HOW TO BE A GOOD

MANAGEMENT CONSULTANT

Rajkumar S. Adukia
rajkumarfca@gmail.com
radukia@vsnl.com
http://www.carajkumarradukia.com
093230 61049 / 093221 39642

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 Management Consultancy

Management consulting indicates both the

industry of, and the practice of, helping
organizations improve their performance,
primarily through the analysis of existing
business problems and development of plans for
improvement.

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 Who is a consultant?
A management consultant is a professional who,
for a fee, provides independent and objective
advice to the management of client
organizations to define and achieve their goals
through improved utilization of resources. He or
she may do this by diagnosing problems and/or
opportunities, recommending solutions, and
helping implement improvement.

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 Pioneers in Consultancy
The first management consulting firm was Arthur D.
Little, founded in the late 1890s by the MIT professor
of the same name. Arthur D. Little originally specialized
in technical research. but later became a general
management consultancy.
The first pure management and strategy consulting
company was McKinsey & Company, still considered
a leader in the field. McKinsey was founded in Chicago
during 1926 by James O. McKinsey

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 10 Largest Management Consulting
1. Andersen Consulting Chicago, IL
2. PricewaterhouseCoopers New York, NY
3. Ernst & Young Cleveland, Ohio,
4. Deloitte Consulting New York, NY
5. Computer Solutions Corporation CA
6. KPMG New York, NY
7. McKinsey & Company New York, NY
8. Cap Gemini Paris, France,
9. Mercer Consulting Group New York,
10. Arthur Andersen Chicago, IL
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 Qualities needed in a consultant
Skills in writing reports
Skills in structuring task
Technical knowledge
Industry experience
Communication skills
Political skills
Presentation skills
Willingness to take risks
The ability to create a support system and make things recover
if anything goes wrong
Ability to tolerate insecurity
Desire to learn continuously
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 Commitment to both work and people
Business understanding;
Change management skills;
Ownership, management and delivery of solutions to
clients;
Project delivery and risk management;
Excellent interpersonal skills;
Ability to transfer skills to others;
Creative and analytical thinking; and
Adherence to a code of conduct and ethical guidelines

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 MAS include the following
Financial management planning and financial policy
determination.
Capital structure planning and advice regarding
raising finance.
Working capital management.
Preparing project reports and feasibility studies.
Preparing cash budget, cash flow statements,
profitability statements, statements of sources and
application of funds etc.
Budgeting including capital budgets and revenue
budgets.
Inventory management, material handling and
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 Market research and demand studies.
Price-fixation and other management decision making.
Management accounting systems, cost control and
value analysis.
Control methods and management information and
reporting.
Personnel recruitment and selection.
Setting up executive incentive plans, wage incentive
plans etc.
Management and operational audits.
Valuation of shares and business and advice regarding
amalgamation, merger and acquisition.
Business Policy, corporate planning, organization
development, growth and diversification.

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 Organization structure and behavior, development of
human resources including design and conduct of
training programmes, work study, job-description, job
evaluation and evaluation of work loads.
Systems analysis and design, and computer related
services including selection of hardware and
development of software in all areas of services which
can otherwise be rendered by a chartered accountant in
practice and also to carry out any other professional
services relating to EDP.
Investment counselling in respect of securities [as
defined in the Securities Contracts (Regulation) Act,
1956 and other financial instruments.] (In doing so, the
relevant provisions of the Code of Ethics must be kept
in mind).
Acting as registrar to an issue and for transfer of shares/
other securities. (In doing so, the relevant provisions of
the Code of Ethics must be kept in mind)
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b. Preparation of publicity budget, advice regarding
arrangements for selection of ad-media, centers for
holding conferences of brokers, investors, etc., Bankers to
issue, collection centers, brokers to issue, (underwriters
and the underwriting arrangement, Distribution of
publicity and issue material including application form,
prospectus and brochure and deciding on the quantum of
issue material (In doing so, the relevant provisions of the
Code of Ethics must be kept in mind).
c. Advice regarding selection of various agencies connected
with issue, namely Registrars to Issue, printers and
advertising agencies.
d. Advice on the post issue activities, e.g., follow up steps
which include listing of instruments and dispatch of
certificates and refunds, with the various agencies
connected with the work.

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How to start?

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 Decide and Plan

The legal structure of the consulting firm-

proprietorship, partnership etc
_ Office with the requisite infrastructure including
whether home based or a separate office.
Computer with internet usage
Support staff
A business plan that will help keep the consultancy
afloat and profitable, marketing and making known
the expertise available and managing finances
A back up plan if certain things go wrong
The budget within which to operate.
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 Market the Consultancy

Scan consultancy opportunities advertised in

newspapers and government publications;
Register with business directories and government
resource lists;
Contact agencies, contract officers, human resources
personnel, and large consulting firms who are known to
receive consulting contracts;
Network with others and develop a wide range of
contacts who are willing to refer clients to you. Keep in
touch personally;

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 Join professional and trade associations to meet others
in your particular area of expertise and to exchange
information about your business
Develop your own Web site;
Send specialized mailings to executives who have
recently moved into new positions, either within their
present organizations or in new companies;
Write and send news releases or articles of interest to
prospective clients.
Develop the skill of Public speaking.
Make use of Referrals

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 The Learning Process.
Subscribe to newspapers, magazines, newsletters, and
periodicals including Economic Times, Financial
Express
Access the Internet, bulletin boards, and databases;
Join associations, seek leadership positions, offer to
make presentations;
Attend conferences, tradeshows, seminars, and courses.
Undertake a market research and analysis
Watch TV business channels local and foreign

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 Contract /Proposal

Consulting contracts may vary widely in their format

and their length, depending on the nature and the
complexity of the project.
A written contract helps to avoid misunderstandings, to
outline the terms of payment and to protect you in case
of disagreements with your client on the nature of the
assignment.
A disclaimer clause, if put into the contract would
absolve the consultant of happenings /things beyond
his control.

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A few standard articles may be included in written
contracts:
The name and the location of the parties involved,
The date the contract is signed,
An offer, an acceptance of the offer,
Consideration (i.e. the benefit accruing to the parties),
Signatures of the parties, etc.

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 Value for services
Many factors influence the worth of your services. When
setting your fees, take into consideration the
following:
1. The amount that can be taken as a token advance
2. Market rate
3. Rarity of the knowledge and extent of specialization
required
4. Cost plus factor
5. Pre-determined rates in case of certain defined
projects

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Some Consulting maxims

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 Give the customer a warm sincere feeling.
Trust is your best job security.
Diversify instead of holding on to limited clients
Be exceptionally easy to find. The clients would feel
more comfortable if you can be contacted at any time
easily
Discuss problems faced during the course of your work
with the client frequently, as otherwise clients hate
unhappy surprises when compared to timely bad news.
Deal in good faith.
Have a good mechanism to deal with housekeeping and
paper work.
Cultivate the skill of communication as it is a huge asset
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 Conduct yourself properly and accumulate a list of
customers who will speak well about you.
Your references are your reputation in the consulting
world.
Make a full disclosure of data, source code,
passwords etc as it is well acknowledged that clients
are comforted by consultants who dont act entitled
to their engagements.
The best way to make money is to make money for
your clients.
Learn how to read your client
Your clients are buying your judgment, not just the
time.
Your long-term clients are your best customers
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 Learn to manage both your time and project effectively.
Education is the best investment a consultant can
make. Keep yourself updated always.
If you have a reputation to steal clients, you will never
be trusted by other professionals.
Be known for your Integrity.

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THANK YOU
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