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What is management consultancy? How has it developed? How does it affect businesses?
This book answers these questions and introduces the field for those looking to develop
a career as a management consultant.
Providing a thorough introduction to management consultancy, Morgen Witzel
covers the topic from a range of perspectives including the field's historical development,
the client's perspective, business analysis, return on investment, consulting failures, ethics
and accountability and the growing importance of sustainability.
With exercises and case studies throughout, this practical textbook provides students
with a rounded and critical understanding of what it means to be a management con-
sultant and in so doing, will help readers emerge as employable management consultants
of the future.
Morgen Witzel is an internationally known writer, lecturer and thinker on the problems
of management and leadership. His books have been published in twelve languages and
have sold more than sixty thousand copies worldwide. He is a Fellow of the Centre for
Leadership Studies, University of Exeter Business School, UK and a Fellow of the Royal
Society of Arts, Manufactures and Commerce.
Morgen Witzel’s book on ‘management consultancy’ sets out new ground in a field
which is insufficiently explored in the academic literature. It deals with both the con-
ceptual and practical dimensions of consultancy in a readable and interesting manner. His
coverage of this very interesting topic is most thorough and his analysis is indeed robust,
setting the coverage in a truly global business setting. The book is clearly written and
accessible to not only undergraduates and MBAs in the subject but also interested
practitioners.
Malcolm Warner, Professor and Emeritus Fellow, Wolfson College and
Judge Business School, University of Cambridge, UK
The book brings the landscape of management consultancy to life. You’ll discover how
management consultants engage clients, work with problems, add value, and make a
difference. For anyone thinking about management consultancy as a career, making their
way in the field, or wondering whether to hire a firm, this provides invaluable guidance.
Nigel Guy Linacre, Co-Founder of LeadNow
Witzel acknowledges that management consultancy is a vast and changing subject and so
it is no mean feat to have written such a well-structured and engaging book. Students of
business will find a rigorous analysis of what it is to be a management consultant, sup-
ported with practical exercises and a range of global case studies. However, the relevance
and value of the content extends much further. With its detailed overview of subjects from
client engagement to ethics and professional standards, Management Consultancy earns its
place on the bookshelves of management consultants, both generalists and specialists as well
as their clients.
Alison Hogan, Managing Partner, Anchor Partners Ltd, UK
Management Consultancy
Morgen Witzel
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First published 2016
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2016 Morgen Witzel
The right of Morgen Witzel to be identified as author of this work has been asserted by
him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act
1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in
any form or by any electronic, mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks,
and are used only for identification and explanation without intent to infringe.
Also in the USA and Canada
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Witzel, Morgen.
Management consultancy / Morgen Witzel. -- 1 Edition.
pages cm
Includes bibliographical references and index.
ISBN 978-1-138-79883-0 (hardback) -- ISBN 978-1-138-79884-7 (pbk.) --
ISBN 978-1-315-75635-6 (ebook) 1. Business consultants. 2. Management. I. Title.
HD69.C6W58 2016
001--dc23
2015018622
Typeset in Bembo
by Integra Software Services Pvt. Ltd.
Contents
List of illustrations vi
Acknowledgement vii
1 Introduction 1
PART I
What consultancy is 7
2 What is management consultancy? 9
3 From company doctors to strategic partners 28
4 The roles of the consultant 40
5 The client 55
PART II
What consultants do 71
6 Analysis 73
7 Problem solving and capacity building 86
8 Impact 102
9 Failure and recovery 113
PART III
Issues in management consultancy 127
10 Ethics in management consultancy 129
11 Consultancy and sustainability 143
12 A career in consultancy 154
Bibliography 159
Index 165
Illustrations
Figures
3.1 The ‘Boston Box’ 33
3.2 The McKinsey 7-S framework 33
5.1 Presents a very simple framework for describing different types of
relationship 64
Tables
2.1 Comparison of old and new models on key dimensions 22
4.1 Professional standards for consultants 45
7.1 Weighted Options Matrix 88
8.1 Criteria for evaluating consultancy services 106
10.1 Examples of unethical behaviour by consultants 133
10.2 McNamara’s ethical standards for consultants 134
10.3 IMC USA code of conduct 134
10.4 Example of a Markkula Center exercise 138
11.1 Five areas of global risk 146
Acknowledgement
This book could not have happened without the contributions of the many consultants I
have met and worked with over the years, from sole practitioners to members and
former members of very large consultancy firms and academics studying the consultancy
profession. To all of them, past and present, my grateful thanks.
A few individuals must be acknowledged. Bennett McClellan was kind enough to
lend me his PhD thesis on the consultancy profession, which became a very valuable
source when discussing the tricky question of impact. Bennett also kindly gave permission
to reproduce material from it. My thanks also to Shelly Palmer for permission to quote
extensively from his excellent blog on data analysis.
Dominic Barton, Matt Krentz, Simon Hayward and Andrew Hooke kindly agreed to
be interviewed for this project and gave generously of their time. Readers will agree, I
am sure, that their insights have added a great deal of value to this book.
My thanks go also to Terry Clague at Routledge, whose idea this book was and who
commissioned me to write it, and to the ever-helpful and unfailingly courteous Sinead
Waldron, who saw it through to production. Many thanks also to Jaya Dalal for her
copyediting and her patience.
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1 Introduction
Management consultancy is one of the preferred career choices for business school students
around the world. Surveys for the past several years of MBA and MSs students have
shown that management consultancy is one of the top five – sometimes top three –
choices of career and surveys of undergraduates also include consultancy among the top
ranked choices. Consultancy has a perennial appeal for young people at the beginning of
their business careers.
Why so? Consultancy has a certain glamour about it, it is true, but this glamour is not
always deserved; a lot of consulting work is pretty mundane and un-glamorous. It
appeals to people who enjoy problem solving, but all management is full of problems
requiring solving. Students sometimes tell me that they think they would enjoy the
challenge and stretch of consulting, but again, there are plenty of other arenas in business
where challenge and stretch can be enjoyed.
If you want to be a successful management consultant, you have to be prepared to
work extremely hard for long periods of time. You must be able to put your client’s
interests first at all times, and not allow your own prejudices or preferences to interfere.
You need to be a good diplomat, and to have very high professional standards which
must never be allowed to slip. You need to have a very strong set of personal and
professional ethics.
You will need to be a good analyser and problem solver, but most of all, you will
need to be different. Diversity is the breath of life in management consultancy. Consulting
teams are expected to have a great deal of knowledge at their fingertips; no one expects
them to know more than their clients, but they must know things that are different, that
bring new perspectives and new ideas to the client. That means consultancy firms are
looking for people who have different experiences, different approaches to life, different
ideas. If you want to be a management consultant, then the advice from the professionals
is: make yourself interesting. Gain different experience, learn different knowledge, learn to
think about problems in new and different ways.
Knowledge is the consultant’s stock in trade. Without it, he or she has little to offer
clients. As this book will make clear, the would-be consultant must make personal
learning a priority, and must continue do so throughout the rest of her career. Knowing
how to be a consultant is not particularly difficult; again as this book will make clear, the
principles are pretty simple. But you will only be able to make those principles work if
you can master the kinds of knowledge that clients need, and bring it to them in exciting
and innovative ways.
I make this point because getting a job in consultancy is not as easy as it used to be.
Back in the 1990s when the profession was growing rapidly, consultancy firms used to
2 Introduction
descend on business schools and scoop up their best and brightest talents, usually based
on the marks they were awarded, take them away and train them into consultants. Those
days are passing, and for some consultancy firms, have already passed. Fewer consultants
are being hired, and the firms are being much more choosy about the people they do
hire. As we shall see in Chapter 12, they are looking for distinctive competences, not just
brain power or analytical ability.
Therefore, if you want to be a management consultant you need to concentrate on
building up your own skills and knowledge base and making yourself distinctive. This
book will tell you what kinds of things you need to know, what the tasks of the con-
sultant are and how you need to adjust to bring your own knowledge into line with
those requirements. This book will not teach you everything there is to know about
management consultancy, because the subject is vast and changing, and the most
experienced consultant in the world does not know a fraction of all there is to know.
Every client is unique; every client engagement is unique; client needs are constantly
changing and evolving; and consultancy firms are changing and evolving too. Knowledge,
for a management consultant, is a journey, not a destination. For would-be management
consultants, this book is the beginning; but only a beginning.