Cardiff Executive MBA

Dr Joe OMahoney

MODULE DESCRIPTION:

MANAGEMENT CONSULTANCY

INTRODUCING MANAGEMENT CONSULTANCY Management consultancy is one of the fastest growing professions in the world, with global revenues increasing by over 3000% between 1980 and 2003. Moreover, it is transforming not only private corporations, but increasingly, public sector companies, charities and governments, and has championed managerialism, neo-liberalism and privatisation across the globe. As a result it is now the number one career choice of MBA students despite attracting criticism in the popular press. THE MODULE This module is embedded in a teaching philosophy focused on practicality, honesty and simplicity. To this end, I will avoid using jargon (either academic or business) and unnecessary filler. The overall aim of the course is to develop a rich and critical understanding of the consulting industry. Although some traditional knowledge transfer is necessary, all research shows that learners learn best by participating, thus the focus of the module will be on exercises. I would also suggest we have a short lunch so you can miss the rush hour. I have attempted to tailor for you and to achieve a good balance between practical, applied skills and critique. All the material and cases I use, I have written myself. All of them come from real consulting situations and most are ones that I experienced personally. However, if you want to change something, or are not happy with the direction of the course, please say so in class, or, if you feel you cannot, contact me at joeomahoney@gmail.com or 07906133649. My aim is to provide you with a challenging, interesting module and if I am not doing this, please let me know as soon as possible. MATERIAL The course is based around OMahoney and Markham (2013) which is the best-selling consultancy textbook in Europe. I wrote the book because I was very unhappy with the ones already out there and genuinely believe it is a useful resource for students. I will also provide you with physical and electronic copies of slides, cases and background reading that will hopefully be useful in the future. I will give each of you two things to read, listen to, or watch prior to each day. You should be prepared to give the rest of the class a five minute summary of each piece, which should include questions about anything you either disagreed with or just didnt get. THE ASSESSMENT You will be asked to write a consulting proposal for a fictitious client. Details will be passed out in class.

Cardiff Executive MBA

Dr Joe OMahoney

MODULE AIMS The overall module aim is to develop a rich and critical understanding of the consulting industry. We will seek to achieve different aims on different days: DAY ONE To understand what management consultancy is and isnt and to know why this is controversial in the industry itself To know the different perspectives on the consulting industry and why these might occur. To understand the general trends in the industry, why these are happening and what challenges they create. To know two high level strategies of consulting firms and how these strategies play out in terms of training, recruitment and knowledge. To explore why clients use consultants and what this means for the different types of relationships there are between consultants and clients. To understand the procurement of consultants and the impact this has had on the consulting industry.

DAY TWO To understand how consultancies approach the sales process and how this fits with their strategies. To understand the process of consulting sales. To know, at a high-level, how different pricing options are considered. To understand what is in a proposal and what makes a good proposal. To feel comfortable framing a variety of business problems with a number of different tools. To understand, at a high level, how such tools are implemented in practice. To know some problems that consultants might face in delivering projects and how at least some of these might be tackled.

DAY TWO To understand the key principles of running a consultancy: Profit per partner, utilisation and leverage. To know some of the main strategies consultancies pursue and what this means for their operations. To understand the metrics which are suitable for measuring the success (or failure) of a consulting company at different stages of growth. To know some of the pitfalls of consulting for SMEs and how these might be avoided. To appreciate the limitations of a professional approach to ethics in the consulting industry. To understand the wider ethical dangers associated with conflicts of interest.

Cardiff Executive MBA

Dr Joe OMahoney

DAY 1 0915-0945

UNDERSTANDING CONSULTANCY COURSE OVERVIEW Introductions, overview, aims and gaps.

0945-1230 (10 mins)

INTRODUCING MANAGEMENT CONSULTANCY Why study consultancy? Here, I outline the key benefits of studying management consultancy. Its not just the money.

(20 mins)

Exercise: Consulting Christmas We will discuss the different approaches consulting firms use and what this means for consulting knowledge. Is consultancy more of an art than a science?

(20 mins)

When definitions matter - what is management consultancy? In this section, we discuss what consultancy is, what consultants do, and find a surprising disagreement within the industry itself.

(25mins)

Exercise: Perspectives on consultancy (Value, Critique, Film) From your homework present half of you will present a 5 minute perspective on the consulting industry to the group. Break (15 mins)

(25 mins)

Types: By Business Model, Sector and Service and Strategy. A descriptive overview of the segmentation of the consultancy industry.

(30mins)

Exercise: Identifying Trends & Challenges Using recent data from a number of sources, learners will analyse trends and challenges in the industry over the last few years.

(20 mins)

Discussion: Two Key Strategies: Personalisation and Codification A descriptive overview of the segmentation of the consultancy industry. Lunch (30 mins)

Cardiff Executive MBA

Dr Joe OMahoney

1300-1600 (10 mins)

CLIENTS Why clients use consultants A common myth is that clients use consultants for expertise, but can surveys be relied upon?

(20 mins)

The (changing) client-consultant relationship Relationship types, power and considerations.

(20 mins)

Exercise: Client perspectives From your homework present half of you will present a 5 minute summary of your client paper to the rest of the group.

(10 mins)

Procurement The rise of procurement and how it has transformed consultancy.

(20 mins)

Exercise: NHSPfIT Is it wise to treat consultants as the enemy?

Break (15 mins) (65 mins) Guest Speaker: Paul Vincent: Procurement Paul is Managing Director of Insight Sourcing Solutions, VP of 100% Effective Training, and Chair of the Management Consultancies Association Consultancy Buyers Forum. Paul has over 15 years buying and global category management experience across a number of direct and indirect spend areas and is renowned for his expertise in the management consultancy and professional services categories. Prior to establishing Insight Sourcing Solutions Paul spent 24 years in BT Group where in addition to his procurement responsibilities he spent a number of years leading transformational change programmes. (15 mins) Recap

Home time

Cardiff Executive MBA

Dr Joe OMahoney

DAY TWO 0915- 1100 (20 mins)

DOING CONSULTANCY SELLING CONSULTANCY Pre-Sales Here we will consider the work done by consultancies prior to the sales effort. This includes thought leadership, networking, research and service development.

(20 mins)

Exercise: Thinking about sales The sales strategies of three different companies will be discussed.

(30 mins)

Sales Operations We will examine how the sales pipeline can be managed, tactics for making contact and the usefulness of research for sales. We also have a look at how consulting tools, research and sales can come together using an example.

(15 mins)

Exercise: Pricing We will have a discussion around pricing using examples from a variety of projects.

(20 mins)

Pricing Options We examine a few pricing options including payment by results and consider the potential of payment by results. Break (15 mins)

1115-1300 (15 mins)

PROPOSALS Guidance in Writing Proposals Here, we first discuss not writing proposals, and then cover what should be in a proposal as well as useful hints and tips for proposal writing.

(15 mins)

Examining proposals In which we examine a number of proposals examining what we like and dislike about them.

(20 mins)

Exercise: Drafting proposals In teams we also sketch a draft proposal in response to a RFI / ITT.

Cardiff Executive MBA

Dr Joe OMahoney

(55 mins)

Guest Speaker: Richard Newton Richard is the founder-owner of Richard Newton Consulting, has 20 years experience in the third sector and now provides fundraising consultancy and PR advice to not-for-profit companies. Richard has worked with Marie Curie, Barnardos, the Prince's Trust Cymru and was a Director of Rathbone Cymru. Lunch (30 mins)

1330 - 1430 (20 mins)

WHATS THE PROBLEM? Methods, Tools & Approaches for Analysing Problems We do not define specific tools for solving business problems but provide resources for thinking about issues. We focus on common problems that different companies face and approaches to dealing with these problems.

(30 mins)

Three case-studies We look briefly at three different projects: strategy at Danone, process engineering at Three and people change at Timpsons.

(15 mins)

Exercise: Assessing losses at Cardiff Business School

1430 - 1630 (60 mins)

DELIVERING RESULTS Exercise: Dolphin Tankers Here, we look at an intervention in Dolphin Tankers which went quite well.

(30 mins) (15 mins)

Exercise: When things go wrong (Elephant-Krypton) Tips for Delivery We share tips for ensure projects are delivered and clients are kept happy.

(15mins)

Recap

Cardiff Executive MBA

Dr Joe OMahoney

Home time

DAY THREE 0915- 1100 (20 mins)

THINKING STRATEGICLY RUNNING A CONSULTANCY Profit per Partner, Leverage and Utilisation We look at the important metrics which are crucial for consultancy operations.

(25 mins)

Exercise: The Clever Consulting Company The case puts what we have just learned into practice.

(20 mins)

Strategies for value: quality, growth, cross-selling, commodification Here, we examine the difficulty of adding value to consultancies and examine common strategies that consulting firms pursue to achieve this.

(10 mins)

Metric for growth Where we examine briefly the different metrics one might use in running a consultancy.

(20mins)

Partnerships vs. PLCs Here, we examine the difference ownership makes and look at the example of BearingPoint as a useful warning to owners. Break (15 mins)

1115 1230

GUEST SPEAKER: STUART HARDISTY Stuart is a Director of Hardisty Jones Associates with 11 years experience of all aspects of economic development consulting. Stuarts expertise includes economic analysis in relation to property development and planning policy, economic strategy preparation, economic impact analysis, business support and incubation, labour market analysis and evaluation. Stuart has worked extensively in the south UK as well as various projects in other parts of the UK, Europe and Worldwide. Prior to becoming a Director of Hardisty Jones Associates, Stuart enjoyed an 11 year career with DTZ, latterly heading up its economic development presence in Wales, South West England and West Midlands.

Cardiff Executive MBA

Dr Joe OMahoney

Lunch (30 mins) 1300-1430 (45 minutes) CONSULTING THE SME Exercise: Courtyard Bridalwear Using the work of Alex Polizzi as an example we look at the difficulty of consulting family run businesses. (45 minutes) Exercise: Gekko Looking at slightly bigger companies now, we examine a case-study in leadership and consulting that went awry.

Break (15 mins)

1445 1630 (15 mins)

ETHICS Professional ethics We consider the professional guidelines offered by firms and professional bodies and some of the ethical problems that these institutions develop for their consultants.

(60 mins)

Exercise: Conflicts of interest Here, we consider the structural conflicts of interest between auditor and consultants in the light of the Enron case.

(15 mins)

Discussion: governing ethics We consider whether the compulsory professionalisation of consultants or the ban on audit-consultancy firms would improve ethics in the industry. Should the consulting industry be professionalised in the same way as doctors, accountants and lawyers?

Cardiff Executive MBA

Dr Joe OMahoney

Course Ends