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Using Management Consulting Services

This document provides guidance on effectively using management consulting services. It outlines key steps to take before, during, and after a consulting engagement, such as carefully defining the problem, selecting the right consultant, measuring progress, and assessing effectiveness. The document also discusses advantages and disadvantages of using consultants, and provides dos and don'ts as well as additional resources for those considering consulting services.

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78 views4 pages

Using Management Consulting Services

This document provides guidance on effectively using management consulting services. It outlines key steps to take before, during, and after a consulting engagement, such as carefully defining the problem, selecting the right consultant, measuring progress, and assessing effectiveness. The document also discusses advantages and disadvantages of using consultants, and provides dos and don'ts as well as additional resources for those considering consulting services.

Uploaded by

stennes1
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Using Management Consulting

Services Effectively
This checklist is for prospective users of consultants and suggests some of the
questions they should ask themselves before approaching a consultant to
undertake an assignment. There is little doubt that calling on the service of a
management consultant can often prove to be a valuable investment provided:
 you allow enough time for the whole exercise
 the problem area has been carefully defined
 you know what you want the consultant to do, having identified all the
necessary steps for the task in hand
 care is exercised in selecting the right consultant
 you measure progress towards a solution.

Definition
"Management consulting is an advisory service contracted for and provided to
organizations by specially trained and qualified persons who assist, in an
objective and independent manner, the client organization to identify
management problems, analyze such problems, recommend solutions to these
problems, and help, when requested, in the implementation of solutions."
Consulting to management by Larry E Greiner and Robert O Metzger, Prentice
Hall 1983.

Advantages of using consultants


 Expertise. Since consultants are immersed in their specialism, they are
well-placed to advise on the state of the art. It may be impossible for an
organisation to tap such expertise in any other way.
 Short-term projects. It may be more cost-effective for a company to
buy in skills as and when they are needed.
 Extra resources. Help can be required for an overstretched management
team or to pursue a project that would otherwise not be completed.
 Independent viewpoint. An outsider can see things which are unclear to
those on the inside or say things which members of staff may fear to
articulate. Equally, employees may be more willing to agree to a course of
action if they know that impartial advice has been taken.

Disadvantages of using consultants


 They may be expensive. The Management Consultancy Information
Service (see Useful addresses) publishes regular surveys which give a
guide to fee rates.
 The end result may be unsatisfactory although steps in the following
action checklist will help you to guard against this.
 The work may be left to junior consultancy staff once the assignment
starts or personnel may change during the project.
 There may be resentment from staff at the employment of consultants.
Action checklist
1. Involve senior management from the beginning
Gain their approval for the decision to use consultants and keep them informed
during the selection process. This will help ensure that your choice of consultant
will be accepted at the top level.
2. Gain an awareness of the number and scope of
management consulting firms
Some offer a wide range of services, whilst there are others which specialise in
particular industries, certain areas of business activity or smaller or larger
organisations.
3. Prepare a short list of possible consultants
There are a number of directories and registers available for identifying
consultants but recommendation is also commonly used. Make sure you obtain
references from previous clients to establish a consultant's track record.
4. Ask for a preliminary survey from consultants on your
short list
This should be free, although in certain circumstances a nominal charge may be
made. It should enable you to establish the extent to which the consultant can
help you, the likely benefits, and the duration of the job. It should also help you
to study the consultant's approach to the problem and to your organisation. Ask
for a written report of the survey.
5. Study the consultancy proposals submitted
These should have the following common features:
 an understanding of the situation or need
 a programme of work
 an indication of the consultant's management style and approach
 a timetable to accomplish the work
 details of staff involved, including relevant qualifications and experience
 the resources required, such as time, information and equipment
 estimates of fees and costs
 a summary of the results and benefits to be achieved from the project.
6. Explain to all concerned why a consultant is being
employed
All relevant staff concerned must be fully briefed on why a consultant has been
appointed, when he or she will arrive, and the cooperation that is required.
Appoint someone as the main contact with the consultant.
7. Ask for regular reports on the progress of the assignment
Measure actual progress against the agreed objectives of the assignment. Ensure
that your requirements are not being shrouded by consultant preferences.
8. Have a debriefing session before the end of the
consultancy
Make sure the consultant summarises the findings and conclusions of the project
either in a report or in a presentation. Ensure there are no misunderstandings or
errors.
9. Assess consultant effectiveness
Check that the new development and procedures proposed are being
implemented and properly applied, and that they are not being undermined by
old methods and concepts. Discuss with staff concerned any particular difficulties
which arise during implementation. Regularly examine the results being achieved
and insist on follow-up visits from the consultant at appropriate intervals after
completion of the project.

Dos and don'ts for using management consultants


Do
 Invest time in the whole process.
 Have a clear understanding of what you want to achieve.
 Prepare a checklist of requirements as a basis for reducing your short list
to the final selection.
 Ensure effective communication and coordination between consultant and
staff.
Don't
 Assume that you necessarily need to bring in an outsider.
 Accept friendly recommendations without investigating past performance.
 Presume that staff will readily accept an outside expert.
 Lose sight of your most important objectives.
 Become overly reliant on a consultant.

Useful reading
Books
Directory of management consultants in the UK 1998 13th ed.
Alex Kaminsky, ed.
London: AP Information Services, 1997
Getting the most from consultants: a manager's guide to choosing and
using consultants
Martin Wilson and the Institute of Management Foundation
London: Pitman, 1996
Journal articles
Using management consultants
IRS Employment Review, no 620, November 1996, pp7-12 purple
The ten best ways of using management consultants
Geoff Kitts
Human Resources UK, no 15, Autumn 1994, pp19-20, 22, 24, 26
How to select an external consultant
Alan Fowler
Personnel Management Plus, vol 5 no 2, February 1994, pp26-27

Useful addresses
British Consultants Bureau
1 Westminster Palace Gardens, 1-7 Artillery Row, London SW1P 1RJ
Tel: 0171 222 3651
Institute of Management Consultants
5th Floor, 32-33 Hatton Garden, London EC1N 8DL
Tel: 0171 242 2140; 0800 318030 (Client support service)
Management Consultancies Association Ltd
11 West Halkin Street, London SW1X 8JL
Tel: 0171 235 3897
Management Consultancy Information Service
38 Blenheim Avenue, Gants Hill, Ilford, Essex IG2 6JQ
Tel: 0181 554 4695
All Business Links will provide help for those considering using a consultancy.

Thought starters
 Can you define clearly the problem or issue that needs to be tackled?
 Are you sure the expertise needed is not available internally?
 Have you worked with a consultant before? What was the outcome?

bu library
The bu library stocks a range of materials which will provide further information
on this subject. Tel: 01483 704757 or Clearway 2159 4757.

Revised Oct 1997

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