More Praise for The Practice of Professional Consulting

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3 More Praise for The Practice of Professional Consulting A timely, thorough, and thoughtful primer on the art and practice of consulting. Packed with practical tools and punctuated with the wisdom of experience, Verlander s book provides a great introduction to the profession, a detailed inventory of the skills of an effective consultant, and a solid foundation upon which to build a successful consulting practice. Dr. Albert A. Vicere, president, Vicere Associates, Inc.; Executive Education Professor of Strategic Leadership, The Smeal College of Business, The Pennsylvania State University An invaluable, indispensable reference for independent consultants, scholars and firms of the consulting industry; Edward Verlander s The Practice of Professional Consulting unlocks the mysteries of the business by providing a clear, comprehensive guide to a practice often misunderstood by the masses. Chengang Zhou, director and senior vice president, New Oriental Education & Technology Group, Beijing, China Developing a consultative mindset and accelerating professional (consulting) skills is critical to succeeding in business and growing a career. The skills described in this book are relevant not just for aspiring consultants, but for anyone interested in sharpening communication skills and improving their personal brand. Bob Hannafin, Ph.D., former director at PricewaterhouseCoopers; dean, College of Education, Information, and Technology, Long Island University This engaging book provides a unique overview of the practice of professional consulting and what it takes for a successful and productive relationship with the ubiquitous consultant. In order to select a trusted advisor, from the onset the employer needs sufficient knowledge of the competencies required to coach, motivate, and navigate the consultant. Edward Verlander s book provides a fundamental knowledge of the basic principles for nonconsultant practitioners and should be especially useful for the medical and scientific communities who frequently rely on consultants without possessing essential knowledge to maximize their return on investment. Martin R. Evans, Ph.D., MT (ASCP), director, Technical Affairs, manager, Environmental Sciences, Public Health Laboratory, NYC Department of Health and Mental Hygiene

4 For young consultants who need to get a good start in this profession, for consultants who want to grow professionally, and for experienced consultants who seek new perspectives, Edward Verlander s book explains a proven consulting process. The book comes with a great set of tools for immediate use and explains new insights on consulting. Year after year, I have seen young and experienced consultants become enthusiastic, motivated, and eager to immediately apply Edward Verlander s ideas, tools, and techniques. Some felt awakened to a new level of professionalism; certainly everybody felt empowered for new successes. Chapter by chapter readers will ignite a better understanding of how to provide more business-oriented, more client-oriented, and therefore more successful consulting services. Elmar Buschlinger, former CEO of several IT companies; entrepreneur and coach in IT-related businesses, Karlsruhe, Germany To build on the momentum of great ideas that are truly innovative, the business must move today with unprecedented velocity. Verlander s model of consulting describes the capabilities needed to develop ideas with a pace giving rise to product that is truly differentiated in the market. A strong read for anyone looking to take the consulting discipline to a new level. Darrin Solomon, vice president, Product Management, CA Technologies, New York

5 THE PRACTICE OF PROFESSIONAL CONSULTING

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7 THE PRACTICE OF PROFESSIONAL CONSULTING Edward G. Verlander

8 Copyright 2012 by John Wiley & Sons, Inc. All Rights Reserved. Published by Pfeiffer An Imprint of Wiley One Montgomery Street, Suite 1200, San Francisco, CA No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, , fax , or on the web at www. copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, , fax , or online at Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet websites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. For additional copies/bulk purchases of this book in the U.S. please contact Pfeiffer books and products are available through most bookstores. To contact Pfeiffer directly call our Customer Care Department within the U.S. at , outside the U.S. at , fax , or visit Pfeiffer publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at For more information about Wiley products, visit Library of Congress Cataloging-in-Publication Data Verlander, Edward George. The practice of professional consulting / Edward G. Verlander. -- 1st ed. p. cm. Includes index. ISBN (cloth), ISBN (ebk), ISBN (ebk), ISBN (ebk) (hardback) 1. Business consultants. 2. Consulting firms. I. Title. HD69.C6V dc Acquiring Editor: Matthew Davis Director of Development: Kathleen Dolan Davies Developmental Editor: Byron Schneider Printed in the United States of America HB Printing Production Editor: Justin Frahm Editor: Kristi Hein Editorial Assistant: Michael Zelenko Manufacturing Supervisor: Becky Morgan

9 CONTENTS About This Book xii Preface xv Acknowledgments xviii PART ONE: SETTING THE STAGE 1 1 The Nature of Consulting 3 It s an Industry 4 Types of Consulting 8 Scope of Consulting 10 Trusted Consultant and Advisor 12 Consultant Qualifications 14 What Is Professional Consulting? 16 2 Why Companies Hire Consultants 19 Why Consultants Are Needed 19 Fast, Bigger, Better, Cheaper Outcomes 21 Forces That Drive Business Consulting 25 vii

10 viii Contents Expectations of Consultant Services 30 Changes in Client s Business and Organization Needs 31 Future Challenges 34 3 A Model for Professional Consulting 38 What Do We Mean by Process? 38 A Framework for Consulting 39 The Four Stages of Consulting 44 The Four Roles of Consulting 46 Consulting Competencies 48 PART TWO: APPLYING THE MODEL 53 4 Stage One: The Developing and Designing Process 55 Stage One Competencies: Winning the Business 56 Understanding the Client s Business and Industry 59 Making a Good First Impression 61 First Meeting Dynamics 63 5 Stage One, Continued: Assessing Client Needs and Managing Expectations 70 The Purpose of Conducting a Needs Assessment 70 Types of Questions: The Fundamentals 72 Conducting a Needs Assessment: A Question Strategy 74 Needs Assessment: Listening Actively 79 The Proposal Development Process 82 Managing Expectations 91 6 Stage Two: The Mobilizing and Aligning Process 96 Stage Two Competencies: Mobilizing and Aligning 96 Work and Project Plan Reviews 97 Risk Assessment Factors 106 Project Launch Meetings Stage Two, Continued: Turning a Consulting Group into a Team 116 Defining a Team 116 Stages of Team Development 119 Diagnosing Project Team Performance 121

11 Contents ix How Team Building Is Conducted 122 Special Problems in Building Project Teams 123 Characteristics of High-Performing Teams 126 The Project Leader Style Needed for Team Building Stage Three: The Building and Producing Process 130 Stage Three Competencies: Building and Producing 131 Data Gathering 132 Performance Management and Coaching 137 Coaching Consultants 139 Motivating Consultants 146 Progress Review Meetings 151 Navigating Organizational Politics 155 Project Management Issues Stage Four: The Implementing and Deploying Process 168 Stage Four Competencies: Implementing and Deploying 169 Managing Change 171 Implementation Strategies 175 Skills Transfer 180 Measuring Customer Satisfaction 186 Satisfaction Assessment Metrics 190 PART THREE: THE BIGGER PICTURE Improving Consulting as a Professional Practice 197 A Reality Check About Consulting 198 The Need to Professionalize Consulting 200 Professional Capabilities of Consultants 205 Building Block One: Client s Business Focus 208 Building Block Two: Business Management 210 Building Block Three: Technical Requirements 214 Building Block Four: Interpersonal Attributes 215 Building Block Five: Effective Leadership Lessons of Experience 222 How to Grow in Professional Capability 223 Lessons from McKinsey 225 The Pain and Joy of a Consulting Career 227

12 x Contents Professional Proficiencies in Consulting 231 Trends for the Twenty-First Century 234 Appendices A The Consulting Role Preference Indicator 238 B Guidelines for Successful Consulting 250 C The Leadership Role of Consultants 258 D Consulting Case Applications 262 E Diagnostic Procedures and Instruments for Consulting Teams 264 Bibliography and Resources 274 About the Author 280 Index 282

13 For Naresh and Maya

14 ABOUT THIS BOOK Change is the lifeblood of consulting, just as organizations endure only through successful change. The reality of this mutual need lies at the heart of what consulting is all about. Consultants solve problems created by the powerful forces of change in an organization s environment, and in so doing, they themselves create change. Collectively, they drive a $300 billion, worldwide industry dedicated to improving the purposes of business organizations and how those purposes are achieved. To be in the midst of such a fascinating, global endeavor makes consulting an attractive, exciting, challenging, and rewarding career for the twenty-first century. The Practice of Professional Consulting is a practical examination of what has been called the world s newest profession. The book traverses the industry, the processes, tools, and skills used by consultants to produce solutions for their clients, and why it is a growing, attractive career. It discusses best practices used by leading consulting firms, specifies the capabilities needed in each stage of an engagement, and recommends ways to ensure that consultants solve client problems in a systematic, professional way. A core theme is learning what is needed to become a trusted consultant. New information in this book includes: A model of the complete consulting cycle A diagnostic instrument for assessing consulting roles xii

15 About This Book xiii Ideas for how to develop political intelligence to navigate client organizations Tools for managing consulting meetings, risk assessment, and skills transfer Techniques for communications, emotional intelligence, presentations, and listening Tools for conducting effective needs assessment and problem framing Concepts of trust needed to become a trusted advisor Factors affecting the stature of consulting as a profession A general set of guidelines or competencies for effective consulting References and handy website sources All of the ideas, tools, and competencies described in this book have been vetted by a wide range of consulting practitioners and thus represent their accumulated experience about successful consulting. They are gathered in this book for the first time. Who should read The Practice of Professional Consulting? Anyone wishing to start a consulting business. The book supplements other books on how to start and run a consulting business. Rather than taking a project management view, this book adds to the reader s understanding of how to deal with the rational and emotional, conceptual, and practical requirements of consulting. It presents, describes, and analyzes consulting as both a delicate interplay of human interactions and motivations and a cold application of expertise and logic, all applied to solve real problems for people and client organizations. The book is broad enough to be useful to anyone starting any kind of consulting business, yet specific in explaining typical client situations. New employees of consulting firms. Any new employee in a consulting firm should read this book as a supplement to the firm s own formal training program. Consulting firms that provide in-classroom training as well as mentoring will find that this book accelerates development by providing new employees with a perspective of the rules, roles, values, methods, and techniques used across firms in the consulting industry. Instructors of training programs on consulting. The book can be used to design and develop training programs on professional consulting or as a supplement to existing training, to give attendees more details and perspectives not covered in the training. Business school faculty. The book can be used as the main text or supplementary text in a business school course on consulting (or related