An Example of Consulting Engagement Workstreams

The term "workstream" is often used in consulting, but offhand I cannot think about where it is defined for new consultants to reference. A workstream is not a fancy concept, yet it is an important construct that often has ties to consulting proposals, engagement management and division of labor, and processes used with the client. Note that not all consulting firms will characterize workstreams the same way that I describe them here, but I have found similar structures used in a number of consulting organizations that I have worked with.

What is a workstream, and where does it fit in the context of a consulting engagement? Let's start with the latter question first.

A consulting engagement is often framed around solving a specific problem statement for a client. In a prior post on articulating problems statements, I hinted that a consulting problem statement usually must be decomposed into smaller problems statements.

To answer these problems statements, the consultants usually need to put together a set of engagement activities that provide the frame for answering the overaching problem statement and subproblem statements. Engagement activities are often grouped together in coarse groupings often running in parallel. These coarse groupings are called "workstreams", and each workstream often has prime consultant and prime client point. The structure is pretty much in line with standard project management practices, but key adds from a consulting perspective are the problem statement and consultant-client touch points. See the figure below which has four workstreams covering strategy, technology, finance, and business plan development.

Consultingworkstreams 

As additional context, the problem statement for the above engagement was to help the client develop a business strategy and plan for entering the market as a new entrant in the wireless network and applications provider space. So as an example, the first (top) workstream is geared towards helping the client determine what business model and applications should be investigated in more detail by brainstorming on services and looking at the competitive envionment for plausible and defensible openings.

To close off this post, I think that it's important to note that the cadence and regular review structure with the client (e.g., see milestones at bottom of figure above relative to workstreams) are important processes. See my prior post illustrating why in consulting the process is an essential part of the deliverable. Readers may also want to refer to an earlier post I had on engagement managers (who own the entire set of workstream above) and the essence of management consulting.

Anecdotes on Consulting Versus Interim Management

Whether to use consultants versus interim managers can be a bit of a loaded topic, and I'll choose not to address every angle in one post. Here I will just scratch the surface and paint some color by relating some anecdotal experiences. Depending on interest level, I may follow-up this post with additional discussion at a broader level.

To set the context, here's a couple of working definitions that I'll offer up:

  • Consulting – use of a third-party (potentially a team) to help a company solve a particular business problem (for example, evaluate business opportunity for offering mobility applications to consumers, provide an independent assessment of a failing call center)
  • Interim Management – use of one or more experienced individuals to take or play the role of a manager or executive within the company (for a limited period of time or trial period).

Now my deeper attention to the term "interim management" first started when I worked back in the 90s at the management consulting firm, PRTM. As context for those not familiar with PRTM, I characterized PRTM (back then at least) as firm that balanced strategy and operations engagements. As such, the firm got involved with both early strategic planning and later-phase, tactical design of business capabilities. At risk of oversimplifying, PRTM consultants were not just pure strategy guys, but they were often people with actual implementation and management experience. There used to be a firm motto that floated around to the effect of, "Results, Not Reports". This motto was essentially a shot at strategy firm practices of delivering stacks of analyses and reports that never had an impact. One of the partners (who had just rolled off an assignment as interim CEO) described to me his view on interim management something to the effect as follows, "Interim management is something [infrequent] that the firm only does for special clients. Unless approached correctly interim management can create a dependency between the firm consultant and the client that is hard to wean the parties off of. But interim management can offer a variety of benefits, particularly when a company wants to move forward with operational execution immediately."

Since then, here's a few examples I've heard from clients over the years which are indicative of a lean more towards use of interim management over consulting approaches:

  • "We don't have the management skill set internally, and we need to fill three management roles in finance, services, and technology pretty immediately while introducing more sophisticated practices that can be transferred to the larger organization as we grow."
  • "We are exploring this new geography for our products and services, and we need someone to help us as a general executive (covering all entity and operational requirements) to see if we can get things to pan out."
  • "Our marketing VP will be going out on parental leave, and we need someone to fill the role for six- to nine-months."
  • "We need someone that can fulfill the corporate development function with total dedication, but we need the option to release this person once we have met the objective of securing a beachhead in the North America enterprise market."

Twitter Me This

Background: Management strategy consulting professional David Dalka, Florian Hollender, and other management consultants are using Twitter. Ford Harding, world-renowed author and expert on sales (e.g., for consultants and other professional services folks), also has two very recent posts on using LinkedIn and Twitter as part of the business development and sales process.

What else? Twitter raises more than $35 million (just before Valentine's Day) by the big guns in venture capital. Yet – no business model required.

Based on that context, I've started an account to get hands-on experience with Twitter. I think my home page is here. I can't stand to use instant messaging (although I do use it), so I'm not sure a federated "blurting"-thing is going to stick with me. That said, I'm willing to see whether carpal tunnel or Twitter wins out. I am also interested in developing my thoughts on both how Twitter communities form and how businesses might capitalize on Twitter.

Update (2/24/09): Link to approximately 8,414 consultants that Twitter? Side note: compare this to approximately ~1.2 million consultants on LinkedIn.

Some Tips On Dressing As A Consultant

Florian Hollender at the Killer Consultant blog has some good Consulting 101 tips on how to shop for clothes when starting as a new consultant. I've never really commented on dress considerations publicly, but I'll add just one recommendation on dress based on personal experience:

Plan to wear a pair of decent shoes on the plane, and don't just pack dress shoes in your baggage. 

I have had to let my boss wear my shoes to a client site when his got lost during international travel. Since he took the nice-looking ones, good thing I wasn't left to wearing a bunch of sneakers to the client site!

Quick Graph on Triangulation Concept

Awhile back I had a post on triangulation, and although I had received a number of questions on how this might be depicted, I never got around to showing it. The attached picture below is pretty good and is motivated by an engagement involving wireless spectrum valuation. The basic idea is that we used three methods to get the range of potential dollar values for each wireless spectrum property. The chart below is the summary chart that ties the results of separate analyses together. The first method of valuation on the left (historic comparables) involved looking at past government auctions for similar properties and coming up with high, low, and in-between values. The second method of valuation (economic model) used a statistical regression model trained on a priori auction conditions (e.g., number of bidders, amount of money ante) and ex-post results (e.g., property values), and here we basically used the model to predict what might be the outcome of a new, unseen auction. The third model (financial metrics) basically took a look at recent market transactions (e.g., outright asset sales) or values imputed by the stock market value of wireless-heavy companies (e.g., by taking enterprise value and normalizing by spectrum holding amount).
Triangulation  

When one plots these three different valuation methods on the same chart, it becomes possible to "triangulate" and see what a competitive values for the wireless properties might be. We basically added two horizontal lines to depict the expected minimum amount of money to pay to be in the game and also the maximum amount of money that should be spent (e.g., based on balance sheet of company and financial capacity).

Update 7/30/09: Been made aware of another posting on the net regarding triangulation and the football field method. See here.

Some Additional Links and Resources on Management Consulting

Dr. Robert Lahm, Jr. (Associate Professor of Entrepreneurship with Western Carolina University) looks like he may have organized some links and resources on consulting here. There are a number of blogs listed along the right hand side of his web page, a number of which I have never covered on this blog before.

Additionally, about midway down the page there are some links on "Consulting 'How To'" and "Starting a Consulting Business". In the "How To" section, Dr. Lahm not only references a popular post of mine on client facilitation skills but also provides a presentation on "Consulting Basics (Class 2 Slides)" (note PPT). That Powerpoint presentation sheds even more light the importance of soft stuff in an engagement. It also provide some concrete advice on the cadence of a (desirable) consulting engagement.

ConsultantNinja Post on the Consulting Job Market 2008-2009

ConsultantNinja has an older but excellent post painting a picture of the prospect for jobs in the consulting market. The upshot of his annecdotes are that demand (for candidates) is down and supply is up. (Note: ConsultantNinja also has a later post that characterizes the current market as "the worst time in the last 20 years to try and get into consulting").

I'd complement some of his thoughts with a couple of things I've seen at the business schools and with clients:

  • As a gross simplification, I think of many of the business schools (pre-market collapse) as placing roughly 1/3 of folks into each corporate, consulting, and investment banking positions. If you have talked to any of the b-school students receiving investment banking offers this past year, a ton of offers were rescinded after the global economic collapse. Those one third of students that were seeking i-banking jobs – now they have become competition for consulting jobs (although I am mixing apples and oranges and cutting some corners, that one-third has now become two-thirds). With that context, is easy to see why one of the BCG recruiters that ConsultantNinja captures in his annecdotes indicates that attendence at (presumably recruiting) events has doubled.
  • Although the global downturn has probably affected more than double the number of countries as compared to the "typical" post-war recession, money still appears to be alive and well in the Middle East. My team has had some engagements and activity in places like Dubai/UAE, Egypt, and Morocco, and themes have been around launching new services and infrastructure upgrades (as compared to cost-cutting themes that seem to have top-of-mind in many other geographies). So I would concur with ConsultantNinja that those seeking consulting opportunities may want to look to the Middle East.

What A Sample Management Consulting Deliverable Looks Like

An updated version of this post with new sources and descriptions appears in The Consulting Apprenticeship (update September 2016).

It is relatively easy to find white papers, articles, magazine publications, etc. by management consulting firms. While these vehicles can be excellent sources of information, they tend shed light on either the thought leadership, research base, and/or marketing aspects of consulting firms. For those that are trying to learn about consulting firms from the perspective of what do consultants actually do and/or produce, there is relatively little information on the Internet that I have found that represents a concrete, traditional management consulting deliverable. In a large part, this tends to be because many consulting engagements involve confidential relationships between the consultancy and the client, and disclosure is not permitted.

That said, I have located a public sector deliverable (by the well-respected management consulting firm, Dean & Company) on the Internet at this site and thought I would share it (note PDF file – Download dean_report.pdf). It is an excellent example for at least a couple of reasons:

  1. It illustrates how best practice consulting should be driven by facts and a scientific method to the fullest extent possible – The presentation I show here is full of both benchmarking information and comprehensive analysis from numerous perspectives.
  2. The presentation style (which I call a “consulting style” perhaps incorrectly) reflects bottom-line titling of slides as compared to topical titling – This is a method that I did not see before entering consulting, and it is a method that I infrequently see in corporate environments (or at least much less frequently as compared to consulting environments). Notice how the title for slide 6 reads, “Expectations of selling service bundles are in line with other ‘triple play’ networks”. Even if one can’t read the blurry or busy figures in the slides, one can end up reading just the titles of the slides in the deck and get the overall executive storyline. Compare that to the situation if slide 6 was a topical titled slide that read, “Service Bundle Analysis”. Now one would have to read the slide to try to extract a bottom line message.

Now it is important to caveat this post by mentioning that this is only one type of deliverable by a consulting firm, but it is a great example. It is also worth mentioning that it is easy to look at a deliverable and completely miss the process aspect of how consulting deliverables may be generated. The process aspect may be equally, if not more important than the deliverable, and the process method varies by consulting firm. For example, the process to generate the deliverable (not necessarily the one here) may have been to facilitate input and involvement over a period of time from multiple divisions and functions within a company with oversight and/or steering by the executive team of the client. The benefits of that mix and method, while too detailed to go into here, should not be overlooked.

 

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