AREAS OF MANAGEMENT ADVISORY SERVICES (PART I)

Caas, Arbiegail D. Naranjo, Pauline Mae L.

TYPES OF MAS ENGAGEMENTS

Dimensions of MAS a. Nature of the problem b. Service delivery area c. Phase(s) of the analytic process d. Techniques and methodologies applied e. Industry (or nature of the organization) to

which the client belongs f. Geographical area(s) where the engagement take place

Nature of the Problem

a. Corrective Problem - involves a situation in which conditions have worsened - usually arises suddenly and demands urgent action b. Progressive Problem -involves an existing situation that can be improved c. Opportunistic Problem - involves a situation in which a future opportunity exists - may lead to more risky and more potentially rewarding courses of action than corrective and progressive problems

Service Delivery Area

Units, portions or different functions and

activities of the client company to which the problem situations may exist and that the consultant has the responsibility and accountability to deliver services

Example:
1.0 2.0 3.0 4.0 General Management Manufacturing Personnel Finance and accounting

5.0
6.0 7.0 8.0

Marketing
Procurement Research and development Packaging

9.0
10.0

Administration
International operations

4.0 Finance and accounting 4.1 General Accounting 4.2 Cost Accounting 4.3 Short-term planning, budgeting and control 4.4 Credit and collections 4.5 Long-range financial planning 4.6 Capital investment 4.7 Marginal income analysis 4.8 Financial planning 4.9 Valuation and appraisal 4.10 Taxes 4.11 Financial information and planning

Application of the Analytic Process

a. b. c. d. e.

Identifying the objectives Defining the problem Finding out the facts Developing the solution Implementing the solution

These phases represent the dynamic aspects of an engagement and are employed in every engagement, whether it be a routine evaluation of operations or a special research study of customer attitude.

Techniques and Methodologies Applied

- Different techniques and methodologies are applied depending on the problem identified and/or the needs of the company.

example: problem capital investment evaluation techniques and methodologies whether to apply NPV, IRR or payback method

Industry Or Nature of Organization

A client who is the subject of an organization

may be a privately owned business firm, a government agency, or not-for-profit nongovernmental organization, a professional association or some other type of organization.

Geographical Areas
A consulting engagement may be restricted

to a single location, such as the home office of the client. It may also involve multiple locations such as the several production plants and warehouses of a large manufacturing firm. It may event involve locations in foreign countries.

AREAS OF MS PRACTICE
Management consulting can relate to areas such as:
The management functions of analysis, planning, organizing and controlling 2. The introduction of new ideas, concepts, and methods to management 3. The improvement of policies, procedures, systems, methods and organizational relationships 4. The application and use of managerial accounting and control systems, data processing, and mathematical techniques and methods, and 5. The conduct of special studies, preparation of recommendation.
1.

Common Types of Consultancy Work

a. b. c. d. e.

Business planning and development (PFS) Information systems consulting Management/operations audit Business process improvement/reengineering Others such as 1. Marketing research 2. Marketing strategy development 3. Developing promotional campaign 4. Planning sales force activity 5. New product development 6. Developing proposal for financial support 7. Staff recruitment 8. Exporting and international market

Business Planning & Development (PFS)

What is a project feasibility study?
A feasibility study is a preliminary examination into the

possible benefits associated with undertaking a particular activity or venture. The key reason of the feasibility study is to consider all aspects associated with the project, and find out if the investment of time and other resources will yield an attractive outcome.
- The first task the consultant faces is to establish exactly what the client wants from a business development project.

Common outcomes desired from business development:

a. Growth of the business within its core markets by capitalizing on market growth or markets share increase b. Expansion of the business into new market sectors c. Development of new products d. Increasing profits through cost-reduction programs e. Internal structural reorganizations

Information System Consulting

Management information systems aim to collect and

organize information and present it to managers in a usable form. Nowadays, information systems are usually based on computer technology which require a good deal of technical expertise to implement. The non-technical consultant, however, adds value, particularly in developing and understanding the information needs of the business, the way in which information flows around the organization and the competitive advantage that might be gained through investment in information technology.

Management/Operations Audit
Operational audit - a study of a specific unit of an organization for the purpose of measuring its performance, particularly the effectiveness and efficiency of operations. - the main objective is to assess entitys performance, identify areas for improvements and make recommendations to improve performance - also known as performance audit or management audit

Business Process Improvement/ Reengineering

"... the fundamental rethinking and radical redesign of business processes to achieve

dramatic improvements in critical contemporary modern measures of performance, such as cost, quality, service, and speed. "encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions."

BUSINESS PROCESS
1. To

eliminate unnecess ary steps 2. To reduce opportuni ties for errors 3. To reduce costs

CULTURAL FACTORS
ORGANIZATIONAL CULTURE

- refers to the MINDSET of employees, including their shared beliefs, values and goals. Strong Functional Culture - KEY FACTOR Successful Implementation of business process improvement or reengineering
high employee involvement and participation Long term employment

Sense of teamwork

MANAGING ORGANIZATIONAL CHANGE

Employee Assistance (recurrent problem) Real improvement can be successful if

management uses the improvement to generate more business rather than to cut the workforce.

 CHANGE CHAMPION an individual who recognizes the need for change and seeks to bring it about through his or her own efforts. SUCCESFUL CHANGE OF CHAMPION
at a high level in the organizational hierarchy Has strong entrepreneurial skills

demonstrates political influence within the

organization has the ability to persuade and motivate others

WELL-DEFINED PROCESS ESTABLISHED FOR CHANGE

Timetable for certain activities

A set of well-articulated goals

Follow-up
Employee should be aware of:

The goals of the program The process by which the program will be

implemented and evaluated The employees role in making the program a success

OTHER TYPES OF CONSULTANCY WORK

Marketing Research
It is the process through which managers

discover the nature of the competitive environment in which they are operating. OBJECTIVE:
a. To obtain information which managers can use

to support their decision-making b. To reduce risk c. To enable managers to dedicate valuable resources in a more reliable way

TWO TYPES:
Primary Research is information collected

for the specific project. SUBDIVISION: a. quantitative research b. qualitative research Secondary Research based on information that has been collated earlier for reasons other than the project at hand.

Marketing Strategy Development

DEFINITION: A product-market strategy whereby an organization introduces its offerings

to markets other than those it is currently serving. In global marketing, this strategy can be implemented through exportation licensing, joint ventures or direct investment. The Marketing Strategy Process Having a strong marketing strategy process in place helps to ensure that your marketing activities remain aligned with your business goals, maximizing the business return from your marketing efforts.

Developing Promotional Campaigns

Promotional Campaign - A series of advertisements using various marketing tools

that share the same message and ideas to promote a business or event to a target audience. The typical campaign uses different media resources including internet, newspapers, television, radio, and print advertising.

Planning Sales Force Activity

KEY ISSUES:
Overall organization of the team 2. Sales team training 3. Sales team motivation 4. Planning Sales campaigns
1.

New Product Development

Process of developing a new product or service for

the market. This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. New product development may be done to develop an item to compete with a particular product/service or may be done to improve an already established product. New product development is essential to any business that must keep up with market trends and changes.

Developing Proposals for Financial Support

Four Critical Areas: 1. Evaluation of the businesss investment

needs 2. Identification of funding providers and how they might be contacted 3. Developing an understanding of the criteria employed by funding providers and how these might be addressed 4. Developing communications with funding providers, particularly in relation to proposals and business plans

Staff Recruitment
Important Contributions: 1. assessing the firms human resource

requirement 2. creating advertisements (with insights into both message and medium) to attract the right people 3. developing assessment criteria, interview procedures and possibly psychometric testing of candidates 4. advice on the reimbursement packages new recruits will expect

Exporting and International Marketing

The most successful moves into international

operations are those which are based on sound preliminary research and a thorough understanding of what to expect. The consultant can assist this process of discovery.

References:
Cabrera, Ma. Elenita B, Management

Consultancy, GIC Enterprises & Co., Inc, Recto, Manila, 2010 Salosagcol, Jekkel. et al, Auditing Theory, GIC Enterprises & Co., Inc, Recto, Manila, 2011 http://www.wisegeek.com/what-is-afeasibility-study.htm https://tcsg.edu/tcsgpolicy/docs/05-0102.html\