Professional Development Framework and Course Development for Management Consultants. A Project Report

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Professional Development

Framework and

Course Development for

Management Consultants

A Project Report

September 2005

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EXECUTIVE SUMMARY

The Institute of Management Consultants in Hong Kong (IMCHK) engaged in this project from August 2004 through the first half of 2005, and this was made possible by a grant through the Professional Services Development Assistance Scheme (PSDAS) of the HKSAR Government. It was carried out by members of the Institute of Management Consultants Hong Kong and other experts.

Aims of the Project

This project had three key aims:

1. To build on a previous research by developing a series of training programmes.

2. To identify an articulated series of programmes and other training activities that will provide a career development path for consultants in the PRC and Hong Kong.

3. To investigate possible links of the proposed professional career path to the standard Qualifications Framework proposed by the Education and Manpower Bureau in Hong Kong, and to similar frameworks in Mainland China and other countries.

Methodology

The project can be divided into two parts: 1) structuring of a career development path and linkages to the path; and 2) developing basic training programmes intended for management consultants. The first part involved survey of existing career development path for other professionals, focus groups and interviews, and actual design of the structure. The second part involved development of 10 training modules for testing, and later adoption.

Proposed Structure and Rationale

Our proposed career development structure consists of two streams, academic and professional development, each of which is divided into three stages. Aspiring management consultants may enter the career development structure at different stages into the two streams, which would all lead to the final destination: becoming a Certified Management Consultant (CMC). The reason for dividing the structure into two streams is to cater to different needs: some would prefer more practical experience while others would prefer theories and academic recognition. For either stream, aspirants would be tested on the competencies that they should possess at the end of each stage.

The structure is linked to the Qualifications Framework proposed by the Education and Manpower Bureau, which is composed of seven levels. The structure corresponds to levels four to six of the Qualifications Framework.

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Course Development Initiative

Ten basic courses were developed within several months and were subsequently tested for acceptance in the form of pilot classes. The course developers taught the courses themselves to gauge participant response to design and learning effectiveness. Subsequently, participants were asked to fill in course evaluations forms. Course materials were then modified and refined based on the feedbacks.

Summary and Conclusion

As a result of the project there are now:

A professional career framework for Management Consultants; and • • • • • • • • • •

Ten modules for developing Management Consultant competencies.

Given the above project outputs, aspiring management consultants in Hong Kong and the Mainland now have a road map to refer to when they trod the road to become Certified Management Consultants. They are able to develop competencies that are vital for them when practicing in the region. Moreover, employers and potential users of management consulting services are now in a better position to judge at which level the management consultants belong. However, there remain to be developed tools that can further help management consultants in their career advancement:

• Assessment tools to identify the competency levels and development needs of consultants in both locations

This would be one of the main areas IMCs have to work on in the near future. Acknowledgement

The Project Team would like to acknowledge the assistance provided by the following individuals and organisations, without which this project would not have been possible:

The China Enterprise Confederation in Beijing

The Council of the Institute of Management Consulting, Hong Kong The Hong Kong SAR Government

The International Council of Management Consulting Institutes, Asia Headquarters

The Management Consulting Association (HK) The Poon Kam Kai Institute, University of Hong Kong Tsinghua University, Beijing

The Academy of Management Consultancy Ltd.

Special thanks go to all the respondents who have contributed their insights and provided opportunities for the Project Team to better understand their requirements.

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Introduction

a) The Management Consultancy Field

Management consultancy was slower to emerge as a recognised profession than medicine (17th_{century), law (18}th_{century) or accountancy (19}th_{century). Management} consultancy emerged in the later half of the 20th_{century, following the Second World War} and the development of operations research and work study methods. The need to compete with new production and logistic methods in reviving Germany and Japan gave management consultancy a new impetus. The arrival of computers, systems analysis and subsequently information technology brought further opportunities. New approaches to the management of people changed the existing personnel field to the specialism of human resource management. Growing complexity and scale, particularly in groups operating internationally, brought demands for new management accounting techniques and management control systems. Development in strategy formulation, marketing and finance added further areas of specialism. Today the globalisation of financial markets, and of markets for products and services, supported by information technology and the internet, are offering new management consulting challenges.

b) The Management Consultancy Market

In the early days management consultancy tended to be provided by individual consultants. Partnerships and larger firms then developed, some operating nationally, others regionally and a few internationally, such as McKinsey in the field of strategy. The big eight international accounting firms, now reduced to the global four, also developed management consultancy practices. Initially these consulting services were in accounting and offered as an adjunct to the firms’ audit clients. Subsequently these firms offered consulting services in all specialism and to all sectors, including manufacturing, service industries, the public sector and not-for-profit entities. Indeed, for many firms their fees from management consultancy far outweighed those from audit work. This led to concerns about the potential loss of independence in the external audit function. Recent corporate governance codes around the world, including Hong Kong, and the Sarbanes-Oxley Act in the United States now require a separation between audit and management consultancy practice, and most accountancy firms have separated their consultancy businesses.

Today, the market for management consultancy in economically developed countries embraces the work of individual consultants, small partnerships, firms operating nationally, regionally and those which offer their services around the world. Some firms offer a broad range of management consultancy services, others specialise by technical field (for example finance, marketing or IT) and/or by market sector (for example manufacturing, the finance industry or the public sector). The market for management consultancy in Hong Kong has developed in line with these developments and is today relatively mature, with clients expecting world-standard service. In Mainland China opportunities for management consultancy are legion in all specialisms and sectors, and at all levels of sophistication.

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c) The Management Consultancy Profession

Unlike medicine, the law or the audit of public companies, the practice of management consultancy in most countries is not regulated by the state. However, the increasing sophistication of the management consulting profession and the growing expectations of client organisations have brought new demands for the professionalisation of consultancy practice. In countries like Austria, South Africa, Australia, and Canada, CMC certifications are mandatory for those operating in the field.

Broadly speaking, to be recognised as a profession, a field of activity needs an agreed body of knowledge with required skills and abilities, controls on entry and practice, a code of conduct with disciplinary procedures, and a system of codifying and teaching such practices. A recognised profession will promote its field of activity, regulate entry, provide training, and set and maintain standards of practice for the protection of clients.

In the case of management consultancy the International Council of Management Consulting Institutes (ICMCI, www.icmci.org) was established in 1987 to advance world-wide certification of management consultants. ICMCI is a recognised NGO chartered to provide certification to management consultants under the United Nations. The Certified Management Consultant (CMC®_{) standard is the only competence-based career} qualification for practicing consultants, and is now recognised in the 35 countries that have membership in the ICMCI. To date over ten thousand management consultants world-wide have been awarded the CMC. Under today’s business climate, clients tend to seek a trusted advisor with proven skills. The CMC designation demonstrates a consultant’s achievement of a recognised level of knowledge, skill and experience, a commitment to the best practices in management consulting and adherence to an ethical code.

Broadly, the international minimum requirements for the CMC accreditation are: • Experience

– 3 years in management consulting, with 1200 hours per annum in active management consulting during the three qualifying years

• Education

– Recognised degree or professional qualification or an additional five years in management consulting in lieu of a degree

• Independence

– Owner or employee of a firm in independent practice or internal consultant in a firm meeting the institute’s independence criteria

• Qualification

– By written examination or structured interview on the code of ethics and common body of knowledge

– Sponsorship by two sponsors who are members of the institute

– References on the basis of five written descriptions of five assignments with five clients verified through interview

Another body offering e-based international accreditation, RABQSA International (www.rabqsa.com) maintains a register of management consultants in Australia, New Zealand and Malaysia. They recognise four categories – management systems, human resources management, quality of management and other consultancy services.

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d) Definition of “Competency” and the need for a Competency Set in Hong Kong and Mainland China

Competencies are the behaviours that distinguish the truly effective from the less effective in an occupation or profession. In the management consultancy industry, therefore, competencies are the behaviours that are exhibited by the more effective members of the profession. Hence, they are the behaviours that ideally should be exhibited by all members of the profession in a certain environment or operating culture. Competencies do change over time and represent the set of acceptable behaviours as deemed necessary by the profession itself.

A demonstrated behaviour or competency is the result of the coming together of three factors:

Education/Knowledge: possession of the relevant professional

knowledge and academic qualification; •

• •

Skill: having the necessary skills to put that knowledge into practice; and Motivation: the drive (attitude) to bring together knowledge and skill in

some productive behaviour.

Competency set provides a framework for the industry for recruiting new consultants, determining training and development needs, and evaluating the performance of professional consultants. More importantly, and similar to such efforts undertaken by the medical, engineering, and other professions, the availability of the competency set would help in establishing the management consultancy profession as a truly professional group. For the local Institute of Management Consultants (IMC) in Hong Kong, and subsequently the new IMCs established in Mainland China, certification can now be formally established for the certification of management consultants. CMCs are recognised throughout the world where there are IMCs, and in certain countries like Austria and South Africa, the CMC designation is a pre-requisite for those operating in the field.

Establishing the competency brings several benefits. The competency set provides a much clearer frame with which managers and other professionals interested in joining the field can now use and opens opportunities for them. The clients of the consultancy firms would also benefit as the competency set links closer to what the clients believe are necessary competencies for such professionals. Charlatans or those that are less than ‘professional’ are kept at bay and both the client and subsequently the industry would benefit.

For Hong Kong and Mainland China, the consultancy profession is, then, faced with the situation where all of the competency sets currently available for its members have been developed outside Hong Kong and Mainland China. Factors unique to Hong Kong and Mainland China were not studied or taken into consideration in their development. The research project undertaken by IMCHK back in 2003 described below sought to overcome the over-generalization of current competency sets for consultants and to create a set specific to the unique environment in the PRC and Hong Kong. Copies of the report is available for download at IMCHK website (www.imchk.com.hk).

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e) Previous Work on Competency by IMCHK in 2003 Methodology

The previous work on competency employed both qualitative and quantitative research methods. The qualitative part of the research involved the use of focus groups and one-to-one interviews. These generated data for the body of the report and provided a base for the survey instrument that was key to the quantitative element in the project. Subsequently, an additional follow-up with users of consulting services to substantiate the competency was done in both Hong Kong and Beijing.

Findings

The surveys conducted with consultancy firms in Hong Kong and Beijing identified a set of core competencies for both Hong Kong-based and Beijing (PRC)-based consultants. These are so-call technical or job competencies:

Analysing the problem situation •

• • •

•

Planning the approach/methodology Implementation with the client Managing the project

There were, however, significant differences in the competencies identified outside of these core areas. These reflected the different level of maturity of the industry in the two locations and the commercial environment in which the firms were operating.

A survey of client organisations in both Hong Kong and Beijing who have used the services of consultants also placed these competencies high in their ranking of competencies needed for effective work. They did, however, add one further competency to the list ― ‘Professional Ethics’. Since the survey in Beijing also identified this competence as of significant importance, we believe that this should be added to the list of core competencies.

Hong Kong

Whilst concerned about the continuing overall professional development and technical training of their staff, the Hong Kong firms placed emphasis on their personal competencies. The Hong Kong respondents tended to assume, quite justifiably, a high level of technical competence for their personnel.

The interview stage of the project identified the following personal competencies as key to effective operations in the Mainland for Hong Kong-based consultants:

• Organisational politics; • Dealing with uncertainty;

• Demonstrating emotional resilience; and • Managing local staff.

The survey data showed that Hong Kong firms placed a high priority on: Interpersonal competence and cultural awareness.

It would seem that the common key competencies would have to be supplemented for consultants based in Hong Kong by this identified competency set.

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Beijing

Both the interview and survey data emphasised the importance of the core technical competencies. However, one also has to take note of the additional competencies identified in the Beijing study. These are:

Knowledge and experience; and •

• Professional ethics.

Once again, these are a reflection of the level of development of the profession in the PRC and the commercial environment on the Mainland.

f) The management consultancy career path

Management consultancy is a profession with multiple entry routes. Consultants may come from any of the constituent fields through professional training and experience accumulation, for example, operations, accounting, finance, IT, marketing, human resources, or strategy.

Whereas in the past many entrants to the management consultancy profession offered past management experience as their prime qualification, today the profession largely expects a university award or equivalent as a minimum entry requirement, followed by an extensive routine of education, training and practice consultancy experience.

The professional development framework for management consultants proposed in this project fulfils the requirements for membership of, and continuing development within, a profession that has international recognition.

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Aims of the Current Project

This project aims to build on the identified competency requirements unique to management consultants operating in Beijing and in Hong Kong identified in the previous project. More specifically, the aims are:

To build on the research already carried out in 2003 that had identified the competencies of management consultants operating in Hong Kong and Mainland China by structuring a series of training programmes to develop the identified competencies;

•

To identify an articulated series of programmes and other training activities that will provide a career development path for consultants in the Mainland and Hong Kong helping to consolidate the professional status of consulting by linking the career path to international standards; and

To investigate possible links of the proposed professional career path to the standard Qualifications Framework proposed by the Education and Manpower Bureau in September 2002 in Hong Kong, and to similar frameworks in Mainland China and other countries.

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Methodology

The project is divided into two parts: 1) structuring of a career development path and linkages to the path; and 2) developing training programmes intended for management consultants. The first part involved surveying existing career development paths for other professionals, focus groups and interviews, and actual design of the structure. The second part involved development of 10 competency-based training modules for testing. This section described the methodology employed for completing part 1. Part 2 shall be dealt with in a separate section (Course Development Initiative). A four-step approach was adopted for part 1. This was to ensure that its objectives were met and the career development structure met the perceived needs of the members of the profession in Hong Kong and the Mainland:

1. A survey of the development structures and qualifications frameworks of other professional bodies. Here the focus was on chartered institutes including the accounting profession.

2. An investigation of the structures employed in other developed countries by the management consultancy profession to meet the ICMCI competency framework and also local needs.

3. The conducting of a series of focus groups and interviews in Hong Kong and the Mainland to check that the needs of local members were met.

4. The design of a structure that met the needs of the profession and the objectives of the project.

Step 1. Survey of the development structures in other professions. To be truly accepted as a

profession, management consultancy needs to be seen to have an approach to qualification and professional development that is in line with other professional bodies, in particular the chartered bodies.

The road to achieving chartered status for a profession is long and arduous and that status is jealously guarded. For example, the Chartered Institute of Personnel and Development only achieved chartered status after almost a quarter of a century of planned and carefully conducted efforts.

To be accepted as a profession by other professions management consulting needs to be seen to hold to the same level of requirements for membership as others. It needs to be seen to adhere to a career and development structure that is recognisable by them.

Step 2. Study on the structures used in other countries by the management consultancy profession. Not only does the management consultancy profession in Hong Kong and the Mainland

have to have a development structure recognisable by other professions, it must also adhere to international standards within the profession internationally.

Over the last few years the ICMCI has put a considerable amount of effort into establishing competency standards for the profession that have international application. These competency standards form the basis of the competency frameworks utilised by the profession internationally and must do so for Hong Kong and the Mainland. For example, any profession must have ethical standards and no individual can be a member of the institute unless he or she is able to demonstrate his/her knowledge of and application of these standards.

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However, local culture and operational conditions must be taken into account. Given this fact, IMCHK conducted a study in 2003/4 financed by PSDAS to identify the competencies required to operate effectively as a management consultant in Hong Kong and the Mainland (as described in the previous section).

The results of this study and the training programmes developed to build these competencies also need to be accommodated within the proposed structure for the profession in Hong Kong and the PRC.

Step 3. Focus groups and interviews. Four focus groups were held, encompassing management

consultants from junior to senior grades. Some volunteers opted for interviews due to time conflicts. Participants were prompted to discuss about management consultancy training in the market – both in-company training and publicly available programmes, and competency of management consultants. They were also presented with a draft career development path and asked to comment on it.

Step 4. Design of the structure. Once the above data had been collected, it was possible to design

a possible structure that seemed to meet the various demands likely to be placed on it.

The structure was then placed before a number of senior IMCHK members for their comment. Based on their comments a number of amendments were made and the degree to which IMC membership would be linked finalised.

The link to a university qualification demanded long negotiation with the university concerned, particularly on the content of that degree to ensure that it would meet with the research into competencies conducted by IMCHK in 2003/4 and the steps in the career structure.

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The Project Team

The project team was led by Mr. Alfred Ho. Ms Jill So, as the overall project manager took on the day-to-day administrative role and ran the project according to the scope as agreed with the parties involved. Mr. Charles Foley was the mastermind behind the training programme development, specifying the learning objectives and the guiding outline content for each module. Dr. Gregg Li served as the practice director and was responsible for the role of quality assurance and general research direction. Mr. Ho also acted as the final technical director. Emeritus Professor Robert Tricker helped in mapping and integrating the career development paths with reference qualifications frameworks.

This project received generous funding from the Hong Kong SAR Government and the Institute of Management Consultants in Hong Kong. The Hong Kong SAR Government contributed about 50% of the resources under the PSDAS (Professional Services Development Assistance Scheme), with the rest coming from the Institute and individual project members.

Mr. Alfred Ho, FIMC, CMC Project Director

Miss Jill So, AIMC Project Manager

Mr. Charles Foley, FIMC, CMC

Programme Development Expert Academic Scheme Integrator Prof. Robert Tricker

Dr. Gregg Li, FIMC, CMC Quality Assurance 6 Course Developers

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Professional Development Framework: Survey and Interview Results

a) Survey of Other Professionals

We had looked at the career development paths of several professions, among them that worth noting are accounting and marketing.

Accounting

Most of the accountants in Hong Kong attain their professional status via the ACCA (Association of Chartered Certified Accountants) system. There are several routes taking into consideration different qualifications of aspiring accountants: Professional Examination Route (PER), Mature Student Entry Route (MSER) and Certified Accounting Technician Route (CATR). As we can see from the diagram below, the three boxes in the bottom represent entry points of the three routes: (from left to right) CATR, PER and MSER.

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Marketing

The Hong Kong Institute of Marketing (HKIM) has set up the following system for people interested in becoming a marketing professional.

Source: HKIM www.hkim.org.hk

Marketing professionals with different experience may enter the path at different points, corresponding to three levels of programmes.

Level 1: Certificate/Professional Certificate in Marketing

2 passes in the Hong Kong Advanced Level Examination (HKALE) or equivalent; or • • • • • • •

5 passes in the Hong Kong Certificate of Education Examination (HKCEE) or equivalent plus 2 years' relevant work experience; or

Aged 23 or above with no less than 3 years' relevant work experience Level 2: Diploma/Professional Diploma in Marketing

A recognised degree in a non-business related area or its equivalent, or

A Certificate / Professional Certificate in Marketing awarded by HKIM or equivalent

Level 3: Graduate Diploma in Marketing / Graduate Diploma in Professional Marketing & e-Business / Graduate Diploma in China Marketing & e-Business

A recognised degree in Marketing or in business related areas or its equivalent, or

A Diploma / Professional Diploma in Marketing of any recognized institute, or its equivalent

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b) Survey of Other Management Consulting Bodies

Linking the career structure with Qualifications Frameworks in other countries

In this section we respond to the project remit “to investigate possible links of the proposed professional career path to similar frameworks in the PRC and other countries”. In recent years a number of countries have developed standard qualifications frameworks linking school education, vocational education and training, and higher education. In parallel with the research at ICMCI, we have looked at qualifications frameworks in Australia, Canada, New Zealand and the United Kingdom with reference to ICMCI’s effort in Denmark, Finland, Germany, Hungary, India, Netherlands, New Zealand, Switzerland and the United States. We have also reviewed the career paths and professional qualification of management consultants in these countries as well as the United States.

Australia:

The Australian Qualifications Framework (AQF) is a system of national qualifications in schools, vocational education and training, and the higher education sector. The Australian Curriculum, Assessment and Certification Authorities (ACACA) and the Australian National Training Authority (ANTA) coordinate the AQF. The ANTA has dropped the previous use of AQF levels of attainment, substituting an equivalence table:

Vocational Education and Training

Sector Accreditation Higher Education Sector Accreditation

Doctoral degree

Masters degree

Vocational graduate diploma Graduate diploma Vocational graduate certificate Graduate certificate

Bachelor degree

Advanced diploma Associate degree

Diploma Diploma Certificate IV Certificate III Certificate II Certificate I Source: www.aqf.edu.au

The Institute of Management Consultants (IMC) in Australia establishes and maintains internationally recognised standards for the consulting profession in Australia. In partnership with the University of South Australia, the Institute offers postgraduate management and leadership programmes tailored to the needs of management consultants. The University’s International Graduate School of Management (IGSM) offers a Graduate Certificate in Management – Consulting which articulates with the Graduate Diploma in Management – Consulting and subsequently with the IGSM Master of Business Administration (MBA) degree. (Sources: www.management-consultants.com.au, and www.business.unisa.edu.au)

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Canada:

The provinces and territories in Canada are responsible for all levels of education including universities. There's no federal ministry of education, formal accreditation system or qualification framework.

The Canadian Association of Management Consultants (CAMC, www.camc.com) fosters excellence and integrity in the profession as a whole, and is an advocate for the Certified Management Consultant (CMC®) designation. The Essentials of Management Consulting is designed to help management consultants learn to address all six functional areas of their clients’ organisations, as well as prepare them for the Comprehensive Examination leading to the CMC designation.

Candidates must

1. possess at least an undergraduate degree; 2. be members of the Association;

3. have completed and signed a declaration that serves as their bond to abide by the Association’s Uniform code of professional conduct;

4. find two current CMC members to sponsor them and attest to their experience in management consulting; and

5. follow a series of courses, credential reviews and an eight-hour examination to ensure a high level of proficiency in the following key areas:

• finance • human resources • information technology • marketing • operations • strategic planning • project management

• interpersonal and personal skills

Candidates who possess at least an undergraduate degree and eight years of management consulting experience may qualify for Senior Practitioner status. This may exempt them from some CMC programme requirements.

The Association has an agreement with three Canadian Universities to provide educational preparation for the CMC designation:

St. Mary’s University, Sobey School of Business Royal Roads University, School of Business University of Ottawa, School of Management

Royal Roads University, B.C. (www.royalroads.ca), offers an MBA in Executive Management with a specialisation in management consulting, which has the following course components:

Leadership development workshops • • • • • • • • • • • Environment of business Creative leadership Organisational relations Marketing management

Financial and managerial accounting Corporate finance

Research methods Sustainability Consulting skills Contract law

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Essentials of management consulting for organisational leadership and change • • • • • • • Project management Operations management

Information technology for consulting professionals Strategic management

Global issues in management Organisational consulting project

New Zealand:

The New Zealand tertiary sector covers private training establishments (PTEs), polytechnics and institutes of technology, wananga (New Zealand tertiary educational institutions that deliver educational programmes and opportunities within a Māori environment), colleges of education, universities and workplace training. Beyond secondary school, learners can access training and education that lead to a wide range of qualifications. The New Zealand Government has developed a national qualification framework and quality assurance systems for all courses, programmes and qualifications offered at state institutions.

The New Zealand National Qualification Framework has been developed since 1990. Whilst there are 46 qualifications and 96 classification system references to the topic ‘management’, none of them refer directly to management consultancy practice. (www.nzqa.govt.nz)

United Kingdom:

The National Qualifications Framework (NQF) sets out the levels at which various qualifications are recognised in England, Wales and Northern Ireland. Many vocational qualifications are accredited into the NQF. The NQF tends to be organised by industry sector (e.g. travel and tourism; health, public services and care) or by subject group (e.g. science and mathematics; business, administration and law). Sector Skills Councils have been set up to lead the skills and productivity drive in their specific sector recognised by employers. Management consultancy is not specifically identified. A revised structure of the NQF came into effect in 2004. The revised NQF levels with a broad indication of equivalent higher education qualification levels are summarised below.

National Qualifications

framework Framework for Higher Education Qualification levels Level 8

Specialist awards D (doctoral) Doctorates Level 7

Diploma in translation

M (masters)

Masters degrees, postgraduate certificates and diplomas

Level 6

Diploma in management

H (honours)

Bachelors degrees, graduate certificates and diplomas

Level 5

BTEC Higher National Diploma

I (intermediate)

Diplomas of higher education and further education, foundation degrees, higher national diplomas

Level 4 C (certificate)

Certificates of higher education The NQF levels are further explained as follows:

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Level 1 qualifications recognise basic knowledge and skills and the ability to apply

learning with guidance or supervision. (e.g. certificate in plastering)

Level 2 qualifications recognise the ability to gain a good knowledge and understanding

of a subject area of work or study, and to perform varied tasks with some guidance or supervision. (e.g. diploma for beauty specialists)

Level 3 qualifications recognise the ability to gain, and where relevant apply a range of

knowledge, skills and understanding. Learning at this level involves obtaining detailed knowledge and skills. (e.g. certificate for teaching assistants)

Level 4 qualifications recognise specialist learning and involve detailed analysis of a high

level of information and knowledge in an area of work or study. Learning at this level is appropriate for people working in technical and professional jobs and/or managing and developing others. (e.g. Certificates of Higher Education)

Level 5 qualifications recognise the ability to increase the depth of knowledge and

understanding of an area of work or study to enable the formulation of solutions and responses to complex problems and situations. Learning at this level involves the demonstration of high levels of knowledge, a high level of work expertise in job roles and competence in managing and training others. Guidance is not expected at this level. (e.g. Diplomas of Higher Education and Foundation and other degrees that do not typically provide access to postgraduate programmes)

Level 6 qualifications recognise a specialist high level knowledge of an area of work or

study to enable the use of an individual’s own ideas and research in response to complex problems and situations. Learning at this level involves the achievement of a high level of professional knowledge and is appropriate for people working as knowledge-based professionals or in professional management positions. (e.g. Bachelors degrees with honours, graduate certificates and graduate diplomas)

Level 7 qualifications recognise highly developed and complex levels of knowledge

which enable the development of in-depth and original responses to complicated and unpredictable problems and situations. Learning at this level involves the demonstration of high level specialist professional knowledge and is appropriate for senior professionals and managers. (e.g. Masters degrees, postgraduate certificates and postgraduate diplomas)

Level 8 qualifications recognise leading experts or practitioners in a particular field.

Learning at this level involves the development of new and creative approaches that extend or redefine existing knowledge or professional practice. (e.g. doctorates and other specialist awards) (Source: www.qca.org.uk)

In the mid-1950s the four major UK consulting firms formed the Management Consultancies Association. In 1962 a professional body for members, rather than a trade association for consulting firms – The Institute of Management Consultancy (IMC) – was formed. In 2004 the IMC joined forces with the Chartered Management Institute to promote excellence in management consulting. The IMC now has over 4,200 members. The IMC is a member of ICMCI and is the independent awarding body for the CMC®_in the UK. In 2003 a new management consultancy competence framework was developed, and the CMC direct entry assessment process has been redesigned. The framework sets out the standards and has been developed over time with input from leading consulting firms, academic bodies and clients.

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Assessment is competency-based, measured against specific behaviours, skills and knowledge that a management consultant is expected to understand, apply and demonstrate. The assessment process comprises:

1. a structured application form;

2. a questionnaire to collect feedback from clients, managers and peers; and

3. a face-to-face assessment including a presentation and a competency-based interview.

The framework sets out three broad groupings of competence:

1. Market capability and knowledge – the application of fact-based knowledge, bringing together a combination of technical skills, business understanding and external awareness. Market capability and knowledge requires candidates to offer a technical discipline, such as finance, IT, strategy or marketing, and a sector specialism, such as the public sector, the financial sector or not-for-profit sector.

2. Consulting competence that defines the core consultancy skills, tools and techniques which are essential in delivering consultancy services. These include client focus, building and sustaining relationships, applying expertise and knowledge and achieving sustainable results.

3. Professional behaviours – the entry-level professional behaviours and attitudes which are ‘enablers’ in achieving market capability and consulting competence. These include handling complexity and responsibility, personal growth, analytical and pro-active thinking, interpersonal interaction and delivery effectiveness.

Each category of competence has three levels: 1. development

2. independence 3. mastery (Source: www.imc.co.uk)

The UK competency set is now a definitive reference set and has been referenced by Australia, Canada, and Hong Kong in the development of their competency sets.

USA:

The Institute of Management Consultants (IMC) was founded in 1968 by the principal associations in the management consulting field in the United States to establish publicly recognised standards of competence and professional conduct for individual management consultants. IMC runs the Certified Management Consultant (CMC®) in the United States.

Applicants for certification have to:

1. possess (a must) at least five years of experience in full-time practice of management consulting, with major responsibility for client projects during at least one of those years;

2. provide multiple references, most of which are officers or executives of clients served;

3. each undergo thorough investigation of his or her consulting experience to ensure that the consulting relationships were satisfactory;

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4. provide written summaries of five client assignments (disguised to protect client identity);

5. pass a qualifying interview by a panel of senior consultants who have earned the CMC mark to verify their professional competence and currency in areas of specialisation, application of experience, and understanding of the management consulting process; and

6. pass (a must) a written examination evidencing their familiarity with the Institute’s code of ethics, which applicants must pledge annually in writing to follow

(Source: www.imcusa.org)

By doing this research and with the findings and recommendations adopted, Hong Kong moves into a matching level position with other advanced countries in recognising the professional standards of the management consultancy profession and pegging it to the local general qualifications system.

c) Focus Groups and Interviews

A total of four focus groups and a number of interviews were executed to gauge acceptance of the career path framework. Two groups were students from Poon Kam Kai Institute’s Diploma of Management Consulting & Change programme, while the other two groups were council members of IMCHK and MBA students from Tsinghua University in Beijing, China.

The project team threw out the following questions as premises for discussion when conducting the focus groups:

How do the focus group participants attempt to build the skills and abilities they need to operate as professional management consultants? •

•

• •

What are the difficulties that they face in attempting to build their professional competencies? We know that next to nothing is available. The consulting team also asked for comment on the structure the project team had developed so far. In particular, in their opinion:

2

How well the structure is likely to meet the objectives of helping to establish/enhance professional status for those going through it?

How well the structure will build the competencies needed by a professional consultant?

From the discussion, several patterns emerged:

• Training for management consultants is not readily available in Hong Kong. Only large international management consulting firms provide systematic training programmes for their staff. Most small and medium management consulting firms however offer apprenticeship schemes. Non-management consulting firms often provide no training at all, or, if provided, is confined only to the highest ranking executives. Most participants agreed that much of the learning came from working-on-the-job and through observing more senior colleagues performing their work. • Public management consulting programmes are scarce. In Hong Kong

the only more comprehensive and steadily offered programmes are the DMCC (Diploma of Management Consulting and Change) organised by the Poon Kam Kai Instittute of HKU and the PFMC (Professional

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Foundation in Management Consulting) programme organised by IMCHK. Some however commented that the DMCC may not be that relevant as it is becoming more academic in orientation. The project team could not identify any comprehensive and systematic programmes that are constantly and publicly offered to those intending to enter the profession or those who are new to the industry.

• Many participants stressed the importance of developing both the consultant’s technical skills and soft skills. Training for technical skills is more prevalent in the market.

• Concerning the career ladder, many participants believe one of the most important factors is assessment at every level – whether or not an aspiring management consultant has attained the required level of competence before s/he can progress to the next level. Another important factor is the ultimate qualification itself – the CMC: whether it is as well known as qualifications like ACCA/CFA (Chartered Financial Analyst).

The final proposed structure (please refer to the next session) was constructed by the project team taking into consideration the above comments and suggestions.

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Professional Development Framework: Proposed Structure and

Rationale

a) Linking the career structure with the Standard Qualifications Framework In this section we respond to the project remit “to investigate possible links of the proposed professional career path to the HKSAR standard Qualifications Framework (QF) proposed by the Education and Manpower Bureau in September 2002”.

The QF distinguishes seven levels of competence, offering generic level descriptors at each level of the expected competencies, namely:

- knowledge and intellectual skills; - processes;

- application, autonomy and accountability; and

- communications, information technology and numeracy skills. The detailed generic level descriptors at each level are listed in Appendix 1.

Level 1 QF competencies require the exercise of basic skills, undertaking clearly defined

tasks, under close supervision, with simple literacy and numeracy skills.

Level 2 QF competencies require the application of knowledge, the use of basic tools,

choice from a range of procedures, ability to perform a range of tasks and use of some communication and numeracy skills with assistance.

Level 3 QF competencies require the application of knowledge and skills in a range of

activities, whilst understanding the relevant theory, operating in some unfamiliar contexts, engaging in self-directed activity and the use of a wide range of well practiced skills. The professional career structure proposed in this project for the management consultancy profession in Hong Kong treats the competencies at levels one through three as pre-requisite, and starts at level four.

Level 4 QF competencies require a rigorous approach to the acquisition of knowledge,

the ability to operate in a range of varied contexts and exercise appropriate judgement, the ability to perform skilled tasks self-directed and take responsibility for one’s own outputs and to use a wide range of skills and techniques (for a full descriptor see Appendix 1).

In the proposed IMCHK professional career structure there are two routes to achieving Level 4 of the HKSAR Qualifications Framework, the IMCHK course route and the relevant university course route.

The IMCHK course entry route will require 2 years of management consultancy experience and a bachelor degree, or 4 years’ management consultancy experience and an associate degree, or 6 years’ management consultancy experience with no initial degree. All candidates must then successfully complete the following courses organised by IMCHK and/or other providers:

- Interpersonal skills - Problem situation analysis

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- Managing information

and pass the CMC Level 1 examination. Successful applicants will be awarded Associate Membership in the Institute of Management Consultancy (AIMC).

The relevant university course route will also require 2 years’ management consultancy experience plus a bachelor degree, or 4 years’ management consultancy experience and an associate degree, or 6 years’ management consultancy experience with no initial degree. All candidates must also hold a relevant post-graduate certificate in management consulting of a recognised university or a professional training institute, such as the University of South Australia or Royal Roads University in Canada (for more details see below), with assessment by the respective tertiary institution. In addition candidates must pass the CMC ethics examination. Successful applicants will be awarded Associate Membership in the Institute of Management Consultancy (AIMC). Level 4 of the HKSAR QF equates to Stage 1 of the IMCHK professional career structure. At this level IMCHK candidates will hold technical and professional jobs and/or be managing and developing others. They will have the competency to analyse problem situations, be culturally aware, possess relevant interpersonal skills and be able to work with information.

Level 5 QF competencies require, inter alia, the ability to generate ideas, command

wide-ranging technical, creative and/or conceptual skills, identify and analyse routine and abstract professional problems, utilise diagnostic and creative skills, perform tasks involving planning, design and technical skills, accept responsibility and accountability, and make presentations on mainstream topics and participate in group discussions about complex subjects (for a full descriptor see Appendix 1).

In the professional career structure proposed in this project for the management consultancy profession in Hong Kong there are also two routes to achieving Level 5 QF - the IMCHK course route and the relevant university course route.

The IMCHK course route should require Associate Membership of the IMC (the AIMC designation) plus the successful completion of the following IMCHK and other courses:

- Consulting approaches and methods - Proposals and presentation

and pass the CMC Level 2 examination.

Successful applicants will be awarded full Membership of the Institute of Management Consultancy (MIMC).

The relevant university course route will require a relevant post-graduate diploma in management consulting of a recognised university or a professional training institute, such as the University of South Australia or Royal Roads University in Canada (for more details see below), with assessment by the respective tertiary institution.

Level 5 of the HKSAR Standard Qualifications Framework equates to Stage 2 of the IMCHK professional career structure. At this level IMCHK candidates will demonstrate high levels of knowledge, with significant work expertise in consulting roles with competence in managing and training others. They will have the competency to present a case to a client, to plan the approach and methodology of a consulting project, and to formulate solutions and responses to complex problems and situations.

Level 6 QF competencies require the ability to review critically, consolidate and extend a

coherent body of knowledge, to use highly specialised technical research or scholastic skills, to apply diagnostic and creative skills, to apply knowledge in professional work activities and to communicate to a range of audiences and use a wide range of software and numerical data (for a full descriptor see Appendix 1).

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In the professional career structure proposed in this project for the management consultancy profession in Hong Kong there are also two routes to achieving Level 6 QF - the IMCHK course route and the relevant university course route.

The IMCHK course route should require Membership of the IMC (the MIMC designation) plus the successful completion of the following IMCHK and other courses:

- Professional Foundation in Management Consulting - Managing the client and implementation

- Project management - Managing professional staff

and pass the CMC Level 3 examination. Successful applicants, who have at least three years’ management consulting experience, will be awarded the CMC.

The relevant university course route will require a relevant masters degree in management consulting of a recognised university, such as the University of South Australia or Royal Roads University in Canada (for more details see below), with assessment by the respective tertiary institutions.

Level 6 of the QF equates to stage 3 of the IMCHK professional career structure. At this level IMCHK candidates will have a specialist high-level knowledge of management consulting and be capable of using their own ideas to reach creative solutions to problems. They will have the competency to plan projects and deploy resources, to manage a project and to present and implement the project with the client.

Level 7 QF competencies require a critical overview of the subject, to conceptualise and

offer original insights, to demonstrate command of research and methodological issues, to apply knowledge and skills in a broad range of complex professional work, and to communicate at the level of published academic work (for a full descriptor see Appendix 1).

The professional career structure proposed in this project for the management consultancy profession in Hong Kong recognises that some members of the profession will undoubtedly have the competencies and operate at Level 7 QF. But these competencies will be gained principally through advanced consulting experience. The proposed career structure does not include this stage as a formal step on the career ladder. Academically, this level of competency in the management consulting profession would be at the doctoral level.

The following chart shows the mapping of the IMCHK professional career structure and academic/professional qualifications with the HKSAR Qualifications Framework.

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Mapping of IMCHK Professional Career Structure and Academic/Professional Qualifications with HKSAR Qualifications Framework (QF) Entry requirement IMCHK Stage Years experience Qualification Development Process Assessment Award or Professional Qualification Competencies HKSAR QF category

Uty. South Australia R.R University Canada

Masters in Consulting University South Australia

Royal Roads University Canada

CMC ethics exam CMC

3

MIMC Graduate Diploma

IMC / other dev’t…… programmes:

– PFMC

– Managing the client and implementation

– Project management – Managing professional staff

CMC level 3 exams

including ethics exam CMC - with 3 years consulting experience and certification -Planning and Deploying Resources -Managing the Project -Implementing with the client

6

University of South Australia Royal Roads Univer’ty, Canada

U. of. South Australia R. R. Univer’ty, Canada Graduate Diploma; MIMC

2

AIMC Graduate

Certificate IMC / other devl’t programmes: – Consulting approach/methods – Proposal and presentation

CMC Level 2 exams MIMC - with 3 _{years consulting} experience -Presenting the Case -Planning the Approach / Methodology

5

2 4 6 Bachelor degree Associate degree None

University South Australia Royal Roads Univer’ty, Canada

Uty. South Australia R. R. Univer’ty, Canada CMC ethics examination Graduate Certificate in Consulting AIMC

1

2 4 Bachelor degree Associate degree

IMC / other dev’t. programmes: – Interpersonal skills– Problem situation analysis– Orgn’l &

cultural sensitivity CMC Level 1 exams AIMC

-Analysing the Problem Situation -Cultural Awareness -Possessing Relevant Interpersonal Skills -Working with Information

4

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Course Development Initiative

Development of ten modules, which aim to build management consultant competencies, was another key component of the project. In alphabetical order, the courses are:

• Consulting Approaches and Methodologies • Dealing with Chaos and Complexity • Interpersonal Skills

• Managing the Client and Implementation • Managing Information

• Managing Professional Staff

• Organisational and Cultural Sensitivity • Project Management

• Proposal and Presentation • Problem Situation Analysis

The tendering process of the course development work and results

The project team sent the first invitation for tender to several organisations pertaining to the development of training programmes of management consulting on 15 October 2004. As no proposal was received when the tender closed two weeks later, the second invitation was sent on 5 November 2004. Again no tender was received two weeks later. (Please refer to Appendix 2 for the tender documents.)

The team in fact had received several telephone enquiries checking if the deadlines could be postponed, as there was not enough time to team up and produce a bid. However, the team believed the two weeks deadline was a sensible time span and course developers should be able to work under time pressure. Some others who received the invitation for tender declined to bid citing low compensation in relation to the amount of time and effort required by the course development work.

In view of the tight time schedule the team proceeded to directly negotiate with contractors whom the team felt promising, confident, competent as course developers, and who were willing to undertake the tasks and at the same time accept the amount dictated by the tender. Six experienced consultants / trainers agreed to undertake the task. They are, in alphabetical order: Mr. Jeremy Barr Mr. Charles Foley Mr. HY Ip Mr. Lucius Lai Dr. Gregg Li Mr. Sam Ying

Course development process

The course developers were asked to produce the course materials in three phases. The first phase involved developing a simple course outline; the second phase, a detailed course outline; and the third phase, the full set of course materials. Dividing the course development process into three phases allowed the project team to check on the progress and the course material so that time and quality requirements could be met.

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Pilot Testing

The completed course materials were tested through pilot trainings sessions, which were held from 2 April 2005 to 4 June 2005, with the course developers themselves conducting the sessions to capture participants’ feedback. Evaluation forms were distributed at the end of the modules to further understand how the participants felt.

Most of the course participants responded to advertisements on local newspapers and emails distributed from professional organisations. Most of them are management consultants and internal consultants.

Overall summary of the evaluation is as follows. (Rating: 1 = Not at all; 10 = Totally Agree)

Programme Content

1. Has met the stated objectives 7.6

2. Has been useful to my understanding of the topic and in applying the tools and processes

7.6

3. Is well organized 7.6

4. The written materials provided are appropriate 7.8

Instructor

1. Has well prepared 8.0

2. Has presented material clearly 8.0

3. Knows the subjects well 8.4

4. Has handled questions well 8.0

5. Has actively involved the participants 8.4

Logistics Arrangements

1. The registration and payment process has been smooth 8.3

2. The venue is easy to locate 7.9

3. The classroom setting is adequate 7.6

Overall

1. Was the module duration appropriate (1 = yes, 2 = n): % of ‘yes’ 83%

2. Overall, my satisfaction level is 7.5

3. I would recommend this module to others 7.4

4. I believe this module has helped me develop my competency in the subject matter 7.5 The complete set of course materials for all the 10 modules are available at IMCHK’s website. (www.imchk.com.hk)

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Conclusion

In conclusion, the project has produced:

A professional career framework for Management Consultants; and •

• Ten modules for developing Management Consultant competencies.

The professional career framework, divided into three stages and two streams, allows aspiring management consultants multiple paths of entry. For either stream, aspirants would be tested on the competencies that they should possess at the end of each stage. The structure is linked to the Qualifications Framework proposed by the Education and Manpower Bureau, which is composed of seven levels. The structure corresponds to levels four to six of the Qualifications Framework. The linkage to the Qualifications Framework allows easy reference to similar structures internationally.

While the project team test-ran the ten modules for developing management consultant competencies, the following observation was made:

There are common points throughout the ten modules. Participants of all the ten modules preferred interactive courses in which they could try out practical exercises and participate in discussions, rather than just having one-way lectures.

Qualities of trainers are of vital importance. No matter how good the training materials are, if the trainer fails to bring out effectively the key learning points in the lesson, participants would go away feeling not learning anything. Hence training for trainers, or having competent and experienced trainers are important elements for developing management consultants.

With the ten basic competency-building training modules now readily developed and accessible to the education and training community, IMCs in Hong Kong and the Mainland (and their branches) can take them on and install programme delivery and assessment facilities on their own and/or in collaboration with each other to standardise practice and enhance the level of current practitioners. For those intending to enter the management consulting profession, the career development ladder and qualifications framework proposed in this report will also provide a clear picture on where and how they may join in and advance their career forward.

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Recommendations

The project team found that Mainland China still lacks a comprehensive career path structure for management consultants. Now we would be able to introduce to our counterparts in the Mainland our newly constructed career path structure. With the intensified implementation of CEPA, it is now possible, and also necessary, to discuss with authorities across the border about reciprocal recognition of professional status and the transfer from one pathway to another.

We believe that more assessment instruments should now be developed. At present IMCHK has only in place a certification examination for Certified Management Consultants (CMC). According to the newly designed career path, the way to achieve CMC is split into two streams and each divided into three stages. Those taking the professional development stream would attend competency-based modules and at the end of the modules they should be assessed on the competencies. The assessment instruments will make a significant contribution to the effectiveness of both individuals and firms within the profession in both Hong Kong and Mainland China.

As we mentioned, feedback from course participants of pilot modules indicated that interaction was an important part of consultant training. Course materials that were viewed to be about the same quality taught by trainers with different teaching styles yielded different comments from course participants. Trainers with interactive style received score points much higher than trainers doing their own talking most of the time. Interaction provided participants opportunities to practice and perfect the skills newly acquired. However, not a lot of trainers can master the skills of interaction and play the role as a coach. Training of trainers should be another area of focus for the profession.

More participation and support from the industry would be conducive to the enhancement and further development of the profession. For example, we need help and support regarding promotion and dissemination of messages about the framework and other development initiatives.

The awareness for internal consultants should be promoted. Not a lot of people in Hong Kong realise that there are many more consultants than perceived, as many internal consultants are “hidden” or “under cover”, holding positions as HR managers, solution managers, etc, in various departments of various organisations. It is very likely that even they themselves may not realise they are consultants. Their realisation and awareness are important as increasing number of management consultants would create a critical mass drawing wider recognition (both within organisations and in the business community) which in turn helps in further development and improvement of the profession.

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Appendix A : Generic Level Descriptors of the “The

Qualifications Framework”...3

Appendix B : Participants of Focus Group Meetings and

Interviews in Hong Kong and Beijing ...10

Appendix C : Tender Documents ...11

Appendix D: List of Course Developers with Their Brief

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Appendix A : Generic Level Descriptors of the “The Qualifications Framework”

(Source: Education and Manpower Bureau, HKSAR Government)

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Appendix B : Participants of Focus Group Meetings and

Interviews in Hong Kong and Beijing

Focus groups were held on:

6 September 2004 (Hong Kong) 18 September 2004 (Hong Kong) 22 September 2004 (Hong Kong) and 18 April 2005 (Tsinghua University, Beijing)

Focus groups participants, in alphabetical order (DMCC – Students of the Post-graduate

Diploma in Management Consulting and Change of HKU; Tsinghua student – Business/MBA graduate-students of Tsinghua University, Beijing)

Mr. Charles Bien (President of IMCHK) Mrs. Irene Caldentey (DMCC student) Ms. Wendy Chan (DMCC student) Mr. Eric Cheung (DMCC student)

Mr. Guizhong Gao 高贵中 (Tsinghua student) Ms. XiaonanHuang 黄晓南 (Tsinghua student)

Ms. Eva Lau (Membership Committee Co-Chair of IMCHK) Ms. Candy Lee (DMCC student)

Mr. Matthew Leung (DMCC student) Mr. Xuefeng Li 李学峰 (Tsinghua student) Mr. Qi Lin 林绮 (Tsinghua student) Mr. Feng Ren 任峰 (Tsinghua student) Mr. Tony Sit (DMCC student)

Ms. Edith Tse (DMCC student)

Mr. Ping Wang 王平 (Tsinghua student) Mr. Tao Wang 汪涛 (Tsinghua student) Dr. CY Wong (Honorary Secretary of IMCHK) Ms. Etta Wong (DMCC student)

Mr. Huayi Yang 杨华毅 (Tsinghua student) Mr. Zhongshou Yu 喻中首 (Tsinghua student) Mr. Dongying Zhou 周冬英 (Tsinghua student) Mr. Xiaochang Zhou 周晓沧 (Tsinghua student)

Interview List (practicing seasoned management consultant/Fellow of IMC)

Mr. Jonathan Beard Dr. S. S. Kwong Mr. Paul Woodward

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Professional Development Framework and Course Development for Management Consultants. A Project Report