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Management consulting

Managing knowledge in 21 st Century

Human capital Network Social Capital capital Client Structural Capital capital Organizational Capital
Human
capital
Network
Social
Capital
capital
Client
Structural
Capital
capital
Organizational
Capital

Human Capital Intellectual Capital

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

Structure of Lecture

Part -1

Level of analysis

Organisational perspective

Framework for analysis

Management of knowledge (reactor model)

Part - 2

Level of analysis

Work process

Framework for analysis

Identity model

HRM issues in both parts

Human capital Network Social Capital capital Client Structural capital Capital Organizational Capital
Human
capital
Network
Social
Capital
capital
Client
Structural
capital
Capital Organizational
Capital

Recruitment and selection of consultants Promotion policies – ‘up-or-out’ principle – The boundaries of HRM practices

Objectives

To understand the characteristics of the management

consulting industry

History Types of organisations Types of consultancy activities

Typology of human capital

• • • • Objectives To understand the characteristics of the management consulting industry – History
• • • • Objectives To understand the characteristics of the management consulting industry – History

According to the client interface process Career structures within management consultancy The role of consultants as knowledge brokers

• • • • Objectives To understand the characteristics of the management consulting industry – History
• • • • Objectives To understand the characteristics of the management consulting industry – History

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
Human
capital
Network
Social
Capital
capital
Client
Structural
capital
Capital Organizational
Capital

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

Types of firms in the industry

Accountancy firms offering consultancy Large non-accounting consultancies Small specialist boutiques Gurus Independents

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

Major consultancies

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

Different types of consulting services: A knowledge-based view

Productise

Different types of consulting services: A knowledge-based view Productise Competitive strategy Bespoke Reuse economics People-to-documents IT

Competitive strategy

Different types of consulting services: A knowledge-based view Productise Competitive strategy Bespoke Reuse economics People-to-documents IT

Bespoke

Reuse economics

People-to-documents

IT focus

Buy experience

Reward for

Different types of consulting services: A knowledge-based view Productise Competitive strategy Bespoke Reuse economics People-to-documents IT

contribution to document

database

Economic model

KM strategy

Technology

HRM

Different types of consulting services: A knowledge-based view Productise Competitive strategy Bespoke Reuse economics People-to-documents IT

Expert economics

Person-to-person

IT enables personal

Build experience

Different types of consulting services: A knowledge-based view Productise Competitive strategy Bespoke Reuse economics People-to-documents IT

Reward for knowledge creation and sharing

Ernst & Young

Example

McKinsey & Company

Typology of Human Capital

The consultancy process Career structures Consultants as brokers of human capital

Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of
Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of
Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of
Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of
Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of
Typology of Human Capital • The consultancy process • Career structures • Consultants as brokers of

Boundary spanning

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

The career structure

Analysts Consultants Senior Consultants Business development managers Directors/Partners

The McKinsey Facilitator case

Specific type of human capital Across boundaries

How would you design the recruitment process to capture this human capital?

Components of a high performing culture

Components of a high performing culture • IQ • EQ • SQ • General business knowledge
Components of a high performing culture • IQ • EQ • SQ • General business knowledge
Components of a high performing culture • IQ • EQ • SQ • General business knowledge

IQ

EQ

SQ

General business knowledge

Understanding of client context

Logical problem solving

Creates environment of

trust

Manages group dynamics

High awareness of

emotions High self knowledge

Experience of own

transformational journey

Sense of vocation

Using external facilitators poses a challenge to many

forms of intellectual capital flows

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

Facilitators

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

Clients

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

Mindsets are often misunderstood and ignored

Be- haviour
Be-
haviour

What we

see and

usually try to

change

Mindsets are often misunderstood and ignored Be- haviour • What we see and usually try to

What we

cannot see,

make

assumptions

about and

often do not

address

Thoughts and feelings Values A desire to change and beliefs ends up like most New Year’s
Thoughts
and feelings
Values
A desire to change
and beliefs
ends up like most
New Year’s
Needs –
met and unmet
resolutions if root
causes are not
identified and
addressed

The first step in mindset change is a new level of personal

understanding

•Requires practice •Requires a choice •Requires insight
•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 •Requires practice same level of consciousness that created
understanding
“You cannot solve
a problem from the
•Requires practice
same level of
consciousness that
created the problem
in the first place”
•Requires a choice
Albert Einstein
•Requires insight

The McKinsey Facilitator case

How would you design the recruitment process to capture this human capital?

Facilitator network: OC viewpoint

External pool of facilitators External skill experts Facilitators within clients Clients Regions Focal Practice Group Other
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
Client delivery processes
processes

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?

IDEA SUBMISSION PROCESS

5. Stick hexagon on •Workshop hexagon wall with room similar ideas and rejoin group •1. Group
5.
Stick hexagon on
•Workshop
hexagon wall with
room
similar ideas and
rejoin group
•1. Group discussion
on topic/idea
4.
Receive
hexagon at
idea table
and write on
idea no. and
Individual or group write up
title
idea cover sheet and attach
3.
Submit written
backup materials (others at
materials at idea
table may start on another
In
table
tray
idea at this time if
appropriate
•Door to
Filing
patio
•Patio
•Wall
•Cassette record
sheet
2.
Individual(s) go outside
– Video station helper puts idea no.
to record 2–3 minute
stick on to idea coversheet and onto
video to explain idea
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
•Video station
start of recording
helper with stickers
– Record 2–3 mins video
of idea number

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

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

The nature of relationships

Social capital

Morphology

Structural density

Structural holes

(between facilitators)

X

Trust:

Deep

Resilient

Nature

X

 

Positional

X

Generalized

Social capital

Morphology

Structural density

 

X

(between sponsors)

Trust:

Deep

 

Resilient

Nature

X

Positional

Dyadic

Generalized

X

Client-and-network

Morphology

X

Structural holes

capital

 

Deep

X

 

(between internal

and external

Trust:

Nature

Resilient

facilitators)

Positional

Dyadic

Generalized

X

Organisational

Flexibility

Mechanistic

 

Adaptive

capital:

X

HRM process

 

Client relationship

Flexibility

Mechanistic

Adaptive

process

X

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

Dense:

dyadic trust

generalised trust

Deep and dyadic trust

Resilient and dyadic trust

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 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