1. MANAGING AND SERVICE ABILITY STRATEGIES FOR CONSULTANCY ORGANIZATION 4 th December 2010

2. Young Profession  Compared to Law, Medicine, and Accounting, it is young profession  But management as a distinct function and approach to running organizations itself is a relatively new discipline Consulting Services As Profession

3.  Challenges:  Growing size and complexity of consulting firms  Competition factor,  Exposure to Market pressures,  Expanding opportunities  Issues such as marketing, selling, product life cycle, profitability, innovation, and efficiency are gaining ground Management Challenges of Profession

4. 1. First, consultants are individualistic and prefer not to be managed by others 2. Second, consultants are a shortage commodity, they demand freedom to operate 3. Third, they prefer to be professional consultants rather than managers to other consultants 4. Fourth, the body of knowledge on how to manage professionals is also underdeveloped Management Challenges of Profession

5.  Clients expect consultants to practice what they preach, otherwise they doubt the ability of consultants to fix management problems of other people Managing Consulting Profession

6.  Management consulting must be managed as a professional service to satisfy client’s needs  This is also essential for achieving commercial and financial success Meeting Client’s Needs Managing The Profession Achieving Commercial Success Managing Consulting Profession

7.  Consulting firms which devote most of their talent and energy in finding new assignment and dealing with client’s problems, neglect their own management  As a result, they develop internal conflicts, inefficiencies, and flaws in service provided Inefficiencies and Internal Conflicts Neglecting Own Management Managing Consulting Profession

8. 1. Consulting as a professional service 2. Consulting as a business activity Two Perspectives On Consulting

9.  INTANGIBLE PRODUCT of consulting service is the ADVICE given to the client Or if advice implemented  It is the CHANGE or improvements that occur in the organization as result of consultant’s interventions In this case, what consultant is selling is only the PROMISE to begin with What Are Consultants Selling?

10. PROMISE That client cannot see, touch, smell, or taste as a product before purchasing it  These promise-uncertainties are removed to some extent by giving a proposal or a manual describing how business is diagnosed, data examined, comparisons made, ratios produced, and solutions arrived at Consulting As A Professional Service

11. Managing Client-Consultant Interface is important to manage consulting as a professional service Managing Professional Service Managing Client- Consultant Interface THIS HELPS To build customer capital To obtain repeat business To find new clients To enhance client satisfaction To improve service quality How To Manage Professional Service

12. MANAGING KNOWLEDGE This means developing and managing its own knowledge base Means developing information systems, documentation, report libraries, client files, project briefings, databases, and news sheets Means developing powerful and flexible IT infrastructure ESSENTIAL To improve competitive edge To develop a knowledge culture How To Manage Professional Service

13. MANAGING PROFESSIONAL WORKERS They come from different educational background, highly skilled, independent, ambitious, and individualistic Staff turnover is high Managing them is a delicate function ESSENTIAL To maintain competency & integrity of professionals To attract new recruits To ensure quality To Develop common philosophy To Decentralize decisions To Utilize collective knowledge base How To Manage Professional Service

14. MANAGING FIRM’S CULTURE Depends on the Type of Firm: (a) Collection of Individuals under one roof; or (b) Employment Agency providing common services; well developed value system like discipline, hard work, self learning, information sharing, confidentiality, honesty, and client relationships and dealings How To Manage Professional Service

15. Emphasis is more on being Commercial than being Professional Consulting firm also has to FINANCE for its existence and growth from its earnings. Therefore MARKETING of professional services is becoming a necessity Like many other businesses, it also needs to be PROFITABLE. Profits depend on many factors like general demand for professional services, quality of service, reputation, marketing skills, and efficiency of operations. Profits are necessary for staff motivation and further development Consulting As A Business Activity

16. Shift is taking place from LABOR INTENSIVE TO CAPITAL INTENSIVE CONSULTING OPERATIONS Firm has now to spend more on information and communication technologies, computer systems, web sites, databases, licenses, advertising, research, publications, and physical spaces It also needs finances for mergers and acquisitions, expansions, and development of new products and services A long term perspective requires capital management, and cost and returns on investment monitoring Consulting As A Business Activity

17.  ENTREPRENEURSHIP in consulting: to see that firm does not turn itself into a bureaucracy  Entrepreneurial spirit is needed in consulting more than in any other business because:  Client’s needs are changing rapidly  Competition is growing  New opportunities are emerging  Such spirit is valued by the clients  Essential to get new clients  Essential to get more business from the same clients  Essential to find new ways to solve old problems Entrepreneurship In Consulting

18. This means that the consulting firm must maintain a delicate balance between Professional and Commercial dimensions Entrepreneurship In Consulting

19. Commercial Angle WEAK Commercial Angle STRONG Professional Angle WEAK Juniors assigned to jobs beyond their competency and offering services that are not profitable Treated merely as a source of income. Modest Ambition Uninspired Service Professional Angle STRONG Wants to do excellent job whether profitable or not, or market wants or not Desire Excellent business results, but not to the detriment of professional performance & quality service Professional Vs Commercial Angle

20. Evolving Strategy For High Standards & Service Quality Developing Professional & Business Culture Motivating Professional Staff Evolving Strategy For Profitability & Growth Developing Markets & Client Base Developing New Capabilities & Products Ensuring Sound Financial Management & Control Entrepreneurial Excellence In Consulting Entrepreneurial Excellence In Consulting

21. KEY TO SUCCESS Every consultant should think and behave like an entrepreneur Entrepreneurship In Consulting