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Consulting 101
Wednesday, October 6th
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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A
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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A
4
Steps to Clarify Scope Review the client’s proposal and prepare
questions Meet with the client early to discover what the
problem actually is Meet with advisor if project has radically
changed Develop a statement of the problem
A question or a clear hypothesis As specific as possible Focused on action
Draft the engagement letter and receive approval from client
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Consider These Questions When meeting with the client:
Define Problem Space Context: Why is this an issue at this time? Are
there other issues bearing on the problem? Constraints: What is not in scope? What
solutions are not acceptable? Client: Who is the real client? To whom will we
make the presentation? Who will take the decision?
Define Deliverables Form: What type of deliverable will be the most
beneficial to the client? What type of deliverable will NOT be useful to the client?
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The Red Cross does not know what its educational courses are costing
What costing systems can the Red Cross put in place to find cost of courses?
Build a simple and quick system that the Red Cross can put in place in order to better price its courses and manage its course mix
Refining the Issue
Fact
Too General
Specific,Focused on
Action
After the meeting, begin refining the issues
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Developing Your LOE The engagement letter
If you defined and refined the problems, the constraints and deliverables, there’s little else to do
Clearly define expectations from both sides Signed by team and client: a statement of
commitment from both sides
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Heading Description
Define what resources you will need from the client, and specify the time per week you will require from them. If possible, describe the role each individual will play on your team
Prerequisites for successful project
Describe in 1 page what activities the team will undertake over the duration of the project. Identify the need for customer or supplier interviews/surveys as early as possible
Work plan/approach to the project
In 1 paragraph, define your assessment of the current situation at your client, key issues the team is going to address, and the benefit of resolving the issues
Impact/benefit of the project to the client
Engagement Letter
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Things to Remember
1. You don’t have the answer yet2. Set the tone of a good partner3. Revisit, revisit, revisit the engagement letter
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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A
11
Tackling the Analysis Identify key analyses
What is our initial hypothesis for a solution? What analysis do we need to perform to test
the hypothesis? What data is available? What data is required?
How can we fill the data gaps? What are the end products for each analysis?
Defining your analysis Brainstorm and build an “issue tree” Ensure it is MECE
Mutually Exclusive and Collectively Exhaustive
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Analyzing the Issues Issue Tree Example
Increase attendanceat given pricing
level?
Change pricing?
How can the Art Center
increase revenues?
Explore alternaterevenue streams?
Change nature ofcollection?
Explore alternatemarketing channels to broaden audience
Sub-idea 3
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Analyzing the Issues Prioritize and focus on issues based on impact,
team interests, ease of analysis
Increase attendanceat given pricing
level?
Change pricing?
How can the Art Center
increase revenues?
Explore alternaterevenue streams?
Change nature ofcollection?
Explore alternatemarketing channels to broaden audience
Sub-idea 3
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Analyzing the Issues Why bother with the darn tree?
Helps divide project Road map for analysis and data collection Ensures completeness (prevents blindsiding) Will help you with case interviews
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Principles Comments
Be realistic about end product precision limits
Scrutinize precision of input data– beware of “polishing dirt”
Look for 80/20, “killer analyses”
Avoid trying to boil the ocean– which analyses will nail the answer/ provide the most insight?
Continually question the hypotheses
Re-evaluate hypotheses every day and adjust work plan – regularly check ideas with client
End-product driven Hypothesize the answer(s) and plan the quickest path to robustly “prove” or disprove it
Planning Critical Analyses
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Sample Timeline
Initial Meeting with Client, Letter of Engagement
Week of September 27th
Develop Detailed Work Plan, Begin Initial “Industry” Research
Week of October 11th
Begin Analysis, Prepare Interview Guides,Start Client Interviews
Week of October 18th
Finish Client Interviews, Continue Analysis,Check-In Meeting with Client
Week of November 1st
Draft Deck, Meet with Advisor Week of November 15th
Submit Deck to Exec Board, Conduct Dry-Run of Presentation
Week of November 29th
Final Presentation with Client Week of December 6th
Every project will have its own distinct timeline Do what makes sense for your client
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Example Workplan
World Federation for Mental Health Legend: Press:2004 IMAP Workplan Step Completed B
Step in Progress GTeam Members: Ryan Fulton, Hemal Gada, Courtney Grey, Wendy King Step Not Started WPrimary Advisor: Len Middleton
Scope #1:Review fundraising ability of health-related international membership organizationsto identify successful strategies for capital improvement.
Week of:March 1st March 8th March 15th March 22nd March 29th April 5 April 12 April 19 April 26
Workstep # Workstep Owner MTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSu
1 Identify health realted non-profit organizations Team g g g g g2 Meet with librarian to discuss research Team ww3 Research: Alzheimer's International Hemal g g g g g g g g g g g g g g g g g g g g g g g g g g4 Research: World Fellowship for Schiz. & Allied Disorders Hemal g g g g g g g g g g g g g g g g g g g g g g g g g g5 Research: Global Health Councils Courtney g g g g g g g g g g g g6 Research: International Red Cross Wendy g g g g g g g g g g g g7 Research: Landmine Survivors Network Ryan g g g g g g g g g g g g8 Identify and research other org. (WFMH recs.) Team wwwwwwwwwwwwwwwwwwwwwwwwww9 Review fundraising abilities of selected organizations Team wwwwwwwwwwwwwwwwwwwwwwwwwwww10 Identify successful strategies used for cap. Improvement Team wwwwwwwwwwwwwwwwwwwwwwwwwwww11 Take findings and map against WFMH strategy wwwwwwwwwwwwww12 Draft findings for final recommendations wwwwwwwwwwwwww
Scope #2:Conduct segmentation analysis of potential fundraising sources for WFMH.
Week of:
March 1st March 8th March 15th March 22nd March 29th April 5 April 12 April 19 April 26
Workstep # Workstep Owner MTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSuMTuWTh F SaSu
1 Draft initial fundraising segments for WFMH Team b b2 Incorporate research from Scope #1 re: segmentation Team g g g g g g g g g g g g g g g g g g g3 Review of fundraising segments with WFMH Team wwwwwww4 Assemble list of fundraising contacts for each segment wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww5 Take findings and map against WFMH strategy wwwwwwwwwwwwww6 Draft findings for final recommendations wwwwwwwwwwwwww
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Things to Remember
1. Understand what the problem actually is Be end-product driven, think about slide
output Be data driven: all opinions are equal Give your analyses the “So What?” test Divide and conquer!
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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A
20
Preparing the Deck Initial Development
Once you have begun the analyses, start laying out your story in presentation form
This will help you stay focused on the task at hand
As a team, you need to “story-board” the presentation to identify your gaps
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Story-Board the Deck
MAIN MESSAGES
• Save $x million through China move• Hold price while monitoring competitive
conduct• Conduct lean transformation
INDUSTRY TREND SCENARIOS
Customers
OEMs
Suppliers
Structure ConductPerform-ance
_____
_____
_____
_____
_____
_____
_____
_____
_____
PROJECTED FINANCIALSEBITDA
2002 2003 2004 2005
COST SAVINGS ANALYSIS
SGAFOHVOHLabor
Material
-x%
PRICING STRATEGY: ROIC ISOQUANT
Price
Market share
Today
Competitor variable cost
GAME THEORY VS. COMPETITOR XEBITDA payouts
Us H
old
Dro
p
Drop Hold
Them
Year 1
Us H
old
Dro
p
Drop Hold
Them
Year 2
SUPPLIER SELECTION
Criteria____________________
1 2 3 4
Strong/weak ratings
Recommended
Suppliers
IMPLEMENTATION PLAN
May June July …
PRODUCTION RAMP-UP SCHEDULE
2003 2004 2005
Product
1234
MAIN MESSAGES
• Save $x million through China move• Hold price while monitoring competitive
conduct• Conduct lean transformation
MAIN MESSAGES
• Save $x million through China move• Hold price while monitoring competitive
conduct• Conduct lean transformation
INDUSTRY TREND SCENARIOS
Customers
OEMs
Suppliers
Structure ConductPerform-ance
_____
_____
_____
_____
_____
_____
_____
_____
_____
INDUSTRY TREND SCENARIOS
Customers
OEMs
Suppliers
Structure ConductPerform-ance
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
PROJECTED FINANCIALSEBITDA
2002 2003 2004 2005
PROJECTED FINANCIALSEBITDA
2002 2003 2004 2005
COST SAVINGS ANALYSIS
SGAFOHVOHLabor
Material
-x%
COST SAVINGS ANALYSIS
SGAFOHVOHLabor
Material
-x%-x%
PRICING STRATEGY: ROIC ISOQUANT
Price
Market share
Today
Competitor variable cost
PRICING STRATEGY: ROIC ISOQUANT
Price
Market share
Today
Competitor variable cost
GAME THEORY VS. COMPETITOR XEBITDA payouts
Us H
old
Dro
p
Drop Hold
Them
Year 1
Us H
old
Dro
p
Drop Hold
Them
Year 2
GAME THEORY VS. COMPETITOR XEBITDA payouts
Us H
old
Dro
p
Drop Hold
Them
Year 1
Us H
old
Dro
p
Drop Hold
Them
Year 2
SUPPLIER SELECTION
Criteria____________________
1 2 3 4
Strong/weak ratings
Recommended
Suppliers
SUPPLIER SELECTION
Criteria____________________
1 2 3 4
Strong/weak ratings
Recommended
Suppliers
IMPLEMENTATION PLAN
May June July …
IMPLEMENTATION PLAN
May June July …
PRODUCTION RAMP-UP SCHEDULE
2003 2004 2005
Product
1234
PRODUCTION RAMP-UP SCHEDULE
2003 2004 2005
Product
1234
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Things to Remember
1. Don’t feel constrained by the story-board2. Think about length of the presentation3. Story-boarding makes the end of the project
much more efficient
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Agenda Pegging the Scope Down Developing a Work Plan Preparing the Deck Working in a Consulting Team Q&A
24
High-functioning Teams Trust your team members
Don’t micromanage Flexible roles
Remember the overall needs of project Clear ownership
Set clear and delegated responsibilities Know when to escalate
Avoid delays, roadblocks
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Things to Remember
1. If you don’t bring up the problem now….2. Ask people their preferences3. Remember to bring the workstreams
together periodically
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Q & A