LEARNING OBJECTIVES:

1. Appreciate the need for project evaluation and controls to ensure the quality of consulting
engagement

2. Understand and learn to apply the various techniques in project evaluation and controls such
as
a. Administrative controls
b. Time reporting procedures
c. Independent quality assurance reviews

3. Explain controls can be established over competence and service quality

4. Understand the special considerations for the sole practitioner operating as management
consultant

 Framework for the consulting business

Self – assessment (reflects our need to evaluate ourselves and continuously improve)

 Make an autobiography
 List all areas of your special interest, achievement, knowledge and personal satisfaction
 List all your skills, that is, things that you can do
 List all your talents
 List all your attributes
 Good physical and mental health  Strong analytical or problem-
 Professional etiquette and courtesy solving ability
 Stability behavior  Creative imagination
 Self- confidence  Ability to communicate and
persuade
 Personal effectiveness and drive
 Psychological maturity
 Integrity  Skill in interpersonal
 Independence relationship
 Intellectual competence  Technical knowledge
 Good judgement
 List all the skills and attributes you lack that you believe are necessary for a consulting business
 List the skills and attributes you lack related to being a consultant that you believe you can
improve
 Of the skills and attributes that you believe you cannot improve, state how that will affect your
consulting business choices, if at all
 Speak to friends, relatives or family members who you know well and whose judgement, candor
and goodwill you respect
  Increase your awareness of additional opportunities by using the following resources

 Consulting newsletter
 Magazines and newspapers
 Consulting and professional
associations
 Government agencies and
publications
 Public and university libraries
 Continuing education and
seminars
 Competitors

 Management consultancy competence framework overview

Consulting overview: (CMI)
1.professional behaviours
a. professionalism and ethics
b. analytical and pro active thinking
c. complexity and responibilty
d.personal interaction
e. delivery effectiveness
f. personal growth

 Scope of consulting practice

o Expertise and experience within the practice

 Single individual, and the management consulting they offer is the area of the
individual’s expertise
 No limit to the potential for consulting activity

o Needs to be well defined so that it can be properly communicated to the potential

users(clients)

 Unclear what consulting services are being provided or

 To whom those services might apply

o One wishes to be consultant

 Evaluate his/her own talents and expertise
 Needs to review his/ her communication skills (oral and written)
 Sales ability
 Ability to focus on a project and carry it to conclusions
  Ability to maintain objectivity
 Evaluate his/ her business and professional judgement

 Organizing the practice

o Financing requirements
 Capital invested by the present consultant(or the initial group)
 Funds borrowed from banks and others

 Need for working capital

 Realistically evaluate what facilities will be required, including office space and
its accoutrements

o Time scheduling
 Planning time utilizations (both financial and client- service standpoint)
 Time spent with various clients on various projects
 Time for administrative responsibilities
 Time for continuing education or practice development
 Meetings and breakfast, lunch and dinner appointments

o Billings and collections

 He/ she establishes professional fees
 Hourly, daily or per diem basis
 Add out-of-pocket expenses attributable to client as possible while others
absorb out-of- pocket expenses
 Charge for professional services and for support staff
 Charge for telephone calls, photocopying, postage and similar
expenditures; others absorb these costs

 Building the practice

o Initial client based
 Define the marketplace
 Types of potential clients
 Size of potential clients
 Types of services to be provided
 Identifying the decision maker in each target organization and its buying
patterns
o Positioning the practice
 Existence requires some form of positioning
 Through unique capabilities
 Unique experiences
 Ability to deal with specific problems

 Consulting work is primarily obtained from

  People the consultant’s know
 People who know the consultant

o Practice development network

 Building a successful network requires keeping the consultant’s name in front of
the clients and contacts through
 Client newsletter, articles, seminars, entertainment or even periodic calls
 Intermittent reminders to the network about the consultant, his/ her firm
and his/ her services

 Monitoring results
o Performance measures
 Maintain the financial and accounting records that provide a financial scorecard
 Actual revenue against projected revenues
 Net profits and projected profits
 Productive hours as a percentage of total hours
 Average fee generated per hour worked and per chargeable hour
 The ratio of expenses to revenues
 Profit as a percentage of revenue
 Number of new clients obtained during a year
 The amount of pesos generated from new business
 Increase in business from one year to the next
 Collected fees versus uncollected fees
 Amount of bad debt write-offs
 Amount of time charges that are not billable

 Key ratios for a consulting practice

 Relationship between revenue generated and total hours expended
 Chargeable hours and total hours
 Revenue and chargeable hours

 Actual completion date as promised

 Actual time expended per job and per person

o Quality control standards

 Establishing quality control standards to ensure that the work is properly
performed
 Consulting practice with two or more individuals
  Review and evaluate each other’s work
 Discuss the engagement with his/her colleagues to ensure the project
is on the right track
 Can review reports written by one another to see that they are
complete, hang together and provide the client with understandable
results

 Individual practitioner
 Personally review the document after typing
 WRITTEN REPORT
IN
MANAGEMENT CONSULTANCY
(SPECIAL CONSIDERATIONS FOR THE SOLE PRACTIONER OPERATING AS A
MANAGAMENT CONSULTANT)

Submitted by:

Jessa Marie V. Viray

CBET-01-901P
MH 7:30- 9:00PM
Submitted to:

Rowell C. Marasigan, CPA, MBA