CONSULTANCY SKILLS

DEVELOPMENT

Professor Benon C Basheka (PhD,FCIPS)

Dean, School of Business and Management

Uganda Technology and Management University

 Consultancy is a Process
• Requires Nurturing
• Requires fertile environment
• Requires expertise
• Requires commitment
• Requires skills and capacities
 UNIT ONE

INTRODUCTION TO CONSULTANCY INDUSTRY

• The management consultancy industry is attracting more
and more attention although some literature has
questioned how a non-codified body has become so
influential on organizational behavior (Fincham, 1999).

• Since the beginning of the consultancy sector 150 years

ago, this sector has boosted in their activities over all
sectors of society and have increased their influence on
organizational operations (Gross & Poor, 2008).
 ….

According to Clark et al. (2002) through the years, the

remodeling of business activities through consulting
services have had an impact on the developing
character of the modern organization and has
contributed to millions of people having to adjust to
new ways of working.
 Why engage consultants
• Kubr (2002) identifies five broad, generic
purposes for why a client should hire a
management consultant:
• Achieving organizational purposes and objectives
• Solving management and business problems
• Identifying and seizing new opportunities
• Enhancing learning
• Implementing changes
 MEANING OF CONSULTANCY
 Consultancy is the practice or profession of giving expert
advice, especially within a particular field.

 Management consulting refers to both the industry and

the practice of helping organizations to improve their
performance, primarily through the analysis of existing
organizational problems and development of plans for
improvement.
CONSULTANTS USE VARIOUS
TECHNIQUES
 …..
• Management consulting is a service which is
temporary, where the project ends after a
negotiated period.
• A consulting assignment is demanded when
help is needed on a specific management
problem and when the recommendations for
these problems are given, the consulting
service project ends.
 ……..
 Consultancy means delivering specialized skills
from outside the organization
 Key concepts from the definition:
› Specialized skills-the assumption is that the
consultant has specific skills, in demand, and is
valued by the client organization and it is for this
reason that the individual consultant has been
engaged

› Outside the organization-the consultant is usually

from another organization, or if an internal
consultant, from a different department within the
organization
 ‘What are the deliverables?’
Cost

Spec/quality Time
 CONSULTING IN PUBLIC SECTOR
1. The public sector environment is changing

2. The public sector has stringent rules

3. The public sector is subject to public scrutiny

4. The ethical dilemma is increasing in the public sector

5. The payment drama even exceeding 6 months!

6. The conflict of interest issues that stifle professionalism

7. Preference for foreign firms to domestic firms/individuals

Consultants need to know the
Cultural web

“Culture eats strategy for breakfast” Peter Drucker

The organisational context

Internal

Micro environment

Macro environment
 Why organizations need consultants
• Companies go to consulting firms to get fresh
perspectives on problems
1. To get new ideas for improving business performance.

2. To tap on consultant’s number of clients familiar with

a wide variety of business models within their field of
specialization.

3. To judge the viability of a client’s business

4. To recommend changes that would help the client

catch up to, or even surpass, its competitors.
 In addition,
• There’s also the advantage of using consultants to
circumvent an organization's internal politics.
I. Change management is often a gut-wrenching process for
a client’s company.

II. Each ‘faction’ in the company has its own vested interests
to protect, which can lead to stubborn resistance against
change.

III. Consultants work outside of their client’s hierarchy, and

are therefore in a better position to overcome such
 …..
• There’s the fact that consultants are smart
people.
– The consulting industry regularly draws the top minds
in business into its ranks.
– Whether you’re looking for an innovative solution, or a
thorough analysis, chances are that you’ll find the
expert you’d need from a consulting firm
 Consultancy is looked at from different
Perspectives
1) From a client perspective

2) From a regulator perspective

3) From a business perspective

 From a client perspective
• A consultant is an individual with vast knowledge
and experience in a specific professional field.
• Consultants are hired to lend their expertise to
clients in need of insight they do not possess.
• Clients benefit from a fresh, innovative
perspective on a business problem.
• Clients therefore view consultancy as an industry
with people that can provide solution to their
organization's problems
 From a regulator perspective

• Regulatory affairs (RA), also called government

affairs
– Consultancy is seen as a source of revenue-taxes.
– Consultancy is a source of prudent advise
– Consultancy is an area of professionals who have to
comply with regulations and laws pertaining to their
business.
– Advising consultancy companies on the regulatory
aspects and climate that would affect proposed
activities.
 From a business perspective

• Consultancy is looked upon as any other business

whose interest is to:-
A. Grow

B. Make profits

C. Be sustainable
 In a different context

1. Clients have their views and expectations of a

consultancy
2. Consultants have their views and expectations
 The consultancy industry remains lucrative, but
getting into business consulting is now harder than
before.
1. The environment is changing
2. New entrants into the business
3. Consultants with high connections
4. Ethical deficits make it difficult to enter
5. Preference for foreign firms/consultants
 Consulting firms are now expected to help clients
squeeze maximum benefit out of all the massively
expensive investments that they’ve made in the
previous decade.
There are three possible ways to segment the job
scope of the consulting industry:
•Specialist consultancy
Specialist consultancy focuses on a particular
industry, or a particular business domain.
• For example, there are consulting firms that have expertise in
giving advice to the public sector or the energy industry.
– And then, there are other firms that specialize in public
relations, supply chain management, accountancy, and
so on.
• Strategy consultancy
– Strategy consultants (also known as management
consultants) offer advice that is typically targeted at
the client’s senior management.

– Strategy consultancy is regarded as a lucrative and

prestigious profession, the career of choice of many
business school graduates all over the world, so it’s no
wonder that it gets a great deal of attention
• Integrated solutions consultancy
– Drawing expertise from a variety of domains, these
consultants implement customized solutions for their
clients, such as building and installing new technology.

– Clients typically outsource entire processes to these

consulting firms, for them to directly manage the
improvements needed.
 Types of Consultancy services
Strategy HR

Process and
Operations Marketing
Management
consulting

Org design Change

Infotech
 Specializations
 There are as many specializations as there are types of
business problems and challenges. The following are a few
possibilities:
› Finance consultants provide advice on matters such as pricing
securities, business valuation and economic forecasting.

› Human resources consultants advise about recruitment

practices, compensation and benefits packages, pension
funding, workforce diversification and employee development
programs.

› Litigation consultants work with lawyers to develop case

strategies, courtroom exhibits and tactics, and provide
economic analyses.
 Marketing consultants work with companies
seeking innovative ways to market new or
existing products and services.

 Operations consultants help organizations

increase productivity by improving business
processes.

 Organizational change consultants work with

clients undergoing a fundamental re-orientation
in the way the organization operates.
 …..
 Quality management consultants help organizations
improve the quality of their products and services.

 Strategic consultants help organizations with strategic

planning for the foreseeable future (which may
include developing a growth strategy, restructuring,
marketing internationally, buying/selling assets, or
revitalizing leadership).

 Technology consultants help organizations implement

new technologies for optimal effectiveness.
Sourceforconsulting.com identified six key client trends:

1. Context – the globalisation of clients will be a crucial source

of growth, but at the same time, it will reshape the industry.

2. Purchase – increasing use of multinational purchasing models

will impact the historic influence of relationships.

3. Resources – clients are choosing to staff more projects internally

which, before they might have hired external consultants to do.

4. Delivery – instead of competition primarily being between familiar

enemies, it’s now between firms and freelancers.

5. Outcome – the majority of firms now sit in the middle between advice
and implementation.
A new basis of differentiation is needed: outcomes.

6. Margin – fee rates among multinational companies have dropped by

10-15 per cent.
 Consultancy Skills
 Three components to consultancy skills include:-

1. The body of knowledge, skills and experience that the consultant has

on offer

2. Experience or knowledge of the application of the specialized skill to

a specific area. This might be an industrial sector, geographical area

of particular type of problem

3. Consultancy skills which enable the consultant to deliver his or her

expertise within the client environment

 Management consultancy body of
knowledge (MCBOK)

 The MCBOK is divided into three domains:

1. Structured Thinking

2. Consulting Context and Process

3. Professional Behavior
 The Management Consulting Body of Knowledge
(MCBOK) is the sum knowledge within the
profession of management consulting.

 It reflects the skills, competencies and behaviors

that are important for world-class performance.

 The purpose of the body of knowledge is to

articulate the most critical aspects of management
consulting and to establish the scope, range, and
depth of the skills and competencies that will be
measured by the examination and certification.
 ….
 The body of knowledge is constructed in
consultation with subject matter experts (SMEs)
and will be periodically updated to reflect evolving
standards and practices within the profession.

 The body of knowledge serves as the framework for

the structure of the test for certification. The
framework defines the exam’s scope and content of
skills being measured by the test, as well as the
hierarchical importance of each content area.
 Each main content area is called a domain.

 Within each domain there are knowledge and

task statements that embodies the KNOW-HOW-
TO-DOs for that given domain.
History of Management consultancy
 …
 Late 19th century
› The first consulting firm was founded by Arthur D
Little, a professor from MIT, who named the
company after himself.

› The company specialized in science, engineering and

invention.

› Frederick Taylor took his emerging theory of

Scientific Management and became a management
consultant, performing time and motion studies to
improve manufacturing processes
 …
 Early 20th century
› By this time, the growth and complexity of large industrial
organizations in the US created a market for professional
firms of engineers, accountants and lawyers who offered
independent counsel.
› Organizations needed advice but did not need a full time
employee on staff.
› Some of the first "management engineering" companies
emerged such as Price Waterhouse Coopers, Arthur
Andersen, Booz Allen Hamilton and McKinsey.
 Late 20th century
› From the 1950s onwards consultancies not only expanded
their activities considerably in the United States but also
opened offices in Europe and later in Asia and South
America.

› After World War II, a number of new management

consulting firms formed, bringing a rigorous analytical
approach to the study of management and strategy.

› Work done at McKinsey, Boston Consulting Group, Booz

Allen Hamilton, and the Harvard Business School during
the 1960s and 1970s developed the tools and approaches
that would define the new field of strategic management,
setting the groundwork for many consulting firms to
follow.
 UNIT TWO

ROLE OF MANAGEMENT CONSULTANTS

Roles of Management Consultants
 Consultants
“… try to take ownership of an organization's
problems and use research and logic to develop
possible options for a way forward.”
Matt Baumann

“give solutions to the problems that companies

have.”
Jane Ridley
 … perhaps without
Consulting is about
knowing at the
helping an
outset where A is,
organisation get from
where B is, the
A to B…
appetite for the
journey or your role
in it.
 Consultants = change
What
Feasibility - exploration
Change implementation
Review/evaluation

Why
Additional capacity, third party objectivity,
process skills, access to specific information,
‘bad
guy’
 Roles…
 In general, business management consultants:
1. Define the nature and extent of the project by gathering information
(which may include conducting research to determine the current
efficiency and effectiveness of managerial policies and procedures.
2. Analyze the data collected and use their background knowledge to
develop proposals for improving methods, systems and/or procedures.
3. Present their recommendations to the client organization and, if their
recommendations are accepted, implement those recommendations.
 …
 Professional management consultants are hired
when an organization lacks sufficient resources,
requires external objective advice, or because they
have expertise not available within the client
organization.

 Most management consultants specialize in

helping organizations solve particular types of
problems, challenges or changes.
 Consultant Roles
1. Expert

2. Service

3. Collaborative
 Expert Role
• Class: Describe what behaviors are exhibited by
the client and the consultant?

• Client: Inactive participation

• Consultant: Determines need, gathers data,

make decisions, plans and implements change
 Service Role
• Class: Describe what behaviors are exhibited by
the client and the consultant?

• Client: Determines need, gathers data, make

decisions, plans and implements change

• Consultant: Inactive participation

 Collaborative Role
• Class: Describe what behaviors are exhibited
by the client and the consultant?

• Client and Consultant: Actively participate to

determine needs, gather data, make decisions,
plan and implement change
 Consulting Styles
 Stabilizer

 Cheerleader

 Analyzer

 Persuader

 Pathfinder
SELECTION OF CONSULTANTS
 Selection of a Management
consultant
• Select a management consultant on the basis
of:
I. Skills and competencies
II. Relevant industry experience
III. Adherence to ethics and standards
IV. Availability
V. References
VI. Professional fees and available budget
 Qualities of a Consultant
• Intellectual Ability
1. Ability to learn quickly and easily

2. Ability to observe, gather, select and evaluate facts

3. Good judgment

4. Inductive and deductive reasoning

5. Ability to synthesize and generalize

6. Creative imagination; original thinking

• Ability to understand people and work with
them
1. Respect for other people; tolerance

2. Ability to anticipate and evaluate human reactions

3. Easy human contacts

4. Ability to gain trust and respect

5. Courtesy and good manners

• Ability to communicate, persuade and
motivate
1. Ability to listen

2. Facility in oral and written communication

3. Ability to share knowledge, teach and train people

4. Ability to persuade and motivate

• Intellectual and emotional maturity
1. Stability of behaviour and action

2. Independence in drawing unbiased conclusions

3. Ability to withstand pressures, and live with frustrations

and uncertainties

4. Ability to act with poise, in a calm and objective manner

5. Self-control in all situations

6. Flexibility and adaptability to changed conditions

• Personal drive and initiative
1. Right degree of self-confidence

2. Healthy ambition

3. Entrepreneurial spirit

4. Courage, initiative and perseverance in action

• Ethics and integrity
1. Genuine desire to help others

2. Extreme honesty

3. Ability to recognize the limitations of one's

competence

4. Ability to admit mistakes and learn from failure

 UNIT THREE

THE CONSULTANCY PROCESS

• The process of consulting is the how of
consultation.

• Consultants can use the same basic process,

regardless of the specialized field in which they
may be consulting or the subject matter.
 The six fundamental phases of this process
are:
1: Making First Contact/Entry
 This is the first contact with the client.
 You are identifying who the client is and what
motivation there is to bring about change.
 You are also exploring the potential for working
together.
2: Establishing the Relationship
 This step includes specifying the desired outcomes,
deciding who is going to do what, agreeing on style,
costs, timing and accountability.
3: Problem Finding
 This is the data gathering and data analysis stage.
 Here you find out what is, what should be, what the gap
is, and whether or not it is worth working on.
4: Solution Finding
› At this stage, the client is given assistance in specifying
what it is he wants and when he wants it.
5: Planning the Work/Working the Plan
 At this step the work is planned in terms of who will do
what, when, where, how and with what resources.
 The plan is then carried out.
6: Evaluation/Termination
 The client and the consultant look back over the project
and their relationship at this step.
 The consultant then withdraws and terminates the
consulting relationship.
 1. MAKING FIRST CONTACT/ENTRY
 AT THIS FIRST MEETING OF BOTH PARTIES, THE
FOLLOWING SHOULD BE DISCUSSED:
1. THE NATURE OF THE OVERALL PROJECT
2. PARAMETERS AND CONSTRAINTS
3. AVAILABLE RESOURCES
4. THE CLIENT’S AND THE CONSULTANT’S DESIRED
RESULTS
5. BACKGROUND INFORMATION RELATIVE TO THE
CLIENT’S ORGANIZATION
6. GENERAL GROUND RULES CONCERNING
CONFIDENTIALITY
RELATIONSHIP TENSION
Relationship tension is the tension that exists between
people when they first meet.

It can prevent the consultant from directing the client’s time
and energy toward the project to be accomplished.

The consultant’s objective during this early stage of the

consulting process is to reduce relationship tension so that the
client is comfortable focusing on the task of problem finding
and solving.

 Relationship tension usually starts out high and generally

diminishes as the process evolves.
• Task Tension is the opposite of relationship
tension. It is a positive development and
facilitates problem solving and task
accomplishment.
• In order to reduce any relationship tension, you
must build trust—make the client feel
comfortable with you and the way you work.
• It is important to remember at this stage that the
client may be sensitive to some of the issues
being discussed about his/her organization.
 There may be strong emotional elements in the
thinking patterns of the client that will result in
defensive behaviour.

 Such behaviour must be met with respect—it is

extremely important that you are sensitive to the
feelings and personal needs of the client in order
to establish trust in the relationship.
BUILDING TRUST
INTERACT AROUND A TASK:
 interact with/involve the client in the project tasks
(beginning with building the relationship)
 use relating skills to build trust and leadership
BE WILLING TO SELF-DISCLOSE:
 be open and honest about yourself---reveal yourself,
ANSWER THE UNASKED QUESTIONS:
the client may have questions about you, your
approach to work, your experience, your competence
etc. that s/he does not voice
be prepared for such questions and answer them
even if they are not asked
 Client questions at this stage:

PROPRIETY – your consulting etiquette/conduct

Do you act, talk, and look like a consultant?
Will you respect the client and his/her organization?

COMMONALITY – the degree to which you (the

consultant) and the client have common qualities
Are you (the consultant) at all like the client?
Do you have anything in common with the client?
Do you have the same interests, attitudes, background,
etc. as the client?
COMPETENCE – your qualifications/ability to do the
consulting project
Do you understand the client’s operation and
situation/problem?
Are you open to listen to what the client has to say?
Can you really help the client?
INTENT – your motivation for entering into the
relationship with the client
Are your motives compatible with the client’s needs?
What is your attitude going to be?
Will you be easy to work with?
Are you working for the client or your own self-interest?
 2. ESTABLISHING THE RELATIONSHIP
• The objective of this phase of the consulting
process is to create a win-win situation for both
parties—you, the consultant, and the client.

• In order to establish a win-win relationship, both

parties must clarify their goals, sort out
expectations and contributions, and affirm and
record (in a written contract) a mutual
agreement.
 During this phase…
THE CONSULTANT SHOULD:
 Consider what s/he can contribute to the consulting
relationship (i.e. know- how, time, results) and what
s/he hopes to get in return
 Be prepared as s/he enters the consulting relationship
to clearly, fairly, and honestly state what he will give
and what he expect in return
 Anticipate the goals, needs, and expectations of the
client be open and direct when explaining costs and
identifying the resources the client
 Must contribute to the project
 …
 Empathize with the client in addressing his/her
concerns at this stage
 Identify the source(s) of any conflict that may arise
and then deal with the source rather than the
symptoms
 Prepare a written contract to confirm the agreed upon
goals of the client and the consultant(s)
 Maintain frequent contact with the client after the
contract is negotiated
 Identify the key decision criteria that are essential for
analyzing possible alternatives
 THE CLIENT SHOULD:
1. Identify what specific knowledge, expertise,
qualities (accountability, performance,
feedback) s/he expects from the consultant
2. Consider what s/he is prepared to contribute
(i.e. in terms of time, effort, money)
3. Begin to specify the outcomes or results that
s/he expects from the project, and to
4. Identify the criteria that must be met in order
for a recommendation to be identified and
implemented be made aware of the costs
involved
 3. PROBLEM FINDING
• This is the data gathering and data analysis
stage where the client’s problem (or
opportunity) is diagnosed.
• Here the consultant finds out
– What is
– What should be,
– What the gap is,
• and decide whether it is worth working on.
 WHAT IS A PROBLEM ?
 The problem is the difference between what the
client has and what the client wants.
 It is the gap between what is (the current situation)
and what should be (the desired situation).
THE CLIENT AND THE PROBLEM:
S/HE MAY…
 not have a clear idea of what the problem is
 understand the problem but may not be confident
that the consultant understands the problem
 may not be confident that the consultant
understands enough about him/her and his/her
organization to obtain a good understanding of the
problem
 DEFINING THE PROBLEM:
The following four questions must be asked:
1. What is the current situation?
2. What is the client’s present situation?
3. How do things presently work?
4. What is the desired situation?-What does the client
want to see happening with(in) his/her organization?
5. What is the nature of the gap?-Is there a gap (and how
big is it) between the current and desired situation?
6. What forces are pushing in the direction of the desired
state,
7. What forces are blocking progress?
 PROBLEM CATEGORIES
1. Simple Problem - both the present and desired situations
are known and can be well defined
 the actions for closing the gap are obvious and straightforward
 relatively easy to define using facts, figures, and objective data
2. Hidden Problem- problems are difficult to define but
there are (often an overabundance of) obvious solutions
3. Hidden Solution - problems can be defined by facts and
figures
 cause and effect relationships are difficult to deduce
 it is not known if proposed solutions will produce the desired
outcome
4. Messy Problems - networks of interconnected problems
solving one problem in isolation may cause several more
problems
actions taken may have unpredictable outcomes
 4. SOLUTION FINDING
 During this phase of the consulting process, you
will provide the client with assistance in specifying
what exactly s/he wants and when s/he wants it.
 Alternative approaches to reaching the client’s
desired state are first generated and assessed, and
a recommendation is made thereafter.
 Usually several courses of action are possible, each
of which may contribute to the resolution of the
problem.
 In most cases, the issue of selecting the best or
optimum solution emerges.
 When this is likely to be the case, the first
contribution that you can make is to help your
client in goal setting…
 5. PLANNING THE WORK(Action Plan)
 This is the point at which you plan the work that will allow
you to achieve your (and your client’s) predetermined
objective(s), and then work the plan to ensure that what
you plan actually occurs.
 You will develop a work plan which will lay out who will do
what, when, where, how and with what resources.
 The plan will then be carried out and the progress
monitored.
PLANNING THE WORK
 list the tasks involved in carrying out the decision (choice of
alternatives) arrange them in sequence with more complex
tasks, add the estimated time it will take to complete the task,
add who will be responsible for completing the task, add
information about where the task will be carried out, and with
what tools, costs, etc.
 then…assess whether or not the plan is feasible and determine
how best to schedule each task for optimum efficiency
 WORKING THE PLAN
 Once you have a work plan, you and your client can
begin to carry it out. This phase of the consulting
process is likely to be the most exciting and
rewarding for the client.
 The consultant has a particular responsibility at this
time to ensure that information flowing back to the
client from the project is timely and specific.
MANAGING THE CLIENT’S RESISTANCE TO CHANGE:
 Some of you may find that your recommendation to
the client involves substantial or complex change for
the client and his/her organization.
 When this is the case, you may experience some
resistance on the part of the client.
 By anticipating client resistance and getting a feel for the
client’s orientation to change, (i.e. is s/he an innovator, a
late adopter, a resistor), there are a number of measures
that can be taken to both avoid it, and to deal with it when
it arises:
 provide your client with opportunities for involvement
throughout the project to gain their commitment to the changes
 divide the change into a number of smaller steps so that the
client (and the people within his/her organization) can focus on
one step at a time
 give the client advance notice of the possibility of a large or
complex change so that s/he has time to adjust his/her thinking
 the client should try to minimize or reduce the number of
differences introduced by the change and leave as many
routines/habits in place as possible
 be sensitive to the client’s concerns about the ripples that such
change would cause in his/her organization—introduce the
 6. EVALUATION AND TERMINATION
 This is the phase of the consulting process during which the client and the consultant look back over the
project and their relationship to try to establish if objectives have been met, what worked well and what
did not, and if there are any next steps following termination of the relationship.
PROJECT EVALUATION- Both you and the client must ask:
 Where are we now?
 How does this compare to where we wanted to be when we started out?
EVALUATING OF THE CONSULTING RELATIONSHIP
 Arrange a final meeting with your client to review the final report (which you will have presented to
him/her at the previous meeting), and to review what has gone on between you during the consultation,
and also to look ahead at where the relationship may have potential to go in the future.
 Be open and honest about how you perceive your consulting behaviour during the relationship.
Encourage your client to give you feedback.
 Ask him or her to recall actions on your part that were helpful.
 Get them to be specific in their answers.
 Also ask your client to recall (in detail) any times when you may not have been so helpful.
 Open yourself to feedback about your consulting skills.
TERMINATING THE CONSULTING RELATIONSHIP
 The final meeting with your client will also involve terminating the client-consultant relationship.
 You and your client should reach an agreement to terminate the relationship on a positive basis after you
have discussed the project and the relationship in detail.
 You may also want to leave the door open for further interaction with your client.
Consultancy is an activity that follows steps especially
from a consultant’s point of view. Key among them
includes:-
1.Entry & Contracting

2.Discover & Data Collection

3.Feedback & Decision to Act

4.Engagement & Implementation

5.Recycle, Extension, & Terminate

Entry & Contracting
• Negotiating
• Coping with mixed
motivation
• Exposure and
control
• Contracting
– Triangular
– Rectangular
 Discovery &
Data Collection

• Layers of analysis
• Political climate
• Resistance to share
information
• Interview as a joint
learning event
Feedback & The
Decision To Act

• Funneling data
• Presenting data
• Managing the
feedback meeting
• Focus on here and
now
• Don’t take it
personally
 Engagement &
Implementation
• Bet on engagement
over mandate and
persuasion
• Design more
participation then
presentation
• Encourage difficult
public exchange
• Change the
conversation
Recycle, Extension,
Termination

• Evaluate what
happened in
“Engagement and
Implementation”
• Decide on next step
– Recycle
– Extension
– Termination
 UNIT FOUR

SOME COMMON MODELS USED BY CONSULTANTS

• Some people might refer to a model as a
“framework,” meaning the phases or steps and
their sequence

• It can also be used as an approach to solving a

problem

• It is a representation of how things look like

Kubler-Ross model
 McKinsey 7S

Helpful when looking at organisational alignment

 SWOT analysis
Strengths Weaknesses

Opportunities Threats

Helpful to summarise a situation analysis

How to Change - Stages
Change models
Unfreezing

Refreezing

Changing
How to Change - Stages
Gerry Egan’s ‘Model B’
1. Present 2. Preferred 3. Getting there

‘Blind Spots’ Agenda Best fit

‘Story’ Possibilities
Strategies
Commitment Plan
‘Leverage’

Actions leading to positive outcomes

 Stakeholder mapping
(Mitchell, Agle and Wood 1994)

Low interest High interest

High
power

Low
power

Helpful when shaping perception research and change

 Four Actions framework
Re-shaping the value curve results from the
consideration of four actions
‘Raise’ means increasing the strength of a
existing factor
‘Reduce’ means reducing the prominence of an
existing factor (cost saving)
‘Create’ means introducing a new factor to your
recipe.
‘Eliminate’ means making a factor in your
current recipe redundant (cost saving)
 Perceived integrity

Share capital

2007
Investor diversity

Product range
(investors)

Relative cost base

(using strategy canvas)

Financial 'safety'
Gap analysis

Gp1-2012
Political' activity

FT focus

Focus on
disadvantage

Product range
(customers)
Gp2-2012

Regional presence

Capacity
building/facilitation
 Value Chain

Helpful when looking at internal capability, development and out-sourcing

possibilities
 PESTEL macro environmental forces

POLITICAL ECONOMIC

SOCIAL TECHNOLOGY

ENVIRONMENT REGULATORY/
LEGAL

Helpful as a basis for organisational design (fit for environment), horizon scanning,
scenario planning,
 Porter’s Five Forces
• Rivalry amongst those in the industry

• Bargaining power of suppliers

• Bargaining power of buyers

• Threat of new entrants

• Threat of substitute products or services

• Bargaining power of buyers

Helpful when looking at competitive positioning, segmentation approaches,

customer needs and perception
 Metrics
What get measured gets done…

…what gets rewarded gets done better.

Perverse outcomes… can we

live with the consequence of our
choice of CSF/KPI/objective
 Balanced Scorecard (MI)
Strategy Goals Measures
Perspective
ROC, EVA, Cash,
Shareholder
Financial Sales growth, Cost
satisfaction reduction
Retention
Customer
Customer Development
satisfaction
Acquisition
High quality Cycle time, Quality,
Internal people & Cash conversion,
processes Service levels

NPD, Employee
Future Learning & growth development,
Adaptability

Helpful when assessing performance, agreeing targets, MBO

 Risk analysis

High

Med
Likelihood

Low

Low Med High

Impact

Helpful when evaluating change options and strategies

 Force field analysis
Promoting forces Restricting forces

Helpful when planning pragmatic change

 Ansoff matrix

Existing New
products products

Existing Product
Penetration
markets development

New Market
Diversification
markets development

Helpful as a basis to discuss strategic options

 Directional Policy Matrix
Industry attractiveness
High Medium Low

Strong

Business
competitive Medium
position

Weak

Helpful when analysing portfolios and developing strategy

 Expansive

Recognition Affiliation

(Expressive) (Amiable)

Dominant Unassuming
(assertive)

Achievement Security
(Driver) (Analyser)
Contained
(emotionally controlled)
 How each style makes decisions

PROMOTING FACILITATING

• Boldly • Facilitating

• Prefers new alternatives • Reluctantly

• Involves others • Idealistically in terms of people

• Quickly • Prefers to be part of a group decision

• Involves others
• Concerned about decision’s effect on other
people

CONTROLLING ANALYTICAL
• Realistically • Reluctantly
• Willing to take calculated • Logically
risk • Slowly
• Independently
• Likes to study alternative possibilities in
• Prefers effective detail
alternatives • Carefully
 UNIT FIVE

BIDDING PROCESS-KEY ISSUES

WRITTTING TERMS OF REFERENCE (TORs)
 INTRODUCTION
• The terms of reference (ToR) document defines all
aspects of how a consultant or a team will conduct
an assignment eg an evaluation.
• It defines the objectives and the scope of the
assignment, outlines the responsibilities of the
consultant or team, and provides a clear
description of the resources available to conduct
the study.
 …
• Developing an accurate and well-specified ToR is
a critical step in managing a high-quality
evaluation.

• The evaluation ToR document serves as the basis

for a contractual arrangement with one or more
evaluators and sets the parameters against which
the success of the assignment can be measured.
 Unit coverage
Definition and function-
• What is a ToR? When is one needed?
• What are its objectives?
Content of TOR
•What should be included in a ToR?
•What role(s) will each of the sections of the
document serve in supporting and facilitating the
completion of a high-quality evaluation?
Preparation.
•What needs to be in place for a practitioner or
team to develop the ToR for an evaluation or
review?
Process
•What steps should be taken to develop an
effective ToR?
•Who should be involved for each of these steps?
 Meaning and Purpose of TOR
• In its singular form, “terms of reference” refers to
the document that details an assignment for an
individual evaluator or team of evaluators.
• This same phrase can also be used in the plural
(ToRs) to refer to multiple such documents.
• Terms of reference describe the purpose and
structure of a project, committee, meeting,
negotiation, or any similar collection of people
who have agreed to work together to accomplish
a shared goal.
– The terms of reference of a project are often referred
to as the project charter.
– Terms of reference show how the scope will be
defined, developed, and verified.
– They should also provide a documented basis for
making future decisions and for confirming or
developing a common understanding of the scope
among stakeholders.
– In order to meet these criteria, success factors/risks
and restraints should be fundamental keys. Very
important for project proposals.
• A ToR presents an overview of the requirements
and expectations of the evaluation.

• It provides an explicit statement of the

objectives of the evaluation, roles and
responsibilities of the evaluators and the
evaluation client, and resources available for the
evaluation
1) Why and for whom the evaluation is being done
2) What it intends to accomplish
3) How it will be accomplished
4) Who will be in involved in the evaluation
5) When milestones will be reached and when the
evaluation will be completed
6) What resources are available to conduct the
evaluation.
• Creating detailed terms of reference is critical,
as they define the:
– Vision, objectives, scope and deliverables (i.e.
what has to be achieved)
– Stakeholders, roles and responsibilities (i.e. who
will take part in it)
– Resource, financial and quality plans (i.e. how it
will be achieved)
– Work breakdown structure and schedule (i.e.
when it will be achieved)
 Note

• The specific content and format for a ToR will

vary to some degree based on organizational
requirements, local practices, and the type of
assignment.

• However, a few basic principles and guidelines

inform the development of any evaluation ToR.
 Contents of the TORs for an Evaluation
1) Background Information and Rationale
2) Specific Objectives of the Evaluation and Evaluation
Questions
3) Scope of the Evaluation
4) Approach and Methodology
5) Governance and Accountability
6) Guiding Principles and Values
7) Professional Qualifications
8) Deliverables and Schedule
9) Budget and Payment
10) Structure of the Proposal and Submission Guidelines
11) Additional References or Resources
 Key industry procurement issues
• Lack of professional conduct by providers

• Ignoring bid instructions

• Lack of appropriate company structures

• Deviation from required company and industry

standards

• Limited respect to time factor as seen from

delayed responses or no responses to requests
 Others include…..
 Sub-standard general bid quality-that do not
address bid requirements

 Misleading perception that financial capacity can

be traded for technical capability

 Companies coming up targeting industry without

proper guidance on industry work

 Limited enthusiasm to have adequate training in

the nature of the industry
 Suppliers also complain of:-
• Information dissemination

• Limited knowledge on the industry

• Limited experience to competently compete for a

bid

• Limited or even lack of enthusiasm to aspects of

the industry issues like the QHSE elements
 ….
• Unstructured business operations/establishments

• Limited access to finances

• Misleading perception that the sector is in the

‘hands’ of just a few, and thus no need to try
participate anyway!
Only Suppliers need to :-
 From a supplier context
• Several opportunities exist across the entire
value chain

• BUT a number of weaknesses still prevent a

number of suppliers from winning contracts

• A supplier development initiative is needed to

bridge the gaps
 Getting on top in the consultancy industry
– Invest in knowledge, training and information acquisition
– invest in management systems, processes and structures
– Understanding the bid document requirements and the
procedures
– Understand the nature of the industry
– Consider quality, health and safety requirements.
– Consider international standards.
– Building synergy
– Be ethical and follow the client ethical rules
– Time management of client’s work
– Use a highly qualified team instead of cutting costs
– Read the client requirements carefully
 Prequalification meaning
• Prequalification means generating a shortlist of
providers and is the first stage of the tender
process

• Prequalification is open to all providers and they

are invited using a prequalification notice.

• However, all applicants must meet certain

requirements before being shortlisted
 Note that:
 The list of pre-qualified providers is updated annually to
enhance competition.
 During this update an entity may include a list of other
providers for items which may not have been pre-qualified
or add on those items where limited providers could have
been pre-qualified.
 Where a comprehensive national list of providers is not
available, an entity may also refer to other sources of
providers like professional bodies!
 So be a registered member of such bodies that register
clients
 Why you need to be pre-qualified
• Prequalification generally:-
– Opens future opportunities

– Increases credibility of suppliers through vetting

– Enables information sharing

– Allows you access to other companies shortlist

– Fastens the procurement process

Getting pre-qualified requires you
to:
– Know the company pre-qualification procedures

– Know the structures of procurement in the company

– Know the procurement procedures and methods

– Follow instructions as given in bid documents

– Provide all documentations requested for

– Invest time in writing prequalification documents

 …..
– Use experts where you have limitations

– Ensure all information requested is provided

– Read background information carefully

– Writing a good methodology for consultancy services

– Show your understanding of the industry best practices

– Certification increases the opportunities

 Business owners need to:-
• Assessing potential opportunities to develop
and expand their business beyond current
markets, by sector and geography.

• Development strategy for non-domestic

opportunities.

• Accessing different geographical markets.

• International portals and other opportunities.

• Practical considerations when bidding for
international opportunities, for goods, works and
services "Local" knowledge.

• Key differences between bidding locally and

internationally.

• Finding a "local" partner for international

opportunities.
• Alliances and partnerships to deliver contracts across
multiple geographical regions.

• Demonstrating commitment locally to international

clients.

• Logistical and service level challenges to deliver

contracts.

• Cultural differences when dealing with international

clients.
 Tips for increasing chances to win
contracts-
• Associate with other
SME partners if your
company lacks some
key pre-qualification or
bidding evaluation
criteria such as
experience, personnel
and equipment.
VALUE ADD AND INNOVATION
 Value chain in general
• A value chain is a chain of activities that a firm
operating in a specific industry performs in
order to deliver a valuable product or service
for the market
 What is Value Add and Innovation?
Value added is used to
describe instances where a
firm takes a product that
may be considered a
homogeneous product, with
few differences (if any)
from that of a competitor,
and provides potential
customers with a feature or
add-on that gives it a
greater sense of value.
What does Value adds in Oil & Gas
Cover?
 Innovation
 The ability to innovate is now a top priority for
companies everywhere.
 The speed at which innovation occurs is accelerating,
and consumers are hungry for the new products,
services and experiences coming their way.
 But the economic climate still presents considerable
challenges.
 Most companies have seen their budgets squeezed as
a result of cost pressures.
 And game-changing innovation isn’t safe; it requires
vision, courage and long-term commitment.
 Innovation
• The scope of innovation is no longer just a case
of pushing products out of labs but, rather, of
creating value for customers by personalizing the
entire customer experience.

• So forging an organizational culture that

promotes innovation, getting closer to customers
to find out what they really want and directing
your innovation accordingly, is more important
than ever.
 What does innovation mean for your
business?
 The most innovative companies are creating new business models
and combining related products and services to form new solutions,
as well as developing new products and services.
 The top innovators also treat innovation like any other business
process.
– They define the sort of innovation they want and how to measure it.
– Then they establish a disciplined R&D structure, with rigorous
processes that can be reiterated and scaled up.
 These companies don’t try to do everything themselves.
– They collaborate extensively with a wide range of partners both inside
and outside their industries.
– They co-create new products and services with customers.
– And they experiment with different ways of innovating, such as open
innovation and incubation.
 Value Add or Innovation as a strategy

• Understand when either Value Add and/or

Innovation can be utilized appropriately in a
tender.

• Consider the issues of Value Add and Innovation

from a Client and Customers perspective.

• Use Value Add and Innovation as key

differentiators in their bid versus the majority of
bidders who fail to recognize these issues.
 Value Add or Innovation as a strategy

• Understand where and when across the contract

management lifecycle that these tactics can be
used effectively.

• Scorecards and tracking the benefits is critical.

Expanding Business opportunities in
the consultancy industry
 Dos for Business Owners
• Assessing potential opportunities to develop and
expand their business beyond current markets, by
sector and geography.

• Development strategy for non-domestic

opportunities.

• Accessing different geographical markets.

• International portals and other opportunities.

 Dos for…..
• Practical considerations when bidding for
international opportunities, for goods, works and
services "Local" knowledge.

• Key differences between bidding locally and

internationally.

• Finding a "local" partner for international

opportunities.
 Dos for …..
• Alliances and partnerships to deliver contracts across
multiple geographical regions.

• Demonstrating commitment locally to international

clients.

• Logistical and service level challenges to deliver

contracts.

• Cultural differences when dealing with international

clients.
If your bid for the sector
contract is unsuccessful,

Dos for ….
persevere and look for the next
opportunity. You may have to
submit a number of tenders
before you win a contract.

Use each tender application as a

learning experience. You’ll find
that as you become more
experienced the process

perseverance
becomes easier and you’ll
become more adept at
addressing the requirements
and evaluation criteria inherent
in Oil & Gas sector procurement.
 Practical considerations when bidding for
international opportunities
• Responses need careful
consideration and planning if you
are to complete it and provide all
the necessary information on time.

• Focus on most important criteria

against which the tender will be
Evaluated, prioritise and make a list
of those criteria to refer back to.

• Designate one person in the

company to coordinate and
compile your bid and to allocate
individual tasks, such as research or
the compilation of supporting
documents and accounts.

As part of the planning process

compile a checklist to make sure
that you have covered all the
required aspects including all the
mandatory criteria.
 Practical considerations when bidding ….

• The tender should give you the chance to demonstrate

how you meet the evaluation criteria.

• If the specification does not clearly give you that

opportunity, tell the buyer how your solution addresses
them.

• Consider the weightings; a question relating to a high

weighting criteria will require a more in-depth-answer
than one with a low waiting.
 Practical considerations when bidding for ……

• Even if the question asks about a contract you are hoping to

deliver, mention and provide examples of previous experience to
demonstrate that you are not proposing a new or theoretical
solution.

• If required, ensure you provide complete and correct

documentary evidence. Include full details of individual
employees’ skills, qualifications and experience of similar work.

• Your main aim is to demonstrate your ability to deliver.

• Ensure your contact with the buyer is purely on business ethical

basis.
 Development strategy for non-domestic
opportunities
The first thing you need to do is analyse the market
research is key. This is important, whether you’re keeping
up-to-date with an existing market or learning about a
market that’s new to you. Look at trade journals, websites
and the financial press to identify the organisations that
purchase the goods and services you offer. Find out how
often they award contracts, the size of the contracts and
where they advertise.

Remember that your goods or services must meet the

actual needs of your potential customers, not the needs
you think those customers have. So analysing the market
should include developing an appreciation of your
potential clients’ requirements.

Find out who the current suppliers are in the market, and
who your competitors are. Your aim at this stage is to
decide if the market offers you opportunities that are Nic
worth pursuing further.
hol
s
Tra
ini
160
160 ng
Li
 Accessing different geographical markets.
The saying “ the world today is a global village”
is evident as a result of the “dot.com” era. The
following avenues have made it possible for the
Business Community to access the different
Geographical markets easily-
• The website, internet connection
• Social networks
• TV and outdoor advertisement
 Accessing different geographical markets.
Other avenues include-
 Regional and international trade shows
 Organized trade blocks such SADAC, EAC, EU etc
 Trade magazines
 Print media
 • Small to medium value
Key differences between
• Bidding might bidding
be limited locally
to local providers
• May not attract international providers
and internationally.
Local • Simple to detailed international
bidding documents
• Bid securities might be optional alternatively,
bidders might be required to furnish bid
declaration letters

• Usually high value and/or complex projects

• Generally open to competition.
• Detailed bidding documents are used
• Domestic preference schemes might be allowed
• Bid securities are usually a must
 Logistical and service level challenges in
delivering contracts

Provider’s side Buyer’s side

 Misunderstanding of client
requirements during bidding
stage.
 Failure by the manufacturer of
goods • Abrupt changes in scope of work, designs and/or
 Lack of adequatespecifications.
capital
• Technological
 Lack of competent personnel changes
• between
 Trade barriers Lack of funds to pay for the contract.
countries • Un readiness to take over sites/supplies at time of
delivery.
 Delays in settlement of invoices
by clients • Corruption
 Changes in taxes
 Cultural difference -international clients.
There are several differences in the cultures the
international clients which the local providers
need to be aware of. Below are a few examples-
• Time difference for concluding businesses
• Verbal and non-verbal signals
• Body language (e.g., facial expressions, shaking
hands)
• Acknowledgement (e.g., “thank you”)
• Dressing
• Strict ethical conduct etc
 In bid meetings…
Do your homework – think of the questions you
might be asked
Work in your elevator pitch
Don’t make statements you can’t back up
Ask questions back – seek to clarify
Be honest – if you don’t know something, admit
it
Take responsibility – show how you will add value
Agree follow up actions – and do yours
 UNIT SIX

MARKETING CONSULTANCY
 Brand

“A relationship with the customer”

“A promise”

“essence – identity – experience”

Competitive Advantage
D
i Patents
f Copyright Brand Values
f
i Registered Design/logo
Distribution Channels
c
u Strategic People, team, knowledge
l
t Tactical Positioning
y
Product quality
Pricing
Customer Service
Promotions
Time taken to copy
 Branding and the entrepreneur
 Brand often linked with entrepreneur
 Brands are built – you don’t start with a strong
brand
 Brand development is a consequence of doing
business
 Does the brand have ‘stretch’?
 Can you protect your brand?
 10 entrepreneurial branding
tips
1. The design of your logo really doesn’t matter.

1. Have a professional website.

2. Blogs are good.

3. Blogs are good, but they’re just one tool.

4. Prepare a one page corporate overview.

5. Participate in local business events.

6. Do what you say you’re going to do.

7. Stand for something.

8. Realize that you’re not in total control of your brand.

9. Branding is as much about your people as anything else.

 Entrepreneurial Marketing
• Opportunistic – make the most of an
opportunity

• Customer focussed

• Proactive

• Innovation focussed

• Resource leveraging
 Executive Presence Model
Professional
Stories image

Politically Social
aware skills

Inspirational
Courage presenter

Future
Self belief orientation

State
Corporate
management
view

© DTC Ltd
Passion Clarity
 Questioning – 8 views
1. Questioning for whose benefit?
2. Open-ended to explore…
3. …closed to verify
4. ‘Why’ – raises level of (but intrusive)
5. ‘How’ – homes in on practicalities/detail
6. ‘Have you considered…’ – quegestions
7. Prefixing reduces the threat of questions
8. Checking understanding - powerful
 Listening (after Nancy Kline)
• Pay beautiful attention to the client, don’t
even think about interrupting, make sounds
only occasionally to indicate understanding or
encouragement, keep your eyes on your
client’s eyes, don’t ask picky questions, smile
occasionally, look interested, be interested and
be at ease…
…and don’t even think about interrupting.

• Clients are capable of sorting out 70% of

their own problems
Zones of debate
Zone of ‘comfortable’ debate

Zone of ‘uncomfortable’ debate

Intuitive core

Source: Cliff Bowman

Personal change process
• Denial

• Anger

• Bargaining

• Depression

• Acceptance
 Strategic thinking
1. Systems perspective – mental model of the complete
system for value creation (and implications)
2. Intent focused – to be more determined and less
distractible
3. Thinking in time – past/present/future in mind at the
same time
4. Hypothesis driven – creative and critical thinking
5. Intelligent opportunism – being responsive to good
opportunities (changing environment)
1. Managing multiple stakeholders

2. Report production

3. Preparing for client presentations

Analytical Thinking follows the scientific
approach to problem solving

Problem

Solution Hypothesis

Analysis Facts

181 of 58
 Problem

Solution Hypothesis

Defining the Problem Analysis Facts

Definition:
• A problem is a situation that is judged as something that needs to be
corrected – implies that a state of "wholeness" does not exist
Importance:
• It is our job to make sure we’re solving the right problem – it may not be the
one presented to us by the client. What do we really need to solve?
Basic Concepts:
• Most of the problems are initially identified by our clients
• Defining the problem clearly improves focus – it drives the analytical process
• Getting to a clearly defined problem is often discovery driven – Start with a
conceptual definition and through analysis (root cause, impact analysis, etc.)
you shape and redefine the problem in terms of issues

182 of
58
 Problem

Solution Hypothesis

Collecting the Facts Analysis Facts

Definition:
• Meaningful information (has merit – not false) that is qualitative (expert
opinions) or quantitative (measurable performance) to your decisions
Importance:
• Gathering relevant data and information is a critical step in supporting the
analyses required for proving or disproving the hypotheses
Basic Concepts:
• Know where to dig
• Know how to filter through information
• Know how to verify – Has happened in the past
• Know how to apply – Relates to what you are trying to solve

183 of
58
 Problem

Solution Hypothesis

Conducting the Analysis Analysis Facts

Definition:
• The deliberate process of breaking a problem down through the
application of knowledge and various analytical techniques
Importance:
• Analysis of the facts is required to prove or disprove the hypotheses
• Analysis provides an understanding of issues and drivers behind the
problem
Basic Concepts:
• It is generally better to spend more time analyzing the data and
information as opposed to collecting them. The goal is to find the “golden
nuggets” that quickly confirm or deny a hypothesis
• Root cause analysis, storyboarding, and force field analysis are some of
many analytical techniques that can applied

184 of
58
 Problem Identification
• A problem becomes known when a person
observes a discrepancy between the way things
are and the way things ought to be. Problems
can be identified through:
– Comparative/benchmarking studies
– Performance reporting - assessment of current performance
against goals and objectives
– SWOT Analysis – assessment of strengths, weaknesses,
opportunities, and threats
– Complaints
– Surveys
– Etc.
185 of
58
 Getting to the "Root" of the
Problem
• Sometimes the thing we think is a problem is
not the real problem, so to get at the real
problem, probing is necessary
• Root Cause Analysis is an effective method of
probing – it helps identify what, how, and why
something happened
• Definition of root cause:
– Specific underlying cause
– Those that can reasonably be identified
– Those that management has control to fix
186 of
58
 Root Cause Analysis Technique -
Five Why’s
Five Why's refers to the practice of asking,
five times, why the problem exists in order
to get to the root cause of the problem
Employee
turnover
rate has Why? Why? Why? Why? Why?
been
increasing

Employees are Employees are not Employees feel Other employers Demand for such
leaving for other satisfied that they are are paying higher employees has
jobs underpaid salaries increased in the
market
187 of 58
 Root Cause Analysis Technique –
Fishbone Diagram
Fishbone Diagram (a.k.a. Cause and Effect Diagram) is an
analysis tool that provides a systematic way of looking at effects
and the causes that create or contribute to those effects.
Cause Cause
Detail Detail

Result (Problem)

Detail Detail

Cause Cause

The value of the Fishbone Diagram is that it provides a method

for categorizing the many potential causes of problems or issues
in an orderly way and in identifying root causes 188 of 58
 Other Root Cause Analysis
Techniques
 Force Field Analysis – Visually show forces that impact
your problem or issue
 Scatter Diagrams – Graphs the relationship of two
variables – quantifies the correlation, showing how
one variable influences another
 Process Mapping – Maps the “as is” flow of activities
that make up a process – look for excessive handoffs,
redundancies, and other root causes of inefficiencies
 Benchmarking – Compares existing performance to
another internal or external source, identifies issues
not otherwise revealed through other techniques
189 of
58
 Basic Questions to Ask in Defining
the Problem (regardless of the
technique used)
Who What Where

• Who is causing the • What will happen if this problem • Where does this problem occur?
problem? is not solved? • Where does this problem have
• Who says this is a problem? • What are the symptoms? an impact?
• Who are impacted by this • What are the impacts? • Etc.
problem? • Etc.
• Etc.

When Why How

• When does this problem occur? • Why is this problem occurring? • How should the process or
• When did this problem first start • Why? system work?
occurring? • Why? • How are people currently
• Etc. • handling the problem?
Etc.
• Etc.

190 of 58
 Issue Diagram is an effective
method for breaking down
problems and formulating
hypotheses
Hypothesis
Hypothesis#1A
#1A

Key
KeyQuestions
Questions #1C-a
#1C-a
Hypothesis
Hypothesis#1B
#1B
Issue
Issue#1
#1 Key
KeyQuestions
Questions #1C-b
#1C-b
Hypothesis
Hypothesis#1C
#1C
Key
KeyQuestions
Questions #1C-c
#1C-c
Hypothesis
Hypothesis#1D
#1D
Key
KeyQuestions
Questions #1C-d
#1C-d
Problem
Problem Issue
Issue#2
#2

Issue
Issue#3
#3
191 of 58
 Key Components of Issue
Diagram

Questions which need to be answered or

Issues topics which need to be explored in order
to solve a problem

Speculative answers for issues that are

Hypotheses phrased as questions and/or areas of
exploration for issue phrased as topics

Questions that probe hypotheses and

Key Questions drive the primary research required to
solve the problem

192 of 58
 Identifying the Issues
What key topics should
we explore to help the
client solve this problem?
Client wants to decide
whether they should
divest their widget X Is there a market for
Issue
Issue#1
#1 divesting this business?
manufacturing
business

Is this a cost effective

Problem
Problem Issue
Issue#2
#2 solution for the client?

What impacts will there be

Issue
Issue#3
#3 for the displaced
employees?
193 of 58
 Key to Identifying Issues
1. Develop a comprehensive list of all possible
issues related to the problem
2. Reduce the comprehensive list by eliminating
duplicates and combining overlapping issues
3. Using consensus building, get down to a
“major issues list” (usually two to five issues)

194 of
58
 Formulating the Hypotheses
Hypothesis
Hypothesis#1A
#1A The market is large.
Market Interest?
Issue
Issue#1
#1 Hypothesis
Hypothesis#1B
#1B

Etc.
Etc.
Divest Widget X Cost
Hypothesis
Hypothesis#2A
#2A
Business? Effectiveness? What are some
possible answers to
Problem
Problem Issue
Issue#2
#2 Hypothesis
Hypothesis#2B
#2B the issues?
Etc.
Etc.
Impacts on Hypothesis
Employees? Hypothesis#3A
#3A Large percentage of
employees will likely retire
Issue
Issue#3
#3 Hypothesis
Hypothesis#3B
#3B in two years.

Etc.
Etc. 195 of 58
 Framing the Key Questions
How many players
Key
KeyQuestion
Question#1A-a
#1A-a are there in the
The market is large. market?
Market Interest?
Hypothesis
Hypothesis#1A
#1A Key
KeyQuestion
Question#1A-b
#1A-b
Issue
Issue#1#1 How many are
Hypothesis large enough to
Hypothesis#1B
#1B Key
KeyQuestion
Question#1A-c
#1A-c take on the client's
business?
Divest Widget X
Business? Cost Effectiveness?
Hypothesis
Hypothesis#2A
#2A
Problem Issue What questions need to be
Problem Issue#2#2 answered to prove/disprove
Hypothesis
Hypothesis#2B
#2B the hypothesis?

Large percentage of
employees will likely retire Key
KeyQuestion
Question#3A-a
#3A-a
Impacts on in two years.
Employees?
How many
Hypothesis
Hypothesis#3A
#3A Key
KeyQuestion
Question#3A-b
#3A-b employees are 50
Issue years old or older
Issue#3#3 and interested in
Hypothesis
Hypothesis#3B Key
#3B KeyQuestion
Question#3A-c
#3A-c retiring?
196 of 58
Common Pitfalls in Creating
Issue Diagram
Issues which are:
• Too broad, which expand beyond the objectives
• Too narrow
Issues • Too many to be easily remembered
• Of uneven weight
• Not sequenced effectively

Hypotheses which are:

• Too few to cover the issue
• Too many to be easily remembered
Hypotheses • Not supportable by data
• Not directly relevant to the issue

Key questions which are:

• Too few to test the hypotheses
Key Questions • Too many to be easily remembered
• Irrelevant to the hypotheses
• Not answerable with data
197 of 58
 Key Messages
 Issue diagrams provide a framework for
brainstorming and documenting the issues
driving the problem and identifying the facts (i.e.
data) required to support conclusions and
recommended solutions
 Hypotheses and the key questions will help
shape data collection requirements and ensure
that only relevant data is collected
 Formulation of hypotheses and key questions is
an evolving process – they will need to be
revised as new insights and discoveries are made
198 of
58
 Brainstorming – A Method for
Identifying Issues and Formulating
 Hypotheses
Brainstorming is useful when there is a wide range of
possible issues and solutions
 Brainstorming is not appropriate for testing an idea; it
is used to generate ideas
 There are numerous brainstorming techniques, which
include group brainstorming, individual brainstorming,
and storyboarding
 Individual brainstorming is usually not recommended
unless time is too tight, participants are rarely
available, group is too large, etc.
 Brainstorming can be useful for Force Field Analysis –
identifying all forces impacting the problem
199 of
58
 Tips for Brainstorming
1. State the purpose and objective of the
brainstorming session from the onset
2. Set ground rules for participants
3. Give everyone an opportunity to participate
4. Solicit all ideas and opinions – nothing is
rejected until consensus building takes place
5. After exhausting all ideas, eliminate certain
ideas, e.g. not relevant, duplicative, etc.
6. Finalize outcome of the brainstorming process
through consensus: Highest Priority, Assigning
Points, etc.
200 of
58
 Getting to the Facts
 In order to answer the key questions and validate
the hypotheses (presented in the earlier steps),
collection of factual information is necessary
 First critical steps are to identify what information,
i.e. data elements, is required and develop a data
collection approach/technique
 Depending on the type of problem being solved,
different data-collection techniques may be used
 Combining a number of different techniques allows
looking at problems from different perspectives
 Data collection is a critical stage in problem solving -
if it is superficial, biased or incomplete, data
analysis will be difficult
201 of
58
 Using the Issue Diagram to
identify data and information
needs
• Number of
companies in the
How many are industry
Key large enough to • Revenues for the
KeyQuestion
Question#1A-a
#1A-a take on the client's last 5 years
business? • Etc.
Issue
Hypothesis
Hypothesis#1A
#1A Key
KeyQuestion
Question#1A-b
#1A-b
Issue#1#1
Hypothesis #1B
Hypothesis #1B

What information or data

Problem Issue #2
Hypothesis #2A
Hypothesis #2A Key
KeyQuestion
Question#1A-c
#1A-c needs to be collected to
Problem Issue #2
Hypothesis #2B
Hypothesis #2B
answer these questions?

Hypothesis
Key
KeyQuestion
Question#3A-a
#3A-a • Ages of the
Hypothesis#3A
#3A
Issue
Issue#3#3
Hypothesis #3B
Hypothesis #3B How many employees
Key employees are 50 • Employee interest
KeyQuestion
Question#3A-b
#3A-b level
years old or older
and interested in • Etc.
Key
KeyQuestion
Question#3A-c
#3A-c retiring?

202 of 58
 Data Collection Techniques

Technique Description Tools

Using
UsingAvailable
Available Using data that has already been • Checklist
Information collected by others • Data compilation forms
Information
Systematically selecting, watching
and recording behavior and • Eyes and ears
Observing
Observing characteristics of people, objects or • Data compilation forms
events

Oral questioning of respondents, • Interview guide

Interviewing
Interviewing either individually or as a group • Data compilation forms

Collecting data based on answers

Administering
AdministeringWritten
Written • Survey
provided by respondents in written • Questionnaire
Questionnaires
Questionnaires form

Facilitating free discussions on

Conducting
ConductingFocus
Focus • Flip charts
specific topics with selected group
Groups
Groups of participants
203 of 58
 Importance of Combining
Different Data Collection
Techniques
Qualitative Techniques Quantitative Techniques
(Flexible) VS. (Less Flexible)

• Produce qualitative data that is often • Structured questionnaires designed to

recorded in narrative form quantify pre- or post-categorized
• Useful in answering the "why", "what", answers to questions
and "how" questions • Useful in answering the "how many",
• Typically includes: "how often", "how significant", etc.
– Loosely structured interviews using questions
open-ended questions • Answers to questions can be counted
– Focus group discussions and expressed numerically
– Observations

A skillful use of a combination of qualitative and

quantitative techniques will give a more 204 of 58
 Conducting the Analysis
• The next step in problem solving is to "make sense"
of the information collected in the previous step
• There is an abundance of analytical techniques that
can be applied for understanding:

What
Whatare
arethe
themost
mostimportant
importantissues?
issues? Pareto
ParetoAnalysis
Analysis

What
Whatperformance
performanceareas
areasare
areweak?
weak? Benchmarking
Benchmarking

What
Whatare
arethe
thecore
corecompetencies
competenciesof
ofthe
theclient?
client? SWOT
SWOT

What
Whatforces
forcescan
caninfluence
influencethe
theproblem?
problem? Force
ForceField
FieldAnalysis
Analysis
205 of
58
 Specific Sequential Steps that
lead up to the Analysis

Make sure you know what you are trying to solve – Clearly
1 defined issues or questions drive the analysis!

Match up the clearly defined question or issue with the

2 appropriate analytical tool(s)

Once you’ve matched up the analytical tools against the

3 question or issue, then go out and collect the facts

206 of 58
 Apply analytical tools and move
back upstream
1. Start with clearly defined issues or questions

How many are large 2. Select the Analytical Tool

enough to take on the
# of companies in
client's business? # of companies in
industry
industry
Key
KeyQuestion
Question#1A-a
#1A-a

Revenues for last 5

Hypothesis
Hypothesis#1A
#1A Key
KeyQuestion
Question#1A-b
#1A-b
Revenues for last 5 Benchmarking
Issue #1
Issue #1 years
Hypothesis #1B
Hypothesis #1B
Key
KeyQuestion
Question#1A-c
#1A-c years

Hypothesis #2A
Hypothesis #2A
What analysis needs to
Problem Issue #2
Problem Issue #2
Hypothesis
Hypothesis#2B
#2B
be done to answer this
question?
Hypothesis
Hypothesis#3A
#3A Key
KeyQuestion
Question#3A-a
#3A-a
Issue
Issue#3#3 Age of employees 3. Collect required information per
Hypothesis #3B
Hypothesis #3B Key
KeyQuestion
Question#3A-b
#3A-b Age of employees
Key
KeyQuestion
Question#3A-c
#3A-c
the Analytical Tool selected
How many employees Employee interest level
Employee interest level
are 50 years old or in retiring
in retiring
older and interested
in retiring?
4. Once you complete your analysis, move back upstream
to answer the key question you started with
207 of 58
 Analytical Techniques
 Benchmarking – Compare and measure a process or
activity against an internal or external source
 SWOT Analysis – Assessment of strengths, weaknesses,
opportunities, and threats
 Force Field Analysis – Overall environmental landscape
and how it impacts the subject
 Cost Benefit Analysis – Compare total equivalent costs (all
the minuses) against equivalent value in benefits (all the
pluses)
 Impact Analysis – What if type analysis to assess the
impact of change on an agency
 Pareto Chart – Bar Chart for categorizing issues or other
attributes in terms of importance
208 of
58
 Benchmarking
 Measures and compares your performance
against other similar activities or processes
internally or externally
 Differences indicate possible performance issues
 May be difficult to collect comparable
measurement data
 Comparing “best in class” performance is better
than comparing average performance
 Best sources of data are in the private sector -
Hays Benchmarking, Benchmarking Exchange, The
Benchmarking Exchange, etc.
209 of
58
 Benchmarking Example
Average Days for Source Selection
Air Force . . . . . . . . . . . 75 Days
Army . . . . . . . . . . . . . . . 96 Days

Navy . . . . . . . . . . . . . . . 116 Days

Canadian Army . . . . . . 145 Days
210 of
58
 SWOT – Strengths Weaknesses
Opportunities Threats
• Identifies Strengths, Weaknesses, Opportunities,
and Threats by asking: What things are we good
at, what things are we not good at, what things
might we do, and what things should we not do?
• Probably the most common analytical tool for
strategic planning
• Somewhat subjective
• Easy to understand and follow
• Very useful for identifying the core
competencies of any organization
211 of
58
 SWOT Example
Internal
Internal Assessment
Assessment of
of the
the organization,
organization, its
its people,
people, services,
services, competencies,
competencies, etc.
etc.
Strengths Weaknesses
Client has a global infrastructure to Client has limited resources for
service all types of customers expanding its global reach
Services are in high demand in most Key processes are not very cost competitive
parts of the world when compared to other service providers

External
External Assessment
Assessment of
of direct
direct and
and indirect
indirect forces,
forces, social,
social, economic,
economic, political,
political, etc.
etc.
Opportunities Threats
Untapped demand exists in almost half Other clients are investing in newer
of the World technologies

New Technologies make it possible to Some clients are entering into strategic
expand service reach partnerships to expand their global
footprint 212 of
58
 Force Field
• Visually shows significant forces that impact
the problem
• Forces tend to be those factors that promote
or hinder a solution to a problem
• Prioritize forces between direct (more
important) and indirect (less important)
• May need to brainstorm to generate ideas to
list all forces
213 of
58
 Force Field Example
Problem:
Problem: Agency
Agency is
is not
not strategically
strategically focused
focused

Positive
PositiveForces
Forces–– Negative
NegativeForces
Forces––
Promotes
Promotesthe
theSolution
Solution Inhibits
Inhibitsthe
theSolution
Solution

• Defense Department is promoting the • Public Sector mandates lack enforcement

Balanced Scorecard teeth – no major urgency to become
• Federal Public Sector has mandates such strategically focused.
as GPRA • Agency is not resourced to develop
• Lower level agencies have balanced strategic plans and execute on non-
scorecards in place strategic issues
• Strategic planning is growing in • Agency has too many other change
importance within the entire public sector initiatives going on

Direct – More Important Indirect – Less Important 214 of

58
 Cost Benefit
 Identify all expected costs and benefits to make
sure the decision has economic merit.
 Costs includes all tangible outlays (time, money,
etc.) and intangible /qualitative factors where you
can assign some value
 Compare using a set of decision criteria – oranges
to oranges, apples to apples, etc.
 Look at the net changes between making the
decision vs. not making the decision
 Office of Management and Budget Circular A-94
provides guidelines on how to do cost benefit
analysis in the Federal Public Sector.
215 of
58
 Impact Analysis
 Identifies broad and diverse effects or outcomes
associated with a problem and/or the proposed
solution
 Answers certain questions: How will this change
impact our agency? What are the consequences of not
acting on the problem?
 Objective is to minimize adverse or negative impacts
going forward
 Very useful in assessing risk of different proposed
solutions – helps you reach the right solution
 Numerous tools can be used to assess impacts
216 of
58
 Impact Analysis Tools
 Scenario Playing – Storyboarding out how the future
will unfold between alternatives: Do Nothing vs.
Solution
 Cost Benefit Analysis - Used to quantify impacts
 Decision Tree Analysis – Build a tree and assign
probabilities to each alternative to arrive at the most
likely solution
 Simulation – Modeling a process and seeing how it
changes when one or more variables change
 Prototype Model – Build and test the solution on a
small scale before implementation to flush out lessons
learned
217 of
58
 Pareto Analysis
 Quantifies what is most important on a graph – 80 / 20
Rule
 Puts focus on the significant problems or issues
 Must group problems or issues based on a common and
measurable attribute (such as reworks, errors,
downtime, hours, etc.) = Left Vertical Axis of Bar Chart
 Must categorize problems or issues – what type is it?
(poor quality, long wait times, etc.) = Right Horizontal
Axis of Bar Chart
 Plot the data and rank according to frequency –
descending order from left to right
218 of
58
 Pareto Chart
# of Employees, etc.Measure
Downtime, Errors,

Causes, Products, Mfg. Lines, Operators

Categories Machines, Defect Types, etc. 219 of
58
 Key Messages
• Don’t rush out and collect information until you know
what analytical tools you need to use – each tool has
its own information needs
• Use a combination of tools to cover all the bases
• All decisions involve some assumptions – so you will
never have all the facts
• Analysis is a discover driven process, it moves
incrementally in baby steps – you learn, adjust and go
through numerous iterations until you have insights;
i.e. you can now take action on the issue or problem
220 of
58
 Basic Concepts
• Select and plan the solution that has the
greatest impact on solving the problem
• Use a solutions rating matrix to weigh different
solutions based on selection criteria (costs,
probability of success, ease of implementation)
• Solutions should have support from your
previous analysis that you can clearly
communicate to the client
• Test your solutions as much as you can – use
some of the Impact Analysis Tools
221 of
58
 Key Messages
 100% out-of-the box solutions don’t exist
 No solution is a guarantee – be flexible with
implementation and be willing to revisit your
requirements
 Solutions rarely work unless you get buy-in and
commitment from the client – if the client refuses
to accept the solution, it will not work!
 Be prepared to back up your solution with an
implementation plan, complete with milestones
to measure performance
222 of
58
 Building a consultancy firm
1. Start-up basics requires:
2. Planning
3. Implementation
4. Sustainability
5. Profitability
6. Staffing
7. Developing a culture
 UNIT SEVEN

WRITING CURRICULUM VITAE AND CONSULTANCY

REPORTS
WITTING CURRICULUM VITAE
 The skills, experiences, and specific keywords that
consultants and recruiters look for

• Consultants are generally looking for the following

skills and experiences in resumes:
– People management and team leadership
– Client interaction – both sales and relationship
building
– Technical and quantitative analytics and research
– Proven-track record of success at prior jobs as
demonstrated by promotions and increasing
responsibilities
– Quantifiable individual and team-oriented results
• A consultant needs a broad range of skills that
go beyond pure technical abilities.

• All this needs to be conveyed in your

resume /CV, if you're to successfully convince
the employers that you're the person they're
lookingfor
 Basic Principles
• Relevance
– Curriculum Vitae means “story of your life”.
However, with only one or two pages for your CV
you can’t afford to treat this literally.
– Be selective about what you include. Always ask
yourself the question “Is this going to be relevant to
the employer who is reading this?”. If it isn’t, then
that’s an argument for discarding it. Try and get the
most relevant information on the first page as this
will create the most impact.
• Targeting
– Your CV needs to match the particular job you are
applying for.
– For example, if the job requires skills in teamwork
and creativity, you need to ensure the employer can
clearly see that you have gained these skills
somewhere in your life.
– Maybe you worked in a team on a course project or
perhaps you had a creative idea for an event which
a society organised.
– The important thing is that the employer can see
that your CV is targeted to them and not a general
CV that is being sent to every employer.
• Layout and Design
– You can influence where the employer looks on your
CV by the amount of space you allocate to certain
sections.
– For example, in your education section for most
circumstances you’ll want to draw employers to
your degree. You can do this by giving it more space
than any other courses or degrees you have done.
– You should also think carefully about your choice of
headings to highlight key experience.
• Language
– Using positive, action oriented words creates the
impression of a positive, active person.
– Use words such as “achieved”, “created” and
“organised” and avoid tentative words such as
“maybe”, “attempted” and “perhaps”.
– The aim is to make your CV as persuasive as
possible.
• Truthfulness
– As well as being against the law to lie on your CV,
you should be able to talk about anything on your CV
at interview, even details in your interests and
extracurricular activities sections.
– You don’t know what kinds of things your
interviewer might also be interested in or have
knowledge about so make sure they can’t expose
anything that isn’t completely accurate
In general, all resumes/CVs should
include:

1) A header section with personal information

2) Sections for work experience, educational
background
3) Bulleted text as opposed to text paragraphs
4) Key information on each experience such as your
title, the location, and length of time involved
• In addition, most consulting resumes do not have
a lead “summary” or “objectives” section as is
common in international CVs.
• Two reasons:
– Your summary and objectives should be
communicated clearly through your achievements

– Resume readers are busy – a summary section adds

little additional value
WRITING CONSULTANCY/ASSIGNMENT
REPORTS
 CASE STUDIES
• For an evaluation assignment

• For a Project assignment

• For a public administration assignment

• For a public procurement assignment