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WELCOME TO MANAGEMENT CONSULTING 21228

Lecturer & Tutor : Dr. Suresh Sood (suresh.sood@uts.edu.au)

Subject coordinator : Dr John Chelliah (john.chelliah@uts.edu.au)

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Projects

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How about creating your own LinkedIn profile if not already in existence ?

Setting the scene….begin with a paradox

Management Consultancies play a major role in modern economies and have experienced tremendous growth and success – yet they are controversial, widely criticised and attract strongly differing opinions? – why is this?

Why study management consulting?

Of all the businesses, by far,Consultancy’s the most bizarre.

For, to the penetrating eye,There is no apparent reason why,With no more assets than a pen,This group of personable men,

Can sell to a client more than twice,The same ridiculous advice,

Or find in such a rich profusion,Problems to fit their own solution.

Bertie Ramsbottom, in The Financial Times, April 11, 1981

The rise and rise of Management Consulting

World wide revenues:• 1980: $3bn • 2008: $330bn

WW data Kennedy associates WW figures increase of over 10,000%

Source: O’Mahoney (2010: 18)

Global consulting industry revenues (including

HR, IT, strategy, operations management and

business advisory services) will be about $366

billion in 2011, according to Plunkett Research

estimates. This represents reasonable growth

from $345 billion in 2010.

Indian IT firms win more clients by banking on consultingBibhu Ranjan Mishra & Pradeesh Chandran / Bangalore August 1, 2011

Top Indian players plan to significantly increase consulting capabilities.As Indian information technology (IT) services firms were trying to tide over the global uncertainties by winning quality clients and extracting more businesses from their existing accounts, consulting is set to play a major role in this effort…

For example, Wipro started its consulting practice almost three years ago under the leadership of T K Kurien, the present CEO of its IT business. Since then, the share of consulting in their overall bouquet of offering has been steadily increasing.The company started with a consulting-driven model of engagement with its mega and gama accounts almost 18 months ago, for better client mining. Today, the company says its average revenue from top 10 clients has gone beyond $100 million as compared to about $72 million a year ago.“It is definitely having an impact. We pioneered this model with six of our top-20 accounts on a trial basis, and subsequently rolled out the remaining ones. Now, our consulting services is working closely with 22 of our top 60 mega and gama accounts. We plan to take it to the remaining accounts within 18 months,” said Kirk D Strawser, Managing Partner and Global Head, Wipro Consulting Services.In the next three and a half years, Wipro plans to more than treble its number of consultants from 1,500 to about 5,000.

“Our ability of winning deals in the area of business transformation has changed dramatically over the years. It is difficult to win a transformation deal of $400 million today. But the journey what we have embarked upon will take us there,” says Infosys COO S D Shibulal, while talking about the company’s next phase of journey where consulting will play a major role.Infosys currently has about 2,000 consultants and plans to add 8,000 more in the next three to five years…Reasoning out Indian IT firms’ increased focus on consulting, industry analysts say that consultants help their respective companies to build a stronger relationship with the clients by offering end-to-end services.“It is interesting to see that the Indian IT services players are winning lots of transformational deals leveraging the consulting capability and creating consulting and solution oriented module than transactional module,” said Amneet Singh, VP, Global Sourcing, Everest…However, Indian players are still in the early phase of the journey, say analysts. “The Indian firms have to cover a fair amount of ground with an aim to come closer to the likes of IBM, Accenture and Capgemini,”

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Management Consultants in Australiasource: IBISWorld Industry Report L7856, May 2011

Accessible via UTS library database “IBIS World Industry Research Reports”

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The emergence of the management guru

Tom Peters

Hammer and Champy

David Maister

What has been the impact of this?

Modern and developing economies use of consultants to:– Advise to governments

and global financial institutions

– Economic and political influence

– Cultural influence

Source: O’Mahoney (2010)

US MBA perceptions of top companies to work for

European MBAs’ perceptions of top companies to work for

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Business students’ preference for consulting 2009

Consultancies dominate Top 10 list of most attractive employers

Source: http://www.consultant-news.com/article_display.aspx?p=adp&id=6309

Different consulting business models

• Hybrid vs. pure consultancies

• Niche vs. general consultancy

• Small vs. large consulting

• Body-shopping

• Internal consulting

• Contracting

• Interim management

Source: O’Mahoney (2010)

Consulting services

Source: O’Mahoney (2010)

Major practice areas in consulting—what are they?

Strategy and Organization

IT HR Operations

Strategy development, Organization design

IT-oriented expertise (e.g. computers, software, Internet, e-business)

HR administration, Human capital management, Change management

Operation strategy, Systems improvement, Logistics

Price experience curve, Growth share matrix (BCG matrix), Porter’s competitive strategy, Value chain analysis, Balanced score card

System integration, a major tool in other consulting services

Payroll and benefits administration, recruitment, training and development

Service/channel management, Yield management, TQM, Supply Chain Management, Lean production, Mass customization

19Source: Greiner & Poulfelt (2005:), various chapters

The Top Ten Revenue Firms in Four Practice Areas (2001)

Strategy IT HR Operations

1. Deloitte Consulting IBM Mercer Consulting Group Accenture

2. McKinsey & Co PwC Accenture CGE&Y

3. Accenture Deloitte D&T-Human capital PwC

4. BCG Accenture Towers Perrin IBM

5. CGE&Y EDS Watson Wyatt McKinsey & Co

6. CSC CSC Aon Consulting Deloitte Consulting

7. PwC KPMG PwC CSC

8. Bain & Co. CGE&Y Hewitt Associates EDS/ATKearney

9. Booz Allen Hamilton Atos Buck Consultants Booz Allen Hamilton

10. EDS/ATKearney T-Systems Andersen Consulting Getronics

Total (in US$b) $9.8 $27.6 $9.2 $9.9

20Source: Greiner & Poulfelt (2005: 10)

Global share of consulting revenues

Source: O’Mahoney (2010)

22Source: Vault.com

Useful Online Resources +++

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http://consulting-ideas.com/

(created by Joe O'Mahoney)

http://www.consultantsconsultant.com.au/Provide any useful resources for sharing with class members via UTS online discussion group “Parking Lot”. Also, see the text web links and review any useful resources.

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Management issues in

consulting

Client- consultant interaction

issues

Nature and specifics of consulting

Overview of Subject & Assessments

Consulting problem solving

approach and toolkit

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Assessments Why these?

Reflection Essay (45 marks)- Assesses your understanding of key concepts/issues; your critical thinking skills/analysis skills, creativity, general writing skills

Group Presentation (30 marks)• assesses presentation skills, team building skills, analysis skills

Formal Exam (25 marks)

• assesses your understanding of key concept/issues covered in the subject

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Assessments (See subject guide)

Reflection Essay (45 marks)• For guidance on how to write reflection essay read “The Process of Creative Reflection” on UTS Online• Reflection based on your learning during the semester• Refer to the marking criteria• Due Week 13

Group Presentation (30 marks)• Presentation and analysis of key consulting frameworks/tools• 10 groups of 4-6 students per group (subject to adjustments if necessary)• 2 – 3 Groups present each week from week 9 to 12 during tutorials• 40 minutes/group (30 min presentation + 10 min questions)• Form groups via UTS online & give names to Lecturer in the 1st Tutorial • Refer to marking criteria

Formal Exam (25 marks)

• Formal Exam period – covers readings, case studies, group presentations, tutorials & lectures

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Group presentation topics and timetable ( weeks 9 to 12)

Topic Week

Pattern Based Strategy

Scenario Planning

Balanced Score Card

Cultural Web of an Organisation

Mood Mapping

Next Practice

Service Dominant (S-D) Logic

Shared Value

Three Horizons for Strategy

Readings• Set text: O’Mahoney, J. (2010) Management Consultancy,

Oxford University Press• Articles accessible via UTS Library for subject 21228—check

Subject outline for overview of which articles are relevant for which topic/week

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Accessing UTS Online Resources

Please check all resources available on UTS Online for this subject including readings, reflective essay

resources and group presentation items and log in on a weekly basis for up to date information and any short

term changes or announcements

The Four Perspectives of O’Mahoney Book

Descriptive Perspective (What)What is, and isn’t, Management Consultancy?How do the different forms of consultancy differ and why?Why did the industry emerge and how has it changed in recent years?

Practitioner Perspective (How)How should clients deal with consultants?What tools and techniques do consultancies use?How should one run a consultancy firm?

Critical Perspective (Why)How does consultancy interact with its social, political, and economic environment?What theories can illustrate better the dynamics of the industry?How can consultancy be ethical?

Careers Perspective ( Getting a job)Which firms should students apply for and at which grade?How should students apply for a job?How can students maximise their chances of success?

QUESTIONS?

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