MC Consultancy Fundamentals 0913

Consultancy Fundamentals

M…….. M… Young Professionals September 2013

Your Tutor

Participants

Xxxx Xxxxxx, Xxxxx Xxxx, Xxx Xxxxxxxx, Xxxxx Xxxx

Personal Brands

‘2 Elevator Pitch……

Manage Oneself….

“We live in an age of unprecedented opportunity: If you’ve got ambition and smarts, you can rise to the top of your chosen profession, regardless of where

you started out.”

‘Manage Oneself’, Peter Drucker. (1999)

Introduction.

What do you want to learn?

What are you: salesperson, adviser or consultant?

Consultancy in 1 word!

Skills of the Consultant……

Commitment in a Formula

C = (V x L)¹ + B²

Communication Vocal, what you tell people Listening or be able to Listen (first you have to listen, then you can talk) Behavior, it’s the main part of all that you communicate

Consulting Skills according to Peter Block

Contracting for the work.Making your own diagnosis of the problems.Giving feedback about personal and organizational

data for facilitating decision making.Carrying out the plan.Evaluating the main events.

Five Phases in Consultancy according to Kubr.

Entry

Diagnosis

Action planningImplementation

Termination

House of Lies……@HBO

Ethics in Consultancy

Ethics in a Financial Crisis

March 2010: “The VALUKAS Report”Findings

• Most crucial: “In 2006, Lehman made a significant change in its business strategy from a lower risk brokerage model to a higher risk, capital intensive banking ‐model.”

• March 20, 2007 a meeting was planned with the Controlling Committee. Lehman’s controllers had find out that the risks of the new business model were too high for the company, they wanted to inform the committee on that. But hours before the meeting they received this message: “The Committee is not sophisticated around subprime market – Joe (nb; Joe Gregory, former CEO) doesn’t want too much detail. He wants to candidly talk about the risks to Lehman but be optimistic and constructive – talk about the opportunities that this market creates and how we are uniquely positioned to take advantage of them.” The controllers decided, afraid of loosing their jobs, not to inform the Committee.

• “Lehman had a series of Board meetings in the fall of 2007. At these meetings, Lehman’s management continued to report on the firm’s elevated risk profile and concentration of real estate and leveraged loan risk, but did not present the Board with additional negative information concerning the firm’s risk and liquidity profile.”

• The rest is history…..• Question: what would you do?

Ethics in Consultancy: Five Barriers to an Ethical Organization according to Bazerman c.s.

Consultancy = Continuous Improvement

Plan DoReview

How would you Consult the successor of Steve Ballmer?

Perhaps…

Consulting Yourself according to Peter Drucker

• What Are My Strengths? (5 Max.)• How Do I Perform? (scale 1 – 5: very poor –

very well)• What Are My Values?• Where Do I Belong? (in a broader sense)• What Should I Contribute? (to your family,

your company, the world)http://www.managementpro.nl/human-resources/sollicitatiegesprek-mannen-denken-dat-ze-overgekwalificeerd-zijn-vrouwen-zijn-alleen-maar-nerveus/

Flawless Consulting: 8 Steps in the Consulting Process

1. CONTACT: starting the relationship,2. CONTRACTING: formal' working agreement,3. DATA COLLECTION & ANALYSIS,4. DIAGNOSIS & FEEDBACK: to the project owner,5. DECIDE ON THE WAY FORWARD: together with the

client,6. DESIGN THE INTERVENTION,7. IMPLEMENTATION,8. EVALUATE & LEARN!

Consultancy according to Edgar Schein

• The Purchase of Expertise.• Doctor-Patient• Process Consultation

Consultancy according to Schein: The Purchase of Expertise.

• The purchase-of-expertise model is one in which the client hires the consultant to bring a separate and autonomous perspective on the industry or company setting to the issues that exist.

• The benefits of this type of model are that it is of short duration and often the least costly of all types of consultation.

• Because this type does not require that the consultant have a considerable level of knowledge about the organization itself or specific understanding of the functions of the company, the output of resources is usually less than in other consulting models.

Consultancy according to Schein: Doctor-Patient

• The doctor-patient model is based on the initial process by which a consultant focuses on the problems that exist in an organization and the factors influencing these problems

• The doctor-patient model allows the consultant to use their existing experience to diagnose the issues for the company and introduce potential methods for change.

• One of the greatest benefits of this type of model is that the relationship between the consultant and the organization change with changes in organizational need.

Consultancy according to Schein: Process Consultation

• In the process consultation model, the consultant acts as a facilitator by providing the client with methodological tools for assessing or defining the problem and locating the best potential solutions.

• The consultant works with the organization to find internal methods for resolving the issues and for implementing change, utilizing existing resources within the organization.

• Process consultation takes the Chinese proverb past the point of simply teaching a man to fish; the consultant facilitates a process of discovery through which the man can build his own fishing pole or choose a net, while understanding the patterns of fish and using the correct types of bait.

French and Raven on Power.• Coercive power (The main idea behind this concept is that someone is forced to do

something that he/she does not desire to do.)

• Reward power (To grant another person things which that person desires or to remove or decrease things the person does not desire.)

• Legitimate power (People traditionally obey the person with this power solely based on their role, position or title rather than the person specifically as a leader.)

• Referent power (This type of power is strong enough that the power-holder is often looked up to as a role model.)

• Expert power (The ability to administer to another information, knowledge or expertise. The expertise does not have to be genuine - it is the perception of expertise that provides the power base.)

• Informational power (Informational power is based on the potential to utilize information.)

Being a Professional means you can be a Leader.

“Leaders are at the top of their game when they act from their deepest

values and instincts. Usually they tap into these fundamental qualities

during a crisis, but it’s possible to do so anytime—in the right frame of

mind.”

Robert Quinn, ‘Moments of Greatness’; HBR ‘05

Being a Professional means you can be a Leader.

“When leaders do their best work, they don’t copy anyone. Instead, they draw on

theirown fundamental values and capabilities—operating in a frame of mind that is true to them yet, paradoxically, not their normalstate of being. I call it the fundamental

state of leadership.”

Robert Quinn, ‘Moments of Greatness’; HBR ‘05

Moments of Greatness.

TEST

To enter the fundamental state of leadership, follow these steps:

1. Recognize you’ve already been there. You’ve faced great challenges before, and in surmounting them, you entered the fundamental state.

2. By recalling these moments’ lessons, you release positive emotions and see new possibilities for your current situation.

3. Analyze your current state. Compare your normal performance with what you’ve done at your very best. You’ll fuel a desire to elevate what you’re doing now and instill confidence that you can reenter the fundamental state.

4. Ask the four questions.

Extraordinary Authenticity“Extraordinary Authenticity means having the ability to be yourself even in the toughest situations.This requires living in a paradox: to inspire as a leader, you need to know your stuff, but you also need to be able to admit when you don’t know your stuff.”

David Novak (CEO YUM!) in ‘Taking People with You’.

Taking People With YouDavid Novak YUMM

“Get inside the heads of your people. You can’t convince them of anything until you see the world from their perspective.

Think big. If your sales growth last year was 3.5 percent, don’t aim for 4 percent this year, aim for 15 percent. Even if you fail, you’ll probably do better than you would have with a smaller goal.

Practice “extraordinary authenticity.” Show occasional vulnerability and admit when you don’t have the answers.

Look for good ideas in unexpected places. Earlier in Novak’s career when he was head of the Frito-Lay account at an advertising agency, he and his team came up with the idea for Cool Ranch Doritos during a field trip to a grocery store’s salad dressing aisle.

Choose a can-do mind-set. There’s a huge difference between a boss who says “We can try this” and one who says “We can do this!”

Cheer for first downs, not just touchdowns. Publicly recognizing and rewarding small wins keeps everyone motivated for the long haul.

Get rid of cynics. In many teams one person will reject your values and spread negative energy. Moving that person out will show everyone else you’re serious.”

The Building Blocks of Cooperative Systems‘What would the world be like if some people consistently operated as self-interested rational actors

while others did not?’

Communication. Nothing is more important in a cooperative system than communication among participants.

Framing and authenticity. People react differently depending on how situations are framed, but they aren’t stupid. It’s important that the frame fit reality.

Empathy and solidarity. For reasons biological and social, the more empathy and solidarity we feel with others, the more likely we are to account for their interests.

Fairness and morality. People care about being treated fairly. According to work conducted by Ernst Fehr and his collaborators, “fair” does not mean “equal.”

Bron: The Unselfish Gene; HBR 07/11

CONSULTANTS: ARE YOU IN DANGER OF DISRUPTION?

1. Are you formally tracking the evolution of your clients’ needs and how well you continue to serve them? Has it recently become harder to win clients and to satisfy them? Are you losing your small clients or your large ones?

2. Are you being forced downstream in the proposal process with established clients, responding to rather than shaping requirements? Are clients having their procurement departments vet your proposals or monitor your progress?

3. Are you competing against new rivals for business, even with established clients? Are these rivals increasingly specialized?

4. Are your clients asking that you partner with nontraditional advisers or use their work products? Are these advisers leveraging automation, databases, and other technical assets?

5. Are you revising your business model in order to manage smaller projects at acceptable profit? Is this activity looked down on in your firm?

Source: Consulting on the Cusp of Disruption; HBR 10/13

Clients: Are You Hiring the Right Firm for the Job?

1. When did you last conduct a comprehensive market analysis of the providers available to you and their strengths and weaknesses? If you’ve been hiring firms for the same work over time, have you examined the opportunity to spread this work across more-specialized providers?

2. Have you aggregated spending on consultants across your company to identify both the absolute amount and patterns involving individual firms?

3. Do your providers make transparent the analyses that underpin their recommendations? Do you have an opportunity to standardize any of these analyses into hard assets that you can maintain?

4. Do you involve staff members with experience in the professional services industry in developing proposals and managing subsequent engagements?

5. Do you have a robust, outcomes-based system for assessing the quality of the work providers perform for you? Do your assessments drive decisions about future hiring?

Source: Consulting on the Cusp of Disruption; HBR 10/13

HBR, 170913

How would you Consult the successor of Steve Ballmer?

Perhaps…

CONSULTATION

“Tell me and I forget, Ask me and I am engaged,

Involve me and I am Committed.”

Consultancy Fundamentals.

Kind Regards,Willem E.A.J. Scheepers

http://www.virtualbusinessconsultant.eu

willem@willemscheepers.eu+31(0)65 117 60 97