ce igor 2 Chapter: One Tk aD yy Introduction Definition of Management Consulting ianagementconsuting is anindependertpretessionelachisory servoezssting manager and organizations to achieve operational puposes and objectives PY salving management and business problems identtying and sezing nev ‘opportunities, ehancing earring and implementing changes. Management consulting is the practice of helping, organizations improve their performance, opeting primarily through the analysis of existing organizational problems and the development of plans for improvement. Purpose of Consulting Characteristics of Consulting Adding Values by ‘Transferring Knowledge Advice and Assistance: Independence ‘Temporary Service Commercial Undertaking = implementing changes. How Management Consultants are used? (Roles of Consultants) providing information; ing specialist resources; provi establishing business contzcts and inksges; ‘e providing expert opinion; doing disgaostie works fe developing action proposes; developing systems and methods; «planning end managing orgenizationsl changes; ‘e -training end developing management and stall; ‘e counselling and coachingCharacteristics of a Highly Effective Business Consultant 8 10. . Being Sociable. Your consulting business depends on two things: your relationships with the current clients and Professionalism. This characteris i While communicating with Plays an important role in business settings. Whil ing n| rr clients, employees and fellow team members you should remember that first of all you are at work. It speans that al fiteractons should be held ina professional way. When you have high ne cet this factor ‘ight be crucial in their decision making of whether or not to work with you, In addition to this, when it comes to intemational clients (globalization process), you have to be aware of cultural differences. In certain cases Jokes and behaviors that are accepted at work in the USA will never be tolerated by other cultures. In other words, keeping all work professional is the most sufficient and safe way to play. : Expert Knowledge and Skill Set. if you decided to become a consultant then you obviously should have good ‘analytical, planning and problem solving skills in addition to your core knowledge about business. You should also be able to see a bigger picture beyond the task. : Self-Motivation. You should know exactly wity you are doing what you are doing. In other words, Know what your goals are, It will help you to stay motivated, especially when it comes to working from home. You can’t rely on outside sources when it comes to motivation. You are the one who is in charge of your life. Honesty and Reputation, Many entrepreneurs racing for more clients and money forget that honesty and a good reputation means almost everything in the business world, “It takes 20 years to build a reputation and five rmimutes to ruin it,” stated Warren Buffett. Being honest with your clients and people who you work with builds trust and sets up your business for future success Constant Learning. “I am always doing that which I cannot do, in order that I may learn how to do it,” said ‘once by Pablo Picasso. As a business consultant, you will be leaming something new every day. For instance, if ‘you decide to become a franchise owner, a licensor company always provides you with training; workshops and Coaching sessions have a ook at “Pros and Cons of Owning a Business”), This also includes learning from your previous mistakes. Your success is a primary goal of licensor companies. They are looking for motivated and goal driven people who would like to start their own business (have a look at “7 Traits of a Successful Franchise Owner”). Making the right decisions in situations with many possible choices (have a look at “Paralysis Is a Consequence of Having Too Many Choices") is one of the challenges in the consulting industry. You have to be creative and open minded to new things. Good Listening Skills. When it comes to your clients, you shouldn’t forget that listening to their needs and helping them fix their problems is what you have been hired for. I's not about you talking most of time but it's about you listening the most of the time. Self-Confidence. A “can do” attitude and belief in yourself as a professional even when you have to deal with the most difficult projects are extremely important. Your clients will be counting on you, your skills and abilities, As a matter of fact, business owners can’t rely on consultants who are not sure of themselves Remember that in our era of information and technology, looking for the right answer for ‘your clients is only a matter of time. So when you have a challenge then simply tell yourself: “I can solve this problem if I have enough time and information”. However, another question that you have to ask yourself is “Do I have enough time to solve this issue?” Attention to the Details and Effective Communication. Don’t be afraid to ask questions if there is something that you don't understand or don’t have enough information about. Pay attention to every single detail when it comes to your client's business. “Think like a wise man but communicate in the language of the people," said William Butler Yeats. Communication plays an important role in every aspect of our lives. Remember that a big part of your success depends on how you communicate with others, Flexibility. As a business consultant, you should keep an open mind about new projects, different strategies and techniques that you might be using for the first time. You also should have an ability to adjust to new clients, their work ethics and stressful situations. Sometimes you have to be flexible even with your own time, There is no such a thing as 9-5 schedule in the business consultant's world, ‘Time-Management and Discipline. You have to know how to organize your time and yourself in order to make your work sufficient, In other words, you should know how to work hard and smart. endorsements from previous ones. In today's world witen it comes to jobs, it’s all about networking, Try to network and “spread the word around the world” about who you are and what you do. In addition to this, try to stay in touch and maintain good relationships with people who you have worked with before.Consulting Process at contact wth canta ralvinary orobiam dagnosis ‘ssignmant planning ” ssignmant proposal to cient “Consulting canact 1 Entey + Butpose anaiyss + Problem anata act finding, ! anaiySle and eyntnesia adback to: ‘claat 2 Diagnosis Javaloping solutions 3. Action planning ealuaiig ohare fanning for implementation + Assiating with implamantation justing proposals “Training 4. Implamantation + Evaluation Einal report Salling somnmtmenta Plana for followup ‘withdrawal 8 Tarmination ‘Types of Consultancy company/firms (Types of Consultants) i, Human Resources or HR Consultants. Strategy Consultants. ii, Technology Consultants. ... Public Relations or PR Consultants. Marketing Consultants... Legal Consultants. . IT Consultants... Social Media Consultant Consulting as a Profession Management consulting is a growing occupation and especially within the independent and Associate Consultant sector. It involves individual management consultants, whether self-employed or employed, individually or collectively using their knowledge, experience and analytical and/or problem-solving skills to add value to clients. One of the challenges with the management consultancy industry is that anyone can set themselves up as a manegement consultant irrespective of their qualifications and experience. As a result of this and the growth of the consulting sector, we have seen the emergence of numerous professional membership bodies such as the Management Consultancies Association (MCA), the International Council of Management Consulting Institutes (ICMCD the Institute for Independent Business (IIB) and the Institute of Consulting (IC).Consultant-Client Relationship ‘A more comprehensive definition is: consultant is an advisory contracted for and provided to organizations to help an objective and independent manner, the client organization to identify management problems, analyze such problems and help, when required, in the implementation of solution (Greiner and Metzger, 1983). (Group work ~Artiele on the concept of Consultant-Client Relationship) Definition of Consultant Client Relationship Factors affecting the Consultant-Client Relationship consultant relationship go bad? nt-consultant relationships have problems for largely non-technical reasons, including: + Lack of effective communication about how the project will proceed «Improperly setting expectations too high or too low ‘Lack of follow through on small yet important details ‘© Underestimating project complexity or scope Failing to understand user requirements. Verbal Agreement ‘A verbal agreement is one given by the clients orally either after having reviewed the consultant written proposal, or even without having received a proposal. Verbal agreement may suffice if the follow conditions exist: «The consultant and the clients are well versed in professional practice; «They must each other's totally «They are familiar with each other's terms of business (the clients knows the terms applied by the consultant Knows what to expect from the clients ,eg. if the clients is able to make an advanced payment ,or can accept monthly billing how long it take to approve a payment ,etc.). ‘© ‘The assignment is not very big or complex ( if this is the case, it may be difficult to manage the relationship on both side without any formal document) Verbal agreement is used more frequently in repeat business than with new clients. If a verbal agreement is used, the consultant may produce a detailed record of what was agreed, for his or her own benefit and to make sure that other colleagues in the firm are fully and correctly informed. Sending an information copy to the client may be useful.+ Written contract ‘Avvritten consulting contract duly signed by the patties involved may be required for various reasons. It may be imposed by law or by the clients own regulations on the use of extemal services, It is often the best form to choose if the consultant and the client come from different businesses and legal environment and could misinterpret each other's intention and attitudes. It is advisable, although not always necessary, for large and complex assignments involving many different.people on both the clients and the consultant's side. It may be the clients practice to use a standard form of contract. How to do a consultant agreement ‘While there are advantages to hiring a contractor, such as lowering expenses by not having to pay benefits, there is also arisk in that which you do not have control over how the work is done. Like most other types of business agreement, having a contract between an independent consultant and client can help protect both parties in case something goes wrong during the job. The contract should solidity the relationship while also detailing the scope of the project, expectations and payment terms, > State clearly that the agreement is for an independent consultant and not an employee. Independent consultants have no claims to employee benefits, such as medical insurance and unemployment benefits. Additional, consultants pay their own taxes rather than having them withheld form their payback. > Define the scope of the project before work is started. Document the purpose of the project and the details that are involved in bringing in to completion. The consultant should know exactly what is expected of him along with the specific of what the final product should look like. > Clarify who owns any copyrights to the work. If you hired a consultant to write content for your website, for example, you might want to include a-clause in the contract stating that the content is owned by your company. This mean that the contractor cannot use the same content again without acquiring your permission, > Set a timeline and deadline dates. This clarifies when the various parts of the project are due, along with when the final products must be tuned in by the consultant. Additionally, this section should include the specific dates that you will provide the consultant with any needed raw data or materials. For the contractor to meet the stated deadlines, she might need information, contacts or materials from you're in a timely manner. > Detail the payment amount, dates and terms. This is often an area that can cause conflict between clients and consultants, In addition to the work being turned in on time, you will need to pay the consultant by the agreed upon date. Leave yourself time to review the work and determine whether any edits are required. Factor in the amount of time that takes your accounting department to issue a check. > Include a termination agreement, Should something go wrong during the project or you are not satisfied with the contractors work, you will want to be able to legally terminate the relationship. Specific the terms regarding how much each party notice must give, along with compensation for time worked.Contents of a formal consulting contract 1. Contracting parties (the consultant and the client) _ . Scope of the assignment (as discussed in a 74 and 7.5: objectives, ing date, timetable, and volume of wor! 3. Work eum including reports (documentation and reports to be handed over tothe client) ‘4 Consultant and client inputs (expert and staff time and other outputs) 5, Fees and expenses (fees to be billed, expenses reimbursed to the consultant) 6. iu results description of work, Billing and payment procedure a Profesional responsibilities (consultant's standard of care, avoiding conflict of interest, and other aspects as appropriate-see section 6.2) . Representations (by the consultant) 9, Handling of confidential information 10. Protection of intellectual property and copyright in consultant's work product ; 1. Liability (the consultant's liability for damages caused to the client, limitation of liability-see section 6.5) 12, Use of subcontractors (by the consultant) 13. Termination or revision (when and how to be suggested by cither party) 14, Dispute resolution (resolution of disputes in court or through an alternative mechanism such as arbitration) 15, Signatures and dates + Psychological contract In an era in which more and more features of our lives are regulated and constrained by legislation, and formal contracts tend to be more and more common in professional sectors, it is useful to underline that the formal legal side of contracting is not the main one, We have explained why a well-drafted formal contract may be required. However, excellent consulting assignments are those where another types of “contract” exists, which is not codified in any document and is not easy to describe: a psychological contract, under which the consultant and the client cooperate in an atmosphere of trust and respect, believing that the approach taken by the other party is the best one to bring the assignment to a successful completion. Such a “contract” cannot be replaced by even the finest legal document. Creating and maintaining sound client relations 1, Do everything before the client asks You have managed projects before, but your client may not have, Capitalize on this by supporting them through the process. 2. Agree the relationship procedures ‘Agree the main points of contract between you and the client. 3. Explain your project practicesHave open dialogue about your practices and tool of communication, including a clear plan of when and how stages of work will be delivered. 4, Put in place failsafe internal systems Plan presentations, briefings and meetings in advance fo avoid looking unprofessional. Don't send people to meetings unless they have a clear, predetermined role: it looks expensive to the client. 5. Bein control of finances Always have a clear awareness of the financial situation across all your projects. 6. Know and understand your elient Lear about a client's business beyond the remit ofthe current projects. 7. Develop the client relationship and business Get to know as many client staff as possible and keep them up to date what your consultancy is doing. 8, Be aware of how you conduct yourself, Listen carefully; be confident and honest, but not arrogant. 9, Ask for feedback To continue improving, find out what you are doing well and where you're performing poorly. 10. Go to extra mile Don't setle into @ routine--push yourself and surprise your client. Maintaining client confidence and support > Clearly plan projects > Communicate openly and effectively > Share your knowledge > Given them access to your network > Manage time and meet deadlines > Be honest and be yourself Confidentiality 1, Names of managers met and information collected on them. 2. Comments on organizational relationships, management style, and cultural values and norms. 3. Attitudes of various people in the client organization to consultants and likely reactions to the assignment, 4, Best sources of internal information, Sources that cannot be trusted. 5. Additional comments and data on the problem for which the assignments is proposed.7 dint ' 6. Other problems identified, potential problems, or areas of further work not tackled in the proposea assignment and not discussed with the client. : ae 2. Usefil background information collected and not used in the proposal to ie 8. Any other suggestions tothe operating team that will execute the assignment 4 Problem Diagnosis, Diagnosis, the second phase of the consulting process, is diagnosis isto examine the problem faced and the purposes put I ; the fictrs and fores that are causing and influencing the problem, and prepare al the information needed fo develop a solution to the problem, An equally important aim is to examine the relationships between the problem in question and the global objectives and resul the client's potential to make changes and resolve the problem effectively. the first fully operational phase, The purpose of rsued by the client in detail and in depth, identify Its achieved by the client organization, and to ascertain 4 Steps in problem diagnosis/ Cycles of problem Management. step 2 defining problems ~ step 3 deriving solutions step 1 sensing problems step 4 step 5 ‘ evalusting implemen eeaae: solutions % Considerations of a Problem Diagnosis/Characteristics of a Problem Diagnosis tified in terms ofthe following five principal dimensions or characteristics: ‘The client's problem will 1, Substance or identify: the substance or identity of the problem has to be described (poor performance; shortage of competent staff; lack of ideas on how to invest idle capital; desire to improve after-sales services). There is a need to establish the basis of comparison used and how it is justified, Why do we saythat performance is poor? Poor by what standard? The various symptoms of the problem have to be described as well. 2, Organizational and physical location: in which organization units (divisions, departments, subsidiaries) and physical units (plants buildings, stores, and offices) has the problem been observed? Which other units tre or might be affected? How widespread isthe problem? Does it affect external relationships? 4, Problem ownership: which people ~ managers, staff specialists, other workers—are affected by the aniatence of the problem and primarily interested in resolving it? Who is ikely t0 make difficulties? Are they aware of tite problem? Have they attempted to deal with 1? 44 Absolute and relative magnitude: how important is the problem in absolute ferms (eg. amount of working fine or money lost, volume of underutilized productive capacity, potential future gains)? How important is we lative terms (eg. in comparison with other problems, or with total tumover)? How does it affect the air share it has been observed, and the people who own the problem? How important is it to the organization as a whole? What will the organization gain ifthe problem is resolved? 5, Time perspective: since when has the problem existed” Has it been observed one PF several times, or is it maurrert? How frequently does it appear? What is its tendency: has the problem been stabilized, ot is it increasing or decreasing? What forecasts can be made about the future evolution ofthe problem? Is a future problem anticipated? Furthermore, diagnosis will aim to establish: > The causes of the problem; > Other significant relationships; } The client’s potential to solve the problem; > Possible directions of further action. «Issues in problem identification Itis useful to recall briefly some common mistakes made in defining problems, not only by clients but also by some consultants, The way people define problems affects their ability to solve them. « Mistaking symptoms for problems: this is the most common error. Some obvious issues that worry management (@-. felling sales, shortage of innovative ideas inthe research and developmet® department, Mtenfeeism) ave looked upon as problems, although they may be only symptoms of more profound difficulties. 4. Preconceived ideas about the causes of problems: some managers and consultants feel that thanks to thelr experience, they know pretty well what the eauses “must” be and that analyzing Facts ‘cannot reveal anything new. «Looking at problems from one technical viewpoint only: this happens frequently if the diagnosis is made by a manager or a consultant with a strong background and bias in one technical area (¢.8- engineering, »y Guntings and behavioral science) and if the interdscipliary nature of management problems is disregarded.+ Ignoring how the problem is perceived in various parts of the organization: for example, the consular, may aceept the definition made by top management, without finding out how the problem is seen by the Tower management echelons. + Wrong appreciation of the urgency of a problem: appreciation of the urgency of a problem may be influenced by emotions, resistance to change, incorrect conclusions from diagnosis, and other factors. + Unfinished problem diagnosis: owing to time and cost constraints or for other reasons, the consultant may be tempted to conclude.diagnostic work prematurely. He or she may miss further problems and ‘opportunities that may be directly related to the original issue presented by the client. . + Failure to clarify the focus purpose: the purpose is vaguely defined and the consultant wastes time and energy by looking into many issues that will eventually be ignored. He or she works on the wrong problem or on totally unrealistic proposals, Recommendations/Feedback +e What is feedback? > Giving feedback provides the client with information that can: * Tell the client something new and meaningful about his or her organization; © Make the client aware of the approach taken by the consultant and the progress made in the investigation; «Increase the client's active contribution to the assignment; Stimulate the client to help the consultant to stay on the right track, or reorient the investigation if necessary. > Feedback during diagnosis is itself a diagnosis method. Properly selected and presented information will provoke some reaction on the part of the client, and so the consultant should keep firmly in mind what reaction he or she wants to generate: e ‘© Does he need more information on the topic? # Isshe seeking information on a new topic, about which the client was reluctant to speak? # Should the client criticize the data? «Dos the consultant want to shake up a lethargic client by showing alarming data? > Giving feedback to the client «Isthis what is wanted? Is there enough reliable information to feed back to the client with the intention of stimulating change? Is there a risk of causing panic or generating premature changes? Should the client be warned against this risk? simultaneously an intervention technique used to stir up change: + When to give feedback Feedback is more than reporting on the work performed. It should be given at moments when it can serve @ specific purpose. One example is to show the client that the data collected so fair indicate the existence of some new problem or opportunity, not foreseen in the negotiation and planning of the original assignment; another iswhen the consultant feels that he or she has enough information to eliminate certain hypotheses formed at the beginning, and wishes to discuss this with the client. A consultant who pursues the strategy of “many small steps” may give feedback each time he or she has enough information to decide on the next step fo take. ++ To whom to give feedback In principle, feedback should be given to those ftom whom the consultant expects further help, more information, or action related to the problem. It is often emphasized that if feedback is to restricted (reserved to selected individuals or small groups of senior managers), itis unrealistic to expect other people to be interested in helping the consultant, Some authors regard this as a question of consulting ethics: if people readily provide information and demonstrate their interest in the assignment, they have the right to receive feedback on what has been done with their information. In theory, all people interviewed should thus receive some feedback fuirly soon after the interview. In practice there are limits to this, Some information will clearly be confidential and cannot be divulged to a large number of employees. Deciding who should be informed ‘about the consultant's findings, and at what stage, is also a question of consulting tactics. For example, individuals who originally refused to give information to the consultant may change their attitude if they see that the consultant is sharing information with them. Giving feedback is not evaluating the client. Therefore, the consultant should avoid value judgments; it is the client who should draw such conclusions from the information presented to him or her in an impartial manner, ‘The purpose should always be kept in mind. For example, it is not good tactics to speak only about problems and difficulties encountered by the consultant. Feedback should also point to the client’s problem-solving potential, and suggest strong points that might be developed. > Form of feedback “The need for careful preparation of the data and of the form of feedback to be used cannot be overemphasized individualizes oral feedback to important members of the client organization is very common. Another form is 1 information (eg. interim reports or memoranda). Many consultants like to use feedback meetings with various groups in the client organization, These meetings can provide valuable additional information and help the consultant to focus the investigation on key issues. They invariably reveal attitudes to the problem at hand and to the approach taken by the consultant. “+ What feedback to give and how ‘The consultant wants to show that he or she has not been wasting time and has important information to share. But the purpose is not to impress people. The consultant should be selective, sharing information that is rmeaningful, about which the eliet is likely to be concerned, to which he will probably react, and which will active him. Giving feedback isnot teling the client what he or she already knows. This is a general rule, o be consistently observed in reporting and communicating with the client. But when the information collected contains factors that are genuinely new to the client, or shows unsuspected links between effect and cause or hidden strengths and weaknesses, it is wise to give feedback on these issues.MARKETING OF CONSULTING SERVICES A consulting firm can exist and prosper ifit gets and keeps clients. This is what marketing is about: define your market, identify clients find out what they need, sell | tile consulting service to them, deliver the service to the clients? full satisfaction and make sure that once you have good clients they stay with you and do not go to < competitor, _ Fortunately, more and more consultants, as indeed other professionals, regard marketing as an inheren characteristic of the service concept. Marketing is not a supplement to a professional service; it is a professiona service in its own right, Need to establish and maintain an effective consultant-client relationship. It identifie clients’ needs, reveals the client’ mentality, defines the best wav m which the consultant can fit-.: useful anc puts the whole consulting, Process in motion. Service marketing does not stop when a sale is made consultan continues to market after the contract has been signed while the project is being executed and even after the project has been completed, Box 29.1 marketing of consulting: seven fundamental principles Successful marketing of consulting services is guided by certain general principles 1. Regard the clients’ needs and requires as the focal point of all marketing. There is no point in selling to potential clients something they do not need, or do not want to buy. The clien may be pleased to near that you are a brilliant and highly successful professional, but it infinitely more important to convince the client that you care about him or her, understand the situation, are prepared to listen patiently and can help to find and implement a solution beneficial to his or her business. This is a golden rule. ‘Your marketing efforts must be client-centered, not consultant-centered. Your client is not just another income opportunity, Your interest in the client must be genuine, and stronger than your self-interest. 2. Remember that every client is unique. ‘Your past experience and achievement are important assets. But they can become a trap: you may feel that you know _pretty well in advance what your new client will need, Haven't you handled the same sort of situavion many times before? Yet even if all other conditions appear identical (they won't be), the people involved will always be diferent. Acknowledge your new client's uniqueness. Show the client that you will offer an original solution, not a pale imitation of a model designed for other conditions. 3. Don't misrepresent yourself. ‘The temptation to offer and sett services in which you are not fully competent can be high. Often a client who trusts you will confide ajob you without requiring any evidence of your competence, To yield to this temptation is unethical; the client's interests can be seriously damaged. This is a matter of technical judgment, too. Competence in marketing involves realistically assessing your own competence, and recognizing a lack of ‘competence and resources. 4, Don’t oversell, Marketing creates expectations and commitments, Over marketing may create more expectations than a consulting firm is able to meet. This can be counterproductive and even unethical: some clients may need your help urgently, you promise it, but cannot deliver. Or an excessive selling effort may force you to recruit and immediately send to clients inexperienced consultants without being able to train and supervise them. 5. Refrain from denigrating other consultants.Questions conceming your competitors’ approaches and competencies come up offen in discussions with clients. Nothing should prevent you from providing factual information, if you have it, However, it is tinprofessionl to provide distorted and biased information, or to make disparaging conceming competitors in order to influence your clients. A sophisticated client is likely to regard such comments as an expression of your weakness, not of your strength, 6. Never forget that you are marketing a professional service. Management consultants have to be entrepreneurial, innovative and at times even aggressive in marketing. _ ‘They can learn a great deal from marketing in other sectors. Yet you are not selling biscuits or washing powder. ‘The professional nature of the service, the clients’ sensitivity and the local cultural values and norms must not be lost fiom sight in deciding marketing approaches and techniqu.es are appropriate. ‘Aim at an equally high, professional performance in marketing and in exect In making efforts to find new clients, some consultants have neglected the quality of service delivery, in terms of staffing, quality control’, respect of deadlines and ensuring client satisfaction. It is useful to view. As a process that does not eno with the signing of the contract, The execution of assignment has a significant marketing dimension. Flawless service delivery is marketing for the future. Box 29.2 Criteria for selecting consultants In selecting their consultants, most clients would apply one or more of the following criteria: 1, Professional integrity (how the consultant interprets and respects a code of ethics and conduct) 2. Technical competence (knowledge and experience needed for dealing with the client's technical problem and producing results of desired level and quality) This can be refined further a) Differentiating between the competence of the firm and that of the individual (team) proposed. b) Stressing knowledge of the clients sector of industry; c) In international consulting, stressing intimate knowledge of specific country (economic, sociopolitical and cultural.) ©) differentiating between and soft skills (he knowledge and expertise concerning technical procedures, methods and systems. on the one hand, and ability to deal with human problems and facilities organizational change on the other hand) 6) stressing creativity and innovation (which may imply that past experience will be de- emphasized), G) Rapport with the consultant (mutual understanding, trust, the client's attitude to working with the consultant as person.) (4) Assignment design (Demonstrating the consultant's understanding of the specifie problem and context of a given client organization, and the approach to take.) (8) Capability fo deliver (Structure, size, resources, location, flexibility and other features of the consulting firm, demonstrating the ability to deliver what was promised, even if conditions change.) (6) Ability to mobilize further resources (Important in assignments that may call for expertise of other firm, new business contacts, additional capital, ete.) (7) Cost of services (Fee level and formula; this may not be a key criterion, but excessive fees may disqualify the consultants.)(6) Certification of competence and/or quality (Formal competence certification of individuals consu and quality certification of consulting firms are taken into consideration by some clients, in supports or ag 3) surrogate of the criteria listed under (1)-(7).) () Professional image of the consultants (By using the criteria the clients rely on the choice and assessment made and experience gained previously by other users of the consulting services or on the consultant's achievements outside consulting, e.g as a manager or author.) Source: M. Kubr: How to select and use consultants: A client's guide, Management Development Studies. No.3i (Geneva, ILO, 1993), pp 77-87Final Report and Follow-Up What are the contents of a Consulting report? 2. Cover Page Covers are usually printed on heavy, flexible pieces of paper called “cower stock mainreason that “cover stock is used is so that it can protect the document The cover should carry the title of the report along with some extra information that will help people who may want to fie it for later use. 2, Disclaimer Page A disclaimer is a statement that the company or organization hopes will limit its liability for theproduct or service it provides (as your instructors, we certainly do not want to be held responsible for any bad advice or research you provide your clients, 3. Title Page The title page of a formal report works in collaboration with the cover page to provide a solid introduction to the consulting report. Your team's report will certainly have a sense of permanence; it will likely be filed and periodically reviewed and consulted, Therefore, the title page should include specific information regarding the report: ¥ Names of the authors or other contributors, including contact information and the name of the organization you're working within (Marietta College) ¥ Avery good and specific title tat reflects, as much as possible, the main points of the report ¥ ‘The name of the business or organization that your team is consulting 4, Table of Contents A table of contents serves three purposes. Obviously, it helps readers who do not want to read the whole report but want to easily locate particular pars of it. In adition, i assists readers who want an overview of the report's scope and contents before they begin reading it in its entirety, 5. Executive Summary ‘An executive summary is designed primarily to serve the person who, at least initially, does not intend to read the entire report. It usually states the main points of each section and emphasizes results, conclusions, and recommendations, usually in around three pages. 6. Introduction to the Report The introduction allows your readers to preview the nature of the project you have undertaken for your client, Essentially, the introduction forecasts the basic organization of the report. Some writers and readers insist that the following questions should always be addressed and/or considered in the introduction to the report: What is the problem or the opportunity?J What is the purpose of the proposal”? What is the background of the problem or the opportunity? What are your sources of information? ¥ What is the scope of your proposal? What isthe organization of the proposal? us What are the key terms that will be used in the proposal? 7. Background Because not all clients will necessarily be competent in your field, the background section needs to clearly articulate the context behind your research. The Background Sections require you to conduct comprehensive research. Your suggestions need to be based on the research that your team has conducted, and this research needs to be demonstrated to your client. 7. Client Profile ‘The purpose of the Client Profile is to both "bring the client to life" and to tie the information together by explaining how it helps portray your client as a member of the business community. 7.2 Nature and History of the Firm ‘The nature of the firm is a brief description of what it does in the way of production or service. 7.3 The Firm Today The meaning of the word "today" is variable, and differs from firm to firm (last calendar year, last fiscal year, last quarter, span of time since they moved to current location, etc.) 7.4 The Business and Market Environment ‘This section describes the business and market climate of the local community and / or region. The focus here should be on the business and economic conditions that affect the firm's operation. 7.5 The Competition This section will profile ‘beat regional, and perhaps even global competitors. it will also discuss likely trends in competition. 7.6 Defining the Firm's Objectives This section should include: + A description of the firm's short-term and long-term objectives « Prioritization of primary and secondary objectives8. Defining the Team's Tasks First, this section should clearly describe the tasks that the consulting team has agreed to carry out and explain how the team and client chose those tasks, Normally, these tasks can be identified concisely (for example, “Task One: Developing a Market Plan. Task Two: Selecting a New Location"). This section should also identify any tasks that the team originally agreed to perform but which, for whatever reason, was unable to complete. 9, Carrying out the Team's Tasks: Problem, Methodology, Conclusions, and Recommendations ‘This is a rather lengthy section that is organized around the team's basic tasks. A "Table of Contents" might list as follows: Task One: Developing a Marketing Plan ‘Task Two: Selecting a New Location Task Three: Securing an SBA Loan 10. Summary Conclusion ‘This final section pulls the report together, offers some words of assurance to the client, and states the team’s (we hope) pleasure in having undertsken this consulting project. In pulling the report together, carefully summarize your findings and what you see as the prospects for your client's business. 11. Bibliography "Bibliography" or "Works Cited” — call this section what you want, Whatever the case, you must list all resources that you used for this report. Therefore, itis imperative that you keep track ofall the sources that your team used in the report. 12, Appendices An appendix contains material atthe end ofa formal report that supplements or clarifies" (54). Depending on the nature of consulting team's tasks, appendices will be more or less useful to the client.is 2 2, What are the basic structures of a Consulting report? EIRP eet eee Title, Author, Date Introduction 4 Executive Summary- Recommendation & A onus Development of Recommendation & Actions Conclusion BA GHacHHe Appendices 3. Explain different data gathering methods. ‘There are multiple ways to collect information to answer most questions. The ideal situation would be to collect fiom more than one source and/ or to collect more than one type of information, The selection of a method for collecting information must balance several concerns including: resources available, credibility, analysis and reporting resources, and the skill of the evaluator. Examples of different data collection methods are given below. Behavior Observation Checklist:A list of behaviors or actions among. participants being observed. A tally is kept for each behavior or actionobserved. Knowledge Tests: Information about what a person already knows or has learned. Opinion Surveys: An assessment of how a person or group feels about a particular issue. - Performance tests: Testing the ability to perform or master a particular skill. A Delphi Techni.que: A method of survey research. that requires surveying the same group of respondents repeatedly on the same issue in order to reach a consensus. Q-sorts: (A rank order procedure for sorting groups of objects) Participants sort cards that represent a particular topic into different piles that represent points along a continuum,Self-Ratings: A method used by participants to rank their own performance, knowledge, or attitudes. Questionnaire: A group of questions that people respond to verbally or in writing, Time Series: Measuring a single variable consistently over time, ie. daily, weekly, monthly, annually. .. . Case Studies: Experiences and characteristics of selected persons involved with a project. Individual Interviews: Individual’ s responses, opinions, and views. Group Interviews: Small groups' responses, opinions, and views. Wear and Tear: Measuring the apparent wear or accumulation on physical objects, such as @ display or exhibit. Physical Eviden {esidues or other physical by-products are observed. Records: Information from records, files, or receipts. Logs, Journals: Aperson'sbehavior and reactions recorded as a narrative. ‘Advisory, Advoeate Teams: Ideas and viewpoints of selected persons. Judicial Review: Evidence about activites is weighed and assessed by a jury of professionals 4, What are specific issues that you should considered in drafting a report? ‘All reports need to be clear, concise and well structured. The key to writing an effective report is to allcate time for planning and preparation, With careful planning, the writing of a report will be madé much easiet The essential stages of successful report writing are described below. Consider how long each stage is likely t take and divide the time before the deadline between the different stages. Be sure to leave time for final proof reading and checking. Stage One: Understanding the report brief ‘This first stage isthe most important. You need to be confident that you understand the purpose of your sport as described in your report brief or instructions. Consider who the repot-Lis for and why itis being written, Check that you understand all the instructions or requirements, and ask your tutor if anything is unclear. Stage Two: Gathering and selecting information Once you are clear about the purpose of your report, you need to begin to gather relevant information. Your information may come from a variety of sourees, but how much information you will need will depend on how rnuch detail is required in the report. You may want to begin by reading relevant literature 19 widen your understanding of the topic or issue before you go on to look at other forms of information such as questionnaires, surveys etc. As you read and gather information you need to assess its relevance to your reportand select accordingly. Keep referring to your report brief to help you decide what relevant information , Stage ‘Three: Organizing your material f ‘ : Once you have gathered information you need to decide what will be included and in what sequence it should be presented. Begin by grouping together points that are related. These may form sections or chars Remember to keep referring to the report brief and be prepared to cut any information that is not directly relevant tothe report. Choose an order for your material that is logical and easy to follow. Stage Four: Analyzing your material Before you begin to write your first draft of the report, take time to consider and make notes on the points you will make using the facts and evidence you have gathered, What conclusions can be drawn from the_material? What are the limitations or flaws in the evidence? Do certain pieces of evidence conflict with one another? It is not enough to simply present the information you have gathered; you must relate it to the problem or issue described in the report brief. Stage Five: Wi g the report Having organized your material into appropriate sections and headings you can begin to write the first draft of ‘your report. You may find it easier to write the summary and contents page at the end when you know exactly hat will be included, Aim for a writing style that is direct and precise. Avoid waffle and make your points clearly and concisely. Chapters. sections and even individual paragraphs should be written with a clear structure, The structure described below can be adapted and applied to chapters, sections and even paragraphs. ¥ Introduetion v Explain v Present ¥ Comment ¥ Conclude Stage Six: Reviewing and redrafting Ideally, you should leave time to take a break before you review your first draft, Be prepared to rearrange or revit sections in the light of your review. Try to read the draft from the perspective of the reader. Is it easy to follow with a clear structure that makes sense? Are the points concisely but clearly explained and supported by relevant evidence? Writing on a word processor makes it easier to rewrite and rearrange sections or paragraphs in your first draft. If you write your frst draft by hand, try writing each section on a separate piece of paper to make redrafting easier, Stage Seven: Presentation (Once you ae satisfied with the content and structure of your redrafted report, vou can turn your attention to the presentation. Check that the wording of each chapter/section/subheading is clear and accurate. (Cheek that you have adhered to the instructions in your report brief regarding format and presentation,5, Describe the techniques of follow-up. Follow-up: Theact or an instance of following up, as to further an end or review new developments? as important as the initial contact in gaining new clients. The social worker's ‘emphasis on follow-up reassured her clients, ¢ follow-up is often ‘One that follows so as to further an end or increase effectiveness: The software was a successful follow-up to the original product. Anatticle ora report giving further information on a previously reported item of news ‘Techniques of follow-uy 1Get commitment for the follow up. Perhaps the single biggest mistake reps make is not establishing a specific date and time for the follow up call at the end of their initial call. Vague commitments from the prospects ("call me next week") or the sales rep ("I'll send the proposal and follow up in @ couple of days") result in missed calls, voice mail messages and ultimately a longer sales cycle. All you need to do is simply ask for a follow up date and time, 2.Build equity and be remembered Here's another huge tip. After every call to a first time prospect, send a thank you card. Handwrite a message on small thank you card that simply says, "John, thank you for taking the time speaking with me today. I look forward to chatting with you further on the 16th! Kind regards. .." No more, no less. 3B reminder and an agenda, “The day before your follow up call, send an e-mail to your prospect to remind them of your appointment. In the subject line enter the word: "Telephone appointment for Augustl6th and article of interest." Note that the subject line acts as a reminder but itis vague enough that the prospect will probably open it. There is a hint that maybe the date and time has changed. 4,Add value in a PS. Notice in the subject line there is a reference to an article, At the end of,yoilLermaidid a P.S. th. The article may be about your industry, the market, a product or better yet, something non-business related that you had discussed in your initial call. $.Call on time Dont start your relationship on the wrong foot. Call on time. Never, ever be late with your follow up call. Not even by a minute, The promptness and respect you show on a follow up call reflects on you, your company and yur products. 6.Avoid opening statement blunders that most sales reps make Here is where so many tele-sales reps stumble and fall. Here some of the classic follow up opening statements blunders‘7.Build a follow up opening statement that gets through the clutter There are 4 simple steps to creating that pizzazz. First, introduce yourself using your full name. Second, give ‘your company name. Okay, so far it's pretty obvious but Step #3 is where you differentiate yourself. 8.Be persistent, be polite, and be professional but not a pest Ifyou fellow this formula, about 70% of the time the client is there. But, that leaves 30% who are not for one reason or another. Ifthe prospect is not there, leave a message so that he knows YOU called on time‘There are two types of training and development methods available for Consultant 1. Training-course methods 2. Field-training methods " Training-course method: New consultants are trained using a variety of methods, with emphasis on participative methods and on those \here the trainee can adjust the pace of learning to individual capabilities. Subjects that involve mainly the imparting of knowledge may require some lectures, but these should be supplemented by discussions, practical exercises, case studies and other techniques. In many cases, lectures can be replaced by individual reading (e.g, on the origin and history or consulting, on types and specialization of consulting firms), or by audio-visual learning packages (e.g. videotapes or Internet-based learning material). Subjects involving skill improvement require techniques that permit practice. This can be done to some extent in atraining course by using properly chosen learning situations and exercises. Case studies can introduce the new consultant to various consulting situations and provide good material for discussion; the consulting firm may be in a position to prepare its own case studies, or histories, based on experience from previous assignments, Practical exercises can lead the new consultant through common consulting practices, such as: Role-playing provides an excellent, way. of introducing consulting practice into learning situations. It takes place in a controlled situation, ic. in a classroom, where mistakes are used to enhance learning and have no disastrous consequences. For example, as a large part of a consultant's work on assignment consists of presenting proposals to clients and their staff, itis useful to organize role-playing exercises. Field-training methods: In field training, the consultant learns mainly by doing practical diagnostic, problem-solving and project work in direct collaboration and interaction without consultants and the client. As this is carried out in a real-life situation which may be very sensitive to errors, at the beginning the trainee will be guided and controlled by the trainer in more detail than might be necessary in other situations. It may not, however, be easy to find situations in which new consultants can practice a wide range of the techniques that should eventually make up their consulting kit, Here again, feedback on what the consultant did and how he or she did itis an essential dimension df training, ‘The team leader or supervisor acting as field trainer must provide this feedback, creating an atmosphere in ‘which any aspect of work and behaviour can be openly discussed without embarrassing the new colleague. Role-playing can be used to rehearse activities before the “live” show. In this form of role-playing, the new consultant and the train rehearse in the office or at home in the evening, and are able to anticipate snags.ining experience. This has been i e for managers - and students x ‘ous types of course | s eau to an actual situation. Yet the differences should Tat ing project, but does not pay a normal fe for it this may then working with the trainee consultant. ij ed as a tral In certain cases, a complete real consulting project can be Us several courses for consultants, as well as in va management. Such a simulation exercise can be very be lost from sight: ifthe client has agreed to a consul affect the participation and attitudes of the client staff w! 2. What is Faet-findings? ial or administrative proceeding that has or hes troversy/The term trier of fact generally tion process. Fact-finding isthe job of @ person or group of persons in a judici the responsibility of determining the facts relevant to decide a con! Pier denotes die same function. The process is an extremely important part of the commu 3.How you can define fact analysis? 4. What are different types of fact used in Consulting Management? 5, Relationship between consultant management vs. strategic management. Consultant Management: Management consulting js the practice of helping orgenizations to improve their performance, operating primarily through the analysis of existing organizational problems and-the development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons, cluding training external (and presumably objective) advice and access to the consultants’ specialized expertise. As a result oftheir exposure to and relationships with numerous organizations, consulting firms sre typically aware of industry “best practices”. However, the specific nature of situations under consideration may limit the ability to transfer such practices from one organization to another. Consultancies may also provide organizational change management assistance, development of coaching skills, process analysis, technology implementation, strategy development, or operational improvement services. Management consultants often bring their own proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations for more effective or efficient wavs of performing, work tasks. The premier global qualification for a management consulting practitioner is Certified Management Consultant or CMC. Management consulting is not a regulated profession so many individuals that style themselves as management consultants are not CMC's. There is no legal requirement for management consultants to have any qualifications. I is up to the buyer of such services to decide who they hire,Strategic Management: Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Strategic management provides overall direction to the® enterprise and involves specifying the organization objectives, developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision making in the context “complex environments and competitive dynamics. Strategic ‘management nature; the models often include a feedback loop to monitor execution and inform the next round of planning Michael Porter identifies three principles underlying strategy: creating a "unique and valuable [market] position", making trade-offs by choosing "what not to do", and creating "fit" by aligning company activities with one another to support the chosen strategy. Dr. Vladimir Kvint defines strategy as "a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully”. Corporate strategy involves answering a key question from a portfolio perspective: "What business should we be in?" Business strategy involves enswering the question: "How shall we compete in this business?"[8] In management theory and practice, a further distinction is often made between strategic management and operational management, Operational management is concerned primarily with improving efficiency and controlling costs within the boundaries set by the organization's strategy. 6.SWOT Analysis for a small Consulting Firm. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threat. It is a popular analysis technique used in planning, problem-solving and decision-making peross an assortment of business functions and activities, While there are various. Types of consultancy firms, a SWOT analysis can be performed as part of the planning process to analyze a firm’s business growth potential. Strengths The strengths of a consultancy firm range from factors such as customer demand to the lack of competition in ‘the external environment. The specific knowledge, capabilities, organizational skills and other qualifications of the professional consultant will be of particular importance in listing the firm's” strengths. The key question is what makes the consultant different from other service providers in the market. Weaknesses An honest appraisal of a consulting firm’s operations can be conducted using the SWOT analysis’ weakness section. List all of the existing weaknesses of the consultancy firm here. As an example, obstacles might relateexded to launch a needed marketing campaign In-depth market researey, to limited access to investment capital n eo en es srs ight evel ecfningcsomer bs should be conducted prior to performing a or new competition within the target market. Opportunities Demographic, environmental, politcal and socioeconomic factors are areas where opportunities might exist for a consultancy business. Also, significant opportunity may exist ifthe consultancy firm has a strong professional etwork that ean be quickly tapped into in growing a client base. Evaluate benefits in relation to, emerging enkets, now technology, small business agency support or the availabilty of eapital funding, Time limits associated with opportunities also should be noted inthis section. ‘Threats ‘All ofthe areas offering opportunities can also pose threats. For example, pending legislation might exist that, if passed, will increase costs related to obtaining special licensing and certification to operate as a consultant. This ‘same legislation might also present an opportunity within the field by its potential to increase the perception of professionalism associated with the specific type of Consultancy Company. As with all of the other SWOT assessment areas, closely evaluate the business objective when determining potential threats. When identifying "threats in the business planning stage, the goal isto develop strategies to eliminate or limit the threat.THE RELATIONSHIP BETWEEN CONSULTANTS AND CLIENTS Perkumiene D , Navasaitene S ,|Kaunas Annotation. Currently, more and more people address consultants expecting advices and help in developing business and personal career, whereas the goal of a consultant is to provide high quality service. Methods of consuiting should be based on information and applied in a more precise and understandable manner. Clients and consultants should discuss and argue when trying to protect their opinion, as well as to develop tolerance to the weaknesses of others. This papers analyses relationship between consultants and clients, as well as defines both factual and interpersonal aspects of communication. Key Words: Consultation, client, consultant, relationship between clients and consultants. Introduction. Consultants helps the clients to analyses the situation, to determine the problems and its possible situations, to increase and deepen knowledge, develop perceptiveness, organize and direct the knowledge to the right way, gain professional knowledge, take reasonable and responsible decisions. Not only has the content of the consultation to be qualified, but also. the relationship between clients and consultants has to be appropriate, A consultant must be capable of understanding the client, perceiving his feelings and personal features. Customer complaints about the work of consultants can not only affect the decision-making, but also have much influence on their relationship, whereas good client-customer relationship and pleasing mutual interaction can definitely help to deepen of knowledge and make decisions. From the managerial point of view, the interaction between consultants and clients is still in the stage of infancy. There is no clear definition and reasons and factors that determine the origination of certain consultant and client relationship. ‘The object of the research is the relationship between clients and consultants. The aim of the research is to analyze the relationship between consultants and clients in the agricultural advisory Companies and therefore to provide opportunities for the development of their relationship. ‘The objectives of the research are as follows: 1. to summarize the conception of consultant-client relationship; 2. to define factors determining the relationship between consultants and clients; 3. to assess the influences of the factors to the relationship of consultants and clients; 4.to investigate the relationship between consultants and clients in consultation companies; ‘The methods of the research are: the analysis and synthesis of the scientific literature, comparative analysis, logical analysis, questionnaire, graphical method, statistical data analysis, method of summarizing. Results: The essence of consulting is to give a personal help, which is used to receive information, master new ‘working methods or restructure the old ones, predict oncoming activities in order to receive more efficient result and other related objectives (Melnikas, Strazdas, 1998).Relationship between clients and consultants reveals and develops during the process of conmunzaon, for then not only do people interact, but also get to know each other ( Zelvys, 1995; Gayeski, 2000).When a person communicates, his aim is to understand the speaker and the problem in question, so, therefore, despite all the risk possible, he himself becomes more open for discussions. Only in such cases the communication gets meaningful ( Fiske, 1998;Steele, 1999), Communication is a multisided phenomenon, As a matter of fact, the communication is subdivided into several types, groups and aspects, First and foremost, two types of communication should be distinguished: communication with oneself and communication with others ( mutual, interpersonal) ( KoBaeB, 1970; Kociunas,1997). As Barsauskiene( 1999; 2003) under the observations of other researchers states, terms “interactions” and “ communication” can be used as synonyms. However, the term “communication” generally refers the mechanism of the connection between subjects, its form, methods for transferring information, channels and therefore, is rather used when analyzing activity of an organization ( Strazdas, 199). Consultants and clients make influence on each other by sharing information, emotion and feeling (Block,2000). As a matter of fact, it forms particularly divers and complex consultants-clients relation, which can be determined as the transfer and reception of information for finding the best solution possible, for making influence on each other, changing attitudes, feelings and behavior in the process of consultation. These relations influence the moral state of both consultants and clients when interacting as well as the efficiency of consultant _ activity ( Adamoniene, 2006; Barvydiene,2003). The communication takes place in two levels: 1) contenVbusiness; 2) emotional/interpersonal (Van Den Ban, 1999). Factors that have much influence on operational relations are estimated by the objectives of operational communication that Barsauskiene (1999) subdivides into four categories: to find out, to inform, to convince and to Keep attention. In order to reach the before-mentioned objectives in the process of consulting, the main factors determining the operational communications are to be assessed (Chreptaviciene, 2005). Interpersonal communication mostly refers to informal communication of people. It usually lasts for a longer or a shorter period of time and reflects the certain intellectual or emotional closeness of the communicating actors. Although it is not possible to draw a strict boundary between personal and operational communication, the exclusive features and goals of such communication lead to specific differences of these forms of communication (Savaneviciene, 2005). Above the four most important aspects of operational communication ( to find out, ie. to get additional information about the goods and services in question; to inform, i.e. to convey the positive, negative or neutral information; to convince the client that the decision is beneficial; and to manage keeping his attention) the human factor is also of significant importance, Therefore, the development of interpersonal relationship requires attention to a number of factors which can direct this relationship to a positive or rather negative direction, There are three main factors determining the efficiency of business relationship, such as ethical behaviour, conflicts and communication skills ( Bowman,1987). This empirical research analyses how the main factors influence the operational and interpersonal relations between consultants and clients,‘The results of empirical research, Methodology. The main aim of the research is to assess the factors that mostly determine the relationship between consultants and clients, as well as influence of such factors on operational and interpersonal relationship of both the consultants and clients. The survey method for the research was chosen. The questionnaire was made under the information provided in the scientific literature, ‘Two different questionnaires (forms) were used, One questionnaire was given to consultants and the other one was given to clients who use the service of consultants. Both groups of respondents had to evaluate the influence of the same factors to relationship in the scale of five (Likert scale). The research was performed by selecting consultants and their clients from three institution that are as follows: UAB Kauno teisiniu paslaugu, centras (Centre of Legal Services in Kaunas), public institution Teisiniu paslaugu,audito ir ekspertizes centras, (PI Centre of Legal Services, Audit and Expertise) and UAB Verslo teises centras (Business Law Centre). In total, survey included 15 consultants and 85 clients, ic. 6 consultants and 35 clients from UAB Kauno teisiniu paslaugu centras; 5 consultants and 25 clients from PI Teisiniu paslaugu,audito ir ekspertizes centras; as well as 4 consultants and 25 clients from UAB Versloteises centras, Despite the fact that research represent only the relationship between consultants and their clients from the institution that took Part in this survey, the assumption can be applied to the tendencies dominating in all the companies providing consultants services. ‘The factors that influence the consultan-client relationship have been analyzed pursuant to the classification of factors described in the scientific literature. In order to assess the influence of these factors to operational and interpersonal relationship between consultants and clients, the respondents (consultants and their clients) were asked to classify the importance of each and every factor in the scale of five. The relevance of one factor is described by several variables. Afterwards, scores of each variable and factor were calculated. ‘The process of consultation normally begins with the explanation of consultation goals and the determination of controversial issues, In this stage, the most important aspects are: to know whether a consultant is capable of listening to the client, and whether the client hears what the consultant saying. These three Variables form the ability to identify the problem (the factor). However, the assessment this issue slightly differs from the consultant and client point of view, for the key element to clients is the ability listen (M=4.98), whereas to consultants this element is less important (M=4.18). ‘The opinion of both the consultants and the clients was mostly different when assessing the factor of consulting the methodology. It consist of three variables such as: the application of methods used for providing information, the correctness of the information transmitted and assurance of feedback. If consultants consider the feedback and the application of consulting methods to be the most important variables, then clients pay most attention to the correctness of the information transmitted (see Picture 1), ‘The analysis of constants an clients of diferent consultation companies showed tat te consulting methods spplid by the consultants of UAB Kauno tesiniu paslaugu centr and VsI Telsiniu pasimugu, audio ir eriaes centras were easly undersood by clients, whereas the assessment of methods used by the consuls of UAB Verso ese centres wew not aas good as the before mentioned one’ ll the consultants of companies aim at ensuring the feedback from clients, For this particular reason, various methods arc” ‘applied, such as asking to fill the evaluation form (UAB Verso te into “the opinion box” centras). ises centras); to express opinions and to put it (GAB Kauno teisiniu paslaugu centras and PI Teisiniu paslaugu audito ir ekspertizesrch, he retention of focus, the application of innovation and methods for hh more important to consultants than to clients. The differences of ig slight(3.22 and 4.1). There is no doubt that all consultants try to keep the attention of clients; nonetheless the number of succession is not total, especially when collective methods for consulting and training are applied. In order to maintain the focus of client(s), it is sometimes necessary to use the method of his/her knowledge manipulation, not to reject the client if his knowledge in a particular field is insufficient. The consultants of UAB Kauno teisiniu paslaugu centras and PI Teisiniu paslaugu audito ir ekspertizes centras usually work with clients individually. Referring to the results of the resear making influence to human behaviour is muc! the evaluation of the above-mentioned factor ‘The correctness of the information transmitted ‘The application of methods for transmitting information (used by consultants) ‘The assurance of feedback In order to determine the influence of factors to business and interpersonal relationship between consultants and clients, respondents (consults and their clients) were asked to evaluate the importance of factor in the scale from one to five. Thereafter, the average of this estimates were calculated, The aggregated evaluations of business factors are provided in picture 2. The result of the research suggests that the influence of business factor to both the consultants and clients is extremely relevant. Clients particularly appreciate the competence of a consultants, his ability to identify problem (M= 4.88) and to transfer information (M=4.44) . Nearly 87 per cent of all respondents ( Clients) of the survey like to see a consultant who is capable to identifying the problem quickly, correctly, who would understand what advice to give and provide a complete and competent answer to question. Namely these factors were ranked as important very important. Clients listed the capability of keeping the focus, applying innovation when consulting (M=3.22) and the factors of invoking various consulting methods (M=3.22) as less relevant. The influence these factors was consider to be more important for consultants, since the importance of these factors was evaluated by more than 4 points in the scale, Such distribution of opinions was mostly detenmined by different experience of consultants and their clients. Consultants that have greater experience in consulting are familiar with the appropriate selection of consulting method for it leads to the suecession of the work, which is, as a rule, not appreciate by clients.Keeping the focus, application of innovations “The application of methods used. for influencing person's attention ‘The application of consulting ee a Clients methods ® Consultants ‘The capability of a consultant to transfer information "The competence of a consultant ‘The capebility ofa consultant to identify a problem Oy ae gore cs Picture 2. The influence of business factors on relationship between consultants and clients ‘The analysis of factors that have influence on interpersonal relationship reflects its almost equal importance to both the consultants and clients. The ethics of the conducts is significantly important for both the consultants and clients (M= 4,65 and M=4.86 respectively). The clients wish the customers to act confidently and the relationship to be based on universally acceptable principles and values. The consultants understand that the assurance of confidently can help to guarantee a long-lasting communication and to achieve other goals of ‘operational cooperation, Both group of respondents rated the capability of overcoming and solving complex situations as well as ability to behave calmly and kindly to be of the same importance. ‘The biggest difference client's and consultant's opinions in the group of interpersonal factors appeared to be the evaluation of communication skills. This factor is extremely important for clients (M=4.64), whereas consultants consider it to be of the less importance (M=3.63). Approximately 70 per cent of clients think that consultant should try to look from the clients perspective, sensitively react to their feeling and emotions. However, consultants do not much attention to this factor and are tending to provide full information regarding the issue in question and avoid close connection. Both groups of the respondents positively rate the respect that ‘consultant show to the clients In addition to the factors determining the relationship between clients and consultants, much influence has the experience of the consultant, his/her knowledge of the skills. ‘The data received in all the consultation companies were quite similar, for both the clients and the consultants treated the process of consultation favourably. The analysis ofthe data showed that the assignment of the clients in the consulting company UAB Kauno teisniu paslaugu centras were more positive than PI Teisiniu paslauguve -confident as audito ir ekspertizes centras, Moreover, the consultants of the latter company were less self: nt aS Well as less eager to evaluate their relationship with clients. The consultants of UAB Verslo teises centras indicated that they place dependence on their knowledge and information as wellas the opportunity for clients to express their opinion. Despite the fact that consultants are quite flexible, they lack feedback. What is more, it was also noted there are clients whose behavior is improper. According to the consultants of UAB Kauno teisniu paslaugu centras and IP Teisiniu paslaugu, audio ir ekspertizes entras, not all of them rely on their knowledge and information; not always do clients eet an Opportunity to express their opinions; sometimes there is lack of flexibility; much effort is put to ensuring the feedback; consultants behave appropriately and confidently. Conclusions 1. Empirical survey of the importance and influence that professional factors have to the client-consultant relationship showed that clients considers the factors which, in their opinion, directly determine the efficiency of consulting to be more important (for example, consultants ability to identify the problem, to transmit as well as his competence), 2. Consultants, similarly to clients claim that factors of varies capabilities and competence are also relevant. However the factors related to the methodology of consulting are consider to be of the same importance. 3. When assessing the influence of interpersonal factors to client and consultant relationship, both the clients and consultants indicated the importance and ability to manage conflicts as one of the important aspects of ethical conduct during a consultation, However, clients considered factor of communication skills to be of a higher importance, They wished the consultant had tried to look from their angle and even eager for an emotional contact. 4. Consultant's ability to identify a problem has to be prompted by improving and developing their skills and Competences in trainings courses leading o qualifications, seminars, long-term and short-term internships and Permanent interest in the changes and innovations of this particular professionals flied, Consultants should also encouraged to create consultant’s memo. 5. When training a consultant to become an expert of this fled, the system for competence development and refteshment of knowledge should be created. Not only would it provide a consultant withthe latest information, but also motivate him to improve. 6. Consultants should encourage the feedback; listen to the suggestions and opinions of a client carefully and respectfully. 7. A consultant should try to understand the attitude of other person, cooperate in assessing situations and solving moral dilemmas in an ethical manner, as well as avoid injustice in his work. For this particular reason, Consultants should follow the code of conduct and/or rules of behavior with clients. If such rules do not exist, their establishment should be initiated, a.Reference i eee ingiene, V. (2006). Consulting outsourcing in agriculture // Management Theory and dies for Rural Business and Infrastructure Development; transactions of the internationals scientific conference, 5-7 October. Kanuas ~ Kaliningrad Estonian University of Life Sciences. 2. Barsauskiene, V. ( 2003). 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Siuolaikine verslo Konsultavimo samprata. // Socialiniai mokslai. Vadyda. Kaunas: Yechnolohija, Nr. 3, P. 667. 13, Savanevicinie, A., Silingiene,V. (2005). Darbas grupese: vadovelis! Kauno Techonologijos universitetas. — Kauna, techonologija. 14, Stelle, F. 1999. Consulting for organization. - Massachusetts. 15, Stradas, R. (1995). Matomosn ir nematosmos konsutacines velklos puded. // tartautines konferencijos,, Verslas ir vadyba 95” pranesimu medziaga. ~ Vilnius: Techinka, p. 189-193 16. Van Den Banas, A,. W., Hawkinsas, H., S. (1999), Zemes ukio Konsultavimos. Akademija, LZUKT. 17. Zelvys, R. (1995). Bendravimo psichologija. — Vilnius; Valstybinis leidybos centras.Consulting Will Never Be The Same Again indling. if to be MORE ‘The overall number of consultants doesn't seem to be dwindling. If anything there oe consultants than ever! In fact, the category includes many different species: you can be an IT c FR consultant, a strategy consultant...you name it: there's a consultant for everything, Every department 1 company can have an army of consultants to help improve its processes. n of our economy doesn't seem to have affected consultants the way it's affected The digital transforma Journalists of advertisers, Indeed, consultants sell targeted services to help companies make the most of their digital transition, So digital is a business opportunity! But the world of consulting IS changing profoundly. The model developed by the big consulting firms of the 20th century is going through a crisis. Their pyramidal organization—with junior consultants doing the bulk of the work—is increasingly under threat: companies are less willing to pay high prices for copy-paste work performed by inexperienced junior consultants, however brilliant they may be. Indeed, the era of Copy-paste consulting is largely over. Consulting firms designed powerful systems, models and grids to help companies optimize their processes and cut their costs. But now these companies expect customized consulting services instead. They demand experienced industry experts and creative advice. As @ result, the consulting offer is becoming more protean: there are now more consultants who work outside these firms, offer customized services that can't be replicated and work directly with the companies whose problems they aim to solve, To understand today’s transformations, let's first have a look at consulting’s history: consultants came with managers, How did management come to be? The history of consulting is directly linked to that of management. You may think management has always been around. After all businesses have always been "run", haven't they’? But it's not the case: the managers were the owners. Professional management was bom after the industrial revolution. The first American business school (the Wharton School) was created in 1881 and management became an academic subject after the 1930s only. In the US, the construction of the railways and the telegraph in the 1870s created mass markets that made management necessary. All of sudden, the entire country was the market. Production and distribution became a lot more professional, The US industry became dominant, In 1870, it represented 23% of the world’s production; in 1913, 36%! Gigantic empires grew: US Steel, General Electric, AT&T, American Tobacco... ‘The main question these new empires had to answer was: how do we grow to serve such a large market and keep control over the company at the same time? Professional managers emerged as the new class of professionals to help companies answer that novel question. Managers don't produce. Neither do they own the company, They are executives who serve as go-betweens to enable the growth of empires.To advise and accompany them, these managers required the help of other professionals: the consultants The emergence of consulting as an industry The history of consulting is closely related tothe professionalization of management and the emergence of @ new class of managers in large corporations. But there was one specific poli consultants with a unique opportunity to turn their business into a mass industry. al decision that provided Tn 1890, the US Congress created our modern ‘competition law when it passed the Sherman Act. Sherman was a Senator from Ohio who believed that the growing power of monopolies had to be curtailed, The act that bears hhis name was the first of a series of acts and court decisions aimed at protecting consumers against the predatory behavior of all too powerful corporations. The 1911 Standard Oil v. United States Supreme Court decision would complete what Sherman had started: it would dismantle John D. Rockefeller's sprawling oil empire. ‘Senator John Sherman from Ohio "The law attempts to prevent the artificial raising of prices by restriction of trade or supply. "Innocent monopoly’, or monopoly achieved solely by merit, is perfectly legal, but acts by a monopolist to artificially preserve that status, or nefarious dealings 10 create a monopoly, are not. The purpose of the Sherman Act not to Protect competitors from harm from legitimately successful businesses, nor to prevent businesses froth gaining ‘ones! profit’s from consumers, but rather to preserve a competitive marketplace to protect consumers from abuses." Wikipedia) Ass price fixing and market manipulation became a lot less easy, companies actually had to compete with one another, Le. to produce better products and more efficiently than the competition. There was the unique ‘Opportunity for consultants, who were best positioned to help companies improve their processes and become morecompetitive. This was the beginning of a symbiotic relationship between managers and consultants, Process thinking became an art. Consultants could reengineer, a company $ processes, i.e. redefine and Tesineture its processes to make it more efficient, streamline its production to minimize costs and bring Produits to market in a more timely manner. Management consulting became a welts respected technical Profession. ‘The ea of managerial capitalism had begun. In the 20th century mass economy, efficiency was key. It was the resullof the alliance between managers and consultants. Managers also needed consultants to legitimize their decisions, Constants created powerful tools to help streamline companies, For example, MeKinsey's General Online Survey was created Constants who joined the firm. Its role cannot be underestimated, These tools were transferable and replicable. to serve as a clear roadmap for the young Mangement became an academic subject. New Hanard Business was created in the 1930s, management as an academic fic of "systemic innovation", schools were created to train managers and consultants. Peter Drucker, born in Austria, was the founding father of eld, -He invented numerous concepts that are still in use today, like the conceptPeter Drucker The rise of strategy consulting marked the golden age of consultants Strategy used to be a military subject Prussian General Carl von Clausewitz made intellectual subject for a larger audience when he wrote his treaty On War, which inspired all modern strategists, Strategy applied to corporations is more recent than one tends to believe. It dates back from the 1960s. Here's how business historian Alfred Chandler defined it in 1962: "Strategy is the determination of the basic long term goals of an enterprise, and the adoption of courses of action and the allocation of resources’ necessary for carrying out these goals." And Michael Porter defined it in 1980: “Strategy, is the broad formula for how a business is going to compete, what its goals should be and what Policies will be needed to carry out those goals and the combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there.” ‘The emergence of strategy coincided with four phenomena: + the deregulation of banks and telecoms ; * the development of new technologies (computers first, and then Internet) *+ the liberalization of capital markets + globalization, Up until the 1960s, most companies had been relatively protected on their markets. After the 1970s competition became increasingly fierce, Strategy became fundamental for all companies, in a state of permanent war. Strategy applied taylorism to the company in its entirety... to make it as efficient as it could possibly be so it could crush its competition. Bruce Henderson Bruce Henderson can be said to be the inventor of strategy consulting when he created the Boston Consulting Group in 1963. The BCG became an institution that bred the country's business elite. To be recruited you had to be the best, not just an ivy League graduate, but possibly also a Rhodes Scholar or a Marshall Scholar. ‘The era of big firm consulting may be coming to an end Alll the things that made it successful in the 20th century could cause its demise in the 21st. Big firms have seen their margins deteriorate over the last decade, as companies are increasingly reluctant to pay a high price for the "copy-paste" work of junior consultants, The replicable models that made the fortune of these firms are called into question: companies want customized services and experienced consultants. ‘Therefore smaller firms and independent consultants have multiplied. Today's big consulting firms aren't quite as attractive as they used to be. They find ita bit harder to recruit the talents they need. The lack of work-life balance that comes with working for such firms is increasingly under fire. Some are now offering better work conditions in an attempt to make the profession more attractive again. But they have to compete with Silicon Valley companies for talent. Many graduates are now lured by Google and the like.The i z retue the ete Slants produced-by the digital revolution are “eating she world! They have increasing ea IS: ne more alles they have, the better they can serve them. They don't need consultants. They refuse to Streamline processes", Optimizing production is not their goal, 3 major trends are putting firm consulting in jeopardy: 1. The platformization of consulting: Increasingly the typical consultant tends to be an independent worker using a platform. The phenomenon doesn't only affect consulting, of course. Work relations are transformed everywhere. Platforms like Hourly Nerd or Clarity have spread. They match experienced professionals with problems that companies want to solve. Consulting may one day cease to be a profession. Scattered individuals with a diverse set of backgrounds and experiences will be able to provide a diverse set of skills, know-how and expertise to tackle various corporate problems. Companies can already find them on such platforms. ‘The pyramidal structure of big consulting firms is no longer a viable model: these firms require an army of junior consultants to do the bulk of the work, Senior consultants are a minority in that model. But because companies are reluctant to pay for junior consultants, the whole business model of consulting firms in under threat, 2. The data revolution makes consultants somewhat obsolete Inthe past few years companies have hired thousands upon thousands of data scientists in the hope that they will help them make sense of the vast amounts of data they've accumulated and base their strategic decisions on actual data. Big corporations that have vast amounts of siloed data choose to pay for the services of software companies that can help them leverage theit data. Palantir is a case in point, Have traditional consultants not been made a bit obsolete by engineers who can do more to help make companies "data-driven"? 3. Innovation is not really in a consultant's DNA Our mass economy is coming to an end. We're living though a paradigm shift. Optimizing processes and cutting costs is not enough to face new disruptive innovators. And that's what consultants have been trained to do. Corporations need radical innovation, not cost-cutting effect the right answer... ness. So big firm consulting may no longer be Conelusion Consulting is undergoing profound transformations. The archetypical big firm consultant is under threat. Big consulting is coming to an end. Yet consulting is not dead! There will be more and more independent consultants. Many experienced managers and experts may become consultant AFTER several other experiences. Many others will be slashers and do consulting on the side. ‘The best days of consultants are yet to come, But they will not work the same way anymore.