The Practice of Management Consultancy - Essay Example

? of registration no) MANAGEMENT CONSULTING Executive Summary This paper is about management consulting. It therefore seeks to enumerate on the experience of the consulting firm Professional Consultants in their consulting to the Proper oils company. Management consulting is a growing field with a lot of expertise found in every sector of business. It is therefore made up of big, medium sized as well as small companies. These companies all go through a process known as the consulting process as they engage with their clients in their consulting role. They also have team works in every representative they send to their clients. They also use the different consulting modes in how they consult with their clients. Table of Contents Introduction Management consulting in its essence is the action or practice of helping organizations and business to improve on their performance. They are therefore called upon to help management to achieve the organization goals. Organizations call them for a variety of reasons which are mainly centered on gaining an external objective input on how to run the organization. Another reason is management consultants are experts in this area therefore gaining expertise information from the consultants (Schwartz, 2002). They are valuable since they have dealt with many organizations and hence have expert knowledge on how to achieve success in the organization. Other essential skills that management consultants offer the organizations include change management assistance, development and coaching skills, technology setting up in the firm, strategy development and also efficiency in operational services. Management consultants manage these tasks by bringing their own methods and frameworks that have succeeded in other organizations to make the organization more efficient and effective at performing their tasks (Drucker, 2006). Management consultancy has grown over the years. It has had a growth rate of 20% in the 1980 to 1990s. This growth has been mainly cyclical and is highly dependent on the overall economic conditions. It grew slowly during the 2001 to 2003 period but has grown steadily since then. There are many types of consultancy firms which include small individual firms to large diversified firms and also medium sized firms. Management consulting therefore depends on the specialization of the consultancy firm and the consulting needs of the organization. They include information technology consulting, virtual management, human resource consulting and financial consulting. Sometimes some of this specialization offered by consultancy firms overlap and they offer an even more diversified consultancy (Werr, 2004). The field of management consultancy has grown to include consultancy in non-public organizations including the public sector. In the UK, there has been extensive use of management consultants. The government has spent a large sum between 1996 and 2006; it used 20 billion pounds in management consultants. This has raised question among the House of Commons if this type investment was even worth it. But the use of management consulting has yielded fruit especially in the National Health Service, in the Local Government Association Improvement and Development Agency and also in the National Supports Teams. Although Management consulting can be somewhat expensive it is essential. It often leads to better performance of the organization in general. It is therefore one thing that all companies and firms should consider especially in areas which they lack a lot of skills or if the firm is on the red and requires a turnaround plan to make it more profitable (Norton, 2006). Client Centered consulting process model by Cockman This consultancy cycle or model has been used by many consultants to show the interaction of the consultants and the client from the beginning of the consultancy model. At times it does not reflect what actually happens in reality. But like all models following them makes the process better. The Professional Consultants were familiar with the model which made the process more flexible (Cockman, 1998). Gaining Entry Lippitt (1986) has shown that this term is used when the consultant has begun their contact with the clients. At this stage the consultants began a relationship with Proper Oils; the consultants therefore had access to the organization so as to work effectively with the clients (Cockman, 1998). The consultants were visible within the organization and their role was stated clearly so that the organization knew what the consultants were doing. The consultants also revealed their history and if they are credible or not. Everyone in the Proper oils organization knew who the Professional consultants were (Tienari, 2002). The consulting team therefore had a clear idea of their required task and was able to gain entry into Proper oils. Contracting Cockman (1998) says having a clear contract is a key aspect of consulting process. There was a clear contract with Professional consultants and Proper oils which clearly stated the pay and the resources that the consultants will be allowed to use. The contract also clearly stated the resources that will be availed to the consultants. A highly defined contract can be a disadvantage which it might reduce the flexibility of the consultants. Some defined parameters are essential so as to help establish the roles of the clients as well as the consultants (Lundberg, 2004). Professional Consultancy therefore had a sit down with the clients the Proper oils and created a clear contract on the consulting process. The clients Proper oils agreed to avail to the professional consultants all their strengths and weaknesses which the consultants worked on to get them an integrated solution as to how the company should go forward in keeping current as well as gaining the new customers. Data gathering and diagnosis Slywotzky (2005) enumerates that the consultants will have to deal with the discomfort and anxiety of the employees. The professional consultants had ways to mitigate the negative feelings that the employees of Proper Oils would have towards them. The consultants demonstrated the behavior that they wanted to influence on the employees in the organization (Cockman, 1998). The consultants also had the right software and other tools like enough manpower to be able to collect the correct data that will therefore be used in their consultancy work ( Bhambari, 2005). The Professional consultants collected the strengths, weakness, opportunities and threat of the clients the Proper oils company. They therefore did a SWOT analysis of the company and came up with solutions that the company could undertake. The solutions or options of moving forward These are the strategies that are arrived at by the consultants after collecting the data provided by the organization. It depended on what the contract says. There were therefore many strategies that were arrived at. It was decided through collaboration with the client Proper Oils. The consultants came up with the following solutions for Proper Oils to be able to keep their current clients and to have new clients (Cockman, 1998). This includes creative marketing which was dubbed Project (Eco) School. Marketing business is therefore very important. By being more environmentally conscious the client can use this as a means of marketing the organization. The corporate social responsibility has become popular and can be used to further market the organizations. They could engage in CSR in the schools by creating competition in schools to recycle the oil or to calculate the most suitable price of oil. They could also create loyalty programs in the customers. This can be used to keep the current clients of the company. The main method the consultants came up with was creating a reward system for the loyal customers. This can be further used to attract new customers by rewarding all customers instead of only the loyal customers (Durboff, 2005). Another method that can be used to marketing can be door-to-door marketing. This is one of the classical methods of marketing that is very efficient and useful. The Proper oils company can be able to negotiate a win-win. This will enable the creating of a long lasting relationship. It can be done directly through salesman or through a business that would be rewarded by Proper Oils (Durboff, 2005). Social Marketing can create awareness as well get new customers. They can invite people to like their pages or invite people to join their groups and pages so as to advertise events and other promotion products. It is advantageous since advertising via social sites has no costs. They can also use free marketing websites to further market themselves. The company can also further use companies like Green Energy Stock and Green Energy Act to further advertise themselves as a green company. It can further use green hotels and provide them with oil. They are keen and being green therefore Proper oils can use this as an opportunity to further promote itself ( Durboff, 2005). Disengaging Cockman (1998) says that this is the part where the consulting company has concluded their task. The Professional consultants advised Proper Oils and set up systems and ways to implement the solutions. The consultants were available to answer the clients’ questions despite the fact that the consulting period was ending. The consultants kept a running relationship albeit a bit distant. So that the clients were able to ask questions if they are stuck at any point in implementing the plan set up by the consultant. Disengaging was made easier and clearer since the Professional Consultants had carried out their task effectively and efficiently. The ending felt both appropriate and timely to the consultants and Proper Oils. Team Work in Consultancy Bowers, (2000) states that consultant’s teams are often asked to appraise, review and evaluate projects programs. The consultants need to ensure objectivity since more people are seen to be less biased than an individual. They are also required to complete successfully a multifaceted job that can be too complicated. This is to be done within a short time when the consultant is in contact with the client. These teams are normally made up of the consultants as well as the clients. It can be a difficult task since most of them don’t know each other. It is therefore asking a bunch of strangers to work on ways to make the company more successful. The selection of a good team leader is therefore a crucial aspect of picking out a consultancy team (Kipping, 2002). The team leader is normally part of the consultants since they are the one to spearhead the journey of steering the company into a better position. In the case where a company is seeking consultation from a variety of firms then team will include a member from each consultancy firms plus some of the employees. In consultancy the usual hierarchy means and functions of a team hardly apply. This also applied to Professional Consultancy team since all the team members are important and have something of value to bring to the firm. The consultants picked a leader according to their ability to set mutual goals, create team cohesion and mutual trust of the team members. Due to the strict deadline in complete the task. It does not allow enough time for team building and further there are no resources to get any external guiding or coaching. The consultants are therefore required to do less with more. The consultants were faced with a complex intercultural environment which is normally stressful and fast paced with everyone trying to save the situation. The consultants were required to deal with large number information and process it at a very short time (Jackson, 2005). The Professional consultants made sure that people working under the consultancy team should have the following skills, task generic skills which influence team performance. These include planning skills, familiarity with the organization and the task at hand. They also had the task-specific skills. This are tied to promoting effective performance on the task. This requires the professional consultant team to have full knowledge of the task ahead of them. Team-specific competencies are held by the team members. This is very hard to acquire given the short time the team has to operate. They include the knowledge of the team mate’s characteristics. It is also required of the team to have team –generic competencies that include moderation and good communication skills (Kerber, 2001). Project Management in Consultancy The Professional consultants also had a role as project manager. Especially if called upon by the organization to implement the solutions that came up during the consultancy process. Here the project manager can help to design implement and manage a range of projects. The consultants were meant to bring in new life into the project (Buono, 2005). This might be a complex role that will require a lot of the organizations input as well as expertise from the consultant. The Professional consultants brought a few suggestions on how the creative marketing technique can be used in schools by creating a stand during the earth day. Consultants were further required to undertake a comprehensive analysis to identify gaps which needed to be worked on. A gap that was identified was the green hotels which could be a potential market for Proper oils. This was done through understanding the processes after having heard the input of key people in the organization. The consultants further took strategies that align information technology and business strategy (Cokins, 2004). This was done by coming up with a plan that would enable the organization to be able to make use of social media and the internet. The consultants also used prototyping which involves engaging the end users and exploring further on ways that the product could be used. This information could be collected from the door-to-door campaign of the sales men (Management Consultancies’, 2010). The consultants also tried to rescue projects that had died out and would be beneficial to the business in the long run. They should also carry out a system analysis especially if they are IT based so that they can know how to further improve the program and the way forward (Schein, 2000). Consulting Modes This can either be expert, hands-off and collaborative mode of consultancy. When working with pair-of-hands mode the client can be able to tackle the task alone but doesn’t have efficient time and staff to do it. They call the consultants to do the task for them. This is mainly done with a staff that can be able to assist the consultant as they carry out their task. This doesn’t mainly occur in management consulting because management consultants often bring in new expertise (Thomas, 2002). There is also the collaborative mode of consultancy. Here the responsibility and ownership rests equally on the client and the consultant. And is the main mode that management clients aspire to. This is the role that professional consultants firm took in our consultation with Proper oils. Therefore both parties had expertise and experience which created a valuable relationship between the clients and the consultants. The client Proper Oils saw the consultants as valued partners and was therefore less intimidated by the consultant. The consultant should although have skills that will lead to this mode working well. It includes ability to challenge the client when they feel they are being enticed to perform other roles (Harvard Business School, 2005). Expert mode sees the consultant as the main bearer of responsibility in the consultation process. The consultant is solely required to get to the bottom of the problem that is plaguing the organization. The client takes a passive role and the client consultant relationship becomes that of a child-parent relationship. This form of consultation is mainly best is the consultants has dealt with the clients before. To the clients it’s both good and bad since the client can relax and know the consultants are in the house and therefore doesn’t have to worry a lot but it can create trust issues and hostility especially among the employees and the middle level managers. The consultant is viewed as the scape goat if things don’t work out this in turn is bad for the client (Schein, 2000). Confrontation & Conflict in management consultancy When one or more people are working towards a goal they form a team. This occurs mainly in consultancy. Conflicts and confrontation are inevitable. This is because the in the team they will all have their desires and goals to implement their goals. The team which consists of both employees of the clients as well as the client themselves can also lead to confrontation when the consultancy ideas conflict with the clients ideas (Kosonen, 2008). The consultants can use these methods to resolve conflicts. It includes using force especially if the consultants know they are right. They can also smoothen things out especially in the case of a misunderstanding. Compromise, this form will require the client and consultants to come to a conclusion after a give and take strategy. Confrontation this is especially if one of the team member is not behaving accordingly for example they are withholding information. Withdrawal will require the people butting heads to be told to go out and calm down then they will come back to the meeting (Sloan, 2006). Ethical Issues in management consultancy Sutton (2002) says that business ethics is a difficult task. It originates from the tension between moral philosophy and pragmatic managerial practices. Despite this fact management consultants sometimes find themselves on the other side of the thin line of business ethics. This is not good for the clients as well as the reputation of the consultant. The Professional consultants had a clear idea of what is expected of them from Proper Oils. This was further made easier by the signing of the contract which should have clauses that stipulate clearly the ethics required of both consultants and the clients. Some management consultants market themselves on their ethical approach. This is a good approach especially in these trying times whereby companies have been found to be unethical. By making layoffs of employees while the managers are enjoying increase in their salaries and benefits. They therefore build a character for themselves. This further goes a long way in creating a positive market reputation for the firm that they operate in integrity for the sake of their clients. The consultants who distinguish themselves in this way will be able to build a name for them in the consultancy world. Management consultancy in the 21st is not about the bottom line but about providing quality products and services that meet the needs of the client. This should be done in a responsible and ethical manner (Schwartz, 2002). Conclusion The Professional consultancy consulting process was a success. They were able to come up with various pragmatic solutions that can be implemented in Property Oils which would lead to both its long term and short term success. They would therefore be able to retain both current and attract more customers to the organization. References Schwartz, R. (2002): The skilled facilitator: a comprehensive resource for consultants, facilitators, managers, trainers and coaches. USA, Jossey-Bass. Management Consultancies’ Association, From recession to recovery, (2010) Drucker, P. (2006): The Practice of Management. USA, Harper & Row, Inc. Durboff, r. (2005): The Marketing and Selling of Consulting Services. In Greiner, L. &Poulfelt, F. 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(1998) Consulting for RealPeople: AClient-Centered Approach for change and Leaders, McGraw-Hill Publishing Company Read More