ENTRPREPRENEURSHIP FOR ENGINEERS

HANDOUT 7: CONSULTANCY

Definitions

Expert Consultation is the intervention of a professional help in which a consultant recommends

a course of action to solve a problem and/or design, develop & improve particular structures
based on her/his expertise in specific field.

A consultant is an expert or a professional in a specific field and has a wide knowledge of the
subject matter. The role of a consultant can fall under one of two general categories:

 Internal Consultant - someone who operates within an organization but is available to

be consulted on areas of specialism by other departments or individuals (acting as
clients); or
 External Consultant - someone who is employed externally (either by a firm or some
other agency) whose expertise is provided on a temporary basis, usually for a fee. As
such this type of consultant generally engages with multiple and changing clients.

Some types of consultants

 Process consultants are specialists in the design or improvement of operational

processes and can be specific to the industry or sector.
 Information Technology consultants are specialists in many disciplines such as
Computer Hardware, Software Engineering or Networks.
 Design Engineering consultants are specialists responsible for the preparatory phase of
engineering projects. They provide help with drawing up design notes, project plans and
budget plans.
 Project Management consultants are experts with deep technical know-how to follow
up on the quality, progress, budgets and safety of the works on the construction site.

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 Their work is to assure the timely delivery of constructions and installations according to
plan and budget.

Characteristics of a good consultant

Technical Skills

It is important for a consultant to possess technical skills i.e. the expertise in a particular field.
This goes beyond the school/college training and should include actual experience in the chosen
field. In the information technology industry this expertise can become obsolete very quickly It
is important to continually sharpen one’s technical skills so as to catch up with rapid changes in
technology.

Interpersonal Skills
A consultant should possess interpersonal skills because he/she has to work with people.
He/she needs the ability to put ideas into words, to listen to others, and to provide support. There
is also a need to be able to disagree and to suggest ideas counter to what the client may be
proposing.

Consulting Skills
A consultant needs consulting skills. This is a sequential process of consulting that a consultant
need to follow to get from start to finish.

How to become a consultant in engineering and technology

Carry out small-scale consulting in engineering on a freelance basis for independent businesses
by implementing some work in their workplace. During this time it is important to advertise
yourself locally, and work at reduced (or even free) rates until you have built up enough
experience.

Keep your skills up -to-date at all times. You will need at least three or more years of proven
experience in order to get recognition in the professional world as a technology/engineering
consultant.

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In order to become an independent consultant, there is a need to work professionally for a period
of at least 3 to 5 years so as to have the know-how to go out on your own through building
enough experience and have access to a steady client base without the aid of an agency or
consulting firm. This time is also important for making preparations to go into business by
yourself by carrying out the following processes:

Orientation:

Establish factors in the economic environment that influence the development of consultancy
service such as economic growth, consumers, opportunities for carrying out the service and
possible barriers. In addition consider the general situation in terms of the supply and target
market for the consultancy service provision and their strengths & weaknesses and market
prices.

Focus:

Consider opportunities for the special expertise in the context of the market situation by
identifying the target sector or potential client enterprises. Then identify and examine a specific
market niche and assess client needs by carrying out a needs analysis to examine more closely
the opportunities and problems they commonly face. This is helpful in the formulation of unique
selling point for the consultant service.

Purpose and Objectives:

Confirm the general purpose and specific objectives of the proposed consultancy service. Define
the service in general and specific terms and how it is going to help the prospective clients taking
into consideration that expert consultation aims at introducing change and add value to the
client’s organization. Prepare promotional leaflets for your consultancy business.

Service design:

Design a process and content of the consultant service planned to be delivered specifically
explaining how you will manage the process of carrying out the consultancy.

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Delivery:

Specify relevant delivery skills and tools, this includes methods and resources which are
important in delivering the consultancy service.

Validation:

Carry out the empirical testing of the methodology and delivery capabilities. It involves testing
the market to validate the effectiveness of the methods and own capabilities in providing the
consultancy service.

Administration:

Make preparations on how to administer the consultancy business by deciding about resources,
coordinating, costing and pricing of the service. Pricing will depend on the market price and the
cost of the prospective project and length of time required to deliver the service.

Evaluation:

Carry out formal and informal evaluation based on the test market results to determine the
efficiency of the methodology, achievement of the purpose and whether the delivery has
enhanced your reputation as an expert consultant.

In addition to this, the consultant should develop the following personal assets, process
competencies and domain-specific (area of expertise) competences:

Personal assets:

 A concern for personal reputation

 Professionalism inputting the client interests first
 Ability to quickly form a consultant-client relationship
 Persistence in identifying real problem cause and seeking permanent solutions
 Determination to add value to client organizations

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Process competences:

 Building helping relationships

 Determining change objectives (problem identification)
 Managing intervention/change processes
 Pricing consultation services
 Producing consultancy reports

Domain-specific competences:

 Making appropriate strategic responses to the economic environment

 Benefiting from the policy environment and business development incentives
 Coping compliance with the regulatory environment
 Managing within the constraints of the legal/ethical environment
 Exploiting product/service/labour market needs and opportunities
 Benefiting from the financial environment
 Benefiting from the technology environment
 Resolving domain-specific decision-making problems
 Utilizing problem diagnostic techniques
 Identifying appropriate solutions to specific problems
 Utilizing information technology

The Consultation Process

Initial consultant-client meeting

This is a planning meeting necessary to clarify client needs and expectations during which a
successful relationship needs to be established. During this meeting impressions will be made on
the following:
 Whether there can be mutual respect regarding the professionalism of the two parties
 Whether the consultant wants to accept the consultation project with the particular client
 Whether the client wants to employ the particular consultant

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  The level of risk to which each part will be exposed to during implementation
More importantly the meeting will provide the holistic view of the project and how the project
will add value to the client organization. This will be done by (i) exploring clients perceptions of
problems or opportunities (ii) exploring client’s attitude to risks of innovative solutions/actions
(iii) identifying potential blockages to implementation (iv) exploring present system for
monitoring and measuring performance (v) establishing if there has been prior failed or
successful attempts to carry out the process.

Project Development
This involves establishment of a contract between the consultant and the client. Other important
issues in this aspect are (i) recommending solutions/actions (ii) determining means of avoiding
removing blockages (iii) determining change measurements and targets (iv) assessing resource
sufficiency for implementation of the project.

Closure
This is a stage in the consultancy process when the consultant and the client determine and reach
an agreement on terms of reference and objectives. In addition (i) problem causes are determined
(ii) clients selects or accepts recommended actions (iii) implementation arrangements are agreed
(iv) target & monitoring arrangements are agreed. This leads to the point where client and
consultant are satisfied and are ready for implementation.

Development of a Consultation Proposal

The consultant has to prepare the consultation proposal detailing the consultancy. The proposal
framework constitutes of the following components:
1.0 Introduction
1.1 Overall purpose
1.2 Background
1.3 Justification of proposal
1.4 Proposer or Institutional details
2.0 Technical Proposal
2.1 Specific objectives

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 2.2 Methods for achievement of objectives: Working concept-outline response to
terms of reference (TOR), Activity plan and Time frame.
2.3 Inputs (resource requirements)
2.4 Expected outputs and benefits: Performance indicators & targets
2.5 Risks and assumptions
2.6 Project personnel and their CVs
3.0 Financial Proposal
3.1 Budget and cash flow during project phases: Personnel, materials,
equipment, travel and subsistence expenses.
3.2 Budget summary.

Project Implementation
The consultant have to deliver the project using his/he personal attributes and process
competencies using planned methodology. The consultation proposal prepared and agreed by
the consultant and the client provides a guide for the implementation of the project.

Evaluation
A professional consultant commonly set measurable criteria for evaluation of services they
provide to clients, including validation of their methodology and innovations. Evaluation can be
carried out using various methods including using the following evaluation questions:
 Were the change objectives in the project achieved?
 What value did the project add to the client business?
 Did the value added meet the agreed target?
 Was the project completed within the cost estimate?
 Was the project completed within the time estimate?
 Is the outcome judged to be permanent solution to the client need?
 What level of client satisfaction has been achieved?
 Were the consultation assets and tools equal to the task?
 What new insight into the client problems and needs has the consultant gained?
 What new insight into the consultancy process has the consultant gained?
 What new assets has the consultant gained?