Topic 2 - Theory of Consultancy
Topic 2 - Theory of Consultancy
ENTREPRENEURSHIP AND
BUSINESS CONSULTANCY
TOPIC 2: THEORIES OF
CONSULTANCY
3. Defining a problem.
• Identifying a language which the organization can recognize and
manage this problem.
• Disrupting the boundary between organization and disorganization
(Muuno 2001)
• Enabling organizations to cope with the rapidly shifting complexity in
which they operate.
4. Theory advocates for desire to dissect, analyse and positively advise
organisations on how their managers can rather operate rather than what
managers should do. A theory of consultancy describes a consulting practise
that acknowledges that one must do so without the possibility of final
knowledge of whether in any ultimate sense, one’s choices are correct (Cherry
Holmes 1993)
5. Theory seeks a position that provides a novel and more or less organized
way of understanding the world that can be used to generate new
opportunities for practise. It seeks not to tell people what to do but rather to
open up possibilities.
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2.1: Expert Theories
The expert (or telling and selling) model of consultation assumes that the
client purchases from the consultant some information or expert service that
she is unable to provide for herself.
2. The client expects expert help and expects to pay for it but do not get
involved in the process of consultation itself.
4. The essence of the message from the client to the consultant is “here is
the problem, bring me back an answer and tell me how much it will cost.”
Expert-model Assumptions
1. Whether or not the manager has correctly diagnosed his own needs
2. Whether or not he has correctly communicated those needs to the
consultant
3. Whether or not he has accurately assessed the capabilities of the
consultant to provide the information or the service
4. Whether or not he has thought through the consequences of having the
consultant gather such information or the consequences of implementing
the changes that the information implies or that may be recommended by
the consultant
5. Whether or not there is an external reality than can be objectively studied
and reduced to knowledge that will be of use to the client.
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This model of consultation is
appropriate when clients have;
1. Diagnosed their needs correctly;
2. Correctly identified consultant
capabilities;
3. Done a good job of communicating
what the problem they are actually
trying to solve;
4. Thought through the consequences of
the help they have sought.
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3. Problems are normal. Problems occur in every organization. In excellent
companies people constantly work on solving problems as they occur.
Problems are opportunities to make things better and should be viewed as
such.
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Step 1: Define the Problem.
Step 1 is a critical step; it determines the overall focus of the project. In this
step, the team defines the problem as concretely and specifically as possible.
Five SPC tools are helpful in defining the problem: brainstorming the problem's
characteristics, creating an affinity diagram, using a Pareto chart, creating an
initial Process Flow Diagram of the present process, and Control Chart data.
The process flow diagram (PFD) will help the team identify "start to finish" how
the present process normally works. Often the PFD can dramatically help
define the problem. After the problem is well defined, Step 2 helps the team
measure the extent of the problem.
End Product = A graph or chart with present baseline or historical data on how
the process works; a collection of the present job instructions, job descriptions,
and SOPs/JWIs (standard operating procedures and job work instructions).
End Product = A goal statement that includes the what, when, where, why,
who and how of the ideal solved problem situation.
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Step 4: Determine Root Causes.
In Step 4 the team studies why the process is working the way it is. If a control
chart was developed in Step 2, determine whether the process is "in control"
or "out of control." If the process is "out of control," the team should pinpoint
the special causes and move to Step 5. If the process is "in control," the team
will need to use tools such as cause and effect analysis (fishbones), scatter
plots and experimental design formats to identify root causes currently in the
system producing common cause variation.
End Product = A list of most probable root causes of the problem (common
and special cause variation); selection by team of the primary root cause of
the problem to be eliminated.
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Do people perceive an improvement? How have results matched customer
needs? If the process did not improve, the team needs to discover if the
wrong root cause(s) was identified or if the wrong solution was utilized. In
either case, return to the steps above, beginning with Step 4. If the process
improves, but the results are disappointing, there may be other root causes
affecting the process. Again, return to Step 4 to further examine additional
root causes. When the problem is solved (i.e. the "loop closed"), the team
proceeds to Step 8.
End Product = Closure for the team members; disbanding of the team.
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2.3: Expert expatriation theories
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Figure 2.3: Expatriation consultancy process. Source: Wright D. 2004
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The borders between professionals are shifting, professional firms merge
or split and new models and techniques of service delivery emerge.
State-of the-art consulting practises are emerging i.e. issues of major
concern to consultants and clients alike, current emerging trends and
approaches likely to enhance the value of these services provided by
consultants.
Others are topics of consulting in knowledge management and the use of
knowledge management by the consultants themselves, total quality
management, corporate governance, the social role ad responsibility of
business, company transformation and renewal and the public sector.
https://www.youtube.com/watch?v=CJCCdBFfnbY
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THE END: THANK
YOU
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