A description of the nature of the management consulting profession and the requirements for launching a successful consulting practice. Includes client service, marketing and selling and practice management, as well as a discussion of the Management Consulting Competency Framework.
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Launching A Management Consulting Practice (2009)
1. Launching a Management
Consulting Practice
A Webinar Conducted by
Mark R. Haas CMC, FIMC
IMC USA Academy for Professional Development
October 20, 2009
2. 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
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3. 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?
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4. 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
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5. 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
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6. 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
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7. Part 2: How to Become a Consultant
The “What” and “How” of consulting
Consulting competency framework
Professionalism and ethics
The consultant’s reputation
Certification
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8. Consulting is More than Just Knowledge
Consulting Competencies and Ethics
Technical Discipline
“What” Sector Specialization
Professional Associations
Consulting Skills
“How” Consulting Behaviors
Consulting Ethics
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10. 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
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11. 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”
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12. 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”
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13. Ethics and the Reputation of Consultants
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14. 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
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15. 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
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16. The Consulting Enterprise
Networks
Professional
Development marketing
services
Consultant Client
fees
Practice
selling
Management
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17. 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
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18. 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?
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19. 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
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20. 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
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22. 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
The best proposals
are conclusions,
not explorations
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23. From Proposal to Agreement to Engagement
Proposal Elements How to Acquire Capability?
Understanding of Need ?
Proposed Approach ?
Personnel Experience ?
Corporate Experience ?
Technology, Process, Data ?
Management Controls ?
Client Provided Items ?
Performance Evaluation ?
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24. The Consultant’s Recurring Dream
Charles Russell, Meat’s Not Meat ‘Till It’s In The Pan (1915)
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25. 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
Communicate,
Evaluate and manage performance
Communicate,
Conclude the engagement Communicate
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26. More Challenges Beyond the Engagement
Staffing your firm
Teaming with others
Subcontracting
Passive income
Pro bono work
Resolving problems
Unexpected opportunities
Network,
Network,
Network
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27. Challenges of Managing a Small Firm
Get the Work
Do the Work
Manage the Business
Learn and Grow
. . . Simultaneously
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28. 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
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29. Use a Typical Consulting Process to
Decide if Consulting is Right For You
Where Am I
Going?
Who Am I?
How Will How Do I
I Know? Get There?
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30. 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
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31. Where am I Going?
Stages of Consultant Development
Stage Early Advanced Mastery
Expertise Provides technical skills/ Secures, designs, and Can secure, design, and manage
experience to a project. manages small consulting large, complex, team-based
Developing skills defined projects. Practices skills consulting projects. Meets highest
by Common Body of consistent with Common Body international standards of
Knowledge and of Knowledge and Competency competence, including IMC USA
Competency Framework. Framework CBK and CF
Scope Narrow specialty in a Applies expertise across Creates new approaches to
technical discipline / industries and disciplines applying expertise across industries
industry and disciplines
Organization Tactical support to middle General business advice to Broad strategic advice to senior
managers managers and executives managers and executives/Board of
focus Directors
Value to Client Solves technical/tactical Recommends and implements Sought by and considered a
problems, often limited in solutions to client needs. partner by executives. Long term
scope or solution space Anticipates emerging client engagements and retainer
needs and helps resolve. relationships are the norm
Commitment to May belong to technical Member of IMC USA and Member of IMC USA and bound to
and/or trade associations bound to IMC USA Code of IMC USA Code of Ethics. Has
Profession and to IMC USA. Does not Ethics. Has enough skills and obtained CMC® certification.
subscribe to a formal code experience to obtain CMC® Actively contributes to profession
of ethics/enforcement. certification
Experience Up to 3-5 years as an 5-15 years as an external or Greater than 15 years as an
external or internal internal consultant with internal or external consultant
consultant experience managing
increasingly large complex
projects
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32. 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
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33. 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
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34. 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)
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35. 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
mhaas@rominc.com
(301) 320-5889
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