Management Consultancy - Our View, by Richard Nelson and Kate Harrad.

The editorial from Issue Seven of our newsletter.

Not all organisations possess all the capabilities needed to achieve success, and some – if not all - may require help in developing them. Sometimes a business may not know exactly what is lacking, but will be aware that help is required. If the type of help needed is clear, such as a new IT system, the organisation may be able to select the appropriate specialist. However, issues that involve a complex mix of topics will need more in-depth diagnosis.

The Institute of Management Consultancy defines consultancy as typically involving “identifying and investigating problems and/or opportunities, recommending appropriate action and helping to implement those recommendations”. This three-part definition outlines the process of diagnosis, idea/solution development and implementation that management consultants apply in their work. Whether all three processes are used will depend on the needs of the organisation; often a consultant will recommend a strategy but not be involved in implementation.

In identifying needs, consultants will use their diagnostic expertise, experience of similar organisations, knowledge of organisational structure and management processes and their skills at working with people. The process of consulting can be broken down into task processes – data collection, diagnosis, evaluation; interpersonal processes – talking to and listening to the people in the organisation; and organisational and political processes – getting the organisation to accept the recommended changes and become enthused by them.

In practice, management consultants provide know-how and extra capability and have the advantage of being able to see an organisation from the outside. This enables them to be objective in their analyses, which can be invaluable to managers who are wrestling with competing options. Objectivity combined with a holistic approach is vital for a business to realise its strategic aspirations. Often, we start a diagnosis by examining how well the organisation operates to achieve the results it desires – organisational effectiveness. We then work with client managers to develop a shared diagnosis of current reality in relation to their desired competitive position. The diagnosis will consider how well business purpose and direction is enabled by structure, processes, people and culture.

While focusing on addressing critical needs identified by the diagnosis, we will do so in the context of the whole organisation. This enables the recommended solution to be more quickly integrated into everyday working practice, and so contribute to improved business results.

Click here for more details of our approach.

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