1. Management in Action Social, Economic & Ethical Issues

2. Aim
The course aims at bringing the students closer to reality by developing their understanding of the professional prerequisites to practice of management in terms of required skills and attitude to respond proactively to rapid discontinuous change in business environment. Integrative in approach, this course aims at developing not theoreticians but practitioners who are expected to sense the ongoing conflict between environmental change and internal desire of management for stability.

3. Objective
At the end of this course the students will understand:
Various Issues Involved in practicing management particularly in the Indian context
Possible approaches to Ethical, Economic and socially acceptable Decision-making problem solving through examination of alternative paths.

4. Module I: Introduction
Modern Management Practices and Issues Involved, Outsourcing Management Services and Evolution of Management Consultancy, Skills-set Required for Management Consultants. Consulting and performance counseling.

5. Module II:The Process of Management Consulting
Consulting Proposals. Identification and Definition of Problem, Fact-Finding Leading to Solution Development and Implementation, Developing Strategic and Tactical Plans and Subcontracting, Pricing of Consultancy, Acquiring and Developing Talents for Consulting.

6. Module III: In-house Management versus Management Outsourced
Why a Sense of Skepticism and Unease Towards Management Consultants. Cost versus Value of Advice, Separating Consulting Success from Consulting disaster. Some Revealing Situations.

7. Module IV:Cross Cultural Management Systems and Processes
Types of organizational culture, Strength of organizational culture, Function of organizational culture, Importance of culture to the organization, Cultural Models, Cross- Cultural Perspectives, Geert Hofstede and Cross- Cultural Issues

8. Module V: Economic and Social Issues in Management
Adaptation to Changing Environment in General and Economic Environment in Particular, Economic Growth and Change Areas, Emerging Opportunities in Various Sectors including Social Sector, Management Practice and Cultural Issues, The global Political Situation, The Global Competitive Environment and the internal scene in India, War Game.

9. Module VI:Ethical Issues in Management
Relationship among Various Stakeholders, Reasons for Conflict of Interests Among Stakeholders, Corporate Governance and Ethics. Why Unethical Decisions Leading to Conflicts are Taken, Power and Politics, Initiatives on Corporate Governance by the Governments.

10. The Genesis Roots are in Management Consultancy
Emergence from two concept based issues:
1. Total Quality Management & Business Ethics and Corporate Governance
2. Theoretical frameworks were drawn from Strategy, Finance & HR

11. Management Consultancy
"The services provided by an independent and qualified person or persons in identifying and investigating problems concerned with policy, organization, procedures and methods, recommending appropriate action and assistance in implementation".

12. Management Consultants
Known as Evolutionary rather than Revolutionary.
Application must be Collaborative and Authoritarian.
Doctors of Management.

13. Management Practices & Outsourcing
What is Outsourcing?
What is being Outsourced?
Core Expertise need to be retained, nurtured and stretched.

14. Why to hire Management Consultants
Client require the skills of the Management Consultants for two purposes:
Identification of the “Problem”.
Problem Identification(s), Achieving the objectives and effective performance.

15. Why to hire Management Consultants
Need for fresh ideas from Entrepreneurial Perspective.
Need for improved performance from the perspective of Operations, Distribution and Logistics, functional areas of Marketing, Finance, HR and IT.
Need for Efficiency and Effectiveness.
Need to evaluate performance.
Need to train employees.
Need for total turnaround.

16. Client’s Expectation(S)
Independent Viewpoint
Special Qualifications
Realistic Gains not just moving the wheels.

17. Attributes of Successful Consultants
Powerful Negotiator
Effective Communicator
Reservoir of Self Control
Understanding of Individual Psychology
Understanding of Group Psychology
Understanding of Organizational Psychology
Complete mastery of the given “area”.

18. Barriers common to Consultants
Know – it – all attitude
Inability to understand technical language
Inadequate background or knowledge
Poor organization of ideas
Differences in perception
Prejudice or bias
Personality conflicts
Tendency not to listen
Resistance to change

19. Barriers common to Consultants
10. Lack of credibility
11. Inability to understand Non-Verbal Communication
12. Hostile attitude
13. Lack of feedback
14. Differences in status or position
15. Information Overload
16. Too many Gatekeepers
17. Overly Competitive Attitude

20. “As long as we have hope, we have direction, the energy to move and the map to move by, we have a hundred alternatives, a thousand paths, and an infinity of dreams."

21. Organizational Appraisal
Organizational Capability Factors
Financial Capability Factors
Marketing Capability Factors
Operations Capability Factors
Human Capability Factors
Information Management Capability Factors
General Management Capability Factors

22. Financial Capability Factors
Factors related to sources of funds: Capital structure, Procurement of capital, Financing pattern, Working capital availability, Borrowings, Capital and Credit availability, Reserves and Surplus, and relationship with lenders, banks and financial institutions.
Factors related to usage of funds:Capital investment, fixed asset acquisitions, current assets, loans and advances, dividend distribution, and relationship with shareholders.
Factors related to Management of funds: Financial, accounting, and budgeting systems, management control system, state of financial health, cash, inflation, credit, return and risk management, cost reduction and control, and tax planning and advantages.

23. Check Point: Financial Capability
Access to financial resources.
Relationship with financial institutions.
Level of credit worthiness.
Capital budgeting system.
Cost of capital as compared to competitors.
Level of shareholder’s confidence.
Management control system.
Tax benefits due to various government policies.

24. Marketing Capability Factors
Product-related factors: variety, differentiation, mix quality, positioning, packaging and others.
Price-related factors: pricing objectives, policies, changes, protection, advantages, among others.
Place-related factors: distribution, transportation and logistics, marketing channels, marketing intermediaries, and so on.
Promotion-related factors: promotional tools, sales promotion, advertising, public-relations, and so on.
Integrative and systems factors: marketing mix, market standing, company image, marketing organizations, marketing management information systems and so on.

25. Check Point: Marketing Capability
Variety of products.
Quality of products.
Positioning.
Prices as compared to similar products in the market.
Price protection due to Government policies.
Quality customer services.
Effective distribution system.
Effective sales promotion.
Profile advertising.
Company and product image.
Effectiveness marketing management information system.

26. Operations Capability Factors
Factors related to production system: capacity, location, layout, product or service design, work systems, degree of automation, extent of vertical integration, and others.
Factors related to the operations and control system: aggregate production planning, material supply, inventory, cost and quality control, maintenance system and procedures, and so on.
Factors related to R & D system:personnel, facilities, product development, patent rights, level of technology used, technical collaboration and support, and so on.

27. Check Point: Operations Capability
Level of capacity utilization.
Plant location.
Degree of vertical integration.
Sources of supply.
Effective control of operation costs.
Inventory control system.
Level of R & D personnel.
Technical collaboration

28. Human Capability Factors
Factors related to Systems & Processes: SOPs, System for manpower planning, selection, development, compensation, communication, appraisal, position of the HR development within the organization,
Factors related to organization and employees: type of system, corporate image, quality of managers, staff and workers, perception about the image of the organization as an employer, availability of developmental opportunities for employees, and so on.
Factors related to industrial relations & Salutary conditions for employees: Organizational Ergonomics, Union management relationships, collective bargaining, working condition, safety, welfare and security, morale, employee satisfaction and so on.

29. Check Point: Human Capability
Genuine concern for HR and development or facade.
Efficient and effective SOPs.
The organization is perceived as a fair and model employer.
Learning opportunities and facilities.
Congenial working environment.
Motivation level of workforce.
Level of organizational commitment not loyalty.
Level of absenteeism.
Safe and salutary working conditions.

30. Information Management Capability Factors
Factors related to acquisition and retention of information: Sources, quantity, quality, and timeliness of information, retention capacity, and security of information
Factors related to the processing and synthesis of information: Database management, systems, software capability,

31. General Management Factors
Factors to the General Management System: Strategy Formulation, Implementation, Evaluation, Strategy evaluation system, management inf

32. THE ENVIRONMENTAL CHANGES
* CHANGES IN TECHNOLOGY
* PROLIFERATION OF NEW PRODUCTS
* FASTER COMMERCIALIZATION OF NEW PRODUCT IDEAS AND PATENTS
* BUSINESS BOUNDARIES BLURRED DUE TO THE OVERARCHING TECHNOLOGIES
* SOCIO-POLITICAL CHANGES
* GOVERNMENTS BECAME BARGAINERS IN THE CONDUCT OF BUSINESSES
* EMERGENCE OF GLOBAL FIRMS & BRANDS
* NEW AFFLUENCE OF CONSUMER, CHANGING TASTES & PREFERNCES OF CONSUMERS

33. NEW DEMANDS FIRMS HAVE TO FACE
* TO BE STRATEGICALLY ALERT & FUTURE ORIENTED.
* TO BE ABLE TO TAKE RISKS IN TAPPING OPPORTUNITIES.
* TO BE INSULATED AGAINST ENVIRONMENTALTHREATS.
* TO DEVELOP COMPETENCE FOR ASSIMILATING CHANGE FASTER.
* TO RESPOND EFFECTIVELY AND ECONOMICALLY.
* TO GROW BIG.
* TO BE ABLE TO GENERATE LARGE RESOURCES.
* TO GAIN EXPERTISE IN TECHNOLOGY, MARKETING AND DECISION SUPPORT SYSTEMS.

34. MYTHS ABOUT QUALITATIVE ANALYSIS
Just a set of specific methods such as case studies, interviews etc.
Qualitative research is done by researchers who are poor in statistics
Only concerned with aspects of self
Anything that uses the word ‘subjective’ becomes qualitative inquiry
Used only in the backdrop & against quantitative research
Is fictional work and is not scientific

35. WHY CLIENTS HIRE CONSULTANTS?
To learn
To save money
To avoid losses
To solve problems
To improve safety
To improve image
To improve efficiency
To hire new employees
To improve performance
To increase sales and profits

36. To help through busy periods
To introduce, facilitate and sustain change
To open up new markets and opportunities
To comply with laws, standards and regulations
To put new systems, methods and practices into use
To confirm their ideas, concepts, plans and strategies
To facilitate transitions, mergers, takeovers and downsizing

37. There’s no business like consulting business…
They [Management Consultants] are people who borrow your watch to tell you what time it is and then walk off with it.
-R. Townsend, Up the Organization

38. The Advantages of Using Consultants
Getting a second opinion
More flexibility in hiring
Fresh perspective and views
Expertise that is lacking in the organization
Opportunity to learn and train employees
Work is performed faster and is of better quality

39. Public Perception of Consultants
A consultant is a person who takes your money and annoys your employees while tirelessly searching for the best way to extend the consulting contract.
Consultants will hold a seemingly endless series of meeting to test various hypotheses and assumptions. These exercises are a vital step toward tricking managers into revealing the recommendation that is most likely to generate repeating consulting business.
After the correct recommendation is discovered, it must be justified by a lengthy analysis. Analysis is designed to be as confusing as possible, thus discouraging any second guessing by staff members who are afraid of appearing dense.

40. Public Perception of Consultants
Consultants use a standard set of decision tools that involve creating alternative scenarios based on different assumptions. Any pesky assumption that does not fit that does not fit the predetermined recommendation is quickly discounted as being uneconomical by the consultants.
Consultants will often recommend that you do whatever you are not doing now.
Consultants do not need much experience in industry in order to be experts; they learn quickly.

41. Public Perception of Consultants
Consultants eventually leave, which makes them excellent scapegoats for major management blunders.
Consultants can schedule time in your boss’s calendar because they don’t have your reputation as a troublemaker who constantly brings up unsolvable issues.
Consultants often are more trusted than your regular employees.
Consultants will return phone calls because it is all billable time to them.
Consultants work preposterously long hours, thus making the regular staff feel worthless for only working 60 hours a week.

42. PARADIGMS IN ANALYSIS LOGICAL POSITIVISM INTERPRETIVIST
CRITICAL THEORY
Systematically contest creation of knowledge about the social world
Each paradigm/world view guides inquiry
Ascribe to different “ontology”, “epistemology” & “methodology”
Define what falls within & outside the limits of legitimate research
Question of methods are secondary to question of paradigms
Debate between quantitative & qualitative refers to paradigmatic forces
Paradigms are ‘human constructions’: No construction is incontrovertibly
right

43. UNDERSTANDING OPERATIONS DIFFER WITH EACH PARADIGM
Assumptions
Methods/Procedures
Data collection &
analysis
Systematization &
comparison of
information
Observation of
reactions
Interpretation 1 2 3 4 5 6
AREA OF THEORY
AREA OF METHODS
operationalisation
explanation
verification

44. 3 important questions unique to each paradigm …
ONTOLOGICAL
What is the nature of reality & what can be known about it?
‘How things really are’ & ‘how things really work’?
EPISTEMOLOGICAL
What is the nature of relationship b/w the knower & the known?
What can be known?
METHODOLOGICAL
How can inquirer go about finding out whatever can be known?
What rules & procedures would help us understand reality?

45. LOGICAL POSITIVISM ONTOLOGY REALISM
Reality is assumed to ‘exist’ out there
Driven by immutable natural laws
Knowledge of “the way things are” reflected by context free generalizations
Goal of inquiry is to form cause-effect laws: PREDICTION & CONTROL
Research can converge on the ‘true’ state of affairs

46. LOGICAL POSITIVISM ONTOLOGY REALISM
Reductionist & deterministic posture
Social relationships are regarded as “facts” to be investigated ‘objectively’
Something that can be known outside oneself
Primary aim of social science research is ‘discovery’ of law of behaviour
Associated with empirical-analytical “hard” paradigm of research

47. LOGICAL POSITIVISM EPISTEMOLOGY DUALIST & OBJECTIVIST METHODOLOGY
Researcher & the researched “object” are independent entities
Researcher is the “expert”
“Neutrality” of researcher is desired & emphasised
Inquiry takes place as through a one-way-mirror
Values, beliefs, emotions, or anything “subjective” is prevented
METHODOLOGY
EXPERIMENTAL & MANIPULATIVE
Questions/Hypothesis stated in propositional form
Subjected to empirical test to verify theories
Possible confounding conditions are carefully controlled
Replication of results

48. DISENCHANTMENT WITH POSITIVISM
Shattering of the ‘objectivist’ ideal of positivism
Pluralisation of life worlds
Research conducted in the real world
Knowledge needs to be ‘locally’, ‘temporally’ & ‘situationally’ relevant
“Sensitizing Concepts” required to approach social contexts
Recognition of central role of language & discourse
Concern with process & individual rather than statistics & variables
‘Human face’ is lost in statistical manipulations

49. DISENCHANTMENT WITH POSITIVISM
Knowledge production is relative to frames of reference
Truth is not absolute and is decided by human judgment
Positivism: Context stripping, Exclusion of meaning, Theory ladenness
Crisis of representation
Exclusion of ‘discovery’ dimension in positivism
Etic/Emic dilemma: Inability of general data to individual cases
Received view of natural science followed blindly by positivists
Human science should study web of meanings that people live in

50. INTERPRETIVIST PERSPECTIVE
ONTOLOGY
RELATIVIST
Reality is in the form of multiple, intangible mental constructions
Socially & experientially based, local & specific in nature
Constructions are alterable as are their associated ‘realities’
Systematic analysis of socially meaningful action
Understanding & interpretation of how people create & maintain their world

51. INTERPRETIVIST PERSPECTIVE
ONTOLOGY
RELATIVIST
Purpose of research is to discover how people construct meanings
Meaning is maintained by interaction
Generalizations emerge from specific details of observations of social life
Emphasizes everyday knowledge
Merely suggest “directions along which to look” rather than prescriptions of
“what to see”

52. INTERPRETIVIST SOCIAL SCIENCE
EPISTEMOLOGY
TRANSACTIONAL & SUBJECTIVE
Researcher and the researched are interactively linked
Co-construction of knowledge by the researcher & the researched
Subjectivities of the researcher & the researched are integral part
Researchers’, reflections, impressions, feelings become data
METHODOLOGY
HERMENEUTICAL & DIALECTICAL
Interactions between researcher & the researched elicit & refine data
Researcher is central to the process of research
Thick descriptions, stories, narratives

53. INTERPRETIVIST MAJOR INFLUENCES Verstehen “Empathic Understanding”
The world of “lived experiences”
Situation-specific meanings constitute the general object of investigation
All of us our particular actors, in particular places, at particular times
Uniqueness of human inquiry
Meaning of social phenomena
Celebrate the permanence & priority of the real world of first-person
Useful in the context of discovery but not in the context of justification

54. INTERPRETIVIST SOCIAL SCIENCE
MAJOR INFLUENCES
HERMENEUTICS
Subjective experience and interpretation of text
Text as representations of reality & versions of the world
Processing experiences of social environments into texts
Transformation of texts in understanding occurs through interpretation
CONSTRUCTION
EXPERIENCE
INTERPRETATION

55. INTERPRETIVIST SOCIAL SCIENCE
MAJOR INFLUENCES
SYMBOLIC INTERACTIONISM
See humans as purposive agents who engage in self-reflexive behaviour
Human beings act towards their environments on the basis of their meanings
Meanings derive from communication that is symbolic for creating knowledge
Meanings are established & modified through an interpretive process
Builds on the concept of self, language, social setting, culture, joint act
Humans ‘act’, they do not merely ‘respond’

56. CRITICAL THEORY ONTOLOGY HISTORICAL REALISM
Reality is assumed to be constantly evolving over time & is apprehendable
Reality shaped by social, political, cultural, economic, gender, ethnic forces
These forces crystallize into series of structures that are ‘real’
Assumes: change is rooted in conflict/tensions/contradictions/paradoxes
Critique conditions & implies a plan of change & provide vision of future
Aim is to smash myth & empower people to change society
Advocacy & activism are key concepts
Criterion for progress is that emancipation should occur

57. CRITICAL THEORY EPISTEMOLOGY TRANSACTIONAL & SUBJECTIVIST METHODOLOGY
Researcher and the researched are interactively linked
Values of researcher & situated ‘others’ influence inquiry
Findings are value mediated
METHODOLOGY
DIALOGIC & DIALECTICAL
Dialogue b/w researcher & participant
Dialogue must be dialectical in nature to transform ignorance

58. QUANTITATIVE RESEARCH
A DEBATE
QUANTITATIVE RESEARCH
QUALITATIVE RESEARCH
Logical Positivism
Natural science world view
Hypo-deductive
Particularistic
Objective/ Outsider centered
Outcome oriented
Attempt to control variables
Goal: find facts & causes
Static reality
Verification oriented
Confirmatory
Inquiry is value free/neutral
Interpretive/Phenomenological
Naturalistic world view
Inductive
Holistic
Subjective/ Insider centered
Process oriented
Relative lack of control
Goal: understand actor’s view
Dynamic reality
Discovery oriented
Exploratory
Inquiry is value bound

59. HOW TO AVOID THIS SITUATION?

60. Consultant's DILEMMAS
How does the Consultant make a difference in the production of data?
What does the Consultant do to retain the “voices of participants”?
What role should the Consultant' take? ONLOOKER, PARTICIPANT, OBSERVER
Does he need to keep a check on his/her biases?
Will the Consultant be able to represent the ‘true’ version of accounts?
How does one ensure validity and reliability of the investigation?
Can Consultant unmask his emotions while interacting with participants?
Are there any established standards of data processing?
Can this study persuade the readers of its worthiness?

61. “GENRE” OF QUALITATIVE METHODS
DATA COLLECTION TECHNIQUES
DATA ANALYSIS APPROACHES

62. DATA COLLECTION TECHNIQUES
PARTICIPANT OBSERVATION
INTERVIEW
FOCUS GROUP DISCUSSIONS
CASE STUDIES
TEXTUAL MATERIAL: Autobiographical accounts, document analysis

63. DATA ANALYSIS APPROACHES
GROUNDED THEORY
NARRATIVE ANALYSIS
THEMATIC ANALYSIS
DISCOURSE ANALYSIS
CONTENT ANALYSIS
CONVRSATION ANALYSIS
ETHNOGRAPHY

64. ROLE OF QUALITATIVE RESEARCHER
DATA
GENERATION
ENTERING FIELD
DATA ANALYSIS
REPRESENTING

65. ROLE OF QUALITATIVE RESEARCHER
Researcher an integral part of the research process
Requires sustained contact & immersion in the ‘lived life’ of participants
“Get close” or insider to the participants world
Onlooker Vs Being an actor
Expert Vs Learner:
“I WANT TO KNOW WHAT YOU KNOW, IN THE WAY YOU KNOW IT”
Detachment Vs Involvement
Rapport Vs Empathy
Co-constructor of knowledge

66. JUDGING QUALITATIVE RESEARCH
TRADITIONAL TERMS
NATURALISTIC TERMS
Internal Validity
External Validity
Reliability
Objectivity
Credibility
Transferability
Dependability
Confirmability

67. FEW ANSWERS… ART OF REFLEXIVITY “Disciplined self-reflection”
Making the process of data production & analysis explicit
Experience of doing research is critically evaluated throughout
Maintaining reflexive journal/memo taking
Knowing who you are
Your individuality as a researcher
Influence of personal interests/biases on research
Personal
Reflexivity
Functional
Reflexivity
Continuous examination of the practice/process of
research to reveal assumptions, values & biases
Reflecting on larger issues that include research
methodology & questioning psychology itself
Disciplinary
Reflexivity

68. FEW ANSWERS… REPRESENTATION
Representation doesn’t mean ‘writing up’ the findings after the study
Difficulties inherent in representing the “other”
Acknowledgement that self & other are entangled
Researcher’s struggles/crisis is also a part of data
2 views: (a) Researcher can directly capture lived experience
(b) Experience is created in the text written by researcher
How does a researcher understand & communicate participant’s reality
Presentation of data say as much about the researcher as the participant

69. FEW ANSWERS… TRUSTWORTHINESS
Encompass efforts to reduce or make explicit sources of bias
Increase the investigators’ & readers’ exposure to the phenomenon
Provide thick descriptions
Disclosure of the researcher’s orientation
Intensive & prolonged engagement with the material
Persistent observation
Triangulation
Discussion of findings with others
Iterative cycling b/w observation & interpretation or b/w “dialogue & text”
Responsible search for negative instances
Seeking consensus through peer briefing

70. FEW ANSWERS… THEORETICAL SENSITIVITY
An awareness of the subtleties of meaning of data
Having an insight, ability to give meaning to data, capacity to understand
Being sensitive to data and making appropriate decisions in the field
Comes from thorough study of literature, professional & personal experience

71. ORGANIZATIONAL PARADIGMS
21st Century
Discontinuous change, continuous improvement
Speed and responsiveness
Empowerment; leadership from everybody
“Virtual” organizations, permanent flexibility
20TH Century
Stability, predictability
Size and scale
Top-down “command & control”
 Organizational rigidity

72. Control by rules & hierarchy Information closely guarded
20TH Century
Control by rules & hierarchy
Information closely guarded
“Rational,” quantitative analytics
Need for certainty
 Reactive; risk-averse
Process driven
Corporate independence and autonomy
Vertical integration
21st Century
Control by vision and values
Information shared
Creativity, intuition
Tolerance of ambiguity
Proactive;entrepreneurial
Results driven
Interdependence; strategic alliances
“Virtual” integration

73. 20TH Century 21st Century Internal organizational focus Consensus
Domestic market orientation
Competitive advantage 
Sustainable competitive advantage 
Competing for today’s markets 
21st Century
Focus on compétitive environ ment
Constructive contention
International focus
Collaborative advantage
Hyper-compétition, constant re-invention of advantage
Creating tomorrow’s markets

74. Iceberg Corporate Value Potential
Only 10% of the value of any firm we are able to study 90% is hidden  days of financial analysis are over.
Today we need to study the “Iceberg Balance Sheet”.
This has 3 kinds of capital:
Human Capital
Stakeholder Capital
Shareholders Capital

76. The Disadvantages of Using Consultants
It is expensive
Desired results are not guaranteed
It may create bad vibes amongst employees
Projects and issues may blow up out of all proportions

77. How do Consultants charge for their services?
Per Hour or Per Day basis
Retainer basis
Fixed-price assignments
Performance-based fee (Contingency Fee)

78. Contingency fees
A client complained that he couldn’t afford a consultant’s hourly fee.
‘Instead of doing the job on a time and material basis, I’m willing to do it for a contingency fee,’ responded the consultant.
‘What is contingency fee?’ asked the client.
‘It’s very simple. If I don’t deliver what I promised, I’ll be left with no money at all,’ explained the consultant
‘What if you do deliver what you promised?’ persisted the client.
‘Then you’ll be left with no money at all,’ said the consultant.

79. How consultants market their services?
Membership of community organizations and professional institutions
Publishing books and articles
Networking with other consultants
Speaking at seminars, conferences and other gatherings attended by both clients and consultants
Word of mouth advertising – recommendations from satisfied clients

80. Paradigm Shift in Consulting Accountability
Activity–Based Consulting
No business need for the consulting intervention
No assessment of performance issues
No specific, measurable objectives for implementation and business impact
No effort to prepare stakeholders/participants to achieve results
No effort to prepare the work environment to support implementation
Result-Based Consulting
Intervention linked to specific business needs
Assessment of performance effectiveness
Specific objectives for implementation and business impact
Results/expectations communicated to stakeholders/participants
Environment prepared to support implementation

81. Activity–Based Consulting
No efforts to build partnerships with key managers
No measurement of results or cost benefit analysis
Planning and reporting on consulting intervention is focused on input
Result-Based Consulting
Partnerships established with key managers and clients
Measurement of results and cost-benefit analysis
Planning and reporting on consulting interventions are focused on output

82. Methods of Data Collection
Follow-up surveys measure satisfaction from stakeholders.
Follow-up questionnaires measure reaction and uncover specific application issues with consulting interventions.
On-the-Job observation captures actual application and use.
Tests and assessment are used to measure the extent of learning (knowledge gained or skills enhanced).

83. Interviews measure reaction and determine the extent to which the consulting intervention has been implemented.
Focus groups determine the degree of application of the consulting solution in job situations.
Action plans show progress with implementation of the job and the impact obtained.
Performance contracts detail specific outcomes expected or obtained from the consulting intervention.
Business Performance monitoring shows improvement in various performance records and operational data.

84. Methods for Isolating the Effects of Consulting
A Pilot group with consulting is compared to a control group without consulting to isolate consulting intervention impact.
Trend lines are used to project the values of specific output variables, and projection are compared to the actual data after a consulting intervention.
A forecasting is used to isolate the effects of a consulting intervention when mathematical relationships between input and output variables are known.
Participants/stakeholders estimate the amount of improvement related to a consulting intervention.

85. Supervisors and manages estimate the impact of a consulting intervention on the output measures.
External studies provide input on the impact of a consulting intervention.
Independent experts provide estimates of the impact of a consulting intervention on the performance variable.
When feasible, other influencing factors are identified and the impact is estimated or calculated, leaving the remaining unexplained improvement attributable to the consulting intervention.
Customers provide input on the extent to which the consulting intervention has influenced their decision to use a product or service.

86. The Score Card Perspective : Six Balanced Measures
Reaction to and satisfaction with the consulting intervention from a variety of different stakeholders within different time frames.
The extent of learning that has taken place as those involved in the consulting intervention learn new skills, processes, procedures, and tasks.
The success of the actual application and implementation of the consulting intervention as the process is utilized in the work environment.

87. 4. The actual business impact changes in the work unit where the consulting project has been initiated. These values include hard data as well as soft data.
5. The actual return on investment reported as a ratio or in a percentage format. The measure shows the monetary return on the cost of the project.
6. Intangible measures, which are usually soft data items that are not converted to monetary values for use in the ROI formula.

88. Methods for Converting Data to Money
Output data are converted to profit contribution or cost savings and reported as a standard value.
The cost of a quality measure, such as a reject, is calculated and reported as a standard value.
Employee time saved is converted to wages and benefits.
Historical costs of preventing a measure, such as customer complaint, are used when they are available.

89. Internal and External experts estimate a value of a measure.
External database contain an approximate value or cost of a data item.
Participants estimate the cost or value of the data item.
Supervisors or managers provide estimates of costs or value when they are both willing and capable of assigning values.
The consulting of staff estimates a value of a data item.
The measure is linked to other measures for which the costs are easily developed.

90. Recommended Consulting Costs
The Cost of initial analysis and assessment, possibly prorated over the expected life of the intervention.
The cost of developing solutions.
The cost of acquiring solutions.
The cost of application and implementation of the intervention.
The cost of maintenance and monitoring
The cost of evaluation and reporting
The costs of administration and overhead for the consulting intervention, allocated in some convenient way

91. Consulting Benefits
BCR = _______________
Consulting Costs
Sometimes the ratio is stated as a cost-benefit ratio, although the formula is the same as BCR. The return on investment uses the net benefits divided by consulting costs. The net benefits are the consulting benefits minus the costs. In formula form, the ROI becomes.

92. Net Consulting benefits
ROI% = _________________ X 100
Consulting Costs
This is the same basic formula used in evaluating other investments where the ROI is traditionally reported as earnings divided by investment.

93. The BCR and the ROI present the same general information, but from slightly different perspectives. An example will illustrate the use of these formulas: a consulting intervention produces benefits of Rs. 581,000 at a cost of Rs. 229,000. Therefore, the benefit-cost ratio is:
Rs. 581,000
BCR = ______ = (2.5:1) Rs. 229,000

94. As this calculation shows, for every Rs. 1 invested, Rs. 2
As this calculation shows, for every Rs.1 invested, Rs.2.50 in benefits are returned. In this example, net benefits are Rs.581, Rs.229,000 = Rs. 352,000. Thus, The ROI is:
Rs.352,000
ROI% = _______ X100 = 154%
Rs.229,000