CHAPTER 8: STAGES OF MANAGEMENT CONSULTING ENGAGEMENT – PART II

D. Solution Development

-third phase of the problem-solving process.

-links to the previous phases through deliverables

-it links to the fact finding and analysis phase through the specifications of requirements and
criteria and final recommendation

Steps:

1. Generation of solution alternatives

2. Evaluation of solution alternatives
3. Choice of preferred solution alternative
4. Detailed development of the selected solution

Range of recommendation that may be expected to produce:

a. Solution to specific problem

b. Educational course or training program
c. Designed system component
d. Implemented system development life cycle
e. Advice or assistance
f. Expert opinion

1. Generation of alternative solution

-to generate and thoroughly search for solution alternatives

WELL DEFINED APPROACHES

a. Pattern recognition & matching approach

- Emphasizes experience having those very similar characteristics to the problem
situation
b. Brainstorming approach
c. SCAMPER Approach
-Substitute, Combine, Adjust, Magnify, Put, Eliminate, Reverse
d. Delphi Approach
-employ idea generation concept similar to brainstorming

2. Evaluation of Solution Alternatives

-to determine the most preferred solution

- based on the situational feasibility analysis that considers all relevant dimensions
 - comparison of alternative solutions by means of established criteria (very important
evaluation), represented by qualitative and quantitative factors chosen by the evaluator

AREAS OF CONSIDERATION:

1. Economic feasibility / cost-benefit analysis

2. Operational feasibility
-usability of each solution alternative
3. Technical feasibility
-adequacy of the existing state of technology
4. Scheduling feasibility
-determination if the alternative solution can be rendered operational by a specified time
and/or date
5. Legal feasibility
-ability to meet the legal requirements imposed by outside authorities
6. Other evaluation factors
-simplicity, flexibility, adaptability, and reliability

3. Choice of the most preferred solution

-“choose the alternative solution that yields the best fit or value relative to the established
criteria”

Approaches in an Environment of CERTAINTY

-one event and single outcome for each action

1. optimizing approach – employs mathematical techniques

2. satisficing approach – used when optimizing approach cannot be applied

Approaches in an Environment of UNCERTAINTY

-does not provide sufficient info to assign probabilities to the future states

1. Maximin approach (to attain downside)

-identifying the worst outcome that can occur

-choosing the alternative with the greatest worst outcome

2. Minimax approach (reflects attitude of regret avoidance)

-computing the maximum opportunity loss associated with each alternative solution

-computing the alternative that minimizes the maximum summed up opportunity cost

3. maximax approach (reflects an optimistic attitude)

-identifying the best outcome that can occur

-choosing the alternative with the greatest “best outcome”

4. rationality approach

-each state of nature reflects an equal probability of occurrence

-applying these equal probabilities to the outcome associated with respective states of nature

-choosing the alternative having the highest expected payoff

Approaches in a Risk Environment

1. Expected value calculation

-weighting the outcomes for the states of nature by the probabilities of occurrence
- adding up the weighted outcomes to obtain the expected value of the payoff for each solution
alternative
-choosing solution alternative having the maximum expected payoff
2. Decision tree approach
-sequental decision must be made
3. Monte carlo simulation approach
-involves simulating a model usually in the form of a computer program, over one or more
periods during repeated trials or runs
-used in complex situations where analytical methods cannot be applied
4. Other risk environment approach
-probabilities approach based on the queuing theory & game theory
-seldom applied by managerial decision makers

D. Detailed development of the selected solution

-will undergo detailed design and refinement

-must be carefully planned in order to minimize required time and costly mistakes

-design teams members should carefully selected on the basis of their proficiency in TECHNICAL
DESIGN, SKILL IN ATTAINING MANAGEMENT INVOLVEMENT, UNDERSTANDING OF THE USERS
PERSPECTIVE

Stage will involve the designing of:

1. Outputs
2. Inputs
3. Conversion processes
4. Resource and data bases
5. Organization

Guidelines for Solution Development

1. The selected solution should be directly related to the objectives that the client desires to
achieve
2. Maintain a comprehensive view of the problem situation and how it relates to the overall
organization. Always focus on the key issues and concern.
3. Search for all the important relationship involved in the situation
 4. Employ systematic procedures and methodologies while maintaining an openness to creative
insights.

E. preparation and presentation of the report and recommended solution

-should be presented in persuasive manner

Guidelines in the presentation of the recommendation

1. The presentation should normally be made orally and accomplished by audiovisual aids and
written report
2. Facts and arguments should be presented in a clear, concise, and nontechnical manner
3. Do not overwhelm the client with numerous details and unnecessary discussion of the data
analysis techniques
4. Be ready however to describe briefly the significance of any gathered fact and the purpose of
any technique employed
5. Volunteer info concerning the risk that a recommended solution entails and the difficulties that
are expected in implementing the solution
6. Interim presentations and written reports should be made throughout the solution
development phase. As a minimum these presentation and reports should be given to the client
at the completion of each step. If the client management and users have been properly involved
and informed, they could easily understand the final presentation and be open to the presented
findings.

F. Implementation

-it must be understood that the CPA should not and cannot take the responsibility for making
management and policy decisions in any MAS engagement.

Activities in implementation phase

1. Development of a work plan

2. Establishment of controls over the implementation activities
3. Selection and training of needed personnel
4. Development of standard and documentation
5. Testing of the solution being implemented
6. Follow-up and evaluation of implemented solution

G. Follow-up evaluation of the implemented solution

-not a one-time process

-additional evaluations should be performed at regular intervals during the operational life of
the implemented system.

Illustration of evaluation

1. Compare the actual performance of the implemented system with the expected performance
2. Compare the details of the implemented system with the documented design
3. Determine potential improvements to the new system
 4. Determine means of improving the systems development methodology employed by the client
firm.

Three suitable choices

1. A special audit team selected from among the managers of the client organization
2. An internal audit team that performs operational reviews as a part of its customary duties
3. An external team of consultants

Three specific areas that should review and evaluation should focus

a. Economics
-comparison of the actual benefits and cost of the new system with the expected benefits and
cost that were developed during the system design phase
b. Operations
-focuses on the actual use of the implemented system by intended users
c. Future performance
-identifies potential improvements to the implemented system and estimates the effort
required to the implement these improvements

IV. Evaluating the engagement and post-engagement follow-up

-necessary if constant improvement and refinement in the quality of future advisory services is
to be achieved

Evaluation will formally cover

1. Proposal
2. Engagement program
3. Work program and schedule
4. Source data and documentation
5. Reports
6. Results
 CHAPTER 9: PROJECT MANAGEMENT AND CONTROL

Project management

-means planning, executing, scheduling, and controlling activities to provide solution to the
identified problems

-“what is the status of the project?”, “when will the tasks be completed?”

A. Project plan
- Engagement planning actually begins the first time a potential client contacts the
consultants and continues in more detail as a preparation and presentation of the
project proposal is made.
- Project plan serves as a nucleus of a consulting engagement and provides a guide to
staff assignment and completion dates.
- To maintain a current status, the project should be updated at least weekly
- Usually begins with an engagement kick off meeting

IMPORTANT TOPICS TO BE ADDRESSED AT THE MEETING

1. Review of the engagement proposal

2. Discussion of the work objectives
3. Definition of intermediate work results
4. Responsibility assignments and client participation
5. Project completion date
 CHAPTER 10: PRESENTATION OF ENGAGEMENT REPORTS

-presenting result is a universal element of consulting work, and the success of a consultant will depend
on his/her skill at communicating what he/she has done.

Reasons Why Consultants Have Difficulty Presenting Results

1. Presentations involves hard work

- Require creativity, discipline, and intense mental effort
2. Presenting results involves risks
- Where you most visibly lay your skills, thought processes, reputation on the line
3. Effective communication
- Is not well developed skill area for many consultants

Preparing for the Presentation

- What to say and how to say

DECIDING WHAT TO SAY

1. Keep a list of ideas and observations as the project progresses. Review them frequently. Use the
list as a basis for your presentation outline.
2. Add a hand written summary or highlight points in the margins of flow diagrams and interview
notes, as they are prepared.
3. Use the Delphi research technique with the other members of the engagement team to develop
a list of important points.
4. Try to “psyche out” the client.
- To put himself in the place of the key person or people in the client organization and
think about what issues are most important to each of them.

CHOOSING THE METHOD OF PRESENTATION ON HOW TO SAY IT

- Concentrate on the objective: to communicate effectively at a minimal cost to the

client

Checklist factors to consider:

a. Purpose of the engagement

b. Contractual requirements or other commitments the consultant may have made
c. Time the consultant has available to prepare
d. Size of the budget for a project
e. Type of presentation that best fits the personality of the client
f. Logistics, whether the presentation must be made to one person, to several people in different
cities

Types of Written Presentations

FORMAL REPORTS

1. Executive summary
 -high-level of synopsis of findings, recommendations and benefits, which contains key
information for client
2. Project background
-short history of the project to place the project in perspective
3. Objective and scope
-restatement of the purpose and limitations of the engagement
4. Engagement methodology
- description of techniques and approaches used
5. Analysis and synthesis
- description and detailing of the analysis undertaken &the basis for findings
6. Findings an d conclusion
- listing of the major conclusion that may also include alternative
7. Recommendations
-aimed at guiding the client toward a course of action
8. Expected benefits
-highlights of the results that can be achieved by carrying out recommendations
9. Implementation guide
-description of specific methods for implementing
10. Appendices
-any necessary charts, exhibits, tables or analyses related to the engagement

INFORMAL LETTERS AND MEMORANDA

- used with clients who require written reports but are able to do without formality

1. discussion outlines
-consist of skeletal statements that assist in conveying info
2. graphic summaries
-combines highlighted wording with graphic symbols
3. charts, diagrams, layouts and matrix arrays
-charts or diagrams constitute the entire written presentation
4. prospectuses and manuals
-represent the both work product and the presentation of results and are usually accompanied
by a brief transmittal letters

PLANNIN GAN D DEVELOPING WRITTEN MATERIAL

A. preparing to write
-difficulty related to one’s subconscious striving for perfection
B. organizing the material
-key skill
1. wordsmithing – art of saying things properly and effectively
2. editing
Keys to good editing
a. purpose should be clearly defined
b. determine the subjects that must be covered
c. identify the audience or prospective readers
C. Enhancing readability
Points that will help readability of presentations
 1. Write short reports if possible
2. Arrange the materials for emphasis
3. Avoid long, complex paragraphs and sentences
4. Avoid jargon, slang and unnecessary technical terms
5. Use the active voice and direct, descriptive words rather than euphemisms
6. Use pictures, graphs and charts whenever appropriate
7. Use numbers selectively

TECHNIQUES FOR PRESENTING WRITTEN REPORTS

A. In-person presentations
-concentration in oral report

Preparation

-combination of a speech and a training session

Important consideration

1. Length of time for presentation

2. Timing
3. Size of the audience
4. Composition of the audience
5. Atmosphere
6. Dress

COMMON MISTAKES MADE IN PRESENTING RESULTS (MISTAKES TO AVOID)

1. Answering the right questions but failing to provide enough background on the basis for the
conclusion
2. Allowing inadequate time to prepare the presentation
3. Trying to sell future services via the presentation
4. Failing to address the client’s primary concerns, key issues, or pet peeves

Conclusion

Note: success in consulting will not be guaranteed by the ability to present results effectively, but quality
presentations can be enhance the consultant’s professional reputation.