launching a management consulting practice (2009)

Launching a Management

Consulting Practice

A Webinar Conducted by

Mark R. Haas CMC, FIMC

IMC USA Academy for Professional DevelopmentOctober 20, 2009

Desired Outcomes

1. Understand Management Consulting

Profession, Industry, Consultant, Client

2. Understand How to Become a Consultant

Competency framework

Starting a consulting business

3. Understand How to Be a Consultant

Marketing and selling services

Delivering consulting services

Managing the consulting business

4. Decide If Consulting Is For You

Lifestyle, risks, alternatives, benefits and costs

210/20/2009 Institute of Management Consultants USA

Part 1: Understand Management Consulting

Why Does Management Consulting Exist?

What is Management Consulting?

Where Does a Consultant Work?

What Does a Consultant Do?

How Is Consulting Changing?

10/20/2009 Institute of Management Consultants USA 3

What Type of Consultant Can You Be?

Generalist vs. specialist

Industry vs. functional discipline

Process vs. content

Diagnostic vs. implementation

Customized vs. pre-packaged solutions

A mix of the above


Consulting Experiences Vary Considerably

Facilitate kickoff planning for US military’s World War IV “Cognitive Dominance” strategy

Assess operations and advise reorganization of the world’s largest biomedical research enterprise

Facilitate planning to recover commercial operations after nuclear terrorism in LA

Reorganize a major city school system

Advise on governance and operations at an environmental nonprofit

Develop a business plan/strategy for health care startup

Revitalize administration and programs for a national volunteer organization


Business and Consulting are Changing Fast

Flat world

Commoditization

Interdependency

Speed

Demographics


A management consultant

needs to be on top of all of

these emerging trends

Part 2: How to Become a Consultant

The “What” and “How” of consulting

Consulting competency framework

Professionalism and ethics

The consultant’s reputation

Certification


Consulting is More than Just Knowledge


Consulting Competencies and Ethics

“How”Consulting Skills

Consulting Behaviors

Consulting Ethics

“What”Technical Discipline

Sector Specialization

Professional Associations

Consulting Competency Framework


Market Knowledge and Capability

Expertise in a technical discipline

Experience in an industry sector

What a consultant has to “know”

This is the “what” of consulting, necessary but

insufficient to effectively support management


Consulting Competencies

Core consultancy tools, techniques and skills

Essential to deliver management consulting services

Specifics vary by type of consulting services provided

What a consultant should be able to “do”


Consulting Skills and Behaviors

Entry level prerequisites for a successful consultant

Enables ability to acquire consulting competencies

Acquisition based on commitment to life long learning

What a consultant should “be”


Ethics and the Reputation of Consultants


Value of Certification

Consulting is unlicensed – for now

The Certified Management Consultant (CMC®) is

evidence of meeting international standards

More than 10,000 CMCs worldwide

Instant network to other accomplished consultants

A CMC does not guarantee consulting success

Expectation to contribute to the profession


Part 3: How to Be a Consultant

Understand the consulting enterprise

Starting a consulting business or joining a firm

Why clients pick you and not other consultants

Networks and pipelines to generate leads

From lead to prospect to client

Delivering consulting services

Managing a consulting practice


The Consulting Enterprise

16

Professional

Development

Practice

Management

Client

marketing

selling

services

fees

Consultant

Networks


Starting and Managing a Consulting Business

Considerations Lifestyle

Risk

Personal style

Work style

Skills

Choices Business organization and size

Project costing, cost recovery and setting fees

Practice management

Technology and resources

Networks


The Consultant’s Clients

Who are they?

Why do clients use consultants?

Insight into industry or process

Independence and objectivity

Specialized expertise or access

Facilitation and process skills

Supplemental skilled resources

Clients really buy confidence, not competence

Why do clients pick specific consultants?


How Do I Get Clients?

Your organization/industry

Your business network

Teaming/subcontracting

Friends and family

Cold to warm calling

Advertising, publicity

Pro bono work


Marketing and managing a client pipeline is

a critical part of the business of consulting

Networks

Networks you design and build

Professional associations and trade groups

Online communities

Specialized by discipline, industry, position

Where to spend your time effectively

Geographic and discipline network groups

Mastermind groups

Tools and Services

LinkedIn

Facebook


Institute of Management Consultants USA

Lead Generation Pipeline

2110/20/2009

Moving Prospects Through the Pipeline

Convergence of Need + Capability + Passion

Clearly Identify Client Needs

Match Your Capability With Client Need

Everyone Should Be Enthusiastic

Finding the Qualified Buyer

Discussions With Prospects

Submitting the Proposal

Negotiating the Project

Closing the Sale

22

The best proposals

are conclusions,

not explorations


From Proposal to Agreement to Engagement

Proposal Elements

Understanding of Need

Proposed Approach

Personnel Experience

Corporate Experience

Technology, Process, Data

Management Controls

Client Provided Items

Performance Evaluation

How to Acquire Capability?

?

?

?

?

?

?

?

?


The Consultant’s Recurring Dream


Charles Russell, Meat’s Not Meat ‘Till It’s In The Pan (1915)

Delivering Services

Establish the relationship

Formalize project plan and outcomes

Manage staff, cost, quality, schedule

Conduct research and ask staff

Complete and validate the diagnosis

Develop findings and recommendations

Review and reconcile findings with client

Implement recommendations

Evaluate and manage performance

Conclude the engagement


Communicate,

Communicate,

Communicate

More Challenges Beyond the Engagement

Staffing your firm

Teaming with others

Subcontracting

Passive income

Pro bono work

Resolving problems

Unexpected opportunities


Network,

Network,

Network

Challenges of Managing a Small Firm

27

Get the Work

Do the Work

Manage the Business

Learn and Grow

. . . Simultaneously


Part 4: Is Consulting Right for You?

Why Are You Considering Consulting?

What is Your Long Range Plan?

Are You Committed to Consulting as a Profession?

Can You Meet Each Criterion?

Business Goals

Lifestyle Goals

Client Acceptance

Contingency Plans


Use a Typical Consulting Process to Decide if Consulting is Right For You

29

Who Am I?

How Do I Get There?

How Will I Know?

Where Am IGoing?


Who Am I?Am I Right for Consulting?

Personality

Curiosity

Perception of risk

Sense of urgency

Work environment

Tolerance for ambiguity

Breadth of experience

Analytical skill and interest

Depth of general and business knowledge

Commitment to consulting as a profession


Where am I Going?Stages of Consultant Development

31

Stage Early Advanced Mastery

Expertise Provides technical skills/

experience to a project.

Developing skills defined

by Common Body of

Knowledge and

Competency Framework.

Secures, designs, and

manages small consulting

projects. Practices skills

consistent with Common Body

of Knowledge and Competency

Framework

Can secure, design, and manage

large, complex, team-based

consulting projects. Meets highest

international standards of

competence, including IMC USA

CBK and CF

Scope Narrow specialty in a

technical discipline /

industry

Applies expertise across

industries and disciplines

Creates new approaches to

applying expertise across industries

and disciplines

Organization

focus

Tactical support to middle

managers

General business advice to

managers and executives

Broad strategic advice to senior

managers and executives/Board of

Directors

Value to Client Solves technical/tactical

problems, often limited in

scope or solution space

Recommends and implements

solutions to client needs.

Anticipates emerging client

needs and helps resolve.

Sought by and considered a

partner by executives. Long term

engagements and retainer

relationships are the norm

Commitment to

Profession

May belong to technical

and/or trade associations

and to IMC USA. Does not

subscribe to a formal code

of ethics/enforcement.

Member of IMC USA and

bound to IMC USA Code of

Ethics. Has enough skills and

experience to obtain CMC®

certification

Member of IMC USA and bound to

IMC USA Code of Ethics. Has

obtained CMC® certification.

Actively contributes to profession

Experience Up to 3-5 years as an

external or internal

consultant

5-15 years as an external or

internal consultant with

experience managing

increasingly large complex

projects

Greater than 15 years as an

internal or external consultant


How Do I Get There?What is Your Plan to Become a Consultant?

Education/Training

Experience

Affiliation

Certification/Licensing

Business Form

Lifestyle

Reality Check

Opportunity Costs


How Will I Know?Success Measures of Professional Consultants?

Your Formal Plan

Identify and Develop Consulting Skills and Behaviors

Prepare and Confirm Business and Marketing Plans

Test by Partnering With Experienced Consultants

Evaluation of Progress Against Plan

Business Goals

Lifestyle Goals

Client Evaluation

Contingency Plans

Satisfaction


Consulting Can Be a Rewarding Profession

You know about consulting as a profession

You have the basics of how to become a consultant

You appreciate what it takes to be a consultant

You can now decide if consulting is right for you

You have resources available to help you

Bibliography (with pre-reading materials)

Associations (particularly IMC USA)

People (other consultants and your business associates)


Thank You for Your Attention


Mark R. Haas CMC, FIMC is President of Research and Organization Management,

Inc., a Bethesda, MD based management consulting firm. ROM provides executive-

level organization assessment, performance management, strategy development and

execution management, primarily for science, technology and R&D-focused clients.

Mark has advised federal agencies, nonprofits, trade associations, national labs, oil

companies, state agencies, colleges, banks, and professional service firms. He is a

Certified Management Consultant, author, expert witness, facilitator, invited speaker,

and lead quality (Baldrige) examiner.

His projects range from facilitating planning recovery from nuclear terrorism and development of military

strategy, to improving leadership and operations for biomedical research programs and environmental

nonprofits. He is listed in Who’s Who Among Emerging Leaders and Who’s Who in America and holds

degrees from Colgate and Harvard Universities. Mark has a commercial pilot’s license and instrument rating,

used to be a decent golfer, spends too much time reading about history of science and, in the 1980’s, he and

his wife quit their jobs and took a year-long trip around the world. He is immediate past Board Chair, and

former Ethics Chair, and a Fellow of the Institute of Management Consultants USA, the professional

association and certifying body for management consultants in the US.

www.rominc.com

[email protected]

(301) 320-5889