1 MBE Consulting Module 4

2 Week Prepare for Kick-off Meeting Assign teams Team forming Review and execute consulting contract Interview and research business Draft, revise and execute team contact Draft and revise project management plan Start secondary research Draft and revise business case statement Analyze and organize secondary research Plan, draft and test primary research Conduct primary research Analyze and organize primary research Draft and revise preliminary recommendations Draft final report Draft, revise, rehearse presentation Revise final report DUE Consulting Contract Team Contract Project Manage- ment Plan Business Case Statement including SWOT analysis Primary Research Instrument Prelimin -ary Recom- mend- ations Draft report Final Present- ation Final Report

3 Entry Goal and scope of the consulting project are defined. Must learn as much as possible about the small business to determine its primary area of need. Involves an in-depth interview covering history, legal structure, and a broad range of business functions. Can’t be all things to all people. Must focus on particular problem or opportunity. Business owner may not be aware of the best goal to try to achieve. Establish ground rules for the consulting engagement. Amount of information the business owner is willing to share (the more the better) will determine success but consultant must be sensitive to privacy concerns. Team must honor confidentiality clause in contract. Team cannot betray this trust by discussing business matters with any outside parties.

4 Contracting Once the business challenge has been identified and the scope of a project has been discussed, the consultant drafts a contract that will clearly define work areas, timelines, and resources needed from the client. (For some educational institutions, these have already been worked out.) Student consulting projects most often focus on: –Marketing opportunities (feasibility of a new market, moving into adjacent markets, providing consistent branding through websites and other marketing materials, etc.). –Reviewing and recommending improvements to business processes. This includes streamlining operations, standardizing procedures, and acquisition of systems so that the business can expand. Selection of projects is based on fit with the skill level and expertise of the student consultants and compatibility with the resources available to the client. Actionable solutions must be delivered within the time frame of an academic quarter. Strategically more beneficial to address all areas of the business at a moderate level of depth than to address only one area very deeply. Better to deliver benefits to the client from a small project that is well done than to deliver partial results from a broad-based project. Having one success leads to others. Failure very likely would keep the business at a standstill or set it backwards.

5 The Consulting Contract A statement of the work areas defines the project goals. Typically two work areas are specified with subtasks listed. –Specifies projects that can be completed by a student consultants and that the business commits to executing. The business owner and student consultants must keep these goals clearly in mind throughout the life of the engagement. Agreement of the business owner to provide information and to attend meetings (typically scheduled weekly). Commitment of the students and mentors to keep all business information confidential except for discussion in class. A understanding that the work is provided pro bono and that execution of any solutions is the sole responsibility of the business owner. No claims on gains can be made by students, faculty or mentors and no claims for liabilities can be made by the business owner. Obligation of the student consulting team to complete the work within the academic quarter. Release that a short description of the project, photographs and testimonials of the parties involved may be published by the educational institution.

6 The Kickoff Meeting First meeting team, mentors and business owner(s) Purpose of meeting –Meet each other, learn about each other, and establish trust –Begin data gathering on the business (student consultants should already have preliminary research on the industry) –Establish ground rules on the consulting engagement including weekly meetings, etc. –Execute the consulting contract Recommendations –Have an agenda for the meeting –Have your resumes available

7 Data gathering and analysis Budget enough time and leave no stone unturned in gathering data Communicate with team members as data is collected and get feedback as to whether or not the right track is being pursued Budget enough time for integration and synthesis Business decisions, actions, metrics and follow-up covered in later sections but should be kept in mind when data gathering

8 The Business Model The business model is an articulation of how the company makes a profit and competes against others in the marketplace. A clear description of the business model provides a guideline as to what the consulting project should or should not focus on. It illuminates how the business will create barriers to entry or how it will compete effectively against larger competitors. It defines how the firm will make money including the level and timing of profit. When a business does not have an effective business model, as often happens when business owners jump at an opportunity without analysis, problems will ensue.

9 Business Case Statement As the business model defines the business, the business case statement defines the consulting project. The business case will state the problem or opportunity in a very succinct manner, outline the benefits or how money will be made, and point towards solutions. Once the business case is outlined, the team can move productively into gathering information, evidence, and formulating the detailed action plan. The clearer the business case, the more efficiently the team can proceed.

10 SWOT Internal StrengthsWeaknesses External OpportunitiesThreats

11 SWOT Is a technique to structure group discussion to identify the internal and external forces that drive the company’s position in the market. Can organize data and information and determine the areas that a company needs to focus on. Conduct the SWOT analysis early.

12 SWOT Strengths: Existing resources and capabilities within the company that provides a competitive advantage within the market where the company operates Weaknesses: Existing internal forces that hinder current or future assets that would build competitive advantage within the market that the company operates. Opportunities: Existing or emerging forces external to the company that, if captured, can provide the company with a competitive advantage. Threats: Existing or emerging forces external to the company that could inhibit the company’s ability to gain a competitive advantage or maintain its current advantage.

13 Preparation for Kickoff Do preliminary research on your business’ industry Prepare list of questions for kickoff meeting Review the consulting contract Prepare agenda for kickoff meeting Have a clean resume on hand and be prepared to describe what you bring to the project