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Management consulting

Human. capital. Network. Social. Capital. capital. Client. Structural. Capital. capital. Organizational. Capital. Management consulting. Lecture 6 and 7 Managing knowledge and knowledge workers. Human. Human Capital. Intellectual Capital. capital. Network. Social. Capital.

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Management consulting

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  1. Human capital Network Social Capital capital Client Structural Capital capital Organizational Capital Management consulting Lecture 6 and 7 Managing knowledge and knowledge workers

  2. Human Human Capital Intellectual Capital capital Network Social Capital capital Employee Knowledge Skills Experience Products and services which have market value Client Structural Capital capital Organizational Capital Human Capital – Intellectual Capital Staffing Development IC Communication Performance Management Remuneration and Reward

  3. Human capital Network Social Capital capital Client Structural Capital capital Organizational Capital Structure of Lecture 6 and 7 • Lecture 6 • Level of analysis • Organisational perspective • Framework for analysis • Management of knowledge (reactor model) • Lecture 7 • Level of analysis • Work process • Framework for analysis • Identity model • HRM issues across both lectures • Recruitment and selection of consultants • Promotion policies – ‘up-or-out’ principle • The boundaries of HRM practices

  4. Objectives • To understand the characteristics of the management consulting industry • History • Types of organisations • Types of consultancy activities • Typology of human capital • According to the client interface process • Career structures within management consultancy • The role of consultants as knowledge brokers • Typology of client capital • The consulting firm – client relationships • The HRM practice focus: • Recruiting human capital • Managing across boundaries Human capital Network Social Capital capital Client Structural Capital capital Organizational Capital

  5. History • Management as a unique field of study • Arthur D.Little (1890s) • McKinsey & Company • First management and strategy consultancy • Founded by James McKinsey in 1926 (Chicago) • Hiring of bright young MBAs • Rise of management consultancy after World War II • Development of tools for strategic management • Boston Consulting Group (1963), McKinsey&Co, Harvard Business School • Bain&Co - focus on shareholder wealth • Consulting within accountancy and technology firms • PwC and IBM • Niche consultancy firms • Corporate social responsibiity

  6. Types of firms in the industry • Accountancy firms offering consultancy • Large non-accounting consultancies • Small specialist boutiques • Gurus • Independents

  7. Strategy HR Marketing Change Org design Infotech Process and Operations Management consulting Types of Consultancy services

  8. Major consultancies • Bain & Company • Boston Consulting Group • Deloitte & Touche • Ernst & Young • A.T. Kearny • KPMG • Arthur D.Little • McKinsey & Co • Mercer • PriceWaterhouse Coopers

  9. Competitive strategy Economic model KM strategy Technology HRM Example Productise Reuse economics People-to-documents IT focus Buy experience Reward for contribution to document database Ernst & Young Different types of consulting services: a knowledge-based view Bespoke Expert economics Person-to-person IT enables personal Build experience Reward for knowledge creation and sharing McKinsey & Company

  10. Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of human capital • Boundary spanning

  11. The consultancy process:Your experience • Paired assignment • Identify a consultancy experience that you have been part of. • Characterise the individual stages of the consultancy process • Interview your partner and identify: • Which skills were developed at each stage of the consultancy process • Which other knowledge resources did you rely upon during this process • Summarise your findings and be prepared to feed back to the group

  12. The career structure • Analysts • Consultants • Senior Consultants • Business development managers • Directors/Partners

  13. The McKinsey Facilitator case • Specific type of human capital • Across boundaries • How would you design the recruitment process to capture this human capital?

  14. Components of a high performing culture • General business knowledge • Understanding of client context • Logical problem solving • IQ • Creates environment of trust • Manages group dynamics • High awareness of emotions • EQ • High self knowledge • Experience of own transformational journey • Sense of vocation • SQ

  15. Using external facilitators poses a challenge to many forms of intellectual capital flows Clients Facilitators

  16. External pool of facilitators External skill experts External skill experts Facilitators within clients Clients Clients Regions Focal Practice Group Other Practice Groups Clients External skill experts Clients Facilitator network: HC viewpoint HC boundary

  17. Thoughts and feelings Values and beliefs Needs – met and unmet Mindsets are often misunderstood and ignored • What we see and usually try to change Be-haviour • What we cannot see, make assumptions about and often do not address A desire to change ends up like most New Year’s resolutions if root causes are not identified and addressed

  18. Requires practice • Requires a choice • Requires insight The first step in mindset change is a new level of personal understanding

  19. Requires practice • Requires a choice • Requires insight The first step in mindset change is a new level of personal understanding “You cannot solve a problem from the same level of consciousness that created the problem in the first place” Albert Einstein

  20. The McKinsey Facilitator case • How would you design the recruitment process to capture this human capital?

  21. External pool of facilitators External skill experts Facilitators within clients Clients Regions Focal Practice Group Other Practice Groups Clients Clients External skill experts Clients Recruitment & development processes Client delivery processes Facilitator network: OC viewpoint

  22. Positioning in the lecture • Nature of the industry • Typology of human capital • Consulting process • Career structure • Knowledge brokers • Now we turn to the human-client capital interface • We take a closer look at how clients perceive consultants?

  23. #1 In tray IDEA SUBMISSION PROCESS • Stick hexagon on hexagon wall with similar ideas and rejoin group • Workshop room • 1. Group discussion on topic/idea • Receive hexagon at idea table and write on idea no. and title • Individual or group write up idea cover sheet and attach backup materials (others at table may start on another idea at this time if appropriate • Submit written materials at idea table • Door to patio Filing • Wall • Patio • Cassette record sheet • Individual(s) go outside to record 2–3 minute video to explain idea • Video station helper puts idea no. stick on to idea coversheet and onto video cassette record sheet. Records idea title onto cassette record sheet • Individual(s) write idea no. and idea title on directors board—hold up at start of recording • Record 2–3 mins video • Video station helper with stickers of idea number

  24. The perception of Human Capital • The ability to learn in practice • Why smart people don’t learn • The impact on organisational learning • The impact on social capital • The impact upon the client relationship • social construction of learning

  25. The client-consultant relationship • Human capital and its link to client capital • Dimensions for analysis • Strength of ties • frequency • Relational • trust • Cognitive • Shared mental models • Giving answers or shaping futures

  26. Architecture Dyadic Structural holes Structural density The nature of relationships

  27. External pool of facilitators External skill experts External skill experts Facilitators within clients Clients Clients Regions Focal Practice Group Other Practice Groups Clients External skill experts Clients Dense: Resilient and dyadic trust Dense: Deep and dyadic trust Structural holes: resilient and generalised trust Structural holes: Deep and dyadic trust Facilitator network: SC & CNC viewpoint

  28. Books about management consulting • Flawless Consulting, Peter Block, ISBN 0-7879-4803-9 • Guerrilla Marketing for Consulting, Jay Conrad Levinson and Michael W. McLaughlin, ISBN 0-471-61873-X • Managing at the Speed of Change, Daryl Conner, ISBN 0-471-97494-3 • Managing the Professional Services Firm, David Maister, ISBN 0-7432-3156-2 • The Professional Services Firm Bible, John Baschab, ISBN 0-471-66048-5 • Managing Transitions, William Bridges, ISBN 1-85788-341-1 • Management Consulting: A Guide to the Profession, Milan Kubr (ed.), ISBN 92-2-109519-3 • The World's Newest Profession: Management Consulting in the Twentieth Century, Christopher D. McKenna, ISBN 0-521-81039-6

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