Consulting 101

Wednesday, October 6th

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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A

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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A

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Steps to Clarify Scope Review the client’s proposal and prepare

questions Meet with the client early to discover what the

problem actually is Meet with advisor if project has radically

changed Develop a statement of the problem

A question or a clear hypothesis As specific as possible Focused on action

Draft the engagement letter and receive approval from client

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Consider These Questions When meeting with the client:

Define Problem Space Context: Why is this an issue at this time? Are

there other issues bearing on the problem? Constraints: What is not in scope? What

solutions are not acceptable? Client: Who is the real client? To whom will we

make the presentation? Who will take the decision?

Define Deliverables Form: What type of deliverable will be the most

beneficial to the client? What type of deliverable will NOT be useful to the client?

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The Red Cross does not know what its educational courses are costing

What costing systems can the Red Cross put in place to find cost of courses?

Build a simple and quick system that the Red Cross can put in place in order to better price its courses and manage its course mix

Refining the Issue

Fact

Too General

Specific,Focused on

Action

After the meeting, begin refining the issues

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Developing Your LOE The engagement letter

If you defined and refined the problems, the constraints and deliverables, there’s little else to do

Clearly define expectations from both sides Signed by team and client: a statement of

commitment from both sides

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Heading Description

Define what resources you will need from the client, and specify the time per week you will require from them. If possible, describe the role each individual will play on your team

Prerequisites for successful project

Describe in 1 page what activities the team will undertake over the duration of the project. Identify the need for customer or supplier interviews/surveys as early as possible

Work plan/approach to the project

In 1 paragraph, define your assessment of the current situation at your client, key issues the team is going to address, and the benefit of resolving the issues

Impact/benefit of the project to the client

Engagement Letter

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Things to Remember

1. You don’t have the answer yet2. Set the tone of a good partner3. Revisit, revisit, revisit the engagement letter

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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A

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Tackling the Analysis Identify key analyses

What is our initial hypothesis for a solution? What analysis do we need to perform to test

the hypothesis? What data is available? What data is required?

How can we fill the data gaps? What are the end products for each analysis?

Defining your analysis Brainstorm and build an “issue tree” Ensure it is MECE

Mutually Exclusive and Collectively Exhaustive

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Analyzing the Issues Issue Tree Example

Increase attendanceat given pricing

level?

Change pricing?

How can the Art Center

increase revenues?

Explore alternaterevenue streams?

Change nature ofcollection?

Explore alternatemarketing channels to broaden audience

Sub-idea 3

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Analyzing the Issues Prioritize and focus on issues based on impact,

team interests, ease of analysis

Increase attendanceat given pricing

level?

Change pricing?

How can the Art Center

increase revenues?

Explore alternaterevenue streams?

Change nature ofcollection?

Explore alternatemarketing channels to broaden audience

Sub-idea 3

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Analyzing the Issues Why bother with the darn tree?

Helps divide project Road map for analysis and data collection Ensures completeness (prevents blindsiding) Will help you with case interviews

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Principles Comments

Be realistic about end product precision limits

Scrutinize precision of input data– beware of “polishing dirt”

Look for 80/20, “killer analyses”

Avoid trying to boil the ocean– which analyses will nail the answer/ provide the most insight?

Continually question the hypotheses

Re-evaluate hypotheses every day and adjust work plan – regularly check ideas with client

End-product driven Hypothesize the answer(s) and plan the quickest path to robustly “prove” or disprove it

Planning Critical Analyses

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Sample Timeline

Initial Meeting with Client, Letter of Engagement

Week of September 27th

Develop Detailed Work Plan, Begin Initial “Industry” Research

Week of October 11th

Begin Analysis, Prepare Interview Guides,Start Client Interviews

Week of October 18th

Finish Client Interviews, Continue Analysis,Check-In Meeting with Client

Week of November 1st

Draft Deck, Meet with Advisor Week of November 15th

Submit Deck to Exec Board, Conduct Dry-Run of Presentation

Week of November 29th

Final Presentation with Client Week of December 6th

Every project will have its own distinct timeline Do what makes sense for your client

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Example Workplan

World Federation for Mental Health Legend: Press:2004 IMAP Workplan Step Completed B

Step in Progress GTeam Members: Ryan Fulton, Hemal Gada, Courtney Grey, Wendy King Step Not Started WPrimary Advisor: Len Middleton

Scope #1:Review fundraising ability of health-related international membership organizationsto identify successful strategies for capital improvement.

Week of:March 1st March 8th March 15th March 22nd March 29th April 5 April 12 April 19 April 26

Workstep # Workstep Owner MTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSu

1 Identify health realted non-profit organizations Team g g g g g2 Meet with librarian to discuss research Team ww3 Research: Alzheimer's International Hemal g g g g g g g g g g g g g g g g g g g g g g g g g g4 Research: World Fellowship for Schiz. & Allied Disorders Hemal g g g g g g g g g g g g g g g g g g g g g g g g g g5 Research: Global Health Councils Courtney g g g g g g g g g g g g6 Research: International Red Cross Wendy g g g g g g g g g g g g7 Research: Landmine Survivors Network Ryan g g g g g g g g g g g g8 Identify and research other org. (WFMH recs.) Team wwwwwwwwwwwwwwwwwwwwwwwwww9 Review fundraising abilities of selected organizations Team wwwwwwwwwwwwwwwwwwwwwwwwwwww10 Identify successful strategies used for cap. Improvement Team wwwwwwwwwwwwwwwwwwwwwwwwwwww11 Take findings and map against WFMH strategy wwwwwwwwwwwwww12 Draft findings for final recommendations wwwwwwwwwwwwww

Scope #2:Conduct segmentation analysis of potential fundraising sources for WFMH.

Week of:

March 1st March 8th March 15th March 22nd March 29th April 5 April 12 April 19 April 26

Workstep # Workstep Owner MTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSu

1 Draft initial fundraising segments for WFMH Team b b2 Incorporate research from Scope #1 re: segmentation Team g g g g g g g g g g g g g g g g g g g3 Review of fundraising segments with WFMH Team wwwwwww4 Assemble list of fundraising contacts for each segment wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww5 Take findings and map against WFMH strategy wwwwwwwwwwwwww6 Draft findings for final recommendations wwwwwwwwwwwwww

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Things to Remember

1. Understand what the problem actually is Be end-product driven, think about slide

output Be data driven: all opinions are equal Give your analyses the “So What?” test Divide and conquer!

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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A

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Preparing the Deck Initial Development

Once you have begun the analyses, start laying out your story in presentation form

This will help you stay focused on the task at hand

As a team, you need to “story-board” the presentation to identify your gaps

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Story-Board the Deck

MAIN MESSAGES

• Save $x million through China move• Hold price while monitoring competitive

conduct• Conduct lean transformation

INDUSTRY TREND SCENARIOS

Customers

OEMs

Suppliers

Structure ConductPerform-ance

_____

_____

_____

_____

_____

_____

_____

_____

_____

PROJECTED FINANCIALSEBITDA

2002 2003 2004 2005

COST SAVINGS ANALYSIS

SGAFOHVOHLabor

Material

-x%

PRICING STRATEGY: ROIC ISOQUANT

Price

Market share

Today

Competitor variable cost

GAME THEORY VS. COMPETITOR XEBITDA payouts

Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

IMPLEMENTATION PLAN

May June July …

PRODUCTION RAMP-UP SCHEDULE

2003 2004 2005

Product

1234

MAIN MESSAGES

• Save $x million through China move• Hold price while monitoring competitive

conduct• Conduct lean transformation

MAIN MESSAGES

• Save $x million through China move• Hold price while monitoring competitive

conduct• Conduct lean transformation

INDUSTRY TREND SCENARIOS

Customers

OEMs

Suppliers

Structure ConductPerform-ance

_____

_____

_____

_____

_____

_____

_____

_____

_____

INDUSTRY TREND SCENARIOS

Customers

OEMs

Suppliers

Structure ConductPerform-ance

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

_____

PROJECTED FINANCIALSEBITDA

2002 2003 2004 2005

PROJECTED FINANCIALSEBITDA

2002 2003 2004 2005

COST SAVINGS ANALYSIS

SGAFOHVOHLabor

Material

-x%

COST SAVINGS ANALYSIS

SGAFOHVOHLabor

Material

-x%-x%

PRICING STRATEGY: ROIC ISOQUANT

Price

Market share

Today

Competitor variable cost

PRICING STRATEGY: ROIC ISOQUANT

Price

Market share

Today

Competitor variable cost

GAME THEORY VS. COMPETITOR XEBITDA payouts

Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2

GAME THEORY VS. COMPETITOR XEBITDA payouts

Us H

old

Dro

p

Drop Hold

Them

Year 1

Us H

old

Dro

p

Drop Hold

Them

Year 2

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

SUPPLIER SELECTION

Criteria____________________

1 2 3 4

Strong/weak ratings

Recommended

Suppliers

IMPLEMENTATION PLAN

May June July …

IMPLEMENTATION PLAN

May June July …

PRODUCTION RAMP-UP SCHEDULE

2003 2004 2005

Product

1234

PRODUCTION RAMP-UP SCHEDULE

2003 2004 2005

Product

1234

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Things to Remember

1. Don’t feel constrained by the story-board2. Think about length of the presentation3. Story-boarding makes the end of the project

much more efficient

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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A

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High-functioning Teams Trust your team members

Don’t micromanage Flexible roles

Remember the overall needs of project Clear ownership

Set clear and delegated responsibilities Know when to escalate

Avoid delays, roadblocks

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Things to Remember

1. If you don’t bring up the problem now….2. Ask people their preferences3. Remember to bring the workstreams

together periodically

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Q & A