MSc Audit Management and Consultancy

Consultancy Module

The Consultancy role

CON 2

Learning objectives

• Use consultancy skill s to the benefit of the organisation and its employees

• Apply appropriate consultancy methods to a study• Analyse problems, understand apply and develop

concepts, synthesise different types of information, evaluate and make rational judgements

• Work effectively in an action learning set in order to provide mutual support and to reinforce each other’s personal and professional development

EMERGING MANAGEMENT PARADIGM

R Daft (1997):

‘The field of management is undergoing revolution. The traditional paradigm assumes the purpose of management is to control and limit people, seek stability and efficiency, use rules and regulations, design top down hierarchy to direct people, and achieve bottom line (profit) results.  The newly emerging paradigm assumes the purpose of management is to harness peoples’ enthusiasm and creativity; find shared vision, norms and values; share information and power; encourage teamwork, collaboration, and participation; and develop people to adapt to extraordinary environmental changes and achieve top line (total sales) effectiveness. Both paradigms are guiding management actions in the world today.’

Why is this happening

• Pace of technological advance• Complexity of systems• Pressure on resources• Globalisation• Acceptance of ‘externalisation’ – consultancy and

outsourced `service models

The power of teams

‘Anything one can imagine, other men can make real’

Jules Vernes

French writer (1828 – 1905)

Consulting roles

• Individual• Project Manager• Team environment• Internal grouping • External involvement

Recognition of importance of establishing credibility

Recognition of role

• Objectives• Constraints• Barriers

Often role includes responsibility for making things happen

Grid model (Blake and Mouton, 1964)

The managerial grid

Hierarchy of consultant relationship

Valued

Trusted

Relationship

• Continuous examination of inputs – hours, skill mix and ‘job costs’.

• Examination of outputs – timeliness of report, presentation, spellings, grammar,

• Attendance at meetings

• Review of performance against operational expectations

• Relevance of recommendations

• Relationship with middle management

• Approachability

• Commitment to engagement

• Review reflects qualitative assessment of relationship with both Board and Executive Team

• Focus on overall performance and added value linked to contract renewal or negotiation.

• Advisory role as house consultant

Internal Audit a natural choice

Consider whether Internal Audit could help within the development of the new NHS information systems implementation.

- At what level

- Within which organisations

- What skills needed

- Contribution

SWOT Internal Audit - strengths

• Professional• Methodology• Understanding of organisation and culture• Risk• Value for Money• Control

SWOT Internal Audit - downsides

• Resources• Skills • Budget • Status or influence

Stakeholder influence?

Stakeholder mapping – the power – interest matrix Source: Johnson and Scholes (2002), p. 208.

Forces within the Environment

The five forces of industry competition Source : Adapted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from COMPETITIVE STRATEGY: Techniques for analyzing industries and competitors by Michael E. Porter. Copy right © 1980,1998 by The Free Press. All rights reserved.

Can Internal Audit contribute

Almost certainly provided:• Established in charter • Recognition of independence and objectivity issues• Supported by tone at the top• Has the right skill sets • Can be flexible in terms of time allocations• Has commitment to helping organisation achieve its

objectives

Summary

• Continuous development of consulting as a recognised form of acquiring expertise

• Internal audit role where circumstances are right• Internal Audit effective contribution with right status,

approach, skill set and commitment