Reinventing External

(1)

X International Value Engineering Conference // III SAVE I i l E X International Value Engineering Conference // III SAVE I i l E III SAVE International Europe III SAVE International Europe

Reinventing External

Management Consulting Services

Dr.József Poór, CMC, DSc

Professor of Management

(2)

(3)

My Way to Value Analysis

(4)

Key Issues

• Where did we come from?

• Emerging ifs of professional consulting firms

Emerging ifs of professional consulting firms

• Special features of the development of

l i

i E

E

consulting in Eastern Europe

• New wave of consulting activities

ew w ve o co su

g c v es

• Conclusions

(5)

X International Value Engineering Conference // III SAVE I i l E

III SAVE International Europe

11 Where did we come

from?

(6)

Approach of ”Oxford Handbook of

Management Consultancy” (2013)

 This sector is less than 150 yrs oldy  As an independent venture, it was

born in the US in the 1910s and 1920s born in the US in the 1910s and 1920s  Global revenues in excess of $300

billion billion

 Today we can hardly find an area of business life which cannot be

business life, which cannot be connected to some kind of consultancy business

consultancy business

(7)

Five major waves (1900-Today)

Scientific (engineering) Movement

H

R l ti

Human Relations

Organization & Strategy Waves

Consulting in Accounting Firms

IT & Outsourcing Consulting

Today

(8)

Two Waves of Consulting

Approaches – Advice model (1.1)

Entry

Data collection

and diagnosis

Nurse

Psychoterapist

Preventing advice

and solution

Implementation

Pharmacist

Brain surgeon

Termination

(9)

Two Waves of Consulting

Approaches – Process Consulting Model (1.2)

Approaches Process Consulting Model (1.2)

(10)

Nothing new under the sun

Like the drummers, messengers, and concubines that accompanied ancient armies on the march professional consulting firms followed their industrial clients as

Poór_2015_Consulting

on the march, professional consulting firms followed their industrial clients as they expanded around the world in the 1980s and 1990s

(11)

X International Value Engineering Conference // III SAVE I i l E III SAVE International Europe

22 Emerging ifs of

g g

professional

consulting firms

(12)

Emerging ifs of professional

consulting firms

Usage of _{Threats of low wage} Growing

standards talent pool

g countries

Consulting firms are experiencing growth in almost all nations with ample opportunities to

extend their reach within and across borders

Para- Transparency&accou _{Certification}

Para

professionals

a spa e cy&accou

(13)

Consulting in light of FEACO

statistics

(14)

Emerging Issues

Consultants today cannot just deliver a

slideshow and pocket fat fees

p

 Even the elite three now make most of their

revenue from implementing ideas

revenue from implementing ideas,

From finding ways to improve clients’ internal

processes and from other tasks not traditionally

considered “strategy consulting”

considered strategy consulting

Heavy investment in knowledge development

(15)

3 Special features of

f

the development of

cons lting in Eastern

consulting in Eastern

Europe

(16)

Consultancy

Consultancy Landscape

Landscape in

in CEE

CEE

t i

(1)

 Appearance of foreign

countries

countries (1)

(1)

 Appearance of foreign

consultancies

 Projects financed by Phare

 and World Bank

 Privatization boom

 Increasing role of local

consultancies

 EU projects

(17)

Consultancy

Consultancy Landscape

Landscape in

in CEE

CEE

countries

countries (2)

(2)

countries

countries (2)

(2)

1 9% 1,6% 1,1% _0,2% 3,2% 4,0% 3,8% 1,9% Germany United Kingdom CEE 36,0% 8,0% 3,2% Nordic Region France Italy

Central & Eastern Europe

10,2% Central & Eastern Europe Austria Switzerland Spain 30,0% Portugal Greece Source: FEACO, 2013

(18)

44 New wave of

consulting

activities

Poór_2015_Consulting _{Budapest, April 20‐21, 2015}

(19)

New Challenges

g

 Changes in orientation of capitalism

 Changes in control of society

 Uncertain world

 Culturally complex society

 Not regulated industry

(20)

New needs in new area

From Problem to Outcome

From Expert to Co creator of New

From Expert to Co-creator of New

Knowledge

From Static to Dynamic Knowledge



From Professional to Personal

Relationship

(21)

Consulting models

Consultant Emphasis The Advice Model The Process Model Inquiry Model

What is the Consultant’s task?

Solve problem Solve problem Achieve the Client’s desired outcome

What should the relationship between

Consultant transfers or delivers knowledge to Client

Consultant and Client work together on

Consultant and Client are partners on technical and

relationship between Consultants and Clients be?

human relationships and organization dynamics

social/ human dimensions of change

Who is the expert?

Consultant is the expert brings knowledge and best

Consultant is a „helper” or process expert

Client and Consultant each bring different types of

Who is the expert?

practices expertise to bear on achieving the outcome

How should the Client’s capacity be increased?

Transfer knowledge in the form of product or service

Help clients learn to more effectively work together

Client and Consultant co-create knowledge needed to achieve the outcome

How much attention should the Consultant give to the uniqueness of each Client organization or community?

Low (knowledge transferable across contexts)

High High

(22)

Inquiry model

5.Sharing

4. The Inquiry Circle

3.Finding Out Who 3.Finding Out Who Else Can Contribute

2.Establishing Our Inquiry Partners

1. Clarify outcome and negotiate contract

(23)

55 Conclusions

Conclusions

(24)

Final conclusions

• Beside knowledge developed in the US and

W-E, alternative definition should also be taken

,

seriously

• Foreign and local consultancy should develop

a general collective memory

• Mixed approach is becoming eminent

important

(25)