X International Value Engineering Conference // III SAVE International le Europe Reinventing External Management Consulting Services Dr.József Poór, CMC, DSc Professor of Management Budapest, April 20 21, 2015 1
https://www.youtube.com/watch?v=hzgzim5m7ou 2
My Way to Value Analysis Dr.Lenkey MIklós 3
Key Issues Where did we come from? Emerging ifs of professional consulting firms Special features of the development of consulting li in Eastern Europe New wave wveof consulting activities Conclusions 4
X International Value Engineering Conference // III SAVE International leurope 1 Where did we come from? Budapest, April 20 21, 2015 5
Approach of Oxford Handbook of Management Consultancy (2013) This sector is less than 150 yrs old As an independent venture, it was born in the US in the 1910s and 1920s Global revenues in excess of $300 billion Today we can hardly find an area of business life, which cannot be connected to some kind of consultancy business Source: Matthias Kipping and Timothy Clark (eds.) 6
Five major waves (1900-Today) Scientific (engineering) Movement Human Relations Organization & Strategy Waves Consulting in Accounting Firms IT & Outsourcing Consulting 1900 1950 Today
Two Waves of Consulting Approaches Advice model (1.1) Entry Data collection and diagnosis Preventing advice and solution Implementation Termination Nurse Pharmacist Psychoterapist Brain surgeon 8
Two Waves of Consulting Approaches Process Consulting Model (1.2) 9
Nothing new under the sun Like the drummers, messengers, and concubines that accompanied ancient armies on the march, professional consulting firms followed their industrial clients as they expanded around the world in the 1980s and 1990s (Source:The Economist, 2004) 10
X International Value Engineering Conference // III SAVE International leurope 2 Emerging g ifs of professional consulting firms Budapest, April 20 21, 2015 11
Emerging ifs of professional consulting firms Usage of standards Threats of low wage countries Growing talent pool Consulting firms are experiencing growth in almost all nations with ample opportunities to extend their reach within and across borders Para- Transparency&accou Certification professionals ntability 12
Consulting in light of FEACO statistics Source: FEACO, 2013 13
Emerging Issues Consultants today cannot just deliver a slideshow and pocket fat fees Even the elite three now make most of their revenue from implementing ideas, From finding ways to improve clients internal processes and from other tasks not traditionally considered strategy consulting Heavy investment in knowledge development 14
X International Value Engineering Conference // III SAVE International leurope 3 Special features of the development of consulting in Eastern Europe Budapest, April 20 21, 2015 15
Consultancy Landscape in CEE countries ti (1) Appearance of foreign consultancies Projects financed by Phare and World Bank Privatization boom Increasing role of local consultancies EU projects Impact of economic crisis 16
Consultancy Landscape in CEE countries (2) 1,1% 19% 1,6% 0,2% 1,9% CEE 4,0% 3,2% 8,0% 3,8% 36,0% Germany United Kingdom Nordic Region France Italy Central & Eastern Europe 10,2% Austria Switzerland Spain Portugal Greece 30,0% Source: FEACO, 2013 17
X International Value Engineering Conference // III SAVE International leurope 4 New wave of consulting activities Budapest, April 20 21, 2015 18
New Challenges Changes in orientation of capitalism Changes in control of society Uncertain world Culturally complex society Not regulated industry Solution is not easy 19
New needs in new area From Problem to Outcome From Expert to Co-creator of New Knowledge From Static to Dynamic Knowledge From Professional to Personal Relationship 20
Consulting models Consultant Emphasis The Advice Model The Process Model Inquiry Model What is the Consultant s task? What should the relationship between Consultants and Clients be? Who is the expert? How should the Client s capacity be increased? How much attention should the Consultant give to the uniqueness of each Client organization or community? Solve problem Solve problem Achieve the Client s desired outcome Consultant transfers or delivers knowledge to Client Consultant is the expert brings knowledge and best practices Transfer knowledge in the form of product or service Low (knowledge transferable across contexts) Consultant and Client work together on human relationships and organization dynamics Consultant is a helper or process expert Help clients learn to more effectively work together High Consultant and Client are partners on technical and social/ human dimensions of change Client and Consultant each bring different types of expertise to bear on achieving the outcome Client and Consultant cocreate knowledge needed to achieve the outcome High Source: Brooks, A. K. Edwards, K. (2014, pp. 19.) 21
Inquiry model 5.Sharing 4. The Inquiry Circle 3.Finding Out Who Else Can Contribute 2.Establishing Our Inquiry Partners 1. Clarify outcome and negotiate contract Source: Brooks and Edwards 22
X International Value Engineering Conference // III SAVE International leurope 5 Conclusions Budapest, April 20 21, 2015 23
Final conclusions Beside knowledge developed in the US and W- E, alternative definition should also be taken seriously Foreign and local consultancy should develop a general collective memory Mixed approach is becoming eminent important 24
Thank you for your attention! Contact: Dr. József Poór, CMC, DSc. E-mail: poorjf@t-online.huonline