In Consulting The Process Is An Essential Part Of The Deliverable

29 Jun

Situation for consultant #1:

  • Client needs help in determining business strategy and writing business plan for its Board
  • Consultant follows traditional MBA frameworks by performing 3Cs (Customer, Competition, Company), Porter’s Five Forces and competitive advantage, etc. to research and analyze the best way for client to move forward
  • Consultant uses structured frameworks for outlining and documenting the tactics and logistics for pursuing the business (e.g., marketing 4Ps, traditional business plan outlines)
  • Consultant prepares full financial proformas (balance sheet, income statement, cash flow statement, and notes)
  • Consultant writes business plan to spec
  • Consultant delivers written business plan to client
  • Consultant invoices $40,000
  • Client ends up being lukewarm about the deliverable.

Situation for consultant #2 (differences in bold):

  • Client needs help in determining business strategy and writing business plan for its Board
  • Consultant sets up engagement timeframe and governance structure with consulting team and client leads, extended resources for all key workstreams, and steering/approval committee
  • Consultant follows traditional MBA frameworks by performing 3Cs (Customer, Competition, Company), Porter’s Five Forces and competitive advantage, etc. to research and analyze the best way for client to move forward
  • Consultant sets up workshops and strategy sessions with the executive team, key functional managers, etc.
  • Consultant uses structured frameworks for outlining and documenting the tactics and logistics for pursuing the business (e.g., marketing 4Ps, traditional business plan outlines)
  • Consultant sets up regular review meetings and working sessions with client to review best practices, evaluate options, and refine and revise strategy
  • Consultant prepares full financial proformas (balance sheet, income statement, cash flow statement, and notes)
  • Consultant sets up working sessions to familiarize client with models, align financials with chart of accounts for client, get client input, and educate client about industry benchmarks
  • Consultant writes business plan to spec
  • Consultant involves client with interim drafts and presentations and gets organizational buy-in
  • Consultant delivers written business plan to client (largely same as before)
  • Consultant invoices $250,000
  • Client is very happy and ends up getting multimillion dollar business moving forward through Board and project launched.

Vanilla business plan $40,000. Client buy-in … priceless.

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