.3 Strategies and processes of transformation
- •Figure 22.2 Linkage between transformation types and organizational conditions
- •Figure 22.3 Relationships between business performance and types of transformation
- •Box 22.1 Eight stages for transforming an organization
- •22.4 Company turnarounds
- •Box 22.2 Implementing a turnaround plan
- •22.5 Downsizing
- •22.6 Business process re-engineering (BPR)
- •22.7 Outsourcing and insourcing
- •22.8 Joint ventures for transformation
- •22.9 Mergers and acquisitions
- •Box 22.3 Restructuring through acquisitions: the case of Cisco Systems
- •22.10 Networking arrangements
- •22.11 Transforming organizational structures
- •22.12 Ownership restructuring
- •22.13 Privatization
- •22.14 Pitfalls and errors to avoid in transformation
- •23.1 The social dimension of business
- •23.2 Current concepts and trends
- •Box 23.1 International guidelines on socially responsible business
- •23.3 Consulting services
- •Box 23.2 Typology of corporate citizenship consulting
- •23.4 A strategic approach to corporate responsibility
- •Figure 23.1 The total responsibility management system
- •23.5 Consulting in specific functions and areas of business
- •23.6 Future perspectives
- •24.1 Characteristics of small enterprises
- •24.2 The role and profile of the consultant
- •24.4 Areas of special concern
- •24.5 An enabling environment
- •24.6 Innovations in small-business consulting
- •25.1 What is different about micro-enterprises?
- •Box 25.1 Consulting in the informal sector – a mini case study
- •25.3 The special skills of micro-enterprise consultants
- •Box 25.2 Private consulting services for micro-enterprises
- •26.1 The evolving role of government
- •Box 26.1 Reinventing government
- •26.2 Understanding the public sector environment
- •Figure 26.1 The public sector decision-making process
- •Box 26.2 The consultant–client relationship in support of decision-making
- •Box 26.3 “Shoulds” and “should nots” in consulting to government
- •26.3 Working with public sector clients throughout the consulting cycle
- •26.4 The service providers
- •26.5 Some current challenges
- •27.1 The management challenge of the professions
- •27.2 Managing a professional service
- •Box 27.1 Challenges in people management
- •27.3 Managing a professional business
- •Box 27.2 Leverage and profitability
- •Box 27.3 Hunters and farmers
- •27.4 Achieving excellence professionally and in business
- •28.1 The strategic approach
- •28.2 The scope of client services
- •Box 28.1 Could consultants live without fads?
- •28.3 The client base
- •28.4 Growth and expansion
- •28.5 Going international
- •28.6 Profile and image of the firm
- •Box 28.2 Five prototypes of consulting firms
- •28.7 Strategic management in practice
- •Box 28.3 Strategic audit of a consulting firm: checklist of questions
- •Box 28.4 What do we want to know about competitors?
- •Box 28.5 Environmental factors affecting strategy
- •29.1 The marketing approach in consulting
- •Box 29.1 Marketing of consulting: seven fundamental principles
- •29.2 A client’s perspective
- •29.3 Techniques for marketing the consulting firm
- •Box 29.2 Criteria for selecting consultants
- •Box 29.3 Branding – the new myth of marketing?
- •29.4 Techniques for marketing consulting assignments
- •29.5 Marketing to existing clients
- •Box 29.4 The cost of marketing efforts: an example
- •29.6 Managing the marketing process
- •Box 29.5 Information about clients
- •30 COSTS AND FEES
- •30.1 Income-generating activities
- •Table 30.1 Chargeable time
- •30.2 Costing chargeable services
- •30.3 Marketing-policy considerations
- •30.4 Principal fee-setting methods
- •30.5 Fair play in fee-setting and billing
- •30.6 Towards value billing
- •30.7 Costing and pricing an assignment
- •30.8 Billing clients and collecting fees
- •Box 30.1 Information to be provided in a bill
- •31 ASSIGNMENT MANAGEMENT
- •31.1 Structuring and scheduling an assignment
- •31.2 Preparing for an assignment
- •Box 31.1 Checklist of points for briefing
- •31.3 Managing assignment execution
- •31.4 Controlling costs and budgets
- •31.5 Assignment records and reports
- •Figure 31.1 Notification of assignment
- •Box 31.2 Assignment reference report – a checklist
- •31.6 Closing an assignment
- •32.1 What is quality management in consulting?
- •Box 32.1 Primary stakeholders’ needs
- •Box 32.2 Responsibility for quality
- •32.2 Key elements of a quality assurance programme
- •Box 32.3 Introducing a quality assurance programme
- •Box 32.4 Assuring quality during assignments
- •32.3 Quality certification
- •32.4 Sustaining quality
- •33.1 Operating workplan and budget
- •Box 33.1 Ways of improving efficiency and raising profits
- •Table 33.2 Typical structure of expenses and income
- •33.2 Performance monitoring
- •Box 33.2 Monthly controls: a checklist
- •Figure 33.1 Expanded profit model for consulting firms
- •33.3 Bookkeeping and accounting
- •34.1 Drivers for knowledge management in consulting
- •34.2 Factors inherent in the consulting process
- •34.3 A knowledge management programme
- •34.4 Sharing knowledge with clients
- •Box 34.1 Checklist for applying knowledge management in a small or medium-sized consulting firm
- •35.1 Legal forms of business
- •35.2 Management and operations structure
- •Figure 35.1 Possible organizational structure of a consulting company
- •Figure 35.2 Professional core of a consulting unit
- •35.3 IT support and outsourcing
- •35.4 Office facilities
- •36.1 Personal characteristics of consultants
- •36.2 Recruitment and selection
- •Box 36.1 Qualities of a consultant
- •36.3 Career development
- •Box 36.2 Career structure in a consulting firm
- •36.4 Compensation policies and practices
- •Box 36.3 Criteria for partners’ compensation
- •Box 36.4 Ideas for improving compensation policies
- •37.1 What should consultants learn?
- •Box 37.1 Areas of consultant knowledge and skills
- •37.2 Training of new consultants
- •Figure 37.1 Consultant development matrix
- •37.3 Training methods
- •Box 37.2 Training in process consulting
- •37.4 Further training and development of consultants
- •37.5 Motivation for consultant development
- •37.6 Learning options available to sole practitioners
- •38 PREPARING FOR THE FUTURE
- •38.1 Your market
- •Box 38.1 Change in the consulting business
- •38.2 Your profession
- •38.3 Your self-development
- •38.4 Conclusion
- •APPENDICES
- •4 TERMS OF A CONSULTING CONTRACT
- •5 CONSULTING AND INTELLECTUAL PROPERTY
- •7 WRITING REPORTS
- •SUBJECT INDEX
Management consulting
3.7Counselling and coaching as tools of consulting
Counselling
Counselling is a method whereby individuals are helped to discover, understand, face and resolve their own personal problems, which may be related to education, health, employment, competence, career, relations with colleagues, family relations and so on. Counselling is often thought of as an intervention that is very different from management and business consulting. Yet there is tremendous potential for using counselling as a tool of consulting, especially in helping individuals or groups to overcome personal difficulties and become more effective as managers and entrepreneurs.
Counselling is necessarily a one-to-one relationship. In the case of small businesses, the person and the business may even be one and the same. A counsellor is consistently concerned in a very personal way with the problems and opportunities facing a particular individual.
The counsellor’s aim should be to help his or her personal client rather than the organization, if their interests do not coincide, and it is perfectly possible for the person being counselled to decide to leave the organization or close down the business as the result of an effective counselling process. However, a more frequent and typical result of personal counselling is a client who feels empowered, more self-confident and more independent in pursuing personal objectives and reconciling personal and organizational objectives. It may be not too much of an exaggeration to suggest that the best evidence of an effective counselling relationship is when the client denies that the counsellor has had any role at all in the successful resolution of his or her difficulties.
An effective counsellor is above all a good listener. All too often managers need most of all someone who will listen to them in an understanding way. They may be afraid of the people who are above them in the hierarchy, while those who are below them are afraid of them in their turn. In some organizations, honest admission of confusion and uncertainty is regarded as a sign of incompetence or weakness, and few managers are fortunate enough to have friends outside the organization who have the time or the ability to listen to them. A consultant who has been called in to what appears to be a traditional consulting assignment may find himself or herself in the position of having to be a counsellor to a lonely and distressed person. It is important not to regard time spent in this way as a distraction from the main business: it may well be the most important contribution that an outsider can make.
Good listening in itself is not as simple as it might appear, but there is more to counselling than sympathetic listening. A counsellor is clearly more of a process facilitator than a specialist resource, whose task is to help the client to think through his or her personal situation, difficulties, priorities, and options, and the advantages and disadvantages of each, and then decide to act. Not only
80
The consultant–client relationship
should the counsellor not propose solutions to the client, but he or she may not even participate too actively in the process of problem identification. The counsellor should rather help the client to identify his or her own problems, and the solutions to them, by asking questions, listening, and being supportive and encouraging. At the same time he or she must be scrupulously neutral in regard to what the client decides to do, since the objective is to develop the client’s ability to perform better in every way, and not merely to advise him or her what to do in a given situation. The fundamental task of the counsellor is to help clients to think things through, to organize their own approach to thinking about their work and perhaps their life in general.
The counsellor must have a genuine desire to put himself or herself out of business by enabling the client to perform effectively without further counselling. Personal development of this sort obviously requires very different skills and, possibly, a different order of responsibility from those normally required of a consultant. A counsellor may need no particular management skills or experience, and such skills can even be a disadvantage, since he or she may be tempted to make technical suggestions to the client rather than letting the client come up with his or her own ideas. The client will be more likely to expect such suggestions and be diffident about putting forward ideas if he or she knows that the counsellor is an expert in the topic at hand.
Because the task is so personal, and so all-embracing, it is easy for counselling sessions to evolve into unstructured conversation. Like any consultancy, counselling almost always involves a series of meetings, and it is important to ensure that the client has a sense of progress from one session to another. One way of doing this is to conclude each session by agreeing on certain tasks that the client, and perhaps the counsellor, will complete before the next session. It is important not to allow assignments of this kind to turn into instructions which take the decision-making away from the client.
Finally, it is all too easy for the client to become dependent on his or her counsellor. This is exactly what must not happen, since the objective is to enable clients to be independent. A good counsellor must “move in” and establish a trusting relationship with the client, so that he or she draws out the client’s feelings and all the information that may be relevant, but the counsellor must also learn how to “move out” and leave the client at the end of the process. At the beginning it may seem difficult to create the necessary trust, but in the end breaking away is often even more difficult. An effective counsellor is able to do both.
Coaching
Some professional groups refer to “coaching”, by which they mean individualized and non-directive assistance to people to discover and realize their full potential, set and reach better goals, become more self-confident, and overcome various personal problems and barriers to performance and achievement. The basic philosophy of coaching is very close to counselling.
81
Management consulting
Box 3.5 The ICF on coaching and consulting
The International Coaching Federation defines coaching as a form of consulting. However, coaches do not work on “issues” or tell people what to do. They help clients to understand and enhance their potential, set personal and professional goals, and move ahead in implementing them.
Expertise
Coaches are experts in the coaching process and may not have specific knowledge of a given subject area or industry. Where coaches have expertise in other areas, they may use it to facilitate the coaching process. Coaches do not use this particular expertise to diagnose, direct, or design solutions for the client.
Relationship
Relationship is the foundation of coaching. The coach and client intentionally seek to develop a relationship characterized by a growing and mutual appreciation and respect for each other as individuals. This relationship is not an adjunct to or byproduct of the coaching, nor is it based on the client’s position or performance.
Use of information
In coaching, information drawn from the client is used by the coach to promote the client’s awareness and choice of action. This information is not used to evaluate performance or produce reports for anyone but the person being coached.
Scope
Coaching has the freedom and flexibility to address a wide variety of personal and professional topics. In any given coaching relationship, coach and client alone determine the scope of their work. Coaching is not necessarily restricted to a narrowly defined issue nor is its scope determined in any other way.
Contribution to results
In coaching, any contribution the coach makes to producing the client’s desired outcome is through ongoing interaction with the client. The coach’s role does not include producing a contracted product or result outside of the coaching sessions.
Ongoing impact
Coaching is designed to provide clients with a greater capacity to produce results and a greater confidence in their ability to do so. Clients should leave coaching with a perception that they will be able to produce similar results in the future without a coach.
Source: International Coaching Federation (www.coachfederation.org), visited on 19 Mar. 2002.
Box 3.5 contains the International Coaching Federation (ICF) definition of the relationship between coaching and consulting. Coaching can be practised in various ways by professional coaches, or by managers, supervisors, human resource specialists, consultants and others who have acquired coaching skills and are willing to act as coaches for their peers and junior colleagues.
82
The consultant–client relationship
Consultants may coach either their clients or their colleagues within the consulting firm. If a partner, team leader or practice leader acts as a coach, he or she will obviously relate the coaching to the work context and focus on helping colleagues to cope with various issues involved, such as stress, work organization, tackling new tasks, dealing with clients, learning, knowledgesharing and collaboration within the team, professional ethics, harmonizing personal life and professional goals, and others. In any event, the purpose and scope of coaching have to be agreed between the coach and colleagues or clients who wish to be coached.7
1R. Dawson: Developing knowledge-based client relationships: The future of professional services (Boston, MA, Butterworth-Heinemann, 2000), pp. 208–209. Thought-provoking reading for consultants.
2D. Maister, C. Green and R. Galford: The trusted advisor (New York, The Free Press, 2000). Essential reading for consultants! See also I. H. Buchen: “The trusted advisor revealed”, in
Consulting to Management, June 2001, pp. 35–37.
3E. Schein: Process consultation revisited: Building the helping relationship (Reading, MA, Addison-Wesley, 1999), p. 20.
4Ibid., p. 20.
5Ibid., p. 21.
6The description of assertive persuasion, common vision, participation and trust, and rewards and punishments is adapted from Chapter 8 in F. Steele: The role of the internal consultant: Effective role shaping for staff positions (Boston, MA, CBI Publishing, 1982), which refers to a model developed by R. Harrison and D. Berlew. See also T. E. Lambert: Power of influence: Intensive influencing skills at work (People skills for professionals) (London, Nicholas Brealey, 1997).
7See, for example, an online management and leadership consultancy programme PracticeCoach® (www.practicecoach.com.ai/content/what.html), visited on 19 Mar. 2002.
83