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CHAPTER 4

1. Describe the nature of the following skills that consultants must possess:

Technical skills
These include understanding and experience in technical discipline such as information technology, marketing,
engineering and organizational behavior.

Interpersonal skills
These include personal attributes that make an individual amiable among people and effective in accomplishing
desirable objective through people.

Consulting processing skills


These involve the ability to understand and use the following approaching solving business problems:
•Identify the cause of problems
•Identify alternative solutions
•Select the most desirable alternative
•Implement solution

2. In what ways may a person wanting to become a management consultant acquire the technical, interpersonal and
consulting skills?

•Technical Skills: Technical training and common core requirement:


1. Communication
2. Mathematics
3. Computer Data Processing

•Interpersonal Skills:
1. Intelligence for legal thinking
2. Integrity
3. Objectivity
4. Understanding of people
5. Judgment
6. Courage
7. Ambition
8. Psychological maturity
9. Physiological equilibrium
10.Relationships-building skill

3. Give the reasons why consultant must possess the following skills

Technical skills
Technical skills will enable the consultant to thoroughly understand the nature of the problem.

Interpersonal skills
Interpersonal skills provide the consultant with attributes that make an individual amiable with people in the workplace
environment.

Consulting process skills

It will enable the consultant to point out directly the obstacles and understand the solution that will see it.

4. What are some of the factors that determine the degree of competence required in particular MAS engagement?
Explain briefly.

Length of education
Under-graduate programs help develop tolerance for the uncertainty and ambiguity inherent in business problems.
Type of education
Education programs usually a technical degree and a general degree. For instance, a person might obtain a general
business degree at a bachelor’s level and specialize in information technology after earning a master’s degree in
computer science and information management.

5. How may competence and proficiency in MAS work be acquired and developed by CPA?

Through acquisition of business degree essential for consultancy and honing of rapport building skills to blend in and
get along with people in the workplace environment. It is also important to acquire consulting process skills to be able
to do well in the task of (putol haha)

6. What are the common barriers to effective communication between client and consultant?
COMMON BARRIERS TO EFFECTIVE COMMUNICATION BETWEEN CLIENT AND CONSULTANT
a. Know-it-all attitude and/or prejudice of some personnel of the client
• This person will probably reject anything the consultant says.
• Consultant should try to develop a cooperative and supportive climate and should approach the person from
his/her perspective.

b. Inability to understand technical language


• These are non-expert clients who are not able to understand technical language.
• Consultant should exercise care when using words that may be misunderstood and seek immediate feedback when
necessary.

c. Inadequate background or knowledge


• When dealing with clients/client employees who have varied background, audience analysis is essential.
• Consultant must be extra patient and empathetic. He/she provide additional clarifications and thorough
explanations for individuals in need of better understanding.

d. Resistance to change
• Some employees tend to dislike chance if they perceive it as a threat to their work and may affect communication.
• The consultant must seek the client and his/her employees’ support and encourage their input regarding the
proposed change.

e. Information overload
• Every individual has a limit when it comes to information and exceeding this limit may cause difficulties in
effective communication
• Guide clients by aiding them in managing their times, setting their priorities, and delegating work
responsibilities to others. Also try not to give additional work to an overwhelmed individual.

7. Describe briefly the following personal attributes that a management consultant should possess:
a. Integrity - This pertains to the number of attributes, such as moral and ethical soundness, fairness, Equity,
ability to distinguish between right and wrong, honesty, dependability, freedom from corrupting influence or practice,
and strictness in the Fulfillment of both the letter and the spirit of agreements made regardless of personal
considerations.
b. Objectivity - The consultant must have the ability to grasp and to represent facts, unbiased by prejudice.
He or she is also independent.
c. Empathy - The consultant must have the ability to anticipate human reactions to different situations, to
establish and maintain friendly relations and mutual confidence with people at all levels, and to recognize and respect
the rights of others.
d. Judgment - This refers to the management Consultants ability and reasoning power to arrive at a wise
decision, a course of action or a conclusion, especially when only meager or confused facts are available.
e. Courage - This refers to the Consultant's strength of mind and character that enables him or her to encounter
disagreement difficulties at obstructions with firmness of spirit and determination, and to consider them as challenges
rather than something to be avoided or feared, the ability to stand by one's convictions regardless of pressure.

8. Give and explain briefly at least five (5) relationship or rapport-building skill that a management consultant must
possess.
An ability to build rapport and trust with the client
An ability to question effectively
An ability to communicate ideas succinctly and precisely
An ability to negotiate objectives and outcomes
An ability to convince through verbal, written and visual mediums
An ability to use information to make a case for a particular course of action
An ability to develop selling strategies
An ability to work effectively as a member of a team
An ability to listen effectively
An ability to demonstrate leadership

9. Give and explain briefly at least five (5) project management skill that a management consultant must possess
An ability to define objectives and outcomes
An ability to develop formal plans
An ability to sequence and prioritize tasks
An ability to manage the financial resources that are to be invested in the consulting project
An ability to recognize the human expertise necessary to deliver the project
An ability to manage personal time

10. Describe the consulting process skills of a management consultant.


FOUR AREAS:
a. Problem definition phase
Full describing the underlying problem. Begins with the recognition of the symptom pointing to the problem
and ends with the complete description of the problem.
b. Identification of Alternative Solutions
Fact-finding and analysis phase which involves the gathering of facts needed to solve the problem
c. Selection of the most desirable alternative
Solution development phase, involves the selection of the optimal solution and developing a detailed plan of
the action
d. Presentation
e. Implementation Phase
Putting the detailed plan into operation
CHAPTER 5
1. What is the meaning of the CPA’s “role” in the practice of management advisory services?
“Role” refers to the relationship of the CPA as a consultant to the client management and personnel. The
basic role of the CPA in performing MAS is to provide advice and technical assistance to the client.

2. Why are practice standards necessary in the consulting practice?


Practice standards are necessary in the consulting practice in order to promote the highest quality of
performance of the practitioner.

3. Why must a consultant act with integrity, objectivity and independence in performing MAS?
An accountant or a management consultant have responsibilities in performance of the service, these
responsibilities must be [performed to promote the highest quality of performances. They must do their jobs
with integrity and objectivity they must place the interest of clients ahead of personal interests. They must
not assume the role of the management or take any positions that might impair objectivity.
A consultant must be independent. They do not serve two or more competing clients in areas of vital interest
without informing each and they guard as confidential all information concerning the affairs of a client
that is gathered during the course of professional assignment.

4. Compare competence in performing a professional work in general and competence required in performing
management advisory services.
Engagement are to be performed by a practitioner having competence in the analytical approach and process,
and in the technical subject matter under consideration. Competence is acquired and maintained through a
combination of education and experience

5. How is due professional care exercised in the performance of an MAS engagement?


Due professional care is to be exercised in the performance of a management advisory services engagement
It involved diligence and appropriate attention in carrying out the assignment

6. What significant matters should be discussed with the client before undertaking an engagement?
Before undertaking an engagement, a practitioner is to inform his client of all significant matters related to the
engagement
These include: Objectives, Scope, Approach, Role of all Personnel, Manner in which results are to be
communicated, Timetable, and Fee

7. Discuss briefly how a consultant plans for, supervises, and controls an MAS engagement.
Engagements are to be adequately planned, supervised, and controlled
Planning – translation of engagement objectives into a structured set of activities and events within a targeted
time schedule
Supervision – practitioner must exercise judgement as to appropriate amount of supervision
Control – requires measurement of progress in meeting the engagement plan and objectives

8. How should the results of the engagement be communicated to the client?


All significant matters relating to the results of the engagement are to be communicated to the client. The
principal findings, recommendations, and accomplishments, and the major assumptions relied upon, should be
conveyed to the client, together with any limitations, reservations, or other qualifications. Reports to the clients
may be written or oral. When a practitioner does not issue a written report to the client, he should prepare a
file memorandum documenting the significant recommendations and other pertinent information discussed with
the client.

9. What are the uses of interim communication or progress reports?


Interim communications should normally summarize:
a. Findings to date
b. Work accomplished in relation to plan
c. When appropriate, tentative recommendations.
CHAPTER 6
1. What are the important qualifications that MAS personnel should possess?
The qualifications usually sought in hiring MAS personnel are

a. Adequate academic preparation


An undergraduate degree in business, engineering is usually required while some graduate studies or
master’s degree is desirable.
b. Practical experience in business, education or government service is also desirable because MAS
engagement demands logical and disciplined thinking.
c. Ability to work and communicate with client’s personnel and co-employees in the MAS division,
inquisitive mind, high degree of intelligence, pleasing personality, diligence and aggressiveness are
the other personal attributes required of MAS personnel.

2. Why should a consulting firm periodically assess its personnel requirements?


A consulting should periodically assess its needs with respect to in-house knowledge and skills.

3. How can a consulting firm solve the problem of personnel deficiency?


Should deficiency exist, the consulting firm can:
a. Employ additional consultant with adequate knowledge and skills; or
b. Undertake a variety of “staff development” activities that are intended to endow the presently
employed consultant with needed knowledge and skills.

4. Describe the basic approach in organizing the personnel in the MAS division.
Partners, Principals, Directors
(1)

Senior Managers, Managers,


Supervisors (1-3)

Senior consultants, Seniors (1-5)

Associate Consultants, Staff (2-


6)

5. Describe the responsibilities of the following consultants.


a. Partners or Principals
Typically, the most experienced highly paid professional and is normally responsible for the successful
completion of engagements, dealing directly with clients and for selling work.
Principal activities of partners include performing practice planning, administering and developing
practice, consulting with top-client managers, approving engagement reports, and managing client
crises.
b. Managers
They perform week-to-week management of the engagements and are responsible for identifying
new client prospects and assisting in sales process.
Principal activities include planning engagements, evaluating consultants, supervising consultants,
writing proposals, reviewing work papers and reports, consulting with client managers, and serves as
expert in one or more applied knowledge areas.
c. Senior Consultant
They typically have 2 or 3 years of consulting experience and are capable of supervising the daily
work of the younger staff
They possess the right combination of experience and dedication to complete different projects with
limited supervision
d. Associate Consultant
These individuals usually have less than 2 years of consulting experience and may have been hired
directly out of graduate or undergraduate school

6. Discuss the major factors in defining the target level of competence of MAS personnel.
a. Scope of Practice Area
b. Service Variety
c. Client Requirements
d. Service Delivery Capability

7. What are the basic steps in starting a consultancy period?


i. Determine and make a list of services that one can truly offer with confidence of competence
to perform
ii. Review a client list classified by industry, size, etc. and prepare a package tailored to fit the
firm’s competence and a particular type of clientele
iii. Prepare a line-up of MAS Personnel
iv. Seek out Advisory Engagements

8. What are the sources of MAS engagements for a CPA?


a. Audit Client (primary)
b. Other CPAs
c. Businessmen
d. Financial and Government Institution
e. Legal and Other Professional Firms

9. Discuss the problems that are encountered by consultants in their practice.


a. Questions as to the effect of the practice of MAS on the firm’s independence
b. Development and maintenance of a high level of competence in MAS
c. Questions of what fee to charge
d. Question of AUDIT-MAS cooperation in obtaining engagements
e. Question of regular communication between the MAS function and the rest of the firm

10. Describe the billing procedures in a consultancy engagement.


- Hourly basis, Daily basis, Per Diem Basis: Some consultants add out-of-pocket expenses directly
chargeable to the client’s bill while others absorb their expenses
- Project Basis: Fee is determined for the project and the work is completed with a reasonable time

11. What are the advantages of preparing a business plan for MAS practice?
It is a great help in decision making to have clear goals and a well-written plan

12. Give at least 7 significant and important contents of a business plan.


i. Description of industry
ii. Consultant’s market potential
iii. Outline of action plan for the coming year
iv. Outline of present financing level
v. Pro-forma financial forecasts
vi. Summaries
vii. Net worth of statement & Statement of Accounts Receivable

13. What projected financial statements are usually included in a business plan?
- Net worth of statement
- Statement of Accounts Receivable
14. What does a personal net worth statement include?
A personal net worth statement is a snapshot of an individual’s financial health, at one particular point in time.
It is a summary of what is owned (assets), less what is owed to others (liabilities)
CHAPTER 7
CHAPTER 8
1. What are the steps involved in solution development phase of the problem-solving process?
2. Give two approaches in generating alternative solutions in an environment of uncertainty.
3. What are the activities in the implementation phase of the problem-solving process?
4. Why is there a need to make an evaluation of the implemented solution?
5. What is the rationale of conducting a post-engagement follow-up?
6. What are the benefits that may be derived in conducting post-engagement evaluation and follow-up?
7. What areas should be covered in conducting an evaluation of the consultancy engagement?
ANSWER: https://www.slideshare.net/azirkram/chapter-7-management-concultancy-by-cabrera

CHAPTER 12
1. Explain briefly the importance of a consultant maintaining a harmonious relationship with the client.
The consultant in any consulting engagement must maintain two key relationships. One relationship is between
the consultant and the problem-solving process. The other relationship is between the consultant and the client.
A requisite to the successful conduct of the problem-solving process is a harmonious relationship with the client.

2. Why must a consultant establish good relationship with the following:


a. Administrator and employees knowledgeable about the facts concerning the problem situation
b. Managers and employees who are likely to be affected by the implementation of solution to the
problem situation
c. Managers and employees who are assigned to perform tasks under the consultant’s guidance
d. Managers and employees who are assigned to serve as liaison between the consultant and higher-
level managers

These persons discuss the engagement and its process with the consultant and, at the completion of the
engagement, accepts the final report from the consultant.

3. In what way may harmonious relationships be achieved between the consultant and the client through written
means?
A written announcement, prepared jointly by the client and the consultant, should be issued as soon as the
terms of the engagements are settled. The announcement should be addressed to all employees and managers
within the organization who are affected by the problem situation.

4. How should the consultant conduct interviews of client personnel to promote harmonious relations between him
and the client?
During a typical interview, the consultant should chat about the responsibilities and difficulties of the manager’s
position. The consultant’s main goal during this initial interview should be to establish a friendly relationship.

5. In what way may the consultant create an attitude of helpfulness during the engagement?
This attitude may be achieved in various ways. The consultant may maintain an “open-door” policy, welcoming
the questions and communications of anyone at any time. The consultant can also arrange meetings for
discussion of the problem and provide written summaries of the meetings

6. What are the disadvantages of creating client expectations that cannot be met?
It is particularly easy to ‘over-promise’ something when selling the project. If this occurs, the recipient will be
disappointed whatever is delivered, even though the recipient might have been highly satisfied with the same
outcome if what is delivered had been slightly ‘undersold.’ Such disappointment will be hard to overcome in
the future.

7. Explain the following statement:


“Confidence is a function of credibility and expectations.”
Confidence occurs if the level of credibility suggests that expectations will be achieved to a degree that
satisfies concerns about those outcomes not being achieved. The ability to consider and manage expectations,
to develop credibility and engender confidence is crucial in getting people to take actions that they believe
to have some element of risk.
8. How can a consultant maintain a client’s interest that can lead to new business opportunities or new consulting
engagements?
Keeping the manager informed and motivated about the project. Consultant must keep regular
communications; inform the managers about update on the project and its progress. Keep building the
consultant- client rapport.

9. Do you agree with the following statement?


A consultant cannot retain all types of business and expect to grow at the same time.
Explain your answer
Yes, I agree that a consultant cannot at the same time because growth depends on abandoning some lines of
business in order to focus in a more productive line of business. Continuing to take all means he/she fails to grow in
terms of expertise and reputation
10. In what ways may a consultant abandon a client gracefully?
Abandoning clients should not be harshly done. It can be through:
Explain to the client that certain assignments cannot be cost-effectively handled anymore.
Establish alliances with younger consultants who may want to align themselves with more established
practitioners in order to learn, obtain business and network
Provide the client with advance notice that the consultant will be accepting lesser assignments and
doing lesser workshops and appearances
Offer to transfer the skills to the client, if appropriate

CHAPTER 13
1. In what ways will the selection and development of consulting staff impact the future business development of
a consulting firm?
Selection and development of the consulting staff impact the future business development of consulting firm
by way of those people selected to are the ones who represents the firm and perform services to the clients.
Thus, they determine
(1) the business level of success,
(2) rate of growth and
(3) future of consulting practice.

2. Give at least 3 basic considerations that the firm takes into account in selecting the consulting staff.
a. The kind of consulting practice one plans to build
b. The targeted principal market
c. The kind of image and reputation the consultant wants to project and develop
d. The long-range plans for the consulting practice

3. Explain briefly the ff profiles that should be determined and developed before the process of hiring and
training staff personnel.
a. Practice Profile - development of profile of the type of person that the consulting firm needs and
necessary to achieve the business objectives
b. Position Profile - a two-part description of what positions are to be filled in.
c. Person description- what kind of person does the firm wants to have as part of its staff.
i. Academic credentials
ii. Experience
iii. Personal traits and characteristics

4. Distinguish between the nature of work and responsibility between the consultant and the technical specialist.
The consultant, because of experience and track record, will oversee a consulting project and will direct the
activities of other in conducting problem analysis and researching a client’s needs.
The technical specialist, by reason of training and experience, usually functions as an individual contributor
providing input and recommendations on a specific or limited number of subjects.

5. Describe briefly the nature of the following training methods for the employees of the consulting firm.
a. Formal training
Depending on the complexity of the proposed project, consulting (and perhaps client) personnel may
need to attend formal training classes.
b. Ongoing training
Employs a variety of educational methods and covers various subjects, this might involve a combination
of in-house and out-of-house training programs.
c. Informal training
Assortment of periodicals, research materials, reference manuals, and past project documentation
within its library and files.

6. What are some of the ways that the consulting firm can adopt that will increase the degree of commitment of
its staff members to the practice?
a. Select people who share the consultant’s values and business philosophies
b. Provide an environment that people are comfortable with and enjoy working within
c. Demonstrate personal interest in each individual employee
d. Provide opportunity for career growth and personal development
e. Involve the staff in decisions and commitments that affect them
f. Maintain open lines of communication within the organization

7. Distinguish between the short-term and long-term motives that a new consultant may have in joining a
consultancy firm.
Short-term motives: Gain as much broad experience as possible in the shortest time frame.
Long-term motives: Acquiring the academic credentials to give them a fast start in the challenging life of
consultancy.

8. Explain briefly some of the intrinsic factors that influence the structure of teams and the way in which they
work.
a. Group size – the number of possible interactions between group members increases dramatically as
group sizes increases
b. Stage in group formation – the productivity of the group depends on the stage it has reached
c. Individual experience and specialisms – the development of the group will be influenced by the way
in which individuals are allowed to enhance their expertise within the group
d. Group norms and culture – a culture can be thought of as the set of rules that define what is allowed
as behavior within the group and what is not
e. Leadership – essential if the team is to maintain its coherence and to be focused towards its objectives.
f. Individual personalities – the way the group functions will, in part, depend on the personalities of the
individuals who make it up.
g. Group motivation – a number of models provide an insight into the factors that motivate individuals to
be part of a group

9. Explain briefly some of the extrinsic factors that influence the structure of teams and the way in which they
work.
a. Group task – the nature of the task is an important shaping force. A number of aspects of the task are
relevant:
i. Familiarity
ii. Complexity
iii. Significance of outcomes
b. Resource availability – a team needs resources in order to pursue the task it is required to address
c. Group rewards – people work together in teams because in this way they can achieve more
d. Interaction with other groups – the way in which the team integrates within the wider organizational
context will influence the way it works with that organization

10. What are the four stages of team development? Explain each briefly.
a. Formation – Individuals will be concerned with testing out each other
b. Brainstorming/Deliberation – Debate about goals, roles and process will start
c. Emergence of Consensus – Recognize the roles individual members will play, the overall goals for the
group and the process through which individuals will interact
d. Performance – Undertake the tasks it exists to perform

11. Explain briefly some of the useful general ground roles in managing conflicts in a team.
a. Address the issue – the team leader must grasp the nettle and manage conflict early
b. Identify parties – Recognize all who have an interest in the conflict and its resolution
c. Assert the need for resolution – encourage the parties to the conflict to accept a promise
d. Understand both sides – listening to the views of both sides is important, time when listening skills are
particularly useful?
e. Look for common ground – a synthesis of views of the two sides may be stronger than either position
alone
f. Give parties a back-out route – if they are given a way of moving to a new position without being
seen to lose credibility, the process of achieving compromise will be easier
g. Be prepared to impose a solution – progression of the project is more important than the concerns of
individuals.

12. When and how may external or outside experts be availed of for advice and support in resolving a team
conflict?
No team will have all the skills, expertise and insights to tackle every issue it might face. It may be advisable
to call on outside experts for advice and support. The following are some basic ground rules that will make
the process more successful.
i. Understand what issue you need advice or support on
ii. Define objectives
iii. Identify who can help
iv. Approach positively
v. Ensure understanding and integrate findings