maseei 5(module 2)

7/28/2019 Maseei 5(Module 2)

1/50

MODULE2


2/50

Drucker


3/50

What is the Logic of

Business?


4/50

The Logic of Business Has

Not Changed

Evolution of human needs

Transaction to Selling to Marketing

And now from Marketing to Relationships and Partnerships! The emergence of institutions of business

The ability to customize solutions

Increased complexity and competitiveness

Enhanced coupling of national economies with each other

Technology Movement of goods and people.Movement of Information!


5/50

Some Issues That Have

Emerged

To be competitive globally even if you may be

acting locally To harvest and use business intelligence

To remain proactive

A concern for the environment

A concern for the society..


6/50

The changes in the dynamics of business and thechallenges that have emerged are not always

manageable by all business organizations internally


7/50

Consulting Vs. Counseling We know consulting.. To Consult.. Whom..

Someone who we think can give advise that will

work!

Consultancy can be about strategy, processes,

hardware, software.

Counseling is..

Professional guidance in resolving personal conflicts

and emotional problems


8/50

According to Dictionary.com.

Counsel

Advice, opinion or

instruction given in

directing the judgment

or conduct ofanother

Consultation The act of consulting or

conference

A meeting for

deliberation, discussion

or a decision

Does it (it should) tell you

that counseling is done to improve the productivity or

morale of the human resources


9/50

Performance Counseling

The process of improving employee performance and

productivity by providing the employee with feedback

regarding areas where he or she is doing well and areas that

may require improvement


10/50

The Definition Should Tell

You. Performance counseling & personal counseling are different..

Performance counseling is a step in a process to keep thehuman resources fine tuned and performing optimally

Performance counseling is based on systematic performanceevaluation and not on subjective assessments

It is then obvious that to be able to use performance counseling,companies need to have systematic HR policies & practices


11/50

Accountability in Consulting

Activity

Based Consulting No business need for the

consulting intervention

No assessment ofperformance issues

No specific, measurableobjectives forimplementation andbusiness impact

No effort to prepare

stakeholders/participantsto achieve results

No effort to prepare thework environment tosupport implementation

Result-Based Consulting Intervention linked to

specific business needs

Assessment ofperformance

effectiveness Specific objectives for

implementation andbusiness impact

Results/expectations

communicated tostakeholders/participants

Environment prepared tosupport implementation


12/50

Accountability in Consulting

Activity

Based Consulting

No efforts to buildpartnerships with keymanagers

No measurement ofresults or cost benefitanalysis

Planning and reporting onconsulting intervention isfocused on input

Result-Based Consulting

Partnerships establishedwith key managers andclients

Measurement of resultsand cost-benefit analysis

Planning and reporting onconsulting interventionsare focused on output


13/50

Consulting Proposals

How do I as a consultant identify,

suspects, qualify the prospects, how doI approach them, do you negotiate, how

are consulting deals closed, how do you

maintain an ongoing relationship?


14/50

Writing Consulting ProposalsFor

Institutions/Organizations

They will give you the

format

They will providebackground info

They will expect a well

researched proposal

Deliverables, Timelines

and Costing are key

For SMEs/Individuals

Every proposal will be

tailor made, so no pre

determined formats

Explain and clarify

Dont sound patronising!

Deliverables & costing

are obviously imp. but

Stress ROI! Most dont,

but make effort to show

ROI or how you can

provide value


15/50

Business Problem Solving

The Process

1. Define and Identify the Problem

2. Analyze the Problem

3. Identifying Possible Solutions

4. Selecting the Best Solutions

5. Evaluating Solutions

6. Develop an Action Plan

7. Implement the Solution


16/50

But When Does a Problem

Become So? A problem becomes known when a discrepancy is

observed between the way things are and the way thingsought to be.

Problems can be identified through: Comparative/benchmarking studies

Performance reporting - assessment of current performance againstgoals and objectives

SWOT Analysis assessment of strengths, weaknesses, opportunities,and threats

Complaints

Surveys


17/50

Step 1Define & Identify theProblem Go beyond the obvious, try to differentiate between

problems and their noticed effects

Jumping to Conclusions Vs. Digging for Facts

Hard Data.. Sales data, financial statements,profitability data etc. Hard facts

Soft Data Feelings, hearsay, grapevine, opinions,conflicts, behaviouretc.

Research Methods, Market Research etc.


18/50

Step 1Define & Identify the Problem

Once the hard and soft data is in hand, sit with the

client and brainstorm till you are able to:

A. Develop a Problem Statement: A statement that

clearly describes the current condition your group

wishes to change

B. State the Goal: Stating the goals achieves

congruence between your thought processes and

the clients. So effort is focussed


19/50

But it is Not That Simple!!!Analytical Thinking

in Addition to

Domain Knowledge

Will be Needed!


20/50


21/50

Analytical Thinking = Scientific Thinking


22/50

What is Scientific Thinking?

1. Talk to him, discuss with the teacher and find out what

could be wrong and ask him to practice more.

2. Take him to an astrologer and make him wear the gem

the astrologer suggests.

3. Take him to a temple, get Jhaad Phoonk done and tobe doubly sure.. Maybe sacrifice a goat.

My Son is Unable to Score in His Maths Exams..What do I do?


23/50

The Scientific Approach to Thinking

Problem

Hypothesis

FactsAnalysis

Solution


24/50

Step 1 Ask Yourself Is the problem stated objectively using

facts?

Is the scope of the problem limited

enough for you to handle?

Will all who read it understand the samemeaning of the problem?

Has the "desired state" been described

in measurable terms?


25/50

Step 1Caution!

Listen to the client!

You may be right, but the customer isnever wrong!

His business philosophy may not matchyours but please remember.. It is not

your business!

In meetings, be very careful how you


26/50

Successful Completion ofStep 1

is90%

of the Work Done!


27/50

Step 2 Analyze the Problem

In your syllabus, this is written as, -

Finding Leading to SolutionDevelopment and Implementation!!!

Please dont assume!

Meet people up and down stream

Talk to people at all levels. Ask a lot of

questions.


28/50

Step 2 Analyze the Problem Ask

When was the problem first recognised or

felt?

What are the causes of the problem?

What are the effects of the problem?

What are the symptoms of the problem?

How was the client dealing with the problem?

What were the clients limitations in dealing with

the problem?


29/50

Step 2 Analyze the ProblemThoughts

Usually, in India at least hiring a consultant by an

SME is a step taken late Too late most of the

times!!

They probably knew it, but were reluctant to

change!

If the problem arose due to a lack of vision, theywill find it difficult to see it when you present it to

them too!

Can your systematic, rational, cut and dried


30/50

Step 3: Identifying Possible

Solutions

Find optional solutions than the

solution

Shortlist solutions and arrive at a list of

two or three most optimum solutions or

the one that seems best.

Shortlist or finalize in close

consultations with the client


31/50

Ask Before Finalizing a

Solution.

Is the solution workable in relation to the

problem? Are there any limits that the solution

presents?

When looking at the advantages anddisadvantages, which are there more

of?

Does the chosen idea live up to the


32/50

Step 4: Develop an Action

Plan

An action plan is a chart that lists the

tasks that need to be done andidentifies who will be responsible for

each, when and what action is

necessary, where to start, and how.

Divide the Solution Into Sequential

Tasks


33/50

Step 5: Implement the

Solution

Are you presenting solutions only or

implementing them too?

Control is the key. Develop monitoring

systems and keep an eye on deviations.

Be flexible and keep strategy

responsive


34/50


35/50

Lets Recall Pricing of

Services


36/50

Three Methods

Cost Based

DemandBased

CompetitionBased


37/50

Issues in Pricing PROBLEMS:1. Costs difficult to trace

2. Labor more difficult to

price than materials

3. Costs may not equal value

PROBLEMS:1. Small firms may charge too

little to be viable

2. Heterogeneity of services

limits comparability

3. Prices may not

reflect customer

value

PROBLEMS:1. Monetary price must be adjusted to reflect

the value of non-monetary costs

2. Information on service costs less available to

customers, hence price may not be a central factor


38/50

What is Value for Your

Client?Value is Low Price Value is EverythingI Want in a Service

Value is the Quality

I Get for the Price I PayValue is All that

I Get for All that I Give

Discounting

Odd Pricing

Penetration Pricing

Prestige Pricing

Skimming Pricing

Value Pricing

Market Segmentation

Pricing

Price Framing

Price Bundling

Complementary

Pricing

Results-based Pricing


39/50

As Consultancy Services are essentially

services, the principles of pricing

services will apply here


40/50

Three Common Pricing

Methods

Per Hour: Usually new or IT guys tend

to prefer this

Project Pricing: This method involves

quoting a total figure for the whole

budget and then arriving at a mutually

agreed pattern of payments. Usually

research projects, strategy based

consultancy involving big clients etc


41/50

Calculating Your Hourly

Rate

Profit + Labour Costs + Overhead =

Daily Fee Revenue


42/50

How Much Should I be

Earning???

Decide upon a target in come per

year. Let us say Rs. 10 Lac

A typical consulting year will have

around 300 workable days.. Subtract

festivals, matches, vacations. 250

So.. You should be earning

1000000/250... Rs. 4000 a


43/50

Contingency PricingA client complained that he couldnt afford a consultantshourly fee.Instead of doing the job on a time and material basis, Im

willing to do it for a contingency fee, responded the

consultant.

What is contingency fee? asked the client.

Its very simple. If I dont deliver what I promised, Ill be left

with no money at all, explained the consultantWhat if you do deliver what you promised? persisted the

client.

Thenyoull be left with no money at all, said the consultant.


44/50


45/50


46/50

Talent. Skill.. What is thedifference??


47/50

As Consultants You Will

Do. Consulting

Training

Research

What talents and skills will an

MBA need to be good at these?

How can we develop such skillsand talents?

What can an MBA student do to

develop such skills and talents ifthe college is not doing anything

that can help?


48/50

Most Times You Will Be

Doing

Data Collection & Analysis

Documentation of the outcomes

Knowledge Transfer or Implementation


49/50

What Will it take to be a

Consultant?

Conceptual knowledge

Knowledge and exposure to analytical

tools & approaches

Knowledge of various business scenarios

Knowledge of elements of the internal and

external environment


50/50

Skills

People Skills

Scientific Thinking

Problem Solving

Diplomatic Nature

maseei 5(module 2)

Documents