Consulting Flashcards
What is the general purpose of a consultant?
The job of a consultant is to improve a business’ current situation.
This is done by help solve business problems, using their own specific expertise. This is usually done by gathering data and insights, running analyses, making presentations and pitching solutions.
What are the the 4 different consulting firms tiering?
- MBB (McKinsey, BCG, Bain) consulting firms:
The 3 most prestigious consulting firms in the world. They charge LARGE amount for services. Each is going into the millions of dollars. They have the highest standards in work quality and pay very generously for consultants.
- Big 4 consulting firms:
The largest consulting firms in the world, revenue-wise. Their projects are smaller than MBB and about the same size as Tier 2.
- Tier 2 consulting firms:
Large, global consulting firms, providing services for big clients. Tier 2 projects tend to be cheaper, around six digit numbers.
- Boutique consulting firms:
Specialized and localized firms, often with an elite status in their target market. They handle smaller projects and salaries vary, but can be competitive compared to the top.
On what level in an organization does a consultant usually operate at?
A consultant usually operates at the C-level like a CFO, CEO, CMO etc. depending on their expertise.
What is the role of a professional IT consultant?
A professional IT consultant provides expert advice to organizations on the use of technology to meet their business objectives. They assess the client’s current technology infrastructure, identify areas for improvement, and make recommendations for new solutions. They also assist with the implementation and integration of new systems, ensuring that they are properly configured and optimized for the client’s specific needs. In addition, IT consultants may provide training and support to help users effectively utilize new technology and ensure that systems are functioning optimally. The goal of an IT consultant is to help organizations effectively leverage technology to improve their overall business performance.
What’s the difference between a consultant and a contractor?
Consultants are typically hired for their expertise and advice on a specific problem or area of interest. They are typically engaged for a limited period of time, during which they provide recommendations and guidance to the client, but do not typically perform hands-on work.
Contractors, on the other hand, are typically hired to perform specific tasks or projects. They are engaged for a set period of time and are responsible for delivering a defined outcome. Contractors often work on site and are responsible for the execution of the work they were hired to perform.
What are the 3 main aspects that makes up a good consulting service?
Content (expertise) - SME on the specific area and bringing content to the client
Process skills - Being able to understand processes and implement them
Trust - The ability to create trust with the buyer, so you can operate more easily
What is value added in consulting?
Value added is the value you create by addressing the underlying issue of a client’s problem instead of what they say they want.
You address the client’s need rather than the client’s want by usually asking them why do you want x solution?
This usually creates more value for the client, and it broadens the project which allows you to charge larger fees.
It is also called value distance.
What is the difference between professional needs and personal needs in a consulting context?
Professional needs refer to the specific requirements and goals that an organization has with regards to its operations, processes, and technology. Professional needs are focused on improving the efficiency, effectiveness, and competitiveness of the organization, and are typically driven by business objectives and goals.
Personal needs, on the other hand, refer to the individual needs and goals of employees or stakeholders within an organization. These needs may include things such as job satisfaction, work-life balance, personal development, and career advancement.
What is SPIN?
The SPIN model is a sales and marketing framework used to help identify and understand customer needs.
Situation: What is the customer’s current situation, context, and background?
Problem: What problems or challenges is the customer facing?
Implication: What are the implications and consequences of these problems for the customer?
Need - payoff: What are the customer’s needs and what are the benefits or payoffs of addressing these needs?
The SPIN model helps consultants to gather information about the customer’s needs, and to understand the customer’s decision-making process. By using the SPIN model, consultants can gain a deeper understanding of the customer’s needs and tailor their recommendations and solutions to meet those needs.
What is an engagement?
In consulting, an engagement refers to a project or assignment that a consultant or consulting firm is hired to perform for a client. An engagement usually has a defined scope, timeline, and budget, and is focused on helping the client achieve specific goals or address specific challenges. Engagements can vary in size and complexity, ranging from a one-time analysis or advice, to a multi-year project with a large team of consultants.
The engagement process typically involves several stages, including:
- Initial assessment: The consultant works with the client to understand the goals of the engagement and to define the scope of work.
- Planning: The consultant creates a plan for how to address the client’s needs and achieves the goals of the engagement.
- Implementation: The consultant works with the client to implement the agreed-upon solutions and to monitor progress towards the goals.
- Evaluation: The consultant evaluates the results of the engagement and provides feedback to the client.
A successful engagement requires strong collaboration and communication between the consultant and the client, as well as a shared commitment to achieving the goals of the engagement. The end result of a successful engagement is improved business performance and outcomes for the client.
What are the steps in the consulting engagement cycle?
Request for proposal by the client
Proposal
Feasibility
Delivery
ROI
What are the 6 parameters in the competency model?
- Subject matter expertise (SME)
- Process skills
- Industry knowledge/experience
- Consulting experience
- Interpersonal skills
- CXO engagement skills
A consultant doesn’t need a high level in all 6, but each type of consultent usually require a high level 2-3 of the parameters. Some projects might also require a high level in a specific parameter.
What is Hartel’s 10 golden rules?
- Customer first - Especially being available for customer needs.
- Appearance - Understanding of self-image and dress for the job.
- Determined friendliness - Having concrete mindset and goals, but being diplomatic too.
- Punctuality - Leading time management, starting and finishing on time, being prepared.
- Engagement and productivity - Supporting, being pro-active, being one step ahead of the customer etc.
- Critical questioning - Nobody is born a consultant: asking the right questions is a key skill
- Feedback - Request regular feedback, asking for critic rather than waiting for it.
- Acceptance of hierarchies - Professional navigation in client organization. You won’t talk or ask the same questions to a developer compared to a CTO.
- Stakeholder behavior - Study and understanding of client behavior and culture.
- Being courageous - Consulting - life is challenging, never lose trust in yourself.
What are the 4 consulting employment models, and how much revenue goes to consultants in each model?
The-one-man-band: One self-employed consultant - 100%
The firm: Multiple employed consultants - 35%
The CV broker: A freelance consultant is chosen based on customer needs on a platform - 85%
The franchise: Multiple self-employed consultants operate under the same business name - 65%
What are the 6 Sales funnel stages?
- Awareness
- Discovery
- Evaluation
- Intent
- Purchase
- Loyality
What are the 8 pipeline stages?
- Prospecting
- Qualifying leads
- Initial meeting
- Define prospect needs
- Make an offer
- Negotiation / finalize proposal
- Closing the deal
- Deliver the product
What are some of the online and offline marketing strategies consultants can make use of?
Online:
- Websites
- SEO
- Email marketing
- SEM
- Social media
Offline:
- Business cards
- Direct emails
- Text messages
- Word of mouth
- Network / referrals
What is the buying process for a client who needs a consulting service?
- Problem identification - Need for consulting services.
- Search - Writes opportunity description and reaches out to firms.
- Evaluation - Evaluates proposals or consultant interviews
- Selection - Selects a solution, negotiations and finalizing contract.
- Execution - Oversees consulting services over contract period.
- Completion - Renew or end contract.
If renewed the process starts at step 4.
What is the buying process for a client who needs a consulting service?
- Problem identification - Need for consulting services.
- Search - Writes opportunity description and reaches out to firms.
- Evaluation - Evaluates proposals or consultant interviews
- Selection - Selects a solution, negotiations and finalizing contract.
- Execution - Oversees consulting services over contract period.
- Completion - Renew or end contract.
If renewed the process starts at step 4.
What is the selling process of a consultant that is selling a service?
- Marketing / Networking - Looks for consulting opportunities.
- Sales - Finds opportunity and responds to clients.
- Proposal - Submits proposal or participates in interviews.
- Contract - negotiates and finalize contract.
- Execution - Provides services over contract period.
- Completion - Renew or end contract and review results.
If renewed the process starts at step 4.
What’s the difference between passive and active marketing?
Passive marketing is advertisement that doesn’t actively involve the customer. Like ads, webpages, videos are passive marketing.
Active marketing is marketing where you force the customer to get involved like a sales call.
How do you identify the right buyer?
You find the person who:
- Has the budget to support the initiative.
- Can approve the project.
- Controls the resources required to make the project happen.
- Initiated the project.
- Claim responsibility for the results.
What is the trust pyramid by Alan Weiss?
The trust pyramid shows how to create various levels of trust.
Trust based on referral from another:
This is the lowest level of trust and is simply something that comes from having connections and being successful.
Trust based on manifest expertise:
This in short means your intellectual property. You might have material, specific work process or messages circulating the internet. This is the fastest way to mass recognition.
Trust based on affiliation needs:
This is basically networking. You charm people and attract people to you and volunteer to various positions. This creates relationships.
Trust based on intellectual respect:
Trust based on intellectual respect is especially important with
powerful people, who are drawn to those who have written books,
have spoken out provocatively, and aren’t timid about manifesting
their intellectual firepower and prowess. Expertise is outstanding
ability in given areas. Intellect is the ability to be outstanding in any
area.
Trust based on an emotional connection:
This is the highest level of trust you can achieve. You get this by figuring out what the buyers self-interest is and do your homework to figure out their emotional triggers. Are they sport fans? Do they travel a lot? Do they like a particular sports team?
You don’t move to the top. You can jump in on any level if you got the connections and are great at your craft.
What is the Market Priorities Quadrant by Alan Weiss?
The quadrant shows the 4 basic relationships between clients and your products and services. The client and product/service can either be existing or new.
New products/services to existing clients:
The largest potential market is in providing new products and
services to existing clients. This is because these clients (buyers)
already trust you, have seen the results and benefitted from them of
past projects, and are willing to readily accept your innovations and
new ideas.
Existing products/services to new clients:
The second‐best market is in your existing products and services to
new clients. These people don’t know you and you must build trust,
but you can offer them proven value from your existing client
experience, along with testimonials, referrals, and so on.
Existing Products/services to existing clients:
Marketing your existing products and services is a close
third, aiming them at current clients. This is particularly true when
you’re applying additional products and services in existence (on
your accelerant curve) that the client has not previously considered
(making them somewhat “new” in that instance.)
New products/services to new clients:
Marketing new products and services to new clients is a tough game,
and may only succeed when you develop something especially for a
given niche or condition, such as remote workers.
What are the different types of consulting fees?
- Invoice time on hourly rate - invoice per hour worked
- Invoice on a daily rate - Invoice per day worke
- Punchcard - Client pay for a punchcard and they can use your time until they are used up.
- Retainers for work - you invoice on a monthly basis.
- Retainers for acces - The client pay for the right to call you when required
- Project invoicing, based on spent time - Big chunk of hours/days that is upfront agreed.
- Project invoicing, based on delivered artifacts - payed based on the deliverables.
- Project invoicing, based on fixed price - You define a fixed price for the project.
- Project invoicing, based on customer value (no cure, no pay) - You get payed based on the value you create for the customer.
What is a proposal, and its purpose?
A proposal is a document that outlines the nature, scope, and timeline of a specific consulting project.
You show you understand the problem/need, the value of your services and the cost.
- It must be in a form and language understandable to the buyer.
- It’s often elevated to be the contract and is part of the legal binding agreement.
What are the 5 sections a proposal must contain?
What to achieve?
What is the job to be done?
When can it be delivered?
What are the quality assurance and risks?
How much does it cost?
