1.3 Explain the stages of the Consultancy Cycle

The consultancy cycle is the line of processes from inception to conclusion that should be applied by consultants in their approaches to project management as well as wider professional outputs. It is important to realise that there are many organisations and key business thinkers who have designed their own preferred ‘consultancy cycle’. For the purposes of this course programme we have provided two examples below of consultancy cycles below (Hammond: 2020):

Figure 1: Johnny Hammond six-step consultancy cycle framework

Source: JohnnyHammond.com, staged consultancy process: https://johnnyhammond.co.uk/approach/

Figure 2: Advanced Management Skills’ consultancy cycle framework

Source: https://amskills.com/consulting-course/04-building-effective-clientrelationships/04-3-lesson-the-consultancy-cycle/

When applied in reality, this framework sits underneath most of the three stages of consultation planning that we looked at in section 1.2. But let’s take some time in this section to explain each stage from Figure 2 in much more detail.

Marketing

Marketing is done by consulting firms to raise their profile and encourage potential clients to contact them to generate business. Here are some of the main marketing activities used by consultants to raise awareness of their professional services: • Web site [e.g. an online brochure outlining the consultant’s expertise] • Newsletters and White Papers [e.g. thought pieces sent regularly to potential clients] • Case studies [e.g. examples of consultants work normally featuring a very satisfied client] • Articles in the business press [e.g. comments on topical issues] • Networking [e.g. hosting and visiting conferences and using social media to build professional networks] (Adair: 2009)

Consultants make a considerable effort in marketing and with skill this will result in a steady stream of potential clients. However, there are some risks associated with not getting the marketing right. These include: • Not researching client needs • No ‘Unique Selling Point’ • Unimaginative or unprofessional language

First Client Contact:

This is the first time the client contacts the consultant about a specific engagement, usually by email or phone. During the first phone conversation with a client the consultant has a short time to impress them sufficiently to be invited to a follow-up meeting and hopefully to write a proposal. During first contact the consultant needs to establish a rapport, gather facts about the potential engagement and agree the next steps (Bettger: 1992). This is a skilled and complex interaction normally handled by the senior managers within large consulting firms. The client contact checklist or CRM software tool (such as SalesForce or Zoho) is a good place to start capturing relevant client information.

Consultants need to be prepared at all times for clients to contact them. If they get it right, they will land interesting and profitable consulting engagements. However, there are a number of risks associated with not getting the first contact right. These include: • Being unprepared for calls • Poor phone line (e.g. mobile phone) • Inefficient switchboard • Voice mail only • Sounding anxious or overly flexible

Client Scoping Meeting(s):

In most cases client scoping meeting(s) are required between the client and consultant to work out the details of the engagement. These will then be

incorporated in the proposal. Thorough preparation is required for these meetings. Typical risks of scoping meeting(s) are: • Being late • Poor background research • No agenda – meeting too long / short • Poor meeting facilities • No next steps • Inappropriate appearance • Not listening • Incorrect assumptions • Lack of credibility – referees

Client Proposal or Terms of Reference:

As discussed in 1.2, the consulting proposal is a potential contract setting out the work to be performed, fees and other relevant factors. Typical risks of proposals are: • Doesn’t appeal to client’s colleagues • No client references or testimonials • Wrong scope – does not identify client situation or need • Lack of clarity, e.g. unclear deliverables • Too generic or too detailed • Previous client details embedded in file • Too expensive • Under priced • Unrealistic benefits • Unclear or unrealistic timescales • Wrong team plus poor professional profiles • Missing key details (Adair: 2009)

Pitching & Negotiating:

Pitching is where you, the consultant, present your proposal to the client team. This is the consultant’s central opportunity to impress and persuade the potential client. Some good methods to achieve this include:

• Prepare thoroughly and anticipate how the client might react • Have a clear and, if possible, an inspirational central message • Be imaginative and enthusiastic! Powerful presentation techniques (Rasiel: 1999) • Use ‘collateral’ from previous work for credibility • Be clear and concise – communicate key points • Practice delivery – eye contact, body language and engage client in genuine dialogue

Negotiating is where you enter into a conversation with the client to agree fees and other key engagement details. This might not be done at the first meeting but saved for a second meeting to ‘nail down’ detail. (Some cultures are embarrassed to talk financial details at the first meeting.)

Your consultancy approach will vary considerably and should be based on lots of market research. For example, if you offer a unique service then the chances are that you can set your own price. If your service is widely available from competitors, then you potentially need to match their price.

Typical pitching and negotiating risks include: • Being late • Faulty demonstration equipment • Being unprepared • Not being enthusiastic or inspiring • Not listening to key people • Inappropriate appearance • Too aggressive • Appearing desperate • Offering too much (overselling) • Under pricing • Taking on too much work • Rolling over to the client • Too expensive • Not closing (Bettger: 1992)

First Actions:

This is where you as a consultant meet the client team for the first time.

This could be in a meeting or workshop. It’s a golden opportunity to impress them and get them organised to do the tasks agreed in your proposal. You need to build a great rapport with the client team and get them committed to their deliverables. Typical risks of ‘First Actions’ include: • No venue or poor venue booked • Lack of mandate from senior management • No agenda • Not setting the scene • Wrong assumptions • Lack of clarity of outcomes • No project communication plan • No next steps

Project Execution:

This is where the consultant’s team carry out the work itemised in the work plan in the client proposal. Now is the time to develop and implement your action plan. The main activities may include: • Planning [i.e. detailed planning of achieving client objective] • Information [i.e. fact finding and research behind working out the best ways to achieve the objective] • Analysis [i.e. analysis of relevant research data] • Evaluation [i.e. analysis and ranking of client options] • Reporting [i.e. client communications plan including final report and ensuring positive distribution of messages about your project intervention, explaining

ROI] • Implementation [i.e. client implements recommendations, possibly with your help] • Follow-up - review with client (and internally) to identify improvements

Typical project execution risks include: • Poorly executed work plan • Lack of client commitment • Priorities change, changes within client management team

• Schedule slips • Scope creep • The business environment changes • Changes in legislation • Disproved initial hypothesis

Reporting:

Client communications and reporting are an important feature of the consultancy cycle. For many smaller engagements, the consultant’s sole deliverable is the final report or presentation with their recommendations. For large engagements, it is not unusual for the engagement to have an extensive communications plan involving many of the stakeholders. If this is the case, consultants frequently work closely with the client’s in-house communications team who are well place to help. Typical ‘reporting’ risks include:

• No communications plan • Wrong style / media • Not proof-read (e.g. errors, typos, jargon) • Missing the point • Poor data or wrong results • Biased presentations and reports • Technology failure • Over critical of client • Ignored by key stakeholders • No clear action plans

Client Implementation:

Implementation plays a major role in the successful outcome of consulting engagements despite normally being beyond the initial scope. This is where the value of the consulting engagement is captured by the client. Typical ‘implementation’ risks include:

• Recommendations ignored • Recommendations don’t work • Lack of ownership • Lack of resources (people / skills / cash) • The world changes • Change in legislation / government • Loss of champion • Poor communication • Staff resistance • Lack of training

Follow-up:

Follow-up or benefits realisation is where consultants and clients work together to ensure that full value has been achieved following an engagement. Follow-up is often not done at all either because the client / consultant is too busy or there is no tracking system. The risks of this are: • Full value is not delivered by the engagement • No lessons learnt • No positive case study emerges that can be used as a positive marketing tool in the future • Client moves from job role

Summary

The consultancy cycle is a useful framework to understand the main elements of the consulting process and in particular how to secure the best possible interactions with the client. Nevertheless, there is no one dominant model or framework. There are a multiplicity of available frameworks and depending on the type of consultancy project or its size, will help to determine the consultancy approach. Likewise, the client will have their own reporting mechanisms that your consultancy cycle will need to align to

(Maister: 2002). However, any consultancy cycle will need to include four key stages:

1) Marketing and pitching 2) Strategy development 3) Implementation 4) Monitoring and review

Reflective Learning Exercise:

Using the internet, research a major consultancy project. For one hour conduct further reading and explain how the project lead followed various stages of the consultancy cycle.

Further Reading:

Rumelt. R, (2012) Good Strategy, Bad Strategy: The Difference and why it Matters. London: Profile Books

Bettger (1992) How I raised myself from failure to success in selling. New York: Simon & Schuster

Eathan Rasiel (1999) The McKinsey Way: Using the techniques of the world’s top strategic consultants to help you and your business. London: McGraw-Hill Professional

References:

JohnnyHammond.com (2020), staged consultancy process: https://johnnyhammond.co.uk/approach/

Adair. J., (2009) Effective Communication: The most important management skill of all. London: Pan Books

Bettger (1992) How I raised myself from failure to success in selling. New York: Simon & Schuster

Op. Cit., Adair (2009)

Op. Cit., Bettger (1992)

Eathan Rasiel (1999) The McKinsey Way: Using the techniques of the world’s top strategic consultants to help you and your business. London: McGraw-Hill Professional

Maister, D., (2002) The Trusted Advisor. London: Simon & Schuster