the process of management[1]

8/4/2019 The Process of Management[1]

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AITTM

The Process of Management

Consulting

Module II


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AITTMConsulting Proposals

Identification and Definition ofProblem

Fact-Finding Leading to Solution

Development and Implementation

Developing Strategic and Tactical Plans

And

Subcontracting, Pricing of Consultancy

Acquiring and Developing

Talents for Consulting


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PrinciplesThe underlying principles behind the profession of consulting are:

Consulting is fundamentally about change.

The application of a change model that makes sense to theclient as well as the consultant benefits any consultancyproject.

In consulting, the basic steps are common to all assignments.The scale, context and outcomes can always differ.

Any consulting framework can only act as an indicative ratherthan a directive model. Since content and context drives aconsulting project, no two will be the same.

Successful consulting is about making a difference for the clientand consumer. The goal is to deliver a contracted change andnot a successful consultancy project.


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7 Cs

The 7 Cs framework is composed of a number of

dynamic stages, each of which emphasizes a

different aspect within the consultancy life cycle.

Each stage depicts a particular phase that a

consultancy project will follow. A set of sub-elements and diagnostic tools are used within

each stage to ease the engagement process. Each

of the stages can be undertaken independently,

jointly or in parallel with each other.


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AITTM

7 Cs

1. Client: Define the clients orientation of the

world, their perception of the situation, theirgoals towards the final outcome and the onewho has the power to influence the outcome.After this stage is concluded, you will have aclear agreement about the value to be

delivered to the client and the value the clientwill offer in return.


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2. Clarify: Evaluate the nature and the detail ofthe problem to be addressed. Map the

construction of the system under consideration,

identify the people and resources to be includedand excluded from the change and evaluate

which are the areas that pose a risk for the

assignment.


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3. Create: Make use of creative techniques to

develop a detailed plan that specifies what

actions will be included in the change

process, the appropriate resources, thestream owners and potential change

problems.


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4. Change: Grasp the fundamental aspects that

drive and underpin the process, such as the

energy sources, change points, entry levels,

emergent factors and proof of success.


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5. Confirm: Make sure that the change has taken place,

taking into consideration the issues of data focus,

ownership, depth, timing and design of the managementprocess.


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6. Continue: The change has to be sustained, usinglearning that emerges from the transition, the skills of the

change agents and the sharing of new knowledge and

skills.


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7. Close: The engagement with the client

has to be closed in such a manner that

you emphasize the need to understand

the final outcomes, the added value, newlearning and the further course of action.


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AITTM

Consulting Proposals

Proposals are an important part of theconsulting business. Sometimesproposals serve to introduceconsultants and their services toprospective clients, while other times

proposals serve to finalize thearrangements between a consultantand a client.


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Proposals often serve as sales tools and

project planning documents at the same time.

Prospective clients may request a formalproposal in order to compare several possible

consultants, make decisions related to budgets

or scheduling, or simply to collect ideas about

how to solve a particular problem using in-

house resources.


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Phase One: Developing the Ideasand Research Team

Tasks:

Refining research questions and specific aims Conducting literature review

Accessing idea consultation

Developing investigative team and roles

Identifying a funding mechanism

Mapping the proposal development time-table


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Phase Two: Refining the ResearchPlan

Tasks:

Consulting with funding officers Specifying the research plan & methodology Conducting preliminary analyses or pilot studies Recruiting partners (if needed)

Identifying research services needed for plan Reviewing plan with department head


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Phase Three: Refining and submittingthe proposal

Tasks:

Finalizing the work plan and budget

Internal review by colleagues or invited

external consultants

Gathering and finalizing support documents

Format review to guarantee compliance with

funder specifications


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Phase Four: Review, revision, andresubmission

Tasks:

Analyzing the reviews discuss with colleagues

Consulting with the funding project officer

Responding to the reviews

Resubmitting


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Key objectives:

To demonstrate a strong understanding

of the client's needs Describe his or her own ability to meet

those needs

Detail a plan of action toward that end

Consulting proposals


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Prior to submitting a proposal, a

consultant needs to gather information

about the company and its problem from

interviews and outside sources


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Many successful consulting proposals aredivided into three sections:

The introduction

The methodology section

The timing and cost section


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The introduction; provides an overview of the proposal

Used to demonstrate the

consultant's understanding of theclient's needs and desired

outcomes


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The methodology section:

Is the main part of the proposal: Specifies the actions the consultant plans to take in

order to provide a focused solution to the client'sproblem

Helpful for the consultant to mention any unique

services or expertise he or she can offer, in order to

differentiate the proposal from those submitted by

other consultants


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The timing and cost section provides:

A realistic and specific fee structure

Schedule for completion of the project

In addition, the consultant may wish to outline what effect,

if any, the consulting process willhave on the client's

internal resources


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How should a proposal be submitted:

Includes a cover letter :

The cover letter, should only be one page in length,describes the contents of the package, highlights

important areas of the proposalincluding how it may

differ from what the client expectedand explains whatthe consultant would like to happen next.


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Necessary attachments:1. A biographical sketch of the consultant, outlining

academic and work experiences, membership inprofessional associations, books or articlespublished,

2. Awards or recognition received;3. A description of the consulting firm's history and

philosophy;

4. A list of current and former clients, especially thoserelating to the prospective client's industry or type of

project; and,5. Anything else that may help the client in the

decision-making process.


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AITTMHow should the proposal be

written?

Proposals should be written in a conversational tone

without excessive use of technicaljargon

with the prospective client's needs in mind The consultant may benefit from keeping in touch with the

client while writing the proposal, as this helps avoidmisunderstandings or incomplete information. If theconsultant receives the assignment, the proposal then

serves as the basis for a formal contract
http://www.answers.com/topic/jargonhttp://www.answers.com/topic/jargon


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Although some clients may simply sign the proposal to

authorize the consultant to begin work, many consultants

prefer to clarify the arrangements in a separate document.

At a minimum, the contract should outline the scope of theproject, the consultant's fees, and the proposed time frame.There are several other issues that the consultant may

wish to address, including conflicts of interest,

subcontractors, insurance/liability, expenses, confidentiality,and cancellation.
http://www.answers.com/topic/clarifyhttp://www.answers.com/topic/confidentialityhttp://www.answers.com/topic/confidentialityhttp://www.answers.com/topic/clarify


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Identification and Definition of

Problem

This step entails a clear definition of the problem,opportunity, process or project to be addressed

(measured) in this analysis, without reference tocauses or solutions.

During this step that data is gathered, documented,and analyzed, including the who, what, why, where,when, and the reasons for selecting this problem. It is

critical by the end of this step to identify main (root)causes, particularly as seen from the perspective ofall problem/project stakeholders.


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Fact-Finding Leading to Solution Development and

Implementation

Using the data on main (root) causes (not symptoms),

identify an array of changes/actions to help in correcting,modifying, and improving the situation

Identify the chosen solution and describe the methodology

used to arrive at this solution/recommendation


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AITTMDeveloping Strategic

and

Tactical Plans

Strategic Planning Process

Where are we?

What do we have to work with?

Where do we want to be?

How do we get there?


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AITTMTactical Planning

Begin with a clear idea of what your strategic business plan seeks toaccomplish by setting measurable objective.

Draw up a time line to support your tactics.

Establish a budget that supports or exceeds your planned tactical

moves.

List the resources you need to get your tactical plan up and running.

Launch individual tactical efforts on schedule. Launch individual tacticalefforts on schedule.

Evaluate your tactical plans as soon as it's feasible. Use theexperiences--good and bad--as educational tools.


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AITTMSub-Contracting

Subcontracting is a type ofwork contract that seeks to

outsource certain types of work to other companies.

This is a step down from general contracting, which is a

contract overseeing a much broader project in many

cases.

Subcontracting is done when the general contractordoes

not have the time or skills to perform certain tasks.
http://www.wisegeek.com/what-is-a-work-contract.htmhttp://www.wisegeek.com/what-is-outsourcing.htmhttp://www.wisegeek.com/what-does-a-general-contractor-do.htmhttp://www.wisegeek.com/what-does-a-general-contractor-do.htmhttp://www.wisegeek.com/what-is-outsourcing.htmhttp://www.wisegeek.com/what-is-a-work-contract.htm


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AITTMAdvantages of

Subcontracting

Subcontracting offers a number of advantages. First, it allows work on more than one phase of the

project to be done at once, often leading to a quickercompletion.

Second, because subcontractors already have theexpertise and equipment to provide the service, it is oftenmuch cheaperfor them to do the work than a generalcontractor who may not have that special expertise.

Finally, the subcontractor is usually able to work with ageneral contractor on more than one project, thuscreating a savings for both in the long run as arelationship is formed.


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AITTM

Pricing of Consultancy

Output based

Milestone payments

Time and materials Blended rate

Bonus payment

Reducing price

Gain/pain share

Guaranteed minimum income


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AITTMOutput Based

In an ideal world a buyer would pay a fair fixed price for

the delivery of an agreed final outcome. This method

proposes a payment on delivery of agreed outputs related

to the project client satisfaction with performance; quality

of deliverables; timely achievement of milestones.

However, this arrangement places some risk on the

consultancy which may attempt to build some contingency

into the pricing.


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AITTMMilestone payments

A pre-agreed price is paid after agreed key milestones

have been reached, or a deliverable has been presented.

Consideration should be given to a right to recoverpayments if one or more future milestone(s) or

deliverable(s) is not reached, particularly if it removes the

value associated with previous milestones and

deliverables.


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AITTMTime and materials

As noted previously, this is a very popular mechanism,

placing the majority of the delivery risk with the buyer the

longer the engagement takes the more it will cost. Thismechanism is most suited to short-term assignments or

where deliverables are difficult to define.


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AITTMBlended rate

In this scenario a rate is proposed by the

supplier which takes into account a variety of

factors grades of the consultants, specificexpertise, training days, holidays, length of

assignment, size of commission etc.

This rate could be viewed as the average of the

team.


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AITTMBonus payment

An agreed bonus payment is included which is released

after successful delivery to time and specification.

In recognition of this the supplier should propose areduced fee for the project. The bonus would normally be

linked to the extra value received by the buyer for

receiving the benefit on time as opposed to, say, six

months late.


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AITTMReducing price

A reducing price over time, so that the supplier is

incentivised to deliver to the target date, prior to

the reduction taking effect.


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AITTMGain / pain share

Benefits sharing, or gain share / pain share, where

additional savings or losses made are shared between the

client and consultancy.

This method is more clearly linked to actual value

received / not received by the buyer,(as stated in thebusiness case and contract).

Care should be taken to ensure that any additional

benefits add real value and are not just gold plating.


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AITTMGuaranteed minimum income

The consultancy is guaranteed a minimum financial

volume of work over a fixed period; for example a contract

is awarded to provide all services within a functionalservice area which the buyer will have a regular need for,

over the course of one year, with guaranteed utilization for

the supplier.

This, in turn, enables the supplier to offer reduced prices

based on known utilization.


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How much do I charge?

This is the single most commonquestion that prospective consultants ask,

and one of the hardest to answer. The short answer

is a mix of "whatever the market will bear" and "how

busy you wish to be".Some consultants operate ona strictly hourly basis, others on a retainer, and yet

others on fixed-bid contracts none is inherently

superior to any other (though some are more suited

for some kind of arrangements than others).

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