maseei 5(module 2)
TRANSCRIPT
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MODULE2
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Drucker
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What is the Logic of
Business?
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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!
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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..
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The changes in the dynamics of business and thechallenges that have emerged are not always
manageable by all business organizations internally
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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
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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
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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
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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
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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
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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
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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?
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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
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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
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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
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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.
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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
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But it is Not That Simple!!!Analytical Thinking
in Addition to
Domain Knowledge
Will be Needed!
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Analytical Thinking = Scientific Thinking
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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?
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The Scientific Approach to Thinking
Problem
Hypothesis
FactsAnalysis
Solution
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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?
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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
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Successful Completion ofStep 1
is90%
of the Work Done!
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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.
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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?
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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
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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
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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
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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
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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
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Lets Recall Pricing of
Services
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Three Methods
Cost Based
DemandBased
CompetitionBased
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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
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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
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As Consultancy Services are essentially
services, the principles of pricing
services will apply here
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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
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Calculating Your Hourly
Rate
Profit + Labour Costs + Overhead =
Daily Fee Revenue
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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
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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.
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Talent. Skill.. What is thedifference??
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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?
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Most Times You Will Be
Doing
Data Collection & Analysis
Documentation of the outcomes
Knowledge Transfer or Implementation
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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
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Skills
People Skills
Scientific Thinking
Problem Solving
Diplomatic Nature