Organization development

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Introduction

Management consulting is a long-lasting profession in Canada, as is evidenced by statistics released by Industry Canada detailing that management consulting establishments in 1998 had exceeded 26,000. These statistics also highlighted that total revenue earned by profession was nearing CA$5.7 billion in the same year. It is also noted that management consulting has become not only a significant recruiter of business school graduates but also a lucrative source of income. However, regardless of the size and importance of the industry, empirical data about management consulting is quite limited, with the available theoretical framework accrued from anecdotal evidence.

Management Consultants Defined

Management consulting can be defined as an advisory practice contracted for and availed to organizations by individuals who are specially trained and qualified to assist the client organization in identifying management issues. These individuals also help in analyzing the management issues that are identified, and also aid in the implementation of solutions should they be requested. The use of “independent and objective” in the definition of management consulting insinuates that the existence of financial, administrative, political, and emotional independence from the customer. Therefore, the explanation given above will be utilized in consideration of management consulting within this article.

Why Consultants?

There are two suggested reasons as to why the industry of management consulting exists. The first is because management knowledge, skills, and techniques are best acquired via exposure to as well as experience with numerous companies within various industries. The second reason is attributed to the desire of executives to gain objective insights into their management issues. Moreover, there are a variety of reasons why hiring an external management consultant is advisable. For starters, they are professionals who have dedicated their time to study a given problem, and they also avail competence that cannot be obtained anywhere else. External management consultants also have varied experience outside the client, and they are also independent, meaning they are not biased. Lastly, external management consultants can formulate action based on their recommendations.

The Role of the Consultant

When it comes to management consulting, there are various roles that consultants are often associated with, as well as different duties they are expected to fulfil. One essential task of consultants is that of availing information about a problem raised by a client. Consultants are also expected to solve the issues presented by clients as well as giving a diagnosis, which can often require the redefinition of the problem. Another role of consultants is that of offering recommendations founded based on the diagnosis and also helping with the implementation of actions that have been recommended. Moreover, consultants are also expected to formulate not only a consensus but also a commitment revolving around corrective action. Lastly, it is the job of consultants to also work on the improvement of the effectiveness of organizations permanently. Therefore, for consultants to be deemed effective at their job, they are expected to fulfil all the roles mentioned above.

The Role of the Client

In management consultation, clients are also expected to fulfil various roles to ensure the effectiveness of the consultation process. The primary goal of clients is that of contacting the consultants with an issue, request, or question. Clients are also expected to be involved in the subsequent interviews, meetings, and various other activities as the project continue. Furthermore, it is the clients’ task to settle the consulting fees or cater to the entire budget of the consultation project. Therefore, while the consultants are accorded most of the roles, clients also have their parts to play during the consulting process.

What Clients Say About Consultants

When clients hire the services of consultants, there are individual perceptions and expectations that the former usually have regarding the latter. For example, clients often say that they believe that consultants will pass on the competencies to the organization’s personnel. Clients also tend to claim that the fees charged by consultants for hiring their services are significantly high. Furthermore, clients have also highlighted the fact that the implementation of the recommendations provided by consultants can, at times, prove difficult. Lastly, clients also observe that individuals who have been within a high level operating business are scarce due to consulting companies opting to hire their workers immediately they graduate from university. In summary, clients tend to have both positive and negative options for consultants.

The Case Study: What is the Problem?

The purpose of this case study is to assess recent projects about external management consultants within the telecommunications company, from the perspective of the workers. The case study also seeks to measure the degree to which the previously mentioned critical success factors were viewed as evident. The case study is also expected to offer an examination of which of the elements can be termed as different when compared to less or more successful consulting endeavours. Lastly, the case study also looks to collect the opinions of employees regarding the utilization of management consultancy within the organization.

Methodology

The data used in the case study was gathered using a confidential survey of the workers of the telecommunications company, and it was done anonymously due to the sensitivity of the matter, as well as to encourage participation. Two hundred fifty middle and lower-level managers from various departments known to employ the services of external management consultants were selected. One hundred two workers offered responses to the bilingual questionnaire, and a response rate of 41% was attained. In total, 77 respondents finished the study in English and 25 in French, with the directors making up 21% of the respondents.

Results

Out of all the respondents who participated in the survey, 84% stated that they had personal familiarity with specific projects at the telecommunications company that featured involvement from external management consultants within the previous two years. According to the survey, 80% of the people in question either made up part of the project team or had interactions with the consultant within the course of the project. However, 11% of the respondents did not fall under the two categories mentioned above but were still impacted by the outcome of the project. Lastly, the study indicated that only 8% of the respondents had an indirect familiarity with the consulting project.

Conclusion

The results of the study suggest that there are opportunities for improvement, as well as indicating that a consistent approach is not being utilized concerning external management consultants within the telecommunications company. Workers’ perception of the professionalism of the consultants was also noted to be positive. Moreover, a sense of urgency and motivation was also registered regarding their communication. In conclusion, the case study details that while some adverse effects are notable, the external management consulting in the telecommunications company has positive results.

Recommendations

Formulate governance procedures that are clearer and also establish processes that are more consistent surrounding engagements regarding external consulting.
Place greater emphasis on clarity, buy-in, and internal communication.
Acknowledge that implementation planning and execution need to be included in every consulting mandate.
Emphasize the need for consultants to put more time into learning about the telecommunications company, its capabilities, in-house strengths, and environment.