- •In praise of the fourth edition
- •CONTENTS
- •FOREWORD
- •The concept of consulting
- •Purpose of the book
- •Terminology
- •Plan of the book
- •ABBREVIATIONS AND ACRONYMS
- •1.1 What is consulting?
- •Box 1.1 On giving and receiving advice
- •1.2 Why are consultants used? Five generic purposes
- •Figure 1.1 Generic consulting purposes
- •Box 1.2 Define the purpose, not the problem
- •1.3 How are consultants used? Ten principal ways
- •Box 1.3 Should consultants justify management decisions?
- •1.4 The consulting process
- •Figure 1.2 Phases of the consulting process
- •1.5 Evolving concepts and scope of management consulting
- •2 THE CONSULTING INDUSTRY
- •2.1 A historical perspective
- •2.2 The current consulting scene
- •2.3 Range of services provided
- •2.4 Generalist and specialist services
- •2.5 Main types of consulting organization
- •2.6 Internal consultants
- •2.7 Management consulting and other professions
- •Figure 2.1 Professional service infrastructure
- •2.8 Management consulting, training and research
- •Box 2.1 Factors differentiating research and consulting
- •3.1 Defining expectations and roles
- •Box 3.1 What it feels like to be a buyer
- •3.2 The client and the consultant systems
- •Box 3.2 Various categories of clients within a client system
- •Box 3.3 Attributes of trusted advisers
- •3.4 Behavioural roles of the consultant
- •Box 3.4 Why process consultation must be a part of every consultation
- •3.5 Further refinement of the role concept
- •3.6 Methods of influencing the client system
- •3.7 Counselling and coaching as tools of consulting
- •Box 3.5 The ICF on coaching and consulting
- •4 CONSULTING AND CHANGE
- •4.1 Understanding the nature of change
- •Figure 4.1 Time span and level of difficulty involved for various levels of change
- •Box 4.1 Which change comes first?
- •Box 4.2 Reasons for resistance to change
- •4.2 How organizations approach change
- •Box 4.3 What is addressed in planning change?
- •Box 4.4 Ten overlapping management styles, from no participation to complete participation
- •4.3 Gaining support for change
- •4.4 Managing conflict
- •Box 4.5 How to manage conflict
- •4.5 Structural arrangements and interventions for assisting change
- •5 CONSULTING AND CULTURE
- •5.1 Understanding and respecting culture
- •Box 5.1 What do we mean by culture?
- •5.2 Levels of culture
- •Box 5.2 Cultural factors affecting management
- •Box 5.3 Japanese culture and management consulting
- •Box 5.4 Cultural values and norms in organizations
- •5.3 Facing culture in consulting assignments
- •Box 5.5 Characteristics of “high-tech” company cultures
- •6.1 Is management consulting a profession?
- •6.2 The professional approach
- •Box 6.1 The power of the professional adviser
- •Box 6.2 Is there conflict of interest? Test your value system.
- •Box 6.3 On audit and consulting
- •6.3 Professional associations and codes of conduct
- •6.4 Certification and licensing
- •Box 6.4 International model for consultant certification (CMC)
- •6.5 Legal liability and professional responsibility
- •7 ENTRY
- •7.1 Initial contacts
- •Box 7.1 What a buyer looks for
- •7.2 Preliminary problem diagnosis
- •Figure 7.1 The consultant’s approach to a management survey
- •Box 7.2 Information materials for preliminary surveys
- •7.3 Terms of reference
- •Box 7.3 Terms of reference – checklist
- •7.4 Assignment strategy and plan
- •Box 7.4 Concepts and terms used in international technical cooperation projects
- •7.5 Proposal to the client
- •7.6 The consulting contract
- •Box 7.5 Confidential information on the client organization
- •Box 7.6 What to cover in a contract – checklist
- •8 DIAGNOSIS
- •8.1 Conceptual framework of diagnosis
- •8.2 Diagnosing purposes and problems
- •Box 8.1 The focus purpose – an example
- •Box 8.2 Issues in problem identification
- •8.3 Defining necessary facts
- •8.4 Sources and ways of obtaining facts
- •Box 8.3 Principles of effective interviewing
- •8.5 Data analysis
- •Box 8.4 Cultural factors in data-gathering – some examples
- •Box 8.5 Difficulties and pitfalls of causal analysis
- •Figure 8.1 Force-field analysis
- •Figure 8.2 Various bases for comparison
- •8.6 Feedback to the client
- •9 ACTION PLANNING
- •9.1 Searching for possible solutions
- •Box 9.1 Checklist of preliminary considerations
- •Box 9.2 Variables for developing new forms of transport
- •9.2 Developing and evaluating alternatives
- •Box 9.3 Searching for an ideal solution – three checklists
- •9.3 Presenting action proposals to the client
- •10 IMPLEMENTATION
- •10.1 The consultant’s role in implementation
- •10.2 Planning and monitoring implementation
- •10.3 Training and developing client staff
- •10.4 Some tactical guidelines for introducing changes in work methods
- •Figure 10.1 Comparison of the effects on eventual performance when using individualized versus conformed initial approaches
- •Figure 10.2 Comparison of spaced practice with a continuous or massed practice approach in terms of performance
- •Figure 10.3 Generalized illustration of the high points in attention level of a captive audience
- •10.5 Maintenance and control of the new practice
- •11.1 Time for withdrawal
- •11.2 Evaluation
- •11.3 Follow-up
- •11.4 Final reporting
- •12.1 Nature and scope of consulting in corporate strategy and general management
- •12.2 Corporate strategy
- •12.3 Processes, systems and structures
- •12.4 Corporate culture and management style
- •12.5 Corporate governance
- •13.1 The developing role of information technology
- •13.2 Scope and special features of IT consulting
- •13.3 An overall model of information systems consulting
- •Figure 13.1 A model of IT consulting
- •Figure 13.2 An IT systems portfolio
- •13.4 Quality of information systems
- •13.5 The providers of IT consulting services
- •Box 13.1 Choosing an IT consultant
- •13.6 Managing an IT consulting project
- •13.7 IT consulting to small businesses
- •13.8 Future perspectives
- •14.1 Creating value
- •14.2 The basic tools
- •14.3 Working capital and liquidity management
- •14.4 Capital structure and the financial markets
- •14.5 Mergers and acquisitions
- •14.6 Finance and operations: capital investment analysis
- •14.7 Accounting systems and budgetary control
- •14.8 Financial management under inflation
- •15.1 The marketing strategy level
- •15.2 Marketing operations
- •15.3 Consulting in commercial enterprises
- •15.4 International marketing
- •15.5 Physical distribution
- •15.6 Public relations
- •16 CONSULTING IN E-BUSINESS
- •16.1 The scope of e-business consulting
- •Figure 16.1 Classification of the connected relationship
- •Box 16.1 British Telecom entering new markets
- •Box 16.2 Pricing models
- •Box 16.3 EasyRentaCar.com breaks the industry rules
- •Box 16.4 The ThomasCook.com story
- •16.4 Dot.com organizations
- •16.5 Internet research
- •17.1 Developing an operations strategy
- •Box 17.1 Performance criteria of operations
- •Box 17.2 Major types of manufacturing choice
- •17.2 The product perspective
- •Box 17.3 Central themes in ineffective and effective development projects
- •17.3 The process perspective
- •17.4 The human aspects of operations
- •18.1 The changing nature of the personnel function
- •18.2 Policies, practices and the human resource audit
- •Box 18.1 The human resource audit (data for the past 12 months)
- •18.3 Human resource planning
- •18.4 Recruitment and selection
- •18.5 Motivation and remuneration
- •18.6 Human resource development
- •18.7 Labour–management relations
- •18.8 New areas and issues
- •Box 18.2 Current issues in Japanese human resource management
- •Box 18.3 Current issues in European HR management
- •19.1 Managing in the knowledge economy
- •Figure 19.1 Knowledge: a key resource of the post-industrial area
- •19.2 Knowledge-based value creation
- •Figure 19.2 The competence ladder
- •Figure 19.3 Four modes of knowledge transformation
- •Figure 19.4 Components of intellectual capital
- •Figure 19.5 What is your strategy to manage knowledge?
- •19.3 Developing a knowledge organization
- •Figure 19.6 Implementation paths for knowledge management
- •Box 19.1 The Siemens Business Services knowledge management framework
- •20.1 Shifts in productivity concepts, factors and conditions
- •Figure 20.1 An integrated model of productivity factors
- •Figure 20.2 A results-oriented human resource development cycle
- •20.2 Productivity and performance measurement
- •Figure 20.3 The contribution of productivity to profits
- •20.3 Approaches and strategies to improve productivity
- •Figure 20.4 Kaizen building-blocks
- •Box 20.1 Green productivity practices
- •Figure 20.5 Nokia’s corporate fitness rating
- •Box 20.2 Benchmarking process
- •20.4 Designing and implementing productivity and performance improvement programmes
- •Figure 20.6 The performance improvement planning process
- •Figure 20.7 The “royal road” of productivity improvement
- •20.5 Tools and techniques for productivity improvement
- •Box 20.3 Some simple productivity tools
- •Box 20.4 Multipurpose productivity techniques
- •Box 20.5 Tools used by most successful companies
- •21.1 Understanding TQM
- •21.2 Cost of quality – quality is free
- •Figure 21.1 Typical quality cost reduction
- •Box 21.1 Cost items of non-conformance associated with internal and external failures
- •Box 21.2 The cost items of conformance
- •21.3 Principles and building-blocks of TQM
- •Figure 21.2 TQM business structures
- •21.4 Implementing TQM
- •Box 21.3 The road to TQM
- •Figure 21.3 TQM process blocks
- •21.5 Principal TQM tools
- •Box 21.4 Tools for simple tasks in quality improvement
- •Figure 21.4 Quality tools according to quality improvement steps
- •Box 21.5 Powerful tools for company-wide TQM
- •21.6 ISO 9000 as a vehicle to TQM
- •21.7 Pitfalls and problems of TQM
- •21.8 Impact on management
- •21.9 Consulting competencies for TQM
- •22.1 What is organizational transformation?
- •22.2 Preparing for transformation
- •Figure 22.1 The change-resistant organization
- •22.3 Strategies and processes of transformation
- •Figure 22.2 Linkage between transformation types and organizational conditions
- •Figure 22.3 Relationships between business performance and types of transformation
- •Box 22.1 Eight stages for transforming an organization
- •22.4 Company turnarounds
- •Box 22.2 Implementing a turnaround plan
- •22.5 Downsizing
- •22.6 Business process re-engineering (BPR)
- •22.7 Outsourcing and insourcing
- •22.8 Joint ventures for transformation
- •22.9 Mergers and acquisitions
- •Box 22.3 Restructuring through acquisitions: the case of Cisco Systems
- •22.10 Networking arrangements
- •22.11 Transforming organizational structures
- •22.12 Ownership restructuring
- •22.13 Privatization
- •22.14 Pitfalls and errors to avoid in transformation
- •23.1 The social dimension of business
- •23.2 Current concepts and trends
- •Box 23.1 International guidelines on socially responsible business
- •23.3 Consulting services
- •Box 23.2 Typology of corporate citizenship consulting
- •23.4 A strategic approach to corporate responsibility
- •Figure 23.1 The total responsibility management system
- •23.5 Consulting in specific functions and areas of business
- •23.6 Future perspectives
- •24.1 Characteristics of small enterprises
- •24.2 The role and profile of the consultant
- •24.4 Areas of special concern
- •24.5 An enabling environment
- •24.6 Innovations in small-business consulting
- •25.1 What is different about micro-enterprises?
- •Box 25.1 Consulting in the informal sector – a mini case study
- •25.3 The special skills of micro-enterprise consultants
- •Box 25.2 Private consulting services for micro-enterprises
- •26.1 The evolving role of government
- •Box 26.1 Reinventing government
- •26.2 Understanding the public sector environment
- •Figure 26.1 The public sector decision-making process
- •Box 26.2 The consultant–client relationship in support of decision-making
- •Box 26.3 “Shoulds” and “should nots” in consulting to government
- •26.3 Working with public sector clients throughout the consulting cycle
- •26.4 The service providers
- •26.5 Some current challenges
- •27.1 The management challenge of the professions
- •27.2 Managing a professional service
- •Box 27.1 Challenges in people management
- •27.3 Managing a professional business
- •Box 27.2 Leverage and profitability
- •Box 27.3 Hunters and farmers
- •27.4 Achieving excellence professionally and in business
- •28.1 The strategic approach
- •28.2 The scope of client services
- •Box 28.1 Could consultants live without fads?
- •28.3 The client base
- •28.4 Growth and expansion
- •28.5 Going international
- •28.6 Profile and image of the firm
- •Box 28.2 Five prototypes of consulting firms
- •28.7 Strategic management in practice
- •Box 28.3 Strategic audit of a consulting firm: checklist of questions
- •Box 28.4 What do we want to know about competitors?
- •Box 28.5 Environmental factors affecting strategy
- •29.1 The marketing approach in consulting
- •Box 29.1 Marketing of consulting: seven fundamental principles
- •29.2 A client’s perspective
- •29.3 Techniques for marketing the consulting firm
- •Box 29.2 Criteria for selecting consultants
- •Box 29.3 Branding – the new myth of marketing?
- •29.4 Techniques for marketing consulting assignments
- •29.5 Marketing to existing clients
- •Box 29.4 The cost of marketing efforts: an example
- •29.6 Managing the marketing process
- •Box 29.5 Information about clients
- •30 COSTS AND FEES
- •30.1 Income-generating activities
- •Table 30.1 Chargeable time
- •30.2 Costing chargeable services
- •30.3 Marketing-policy considerations
- •30.4 Principal fee-setting methods
- •30.5 Fair play in fee-setting and billing
- •30.6 Towards value billing
- •30.7 Costing and pricing an assignment
- •30.8 Billing clients and collecting fees
- •Box 30.1 Information to be provided in a bill
- •31 ASSIGNMENT MANAGEMENT
- •31.1 Structuring and scheduling an assignment
- •31.2 Preparing for an assignment
- •Box 31.1 Checklist of points for briefing
- •31.3 Managing assignment execution
- •31.4 Controlling costs and budgets
- •31.5 Assignment records and reports
- •Figure 31.1 Notification of assignment
- •Box 31.2 Assignment reference report – a checklist
- •31.6 Closing an assignment
- •32.1 What is quality management in consulting?
- •Box 32.1 Primary stakeholders’ needs
- •Box 32.2 Responsibility for quality
- •32.2 Key elements of a quality assurance programme
- •Box 32.3 Introducing a quality assurance programme
- •Box 32.4 Assuring quality during assignments
- •32.3 Quality certification
- •32.4 Sustaining quality
- •33.1 Operating workplan and budget
- •Box 33.1 Ways of improving efficiency and raising profits
- •Table 33.2 Typical structure of expenses and income
- •33.2 Performance monitoring
- •Box 33.2 Monthly controls: a checklist
- •Figure 33.1 Expanded profit model for consulting firms
- •33.3 Bookkeeping and accounting
- •34.1 Drivers for knowledge management in consulting
- •34.2 Factors inherent in the consulting process
- •34.3 A knowledge management programme
- •34.4 Sharing knowledge with clients
- •Box 34.1 Checklist for applying knowledge management in a small or medium-sized consulting firm
- •35.1 Legal forms of business
- •35.2 Management and operations structure
- •Figure 35.1 Possible organizational structure of a consulting company
- •Figure 35.2 Professional core of a consulting unit
- •35.3 IT support and outsourcing
- •35.4 Office facilities
- •36.1 Personal characteristics of consultants
- •36.2 Recruitment and selection
- •Box 36.1 Qualities of a consultant
- •36.3 Career development
- •Box 36.2 Career structure in a consulting firm
- •36.4 Compensation policies and practices
- •Box 36.3 Criteria for partners’ compensation
- •Box 36.4 Ideas for improving compensation policies
- •37.1 What should consultants learn?
- •Box 37.1 Areas of consultant knowledge and skills
- •37.2 Training of new consultants
- •Figure 37.1 Consultant development matrix
- •37.3 Training methods
- •Box 37.2 Training in process consulting
- •37.4 Further training and development of consultants
- •37.5 Motivation for consultant development
- •37.6 Learning options available to sole practitioners
- •38 PREPARING FOR THE FUTURE
- •38.1 Your market
- •Box 38.1 Change in the consulting business
- •38.2 Your profession
- •38.3 Your self-development
- •38.4 Conclusion
- •APPENDICES
- •4 TERMS OF A CONSULTING CONTRACT
- •5 CONSULTING AND INTELLECTUAL PROPERTY
- •7 WRITING REPORTS
- •SUBJECT INDEX
Training and development of consultants
other consultants and the client. As this is carried out in a real-life situation which may be very sensitive to errors, at the beginning the trainee will be guided and controlled by the trainer in more detail than might be necessary in other situations. It may not, however, be easy to find situations in which new consultants can practise a wide range of the techniques that should eventually make up their consulting kit.
Here again, feedback on what the consultant did and how he or she did it is an essential dimension of training. The team leader or supervisor acting as field trainer must provide this feedback, creating an atmosphere in which any aspect of work and behaviour can be openly discussed without embarrassing the new colleague.
Role-playing can be used to rehearse activities before the “live” show. In this form of role-playing, the new consultant and the trainer rehearse in the office or at home in the evening, and are able to anticipate snags.
In certain cases a complete real consulting project can be used as a training experience. This has been done in several courses for consultants, as well as in various types of course for managers and students of management. Such a simulation exercise can be very close to an actual situation. Yet the differences should not be lost from sight: if the client has agreed to a consulting project, but does not pay a normal fee for it, this may affect the participation and attitudes of the client staff when working with the trainee consultant.
37.4Further training and development of consultants
In management consulting lifelong education is a must. This idea is not new. Many consultancy firms have gained and maintained their excellent reputation precisely because of their continual efforts to upgrade staff competence.
Principal directions of consultants’ development
Most staff development activities in consulting firms fall under one or more of the following five areas.
Upgrading functional proficiency. Keeping abreast of developments and becoming more knowledgeable and competent in their own field together form the basis of operating consultants’ further development. Many training and development activities in consulting firms are geared to this objective.
Mastering new fields. Consultants may learn new subjects complementary to their main field in order to broaden their ability to undertake assignments touching on several management functions, perhaps with a view to becoming all-round consultants, able to lead teams of mixed functional specialists, to act as advisers on general management problems, and to undertake diagnostic surveys of business companies and other organizations. Another reason for
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learning new subjects may be the consulting organization’s intention to become active in new technical fields. Many consulting firms prefer to transfer their more dynamic consultants, familiar with the organization’s philosophy and practices, to these new activities rather than staff them with new recruits.
Upgrading behavioural and process-consulting skills. Experience has amply demonstrated that the initial training of new consultants is just a first step in developing the know-how needed to perceive, diagnose, understand and influence human behaviour in organizations. Further training of all consultants (without exception) therefore deals with the “how” of management consulting as it relates to people, including effective client–consultant relations, the consultant’s role in organizational change, and the process-consulting skills required for various situations.
Upgrading knowledge-sharing skills. Sharing knowledge is both an attitude and a skill. Many consultants need more and better training in working with information; searching for relevant information; assessing relevance and filtering information overload; identifying and recognizing new patterns and trends; structuring and formulating knowledge in ways that make it suitable for sharing and transfer; sharing information, experience and knowledge with colleagues; transferring knowledge to clients and working with clients to develop new knowledge; combining and harmonizing knowledge transfer with other consulting tasks and interventions, etc.9
Preparing for career development. This includes personal development needed for the positions of team leader, supervisor, division head, partner and other senior positions concerned with client relations, management and business expansion. Career advancement carries with it the need to use a broader approach and develop technical competence in several fields.
Organization and methods of further development
Certain features of consulting practice make further training and development difficult to organize. Typically, consultants working with one firm in the same discipline are geographically dispersed on individual assignments. To arrange a technical discussion among specialists may require a special organizational effort. Furthermore, the highly individualized character of many consulting assignments encourages consultants to become individualists, and this creates a constant problem in sharing work experiences with other colleagues.
Nevertheless, the profession also has many features that facilitate the consultant’s development. A consultant’s energy and time are much less absorbed by routine matters and established procedures than those of a manager in the same technical field. The consultant can approach every new assignment as a challenging exercise where innovation is both possible and desirable, and can thus refine his or her method almost continually. Consultants are never short of opportunities to apply ideas and suggestions found in the literature or other sources. Furthermore, consultants learn a great deal from their client organizations; to reinforce that learning they must compare, evaluate, generalize,
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conceptualize and try to apply a new, more effective approach to successive assignments. They have to remember that every client organization and every assignment is unique, and that past solutions cannot be mechanically applied to new situations.
Clearly, most of the learning from experience, including the consultants’ own and their colleagues’ experience, as well as the clients’ experience, takes place on the job: it is learning by doing and by observing how others do. It should, however, be enhanced by other learning opportunities and approaches.
Professional guidance and coaching by senior consultants. Partners, supervising consultants and team leaders, among others, are generally responsible for the development of consultants who report to them. They provide guidance when assigning work, examining work progress and discussing solutions to be proposed to clients. Such discussions can easily be broadened to inform the operating consultants of experience from other assignments, or techniques used by colleagues. A major feature of coaching by senior consultants should be to help operating consultants to develop their personal qualities and communication skills. Informal discussions should be arranged within the assignment teams on experience gained from joint work, and used for staff development on a regular basis.
Workshops and conferences. Short workshops and conferences for professional staff are organized in many consulting firms. There may be an annual conference which deals with technical and methodological topics useful to all consultants, as well as policy and administrative matters. Workshops and seminars may be organized in functional divisions, on a regional basis, or in other ways. There are also various external seminars on management and consulting topics from which consultants might benefit. Such services are available from consultants’ associations, management institutes, and in some countries also from private consultants who train other consultants.
Knowledge management. Consultant development is one of the main purposes of knowledge management in consulting and other professional firms. Learning is facilitated by, for example, easy access to relevant information and its sources, posting of and pointers to information of particular interest, internal bulletins and intranets, regular events for exchanging information and experience, and systematic debriefing following completed projects (see Chapter 34).
Reading. Consultants have to acquire the habit of reading the main business and professional periodicals, technical papers, important new publications and internal consulting reports relevant to their field.
Research and development assignments. Special project assignments, such as developing a new line of consulting, preparing an operating manual, or evaluating the methodology and results of comparable consulting assignments, are excellent learning opportunities for senior staff members.
Training others. One of the best methods of self-development is training other people. Consultants have many opportunities to do this: for the client’s personnel during assignments, at the consulting firm’s training centre, as
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supervisors of younger consultants during operating assignments, as part-time teachers at management institutes and schools, or as speakers at professional conferences.
Preparing for supervisory and managerial functions. Promotion to the role of supervisor usually takes place after several years in an operating role. Some experience of the role is gained by seeing seniors in action, and by guiding new consultant trainees. Training on promotion is usually quite short and provided by experienced seniors who are good trainers. Training may be given partly in formal sessions at head office and partly with experienced seniors in action. Head-office training and briefing require about three weeks, while coaching by an experienced senior may extend over some months. During this time the promoted consultant works largely alone, with only occasional guidance and advice from a more experienced colleague.
Planning and budgeting
The diversity of individual consultants’ career paths and training needs, as well as the desire to be flexible in meeting current clients’ requirements, make it difficult to plan staff development and to stick to what has been planned. Yet some planning is useful.
Some consulting firms use indicative standards showing the amount of formal training which, on average, a staff member would undergo in one calendar year: for example, between 40 and 60 hours of formal training. A corresponding budget can then be worked out, bearing in mind whether the training will be arranged internally or externally. As a rule, the cost of training per staff member will be higher than in many other sectors.
Individual planning is even more important. It is useful to establish training objectives that reflect career objectives, against which the consultant can measure his or her progress. In particular, such training objectives should be defined for the first years of operating, based on the evaluation made at the end of the initial training programme, and the subsequent periodical performance reviews. While some flexibility in deciding on participation in specific training events will always be required, training must not constantly be put off in order to cope with the current workload.
37.5 Motivation for consultant development
In consulting, more than in many other occupations, the individual bears the main responsibility for his or her own development. The consultant’s professional development is above all self-development, and the results achieved will depend mainly on the person’s ambition, initiative, determination, perseverance and intellectual capabilities. This is self-evident to the sole practitioner, who knows very well that he or she takes full responsibility for his or her own future. However, a member of a consulting firm working on jobs assigned by manage-
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ment can also show a great deal of initiative and interest in achieving career goals and training objectives, and can find a great many opportunities for improving competence. After all, if consulting is your career choice, you want to be sure that you control your career and that you will fare well in this rapidly changing sector. Self-development is a key to achieving this goal.
Most consultants understand that stopping learning makes them vulnerable, less interesting to clients and an easy target for competitors. Invariably, personal development and learning get high marks in consulting firms’ priority concerns. To many consultants, learning is a vital need, a natural part of their lifestyle. There are, however, forces and constraints that can hamper consultant development quite seriously.
A consultant’s natural desire to learn tends to wane if he or she sees that the firm is more interested in, and remunerates its staff better for, achieving shortterm objectives such as high personal billing and bringing in new clients. In a similar vein, if the firm is keen to get more of any business, the consultant will be discouraged from looking for assignments that provide good opportunities for learning something new, but are more risky and difficult to negotiate or execute.
If promotion and pay clearly favour other criteria (e.g. seniority or higher management’s personal preferences), this policy may have a negative effect on self-development. To see senior partners occupying the same positions for years and collecting the same pay cheques without any self-development or performance-improvement effort is demotivating, not only to younger consultants but also to other partners.
A poor choice of trainers can be equally damaging. This has happened in consulting firms where the trainers’ jobs were given to those seniors who were not so good at dealing with clients or managing operations.
Most importantly, all professional firms stress that training and coaching the staff members assigned to them is a crucial responsibility of all professionals, including those in the highest management functions in the firm. In practice, however, many senior professionals devote all their time and know-how to firm management, business promotion and dealing personally with important clients. This tends to be encouraged by the compensation system, which may ignore, or allocate a small weight to, the senior consultants’ contribution to the development of other staff members. If this has been the prevailing practice for years, it has probably turned into a cultural value. Senior professionals who remember that they “had to make it” without any help from their superiors often think that the next generation should be treated in the same way.
In summary, to be successful in consultant development, a consulting firm has to achieve coherence between policy statements, strategic objectives, resource allocation, current assignment management, organization of training and staff motivation at all levels, starting with the newly recruited trainees and ending with the firm’s managing partners. Consultants must know what the policy is and must be encouraged to comply with this policy throughout their career.
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