II E-Skills for Russia SMEs Phase II

Business Consulting: Capacity Building for Russian Consultants T h e L o g ica l F ra m e w o rk o f to d a y s S e ssio n :

M o rn in g
A - P re se n ta tio n o f th e e x p e rt B - G lo b a l C h a n g e : T h e C h a lle n g e s o f M o d e rn S o cie ty C - T h e C o n su ltin g P ro ce ss D - C o n su lta n cy S k ills

A fte rn o o n - w o rk sh o p :

E - P re se n ta tio n o f E u ro p e a n C o n su lta n cy re a l life situ a tio n s C h a n g e : H o w to C o p e w ith R u ssia n S M E s?

This project is funded by the EU C This project is implemented by Inno AG Inno AG Project partner

A Presentation of Expert: Jean-Pierre Michiels

Origin: Belgian Based in Brussels; Education: Business Administration, Nijenrode University; Languages: English, French, Dutch, German, Italian, Spanish; International Business background: 30+ years management positions in small, medium and large multinational firms (Belgian, Japanese, US, Turkish, Belgian, Dutch, Danish, ); Sectors: International trade, machinery, metal, tooling, computer, textile, chemicals, logistics (maritime transport, port management); Consultancy: 13+ years Private Sector Development, SMEs 2 Focus: Strategic - II Business Development,

B Global Change: The Challenges of Modern Society

Workforce Patterns Change - Examples for Major Workforce segments: - House/Estate Servants in developed countries around 1913 = largest employee group (30%) Today: domestic servants are almost gone - Farmers: Before = over 40% - Today: below 8% (still decreasing) - Factory Workers (bleu collars): same decrease (cause: automation & information systems) FACT: Competitive Pressure Cost Reduction Process Rationalisition Education Skills - Changes in Business requirements: - USA, 1950-1980: Young Bleu Collars got HIGHER earnings higher education graduates Today: Fully Opposite = Highly educated & skilled + niche expertise WANTED Move into the Age of LEARNING (knowledge) Society Example for Japan: Already in 1995, Japan was producing 2,5 x more 1970 with same energy + less raw material FACT: Work has become KNOWLEDGE-INTENSIVE 3 - II New Technologies = High Knowledge Content

C - The Consulting Process: 6 steps

1. Contact: Engaging the initial contact and discussing the intervention area; 2. Negotiation: Formulating a contract and establishing a helping relationship; 3. Diagnostics: Identifying the problems through diagnostic analysis to qualify/quantify the action; 4. Programming: Defining a work programme setting goals and planning for action; 5. Implementation: Taking action and getting proactive feedback; 6. Termination: Final review of results and completion of the contract.
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1. Contact

Understand the Business ENVIRONMENT

Understanding Customer NEEDS Understanding Overall SCOPE of the Intervention Develop a COMMON UNDERSTANDING Output: AGREEMENT for a CONTRACT base CONCLUSION: YES (we agree) or NO = firm
NOT READY yet or NO FIT = DISAGREEMENT = communication wrong or bad * - II
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2. Negotiation

CLARIFY Needs, Expectations and Requirements

ANALYSIS: Internal/external Business Function Review TASKS: What to do? (Qualify & Quantify tasks) Involvement: Who will participate? Output: Common Understanding (what and who) Conclusion: Contract AGREEMENT (ToR of services to be performed: scope of
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3. Diagnostics

What is the PROBLEM? What ACTION?

Analysis: Review internal & external Business Functions Tasks: What to do? (qualify & quantify all
actions)

Involvement: Who will participate? Output: Common Understanding (what and who) CONCLUSION: Good BASIS to proceed *

(* Clear common understanding of the consulting intervention) - II

4. Programming

Formulation of detailed WORK PLAN

Tasks: Complete, detailed list of actions (what to do) Intervention levels: Participants (who does what) Timing of actions: Schedule (when to do what) CONCLUSION: Clear PLAN accepted *

(* Company participants are fully aware of Work Plan challenges)

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5. Implementation

Work Plan in action Proactive Feedback

Focus on actions: Make sure the job is done (control) Monitoring: Evaluation of Results (quality/quantity) Feedback: To measure the customer Satisfaction = enabling to adjust the Work Plan to real Needs * CONCLUSION: Proactive Implementation taking place

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6. Termination

Final review of results - Completion of Contract

Conclusion of the consulting process: a) New processes are in place; b) New results are obtained in line with set objectives. Overall impact of the consulting work: Evaluation of final Results a) Beneficiary client is empowered; b) Client has full control of new instruments. The Firms Needs have been addressed: Change is in Process 10 - II CONCLUSION: The Firm is in Control, open for

D Consulting Skills: An Essential Condition for Effective Consulting Business

Consulting Skills for Managers = Essential skills for a Good Consultant

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What are good manager's skills?

1.Creativity to find new solutions and new options 2.Good communication skills of all kinds 3.Respect for clients, confidentiality and culture 4.Vision to see possibilities beyond the obvious 5.Partnership in working with clients or customers - both internal and external 6.Leadership in setting an example for 12 - II others to follow

Essential skills for a Good Consultant

Excellent interpersonal skills = ability to develop a relationship and generate trust Client-oriented (showing interest in the customer) Ability to listen with tact and diplomacy Analytical: critical and objective in diagnosing the situation to identify the real underlying problems Adaptable/flexible + Team worker Good communicator and negotiator Report writing skills in plain clear language Expertise: Sound technical knowledge of the area concerned - II 13

Conclusion
What makes a Real Good Consultant? 1.Long-term Thinking: - Extrapolate the firms future longer term needs - Thinking ahead the risks in a fast changing world 2.Continuous Skills Improvement: - Update your Expertise and Best Practise levels - Knowledge, Thinking, Attitude: Know the trends 14

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Afternoon Session
E Presentation of European Consultancy real life situations
Discussion of European presentations Role Plays Question: How to deal with CHANGE in Russian SMEs?

Objective = Finding Answers from REAL Field Experience to develop the consulting business Di s i uss iii i i r iii st i r iiii ii t ii iiii r i i i i i i i i i s i i i i i vi i i ti i i i i i i i i s i st i i i i i r i i M i i i i i rs i i w i i rs i i i i i i i i i i i i i i i i t i i u i tur i i i tt i tu i i i i H i w ii v iiii i r iiiiiii t ii iii iii H i w ii v i i i u i i i i i i i i i ti i i i i i t i r i t i i i i st I i i i i t i v i s i i r i i i i i i i H w su t r s w t u r t

CONCLUSION
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