Describe the analytical approach and process as
applied to MAS engagement.
Analytical approach and process refers to the
systematic, objective and rational method of solving
business problems. It involves a professional-level
ability to ascertain pertinent facts and circumstance,
define problem, evaluate the alternative courses of
action and present conclusions and recommendations
to solve the problem.
What are the basic stages of a management consulting engagement?
I. Negotiating the engagement II. Engagement planning
III. Conducting a consulting assignment a. Problem identification and solution
b. Identification of suitable and accurate sources of information c. Data analysis and diagnosis
d. Solution development
e. Preparation and presentation of the report and recommended solution
g. Follow-up evaluation of the implemented solution
What is an MAS proposal letter? What are the
content of this letter?
It is an advisable first step in most MAS engagement. It
is written communication between the CPA and the
client setting forth the terms and conditions of a
proposed consultancy work.
Its contents generally include:
Objectives and benefits of the engagement. Scope of the work and the role of CPA.
Approach to the study. Project organization.
Fees and billing arrangements.
What are the uses of an engagement plan?
Provide a means for arranging, distributing and assigning
responsibility for various segments of an engagement.
Provide a means of control for determining g whether all
segments of the engagement have in fact been completed.
Provide the framework for reporting progress of an
Facilitate time and efficiency control over personnel assigned
to the engagement.
Assist in an engagement review by a partner or supervisor. Provide the basis for estimating fees.
Advantages of preparing a proposal letter:
It minimizes misunderstanding between the CPA and
What are the factors that should be considered in
setting the fee to be charged to clients?
Nature of the MAS job.
The job’s degree of difficulty and complexity.
Qualifications of the staff required.
Technical importance of the service to the client.
Define an engagement or work plan.
It is an operational plan for conducting a management
service engagement and considered as a blueprint of
the remainder of the project.
What are the basic contents of an engagement program?
The objectives and a description of each task to be accomplished. A description of tangible output required at completion of each task. A list of manpower required.
A list of the personnel assigned. The starting and completion dates. Project costs.
Describe the activities involved in the problem definition phase?
Identity of the problem.
Objectives of the problem-solving process. Scope of the problem.
Intensity of the problem
Time dimensions of the problem Location of the problem
Human elements involved in the problem Support systems surrounding the problem Tracking systems related to the problem
What are the data-gathering techniques available to a management consultant? Interviews Questionnaires Observation Document gathering Charting Organization chart Data flow diagram System outflow Detail flowchart Decision table
5 internal sources of data and the corresponding data that may be obtained from such. Sources
Corporate planning Facts
Corporate objectives, Expansion plans Sources
Engineering schedule for products Sources
Research and development Facts
New product development schedules Sources Manufacturing Facts Inventory status Sources Accounting Facts
Product pricing and costing Operating expenses
Describe the 4 approaches that a consultant may use in analyzing facts gathered in relation to the problem at hand.
Decision-Level Analysis – has the purpose of depicting the
varied interrelationships among the decisions made throughout the segments and levels of organization.
Input/output Analysis – problem situation is analyzed in terms
of its inputs and outputs.
Structured Analysis – organization is comprised of a number of
well-defined functions, which in turn are made up of a group of activities.
Less-Structured Analysis – could be employed to a counteract
some limitations of the structured approaches such as (1) difficulty in application and (2) stifling of creativity of the consultant.
Explain briefly the steps in the problem-solving
Problem identification and desired outcome
initial recognition of a symptoms pointing to the problem
and ends with the complete problem description.
Identification of suitable and accurate sources of
information and data-gathering - deals with fact sources
and identifies places where the consultant can look to find
facts associated with the operation of a client.
Data analysis and Diagnosis
consultant needs to apply a
variety of fact analysis techniques to determine the
effectiveness of each decision made.
Preparation and presentation of the report and
Implementation of recommended solution
Most commonly used techniques in gathering facts.
Interviews – considered the best way to zero in on problems. It
can be conducted at all levels of the organizations.
Questionnaires – restricts channel of communications and
should be used with great care for the purpose of fact finding.
Observation – useful in gathering facts prior to an interview, in
verifying statements made during an interview, and in ascertaining relationships between individuals.
Document gathering – collect all relevant documents to gain
an understanding of what is presently done and how it is
organized, what is not available, and perhaps what the client considers being important.
Charting – fact gathering that provides a pictorial
representation of a dimensions of the client’s organization or of
The following approaches to analysis:
Decision-Level Analysis – has the purpose of depicting the varied interrelationships among the decisions made throughout the segments and levels of organization.
Input/output Analysis – problem situation is analyzed in terms of its inputs and outputs.
Structured Analysis – organization is comprised of a number of well-defined functions, which in turn are made up of a group of activities.
Less-Structured Analysis – could be employed to a counteract some limitations of the structured approaches such as (1) difficulty in application and (2) stifling of creativity of the consultant.
The following analysis strategies:
Categorization – process whereby data, facts or items are sorted into different groups by virtue
of their features.
Classification – process whereby items are sorted into different groups wherein defined by
external criteria rather than by arbitrary features.
Numerical analysis – numbers are combined in order to understand how they relate to each
Association – recognition of two things that are connected in some ways.
Correlation – recognition that the variation in one variable occurs in step with that of another. Causation – explains correlation. It suggests that two variables are correlated because there is a