Business Plan

The Consulting World: A System Anthropologist’s View

Dr. Thomas A. Poynter

Anthropology:

The study of how people, and things, really work.

System Anthropology:

Using social science to understand complex systems.

Natural systems: ecology.

Human systems: organizations, cultures, politics, competition, professional sports, etc.

In many Schools of Management this discipline is called Business Policy.

Consulting Basics:

1. It is a high-margin business; scales well; very hierarchical; brand-name sensitive; excels at motivating underpaid juniors to work really hard.

2. The customer is usually a single individual, or a very small group. Hence, knowing people, their motivations and insecurities, is key to success. To do that well, you must be able to manage/manipulate/understand/command others.

3. A junior consultant should be functionally very skilled yet be able to deliver that knowledge modestly.

4. A Rewarding Job:

a. You help others – and get paid, sometime lots.

b. You usually propose solutions – someone else implements it. You avoid the labor-intensive work and, if your solution fails, it’s due to poor implementation.

c. You meet lots of potential future employers.

d. You see the world … because customers seldom hire in their own zip code.

5. Customer insights:

a. Most executives, like most people, cannot describe themselves or their problems accurately.

b. The Management Consulting business, more than most, is filled with jargon, faddish approaches, truisms, and useless terms. Generally, clients love it all.

c. When product quality is difficult to determine, Customers value trust. So, Customers tend to like repeatedly working with someone they trust. Project #1’s goal is to create that trust. (Repeat business is very profitable to Consultants too.)

Types of Consulting Projects:

1. Identifying areas that should need help, are a problem, or are of concern. Root causes.

2. Functional fixes: e.g. finance, marketing, IT, Advertising, HR.

3. Process review and improvement e.g. new product development, pricing, promotion, budgeting, etc.

4. Temporary personnel: “We can take care of that for you ….”

5. Strategy formulation – market-segments, competitive premise, competitive advantage, product & services, competition, etc.

6. Strategy implementation – structure, reporting, way-of-working.

Customer Motivations – in order

1. Consulting as a ritual

a. Board requires it to minimize their being held responsible.

b. Management requires it for same reason.

c. They need a Coffee-table book.

2. Resolve internal arguments – but who get to hire the consultants?

3. External justification of what someone wants.

4. Collecting information on competitors and customers.

5. Problem identification and/or solving.

6. Providing an alternative (neutral) perspective on a subject.

Given that cynical – albeit probably accurate – view of the consulting world, why should one become a consultant?

· Working in an organization, however large or small, is immensely complex for the people involved.

· There are so many things to consider.

· The internet brings even more facts.

· So much. Too much.

· Management success seldom comes from focusing on everything. Instead, success comes from determining what matters, and doing those things.

· A good consultant, relatively unaffected by the overwhelming issues that a client faces every minute, can provide that clarity. You can help clients navigate through the morass and help decide what matters most. And, maybe, assist them to make some decisions.

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