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Management consulting Lecture 6 and 7 Managing knowledge and knowledge workers Human capital Social capital Structural capital Network Capital Client Capital.

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Presentation on theme: "Management consulting Lecture 6 and 7 Managing knowledge and knowledge workers Human capital Social capital Structural capital Network Capital Client Capital."— Presentation transcript:

1 Management consulting Lecture 6 and 7 Managing knowledge and knowledge workers Human capital Social capital Structural capital Network Capital Client Capital Organizational Capital

2 Human capital Social capital Structural capital Network Capital Client Capital Organizational Capital IC StaffingDevelopment Communication Performance Management Remuneration and Reward Intellectual Capital Products and services which have market value Employee Knowledge Skills Experience Human Capital Human Capital – Intellectual Capital

3 Structure of Lecture 6 and 7 Lecture 6 –Level of analysis Organisational perspective –Framework for analysis Management of knowledge (reactor model) Lecture 7 –Level of analysis Work process –Framework for analysis Identity model HRM issues across both lectures –Recruitment and selection of consultants –Promotion policies – up-or-out principle –The boundaries of HRM practices Human capital Social capital Structural capital Network Capital Client Capital Organizational Capital

4 Objectives To understand the characteristics of the management consulting industry –History –Types of organisations –Types of consultancy activities Typology of human capital –According to the client interface process –Career structures within management consultancy –The role of consultants as knowledge brokers Typology of client capital –The consulting firm – client relationships The HRM practice focus: –Recruiting human capital –Managing across boundaries Human capital Social capital Structural capital Network Capital Client Capital Organizational Capital

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6 History Management as a unique field of study Arthur D.Little (1890s) McKinsey & Company –First management and strategy consultancy –Founded by James McKinsey in 1926 (Chicago) –Hiring of bright young MBAs Rise of management consultancy after World War II –Development of tools for strategic management –Boston Consulting Group (1963), McKinsey&Co, Harvard Business School –Bain&Co - focus on shareholder wealth Consulting within accountancy and technology firms –PwC and IBM Niche consultancy firms –Corporate social responsibiity

7 Types of firms in the industry Accountancy firms offering consultancy Large non-accounting consultancies Small specialist boutiques Gurus Independents

8 Types of Consultancy services Strategy HR Marketing Change Process and Operations Org design Infotech Management consulting

9 Major consultancies Bain & Company Boston Consulting Group Deloitte & Touche Ernst & Young A.T. Kearny KPMG Arthur D.Little McKinsey & Co Mercer PriceWaterhouse Coopers

10 Different types of consulting services: a knowledge-based view Bespoke Expert economics Person-to-person IT enables personal Build experience Reward for knowledge creation and sharing McKinsey & Company Productise Reuse economics People-to-documents IT focus Buy experience Reward for contribution to document database Ernst & Young Competitive strategy Economic model KM strategy Technology HRM Example

11 Typology of Human Capital The consultancy process Career structures Consultants as brokers of human capital –Boundary spanning

12 The consultancy process: Your experience Paired assignment Identify a consultancy experience that you have been part of. Characterise the individual stages of the consultancy process Interview your partner and identify: –Which skills were developed at each stage of the consultancy process –Which other knowledge resources did you rely upon during this process Summarise your findings and be prepared to feed back to the group

13 The career structure Analysts Consultants Senior Consultants Business development managers Directors/Partners

14 The McKinsey Facilitator case Specific type of human capital Across boundaries How would you design the recruitment process to capture this human capital?

15 Components of a high performing culture IQ EQ SQ General business knowledge Understanding of client context Logical problem solving Creates environment of trust Manages group dynamics High awareness of emotions High self knowledge Experience of own transformational journey Sense of vocation

16 Using external facilitators poses a challenge to many forms of intellectual capital flows Clients Facilitators

17 Facilitator network: HC viewpoint External pool of facilitators Focal Practice Group Regions Other Practice Groups Clients Facilitators within clients External skill experts HC boundary

18 Mindsets are often misunderstood and ignored Needs – met and unmet Thoughts and feelings Values and beliefs Be- haviour A desire to change ends up like most New Years resolutions if root causes are not identified and addressed What we see and usually try to change What we cannot see, make assumptions about and often do not address

19 Requires insight Requires a choice Requires practice The first step in mindset change is a new level of personal understanding

20 You cannot solve a problem from the same level of consciousness that created the problem in the first place Albert Einstein Requires insight Requires a choice Requires practice

21 The McKinsey Facilitator case How would you design the recruitment process to capture this human capital?

22 Facilitator network: OC viewpoint External pool of facilitators Focal Practice Group Regions Other Practice Groups Clients Facilitators within clients External skill experts Recruitment & development processes Client delivery processes

23 Positioning in the lecture Nature of the industry Typology of human capital –Consulting process –Career structure –Knowledge brokers Now we turn to the human-client capital interface –We take a closer look at how clients perceive consultants?

24 IDEA SUBMISSION PROCESS Workshop room 1. Group discussion on topic/idea Individual or group write up idea cover sheet and attach backup materials (others at table may start on another idea at this time if appropriate 4.Receive hexagon at idea table and write on idea no. and title 5.Stick hexagon on hexagon wall with similar ideas and rejoin group –Video station helper puts idea no. stick on to idea coversheet and onto video cassette record sheet. Records idea title onto cassette record sheet –Individual(s) write idea no. and idea title on directors boardhold up at start of recording –Record 2–3 mins video 2.Individual(s) go outside to record 2–3 minute video to explain idea Patio Video station helper with stickers of idea number In tray Filing 3.Submit written materials at idea table Cassette record sheet Door to patio Wall #1

25 The perception of Human Capital The ability to learn in practice Why smart people dont learn The impact on organisational learning The impact on social capital The impact upon the client relationship –social construction of learning

26 The client-consultant relationship Human capital and its link to client capital Dimensions for analysis –Strength of ties frequency –Relational trust –Cognitive Shared mental models Giving answers or shaping futures

27 The nature of relationships ArchitectureDyadicStructural holesStructural density Social capital (between facilitators) MorphologyStructural density X Structural holes Trust: Nature Deep X Resilient Positional XGeneralized Social capital (between sponsors) MorphologyStructural densityX Trust: Nature DeepResilient X PositionalDyadicGeneralized X Client-and-network capital (between internal and external facilitators) Morphology XStructural holes Trust: Nature Deep X Resilient PositionalDyadic X Generalized Organisational capital: HRM process FlexibilityMechanisticAdaptive X Client relationship process FlexibilityMechanisticAdaptive X

28 Facilitator network: SC & CNC viewpoint External pool of facilitators Focal Practice Group Regions Other Practice Groups Clients Facilitators within clients External skill experts Dense: Deep and dyadic trust Structural holes: resilient and generalised trust Structural holes: Deep and dyadic trust Dense: Resilient and dyadic trust

29 Books about management consulting Flawless Consulting, Peter Block, ISBN 0-7879-4803-9ISBN 0-7879-4803-9 Guerrilla Marketing for Consulting, Jay Conrad Levinson and Michael W. McLaughlin, ISBN 0-471-61873-XISBN 0-471-61873-X Managing at the Speed of Change, Daryl Conner, ISBN 0-471- 97494-3ISBN 0-471- 97494-3 Managing the Professional Services Firm, David Maister, ISBN 0- 7432-3156-2David MaisterISBN 0- 7432-3156-2 The Professional Services Firm Bible, John Baschab, ISBN 0-471- 66048-5ISBN 0-471- 66048-5 Managing Transitions, William Bridges, ISBN 1-85788-341-1ISBN 1-85788-341-1 Management Consulting: A Guide to the Profession, Milan Kubr (ed.), ISBN 92-2-109519-3ISBN 92-2-109519-3 The World's Newest Profession: Management Consulting in the Twentieth Century, Christopher D. McKenna, ISBN 0-521-81039-6ISBN 0-521-81039-6


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