By Alhaji A.L. Buhari
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1 By Alhaji A.L. Buhari
2 Outline Introduction Definitions Evolution of Consultancy Practice The Consulting Process Consulting Management Style Versus a Command and Control Management Style The Big Five Consulting Firms
3 Outline (Cont d) Success from What Perspectives Pre-requisites for Starting a Successful Consulting Practice The Basic Infrastructural Requirements Adequate Knowledge of Consulting Process Pre-requisites for Success
4 Introduction Definitions There are many definitions of consulting depending on who is providing the definition. Some common ones include the following: The business of providing advisory services The process of seeking information from a knowledgeable professional in a specific area of study. The art of specializing in giving professional advice within a profession or to the public.
5 Evolution of Consulting Practice Consulting Before the Emergence of the Big Eight The Big Eight Consulting Firms The Big Mergers that Resulted in the Big Four/five Consulting Firms The Small Consulting Practices
6 The Big 5 Consulting Firms Accenture (formerly Andersen Consulting a spinoff of Arthur Andersen) Deloitte & Touché (merger of Deloitte Haskins and Sells with Touché Ross) Ernst and Young (merger of Ernst & Whinney with Arthur Young) PriceWaterhouseCoopers (merger of Price Waterhouse and Coopers and Lybrand KPMG (Formerly Klynveld Kraayenhof &Co William Barclay Peat& Co Marwick, Mitchell& Co., anddeutsche Treuhand Geselleschaft)
7 Success From What Perspective? Building a successful consultancy practice from what perspective? There are two obvious situations. There is the case of big audit firms which do not have successful consultancy practices, and
8 Success From What Perspective?(cont d) There is the case of small practices which are finding it difficult to find their feet This paper shall deal mainly with the small firms and how to build a successful practice. However, we shall make allusion to the big firms during our presentation.
9 Pre-requisites for Starting a Successful Consulting Practice You must have a great desire to be independent Consulting work must be satisfying and enjoyable to you. Working hard must be enjoyable to you. Some reasonable amount of funding must be available at inception Being an extrovert does help, though not mandatory.
10 Building a Successful Practice When You are Small What kind of consulting practice do you want to establish? What model do you want to follow? The traditional model or The virtual organization model
11 Building a Successful Practice When You are Small Irrespective of model, the potential client base is crucial Do you have clients who trust your consulting skills in a defined specialist area? Does the trust translate to a firm assurance of of consulting briefs when you are on stream? Do you trust a reasonable number of trusted and bright colleagues who trust your judgment and are willing to follow you to establish the practice?
12 Positive Attributes Desired in Consultants The consultants that would follow you or that you would recruit must possess the following attributes: Must possess ability to cooperate with others. Must be personalities that are bright and skilled in their specialist areas Must possess both technical and marketing skills, and Also important is ability to demonstrate leadership in the work place.
13 Practices Which Tended to be Frowned Upon in C/Firms Too much preference for giving orders Inability to be a patient listener Behaving as if one knows the right answer to every problem
14 Consulting Vs Command Style in Running the Consulting Firm Style in running the consulting practice matters. Consulting management style is very different from a command and control management style. Highly productive, positive corporate cultures do not use the autocratic management style of command and control in running a practice today It does not work with educated, self-aware people. Such people prefer participative involvement in their work environment
15 Basic Infrastructures Must be in Place These must include: Laptops and internet facility for all or key staff Communication equipment such as telephones and cell phones Access to fax, photocopy and report binding facilities All these are required in order to make the firm competitive in the delivery of consulting services
16 Adequate Knowledge of Consulting Process There are about 10 steps involved: - Entry - Contract/Proposal - Data Collection - Analysis - Feedback - Alternatives
17 Adequate Knowledge of Consulting Process (Cont d) - Decision - Action - Evaluation - Exit
18 Developing Consulting Skills & Competences over Time Consulting skills are acquired by design There is usually a six point plan of skill development Basic academic/professional qualification Apprenticeship opportunities Mentoring Reading Continuing education On the job experience
19 Pre-requisites for Success in Consulting Specialty-Related Skills and Knowledge -These refer to those basic and advanced skills and knowledge required in a chosen field that are needed to provide expert advice to clients and to be seen as credible by prospective clients - The skills and knowledge depend on the field the consulting firm desires to practise in - Its is important to know your field well, and - what it requires to market yourself as a consulting firm.
20 Specialty-Related Skills & Knowledgeable (cont d) Regardless of your field try to identify 4 or 5 consultants that work in your field Find several consultants who work in your geographical area Track down one or two who work outside your area to provide balance Book an interview and ask the following two questions
21 Specialty-Related Skills & Knowledge (Cont d) What skills and knowledge have you found most valuable in your consultancy business in your field? Are there any essential things I need to know and understand in order to have a good chance of success?
22 Breadth of Knowledge and Skills Breadth of knowledge refers to the number of different areas in which you have expertise Every time you learn something new, you increase your breadth of knowledge The broader the range of things you know the better off you are This is because consultants sell their knowledge, and the more you have, the more you can sell
23 Breadth of Knowledge & Skills (cont d) Another reason why breadth is important is that our world is complex. Giving good advice requires you to look at a number of interrelated factors You must strive to increase your breadth of knowledge through out your career as a professional consultant
24 Depth of Knowledge Depth of knowledge is about how well a consultant knows each area You can know a lot of things but that kind of shallow knowledge isn t what clients are paying you for Keep in mind that you have gaps in breadth and depth of knowledge Be aware of situations in which they interfere with providing great consultancy services
25 Depth of Knowledge (cont d) Identify them and address them Be a continuous learner It is essential that you commit to learning constantly Think of what you learn as your knowledge inventory The more you have to offer and sell, the more likely you would be able to succeed
26 Process Skills Process skills are those skills that help you to understand client needs and wants Build relationship of trust with your client Ensure that you offer each client exactly what the client wants
27 Process Skills (Cont d) Process skills also refer to tools which consultants need and use to ensure that their advice and recommendations are as informed as possible These tools include interpersonal communication, group facilitation, data gathering and diagnostic skills
28 Process Skills (Cont d) Interviewing Skills You need to build relationships of trust with your clients You also need to get the information necessary to make judgments and provide advice that fits the individual client
29 Negotiating Skills Consultants are always negotiating They negotiate contracts, time span and fees They negotiate how the implementation of a project should be carried out They negotiate on who is responsible for what, when and how it should occur. Negotiating skills are required for success in consulting
30 Project Management & Time Management Skills Consultants need to have the ability to manage their time They also need skills to complete projects on schedule and on budget Consulting skills are required to highlight any project and time management flaws A successful consultant juggles several projects and tasks at once.
31 Project Management & Time Management Skills (cont d) The consultant s task is to make sure that if something needed to be done yesterday it was done yesterday This requires the ability to prioritize tasks and develop plans of action that make sense and maximize project productivity Wasted time and missed deadlines means lost money (and lost future contracts)
32 Experience & Contacts The more experience you have in your chosen field and the more contacts you have, the more likely you are to start your consulting practice and quickly generate revenue Extensive experience and contacts helps you do the job well Clients avoid hiring someone who needs to learn the job or who the client sees as inexperienced
33 Experience & Contacts (Cont d) This is one of the reasons why a consultant who has worked in his chosen field for an extensive period of time is likely to be more successful compared to a university graduate having limited experience It is risky to accept assignments beyond your experience level
34 Experience & Contacts (cont d) However, do accept assignments that stretch you and give you new experience to use in future projects Take moderate risk, always try to ensure you succeed and please your clients. Contacts are your lifeline in consulting business
35 Personal Qualities Successful consultants tend to have certain personal qualities. These include the following: Willingness to take risk Ability to tolerate insecurity Desire to learn continuously Strong interpersonal skills
36 Personal Qualities (Cont d) Family support People orientation Strong support system in place Commitment to personal and professional integrity Working with people
37 Conclusion On a concluding note, the Key Success Factors for a successful consulting firm are: Marketing skills Net working/contact skills Financial management skills Computer skills Written communication skills Presentation skills
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