Consulting Basics

  • Consulting is a process undertaken to address a specific problem for a client leading to documented recommendations to solve it
  • A consultant is a professionally trained individual who solves the client’s problem through recommendations.
  • Consultants are hired when fresh ideas are required, the task seems complex requiring specific expertise, and needing focused efforts/resources
  • “All clients know what they want. Few know what they need. The difference is your value added”

Who should implement the recommendations?
Consultants might be expected to contribute through the implementation phase.

  • “Management consultants help organisations diagnose complex problems, identify the real issue behind them and arrive at a comprehensive solution with an appropriate action plan.” 
  • They specialise in certain areas but collaborate as teams when they need to address issues that need a holistic perspective.
  • Their capabilities transcend disciplines and their recommendations in totality are greater than the sum of their parts.
  • They follow a structured approach towards problem-solving.
  • Consultants are useful to get buy-in from stakeholders

Scenario to think about

ABC Ltd is an IT services company which has been profitable but with a flat revenue trend over several years? What should the CEO do?

Eventually, ABC Ltd hired a leading Strategy Consulting Firm. What are the alternative options that ABC Ltd could have considered and their relative merits and demerits?

IT Services Vs IT Consulting

Typical Characteristics of IT Services Vs IT Consulting

Types of Consulting

Strategy Consulting: Strategy for Business Vision, Growth.

Financial Strategy, Accounting & Audit: Financial matters –fund raising, investment portfolio mix, audit, M&A.

General Management Consulting: Focus on Business operations with IT involvement.

Industry Specific Consulting.

Functional Consulting. E.g HR Consulting: Design & implement HR policies and systems. Hiring; Performance management. Organizational design.

IT Consulting: Focus on IT selection, assessment, planning and deployment. Recommend IT Management decision such as outsourcing & governance.

Note: IT consulting is very much part of other types as well – Due to growing dependency on Information Systems for all Business Processes.

Business and IT Consulting (BIT): BIT consulting: Business consulting that uses the prowess of IT. Business and IT Actions lead to Business Outcomes

References

  1. Chapters 1, 2, 3 and 6: Sanjiva Shankar Dubey (2012). Management and IT Consultancy