Unit 5

Management
Consulting

History of Management Consulting

Management as a unique field of study

Arthur D.Little (1890s)

McKinsey & Company

First management and strategy consultancy

Founded by James McKinsey in 1926 (Chicago)
Hiring of bright young MBAs

Rise of management consultancy after World War II

Development of tools for strategic management

Boston Consulting Group (1963), McKinsey&Co, Harvard Business
School
Bain&Co - focus on shareholder wealth

Consulting within accountancy and technology firms

PwC and IBM

Niche consultancy firms

Corporate social responsibiity

What we mean by
Management Consultancy

The MCA defines management consulting as:

The creation of value for organisations, through
improved performance, achieved by providing
objective advice and implementing business
solutions.

Consulting involves individuals, whether selfemployed or employed, individually or

collectively using their knowledge, experience

Significance of Management Consulting

Management consultingis the practice of

helpingorganizationsto
improve
theirperformance, operating primarily through
the analysis of existing organizational problems
and the development of plans for improvement.

Organizations may draw upon the services of

managementconsultantsfor
a
number
of
reasons, including gaining advice and access to
the consultants' specialized expertise.

Key Stages in Consulting

1.Opportunity development
2.Agreeing Terms of Reference
3.Information gathering
4.Interpretation and insight
development
5.Sign-of
6.Aftercare

Key Stages in Consulting (Contd.)

7. Help them think through their own
ideas
6. Add options to their ideas.
7. Tell them what to do
8. Show them how to do it
9. Do it with them

Types of Consultancy
services
Strategy

HR

Process
and
Operations
Org design

Marketing

Infotech

Types of firms in the

industry
Accountancy firms ofering
consultancy
Large non-accounting consultancies
Small specialist boutiques
Gurus
Independents

Major consultancies

Bain & Company

Boston Consulting Group
Deloitte & Touche
Ernst & Young
A.T. Kearny
KPMG
Arthur D.Little
McKinsey & Co
Mercer
PriceWaterhouse Coopers

Big Four Management

Consultants

Price Water Coopers (PwC)

Ernst & Young
Deloitte
KPMG

The future of the Management Consulting

Industry

In 2013,Harvard Business Reviewdiscussed

the prevalent trend within the consulting
industry to evolve.
With knowledge being democratized and
information becoming more and more
accessible
to
anyone,
the
role
of
management
consultants
is
rapidly
changingand Management Consultancy has
its applications in all diversified forms.