Management Consultant - Understanding the Role and Responsibilities of a Consultant For Management

If you want to start a career in management consulting, it would work to your advantage if you know your roles and your responsibilities. Read on and find out!

- Conducting analysis and research.
- Data collection.
- Conducting interviews with clients, their employees, and their management team.
- Facilitating workshops and assisting focus groups.
- Organizing business presentation and business proposals.
- Managing a highly motivated, results focused team.
- Consolidation of metrics needed for planning and business reviews.
- Identifying and isolating pressing issues.
- Formulating and implementing solutions or recommendations.
- Assisting clients in putting plans into action.
- Managing programmers and existing projects.

Keep in mind that management consultants are mainly involved in providing objective expertise, advice, and specialist skills with the aim of improving business performance and maximizing its growth.

Management Consultant - Understanding the Role and Responsibilities of a Consultant For Management

As a consultant, you are expected to operate across a wide variety of services which include marketing, financial and management controls, business strategy, e-business and operations, information technology, and supply-chain management.

As a management consultant, your day to day activities are often varied and complex as consultancy is project-based and essentially entrepreneurial in nature. Your projects can last from 2 weeks to one year depending on the needs and demands of your clients. For some projects, organizations may choose to hire just you or a group of management consultants. You may also be asked to work on your client's site or offer your expertise using other mediums like internet, email, and phone. So, it is important that you know how to use these technologies to easily fill the unique needs of each of your clients.

Management Consultant - Understanding the Role and Responsibilities of a Consultant For Management
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Risk Classification and Types of Pure Risks

Risks can be classified in many forms.

Fundamental vs Particular
Fundamental risk is a type of risk that affect a large number of people in an economy. Earthquake and war are the examples of those. If it is originated from nature of society, namely act of war and unemployment risk, then it is not insurable. Meanwhile, fundamental risks as a result of physical or natural causes may be insurable.

On the other hand, particular risk is a risk that affect only individual. For instance, fire, robberies and thefts. These risks are all insurable.

Risk Classification and Types of Pure Risks

Dynamic vs Static
Risks can also be classified by dynamic and static. Dynamic risk occurs due to changes in economy that causes financial loss to certain people. It exists as a result of adjustment to misallocation of resources in the economy. In modern times, one of the clearer examples is the rapid change in information technology industry. Many companies were made victims while others were emerged as new successes.

Static risk, on the other hand, happen even though there are no changes taking place. During market boom or collapse, there are people making losses. These types of losses are due to natural perils like earthquakes, typhoon or moral hazards like cheats. Static risk brings no benefits to the society, only pure losses.

Pure vs Speculative
Risks can also be categorized as pure or speculative. In pure risk, there is either a possible loss or no loss. In contrast, there are possibilities of gain or loss in speculative risk. Pure risk can be insured while speculative risk can't. However, the pure risk consequences of speculative risk is insurable. For instance, decision to manufacture a brand new product involves speculative risk, either gaining from the product or making losses. So, it is not insurable. But if the factory is burnt down by fire and as a result, cannot supply to the dealers, these losses are considered as a pure risk and therefore insurable.

There are basically 3 types of pure risks that concern an individual

Types of Pure Risks

Personal Risks
They incur losses like loss of income, additional expenses and devaluation of property. There are 4 risk factors affecting this:

1. Premature death. This is death of a breadwinner who leaves behind financial responsibilities.
2. Old age / retirement. The risk of being retired is not sufficient savings to support retirement years.
3. Health crisis. Individual with health problem may face potential loss of income and increase in medical expenditures.
4. Unemployment. Jobless individual may have to live on their savings. If his savings is depleted, the bigger crisis is awaiting.

Property Risks
It means the possibility of damage or loss to the property owned due to some causes. There are two types of losses involved.

1. Direct loss which means financial loss as a result of property damage.
2. Consequential loss which means financial loss due to the happenings of direct loss of the property.
For instance, a shop lot which is burnt down may incur repair costs as the direct loss. The consequential loss is being unable to run the business to generate income.

Liability Risks
A person is legally liable to his wrong doings which cause damages to third party's body, reputation or property. He can be legally sued and the most horrible thing is there is no maximum in the compensation amount if you are found guilty.

Knowing how the risks are classified and the types of pure risks an individual is exposed to will surely give you a fundamental on the risk topics and prepare yourself to further acquire the knowledge of how to manage risk.

Risk Classification and Types of Pure Risks
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Functions of Management - "Strategic Manager"

Many critics would say that the term "strategic manager" is an oxymoron. Those critics, however, have a narrow view of what a Manager or management team can do, especially since the best conceived corporate strategies often fail because the organization lacks the capability to execute those strategies. This is precisely why management is strategic. But one must not forget that management is also tactical in nature. Managers can play the role of coach, counselor, advisor, and change agent. This paper will discuss the four functions of management: planning, organizing, leading and controlling.

Change is part of the evolutionary cycle of everyday life. Today, more and more organizations are faced with a dynamic and changing environment that is necessary to maintain their existence in the competitive economic world of business. These organizations realize that change is here to stay and know that if they do not change they will not survive. Whether employees like it or not, managers, supervisors, and leaders have to implement organizational changes. Nicolo Machiavelli once said, "There is nothing more difficult to take in hand, more perilous to conduct or more uncertain in its success, than to take the lead in the introduction of a new order of things" (European History Quotes (2006). In the controlling function of management, managers must be able to provide managerial control, manage technology and innovation, create and manage change. To be successful change agents in any institution, managers must know the technical requirements of the change and understand the attitude and motivational demands for bringing it about. Change agents are risk takers who identify areas of needed change in the organization.

They demonstrate flexibility in goal setting and support and reinforce the individual efforts of subordinates during the change process. In addition, change agents recognize the need for change and identify the options and resources available to implement a change, as well as identify and implement appropriate strategies to minimize and overcome resistance to change (Wiest, D.,April-June 2006). For many organizations, change management initiatives first introduced organizational development (OD) concepts into the organization. In most cases, such change increased the demand for management activities in the area of training and development as the need for new skills emerged; managers have responded by providing such training either directly themselves or by bringing in OD consultants and trainers as needed. The role of the manager grew to become more consultative as the demand for managing change effectively across the organization grew. As a result, managers must assist leaders, staff and employees in planning and managing such "change initiatives" in parts of the organization or for the overall organization, thus engaging in OD work (Hawthorne, P. , 2004). Thus, the need for the organizing function in which managers must help to create an organizational structure with agility, human resources management, and a diverse workforce.

Functions of Management - "Strategic Manager"

Companies must be prepared to provide assistance to their employees in various situations. Mangers must lead and to do so must be able to provide leadership, motivate for performance, instill teamwork and communicate effectively. Often times it is a good idea for an empathetic and specially trained staff member to act as a counselor. This counselor would need to establish guidelines for the organization's response to the employee's situation, to make a list of resources that employees might need. It would also be advisable for the individual to make time for workers who are in need of this benefits or support. Many times this individual is a member of the human resources department. Whether dealing through issues such as death, performance management or employee relations, HR must provide these tactical roles for employees. But the role of counselor or advisor must also reach the levels of upper management. "The hierarchical model emphasizes the HR role as agent and advisor to corporate management while the professional model centers on the management of the relationship between the corporation and critical external groups" (Eisenstat, R. ,Autumn 1996) In many companies, the most basic role for the management function has been as an agent for, as well as an advisor and support to, top management. Managers must be able to think through the implications of business issues.. They must be able to investigate it, analyze it, intellectually incubate it, document it, base recommendations on it, and run it up the flagpole. Managers must concentrate on the critical problems of running the business. With administrative and operational efficiencies in place, the attention of managers has turned to other aspects of management. Faced with rapid and constant change, many organizations are seeking improvements in workforce productivity in order to maintain a competitive advantage and, as a result, turning to their managers to help redesign the management function in fundamental ways.

Managers must not only keep up with the pace of business, but also lead the way. They must move faster than even the fastest business teams, anticipating needs and providing solutions before executives ask for them. The clients and customers consider all of their needs to be top priority. Service quality requires them to be respectful of their requests, and to be as responsive as can be. Certainly they need to enable clients to meet their needs promptly and effectively. But they may do this by referring certain tasks to others who can perform them more quickly and efficiently, because of their expertise and service delivery systems. Managers can use technology (email, direct data base access, etc.) to enable employees and their departments to be more self-sufficient. They may also quickly reframe employees' requests as problems they themselves can solve, without our further involvement (Walker, J.,Sept 1999). Here lie the many functions of managers.

Functions of Management - "Strategic Manager"
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References:

Eisenstat, R. (Autumn 1996)What corporate human resources brings to the picnic: four models for functional management. In Organizational Dynamics, 25, p7(16).

European History Quotes ( 2006) retrieved December 8, 2008 from http://answers.yahoo.com Hawthorne, P. (Summer 2004)Redesigning library human resources: integrating human resources management and organizational development. In Library Trends, 53, p172(15).

Walker, J. (Sept 1999)Perspectives.(human resources management)(Column). In Human Resource Planning, 22, p4.

Wiest, D. (April-June 2006)The challenges of a change agent. In Topics in Emergency Medicine, 28, p125(4).

Paul Resurreccion is a life-long learner and student of online education. As a manager and business professional he has provided strategic leadership for various organizations.

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Paul Resurreccion - Managing Director, Resorxn Enterprises

Exceptional Project Management - Risk Management

Risk management is an important aspect of successful project delivery. This article introduces the concepts of risk and risk management and describes how the application of risk management techniques increases the likelihood that a project will succeed in delivering its objectives.

What is Risk?

Risk is the possibility of suffering harm or loss. Risks are inherent in every project and can be considered to be anything that will adversely impact the progress or objectives of the project.

Exceptional Project Management - Risk Management

What is Risk Management?

Risk management can be defined as "the culture, processes and structures that are directed towards realising potential opportunities whilst managing possible adverse impacts".

From a project management perspective, risk management is a continuous activity throughout the life of the project that seeks to identify potential risks to delivery, evaluate their likely impact, develop mitigation plans and monitor progress.

Identifying Risks

Finding risks is an ongoing process. Everyone involved in the project should be encouraged to think about possible problems that might arise and adding them to the "risk register", which is a list of all known project risks.

A risk is initially placed into an "open" status when it is added to the risk register and remains in this state until it has been fully reviewed and a mitigation strategy has been put in place.

When a risk is registered, the person creating the entry also assigns an estimate of the probability of the issue occurring and the magnitude of the impact on the project if the risk does eventuate. The scale used to represent the probability and magnitude may vary between organisations and projects however I recommend you keep them simple so that anyone involved in the project can understand and utilise them.

If you are a project manager then you should strongly consider running regular risk workshops with the project team and also key stakeholders. These workshops are used to brainstorm finding additional risks and to assist with development of mitigation strategies.

Evaluating Risks

Generally it is the responsibility of the project manager to ensure that all new risks are properly evaluated once they have been added into the risk register. On larger projects there may be a dedicated risk manager who holds this responsibility.

The first step in evaluating new risks is to validate the risk. This includes ensuring that the risk is not duplicated in the register and also identifying and separating out issues, which are impacts that have actually occurred rather than those that might occur in future.

Once a risk has been determined to be a valid new item on the register, then the probability and magnitude estimates from the risk creator are also reviewed to ensure they are appropriate and consistent with other risks.

Monitoring and Control

Each risk on the register should be allocated to an owner, who has responsibility for determining the appropriate mitigation strategy and also for monitoring the risk on an ongoing basis. Make sure that the risk owner is someone who is in a position to understand and respond to the specific risk being assigned to them and also ensure they are aware of and agree ownership of the risk.

For each risk, ensure there is one or more mitigation strategies identified. This may be as simple as determining that the impact of the risk is negligible and nothing further is to be done, however in most cases an active strategy will be required to reduce the probability of the risk occurring or to address the possible impact. It is essential that clear and realistic dates are set for achieving each mitigation.

On a regular ongoing basis, preferably weekly, the risk register should be reviewed to determine whether actions have been taken and whether the probability or impact of a risk should be adjusted.

Escalation

Any risk that is evaluated as having a potentially significant impact on the project or that is viewed as highly likely to occur should be escalated to the appropriate group or individuals. Similarly, any risk where the required actions are overdue should also be escalated. The escalation path will depend on your project governance structure and is likely to include a project or programme office, project sponsor and steering committee.

Improving Certainty of Delivery

Good risk management increases the likelihood or project success by decreasing the probability and impact of negative events on the project. By proactively identifying and preparing for potential issues throughout the life of your project you will be well prepared for challenges as they arise and can reduce the chance of potential threats becoming real problems.

Exceptional Project Management - Risk Management
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Christopher Young is a senior consultant and executive coach with a broad knowledge and experience in financial services, project and change management, personal empowerment and information technology. His areas of focus include developing highly successful leaders, creating high-performance teams and implementing best practices in process improvement, project management and software development process.

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7 Tips for Business Start-Ups

According to learned economists and others, we have been in a recession since late 2007. As this article is being written in mid-2009, the economy is not well. Businesses are cutting back, if not closing. General Motors and Chrysler, once pillars of American industry have both filed for bankruptcy and employment is the worst that it has been in decades. Projections for at least the next year suggest that things will probably get worse before we see any improvement. So, with things looking so bleak why would anyone consider starting their own business now?

Well, the quick answer is that maybe they wouldn't. But let's look a little further into this environment that we all presently find ourselves in. First, for most of us we can pretty much forget about job security. The days of having a cradle-to-grave job are but a faint memory. Companies are looking for ways to scale back and, as a result, many jobs are being eliminated. The sad reality is that your job could be the next to go. Today's jobless ranks are sky-rocketing.

Whether we are fortunate to have a job, or if we have recently been laid off, it has never been more important than now to have a plan for how we can continue to earn income. For more and more of us, this plan starts with a decision to start a business and continues with research into what products or services are needed by the buying public. The fact is that people are going to need products and services regardless of what the economic climate is. We need to educate ourselves as to what those needs are. And they don't necessarily have to be something new. If you can come up with a product or service that is better, faster or cheaper than what the competition is offering, this could lead to a successful business in good times or bad.

7 Tips for Business Start-Ups

A lot has been written about so-called recession-proof businesses. Everything from ice cream to diapers, to alcohol, to video games, to discount retail stores are considered recession-proof types of businesses by many. The fact is, you don't need to spin your wheels looking for that perfect recession-proof business to start. You just need to do your homework, find something you would like to do and do it better, faster or cheaper than others are doing it.

Use the Internet
As part of doing your homework, don't be afraid to use the Internet; particularly Google. Do a search on start-up businesses, home-based businesses and recession-proof businesses. At the very least, your research will get your creative juices flowing. But remember, it's just a start to the research you should do. Don't be quick to jump on something that you have not fully researched.

Go Slow, Be Small
Once you have found a business opportunity that you are convinced that you want to pursue, go for it. But, to the extent possible, take it slow and start small. Don't put a lot of money at risk. This is good advice anytime for budding business start-ups and it is particularly true in a less than desirable economy.

Finance It Yourself
The fact is, that in the present economy bank business loans of any type are fairly non-existent. If at all possible, finance your start-up yourself. Use your own money, either from savings, retirement or family. Don't fall to the temptation of using credit cards to finance your business. Believe me, using plastic will be very tempting. Don't do it if you don't have to. And if you do use them, plan to pay off the balance monthly. I cannot state this too strongly. This is a hole into which you do not want to fall. It could ruin your business before you gain the fruits of your own success.

Keep Your Costs To A Minimum
This dovetails with my suggestion that you start small. Depending on the type of business that you have decided on, there will be items of expense that you may want, and those that you need. When just starting out, it is critical that you incur costs only for things you absolutely need. This is particularly true when it comes to equipment. There will be many pieces of equipment that would be nice to have. They may even save you time. When it comes to these types of purchases, you seriously have to consider whether they are really needed at this time. Believe me, it is very easy to spend a lot of money on equipment before it is needed. This is another area where research and doing your homework will pay benefits.

Don't Be Afraid To Ask For Advice
You probably know friends or acquaintances who have their own businesses. Don't be afraid to ask them for advice. You may choose to filter some of what they are prepared to offer but, for the most part, they will have great things to share from their own experience that can go a long way in saving you time and help to minimize the mistakes you will be certain to make as you start you own business.

Consider Networking
Networking is putting yourself among a group of other business owners and managers on a regular basis so that you can share what you have to offer and have them share what they have to offer. Networking comes in many forms, including formally organized networking organizations that meet weekly, and also less formally or specifically organized groups where networking takes place, such as a local chamber of commerce. The local business networking groups generally have 15-35 members depending on the size of the community or region being drawn from. There is almost always a membership fee to join. Chambers of commerce generally have hundreds of local members and provide multiple networking opportunities throughout a given month. As a member of a chamber of commerce, you also have access to the membership list with addresses and phone numbers and mailing labels that can be used for direct marketing. There is a annual fee to join a chamber of commerce.

Provide Great Customer Service
Customer service is a term that has been used and abused today. Most businesses talk-the-talk but few actually walk-the-walk when it comes to excellence in delivering customer service. Customer service is NOT about giving "service". Frankly, the customer deserves and expects service. What we really mean by providing customer service is going beyond what the customer is expecting. Really good customer service is providing things that contribute to a "WOW!" factor. A WOW factor is something that causes the customer to say "WOW, I wasn't expecting them to do THAT for me". It's that extra service that the customer didn't pay for, but received anyway. Something that keeps them coming back.

For every business start-up there are many, many things to consider. For purposes of this article, my intent is to plant seeds that will grow into food for thought and discussion as you move toward declaring your independence and controlling your destiny with a business of your own.

7 Tips for Business Start-Ups
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Ed is a business related consultant and writer. His education includes an undergraduate degree in Business Administration and the "M" and the "B" in MBA. More importantly, he has views and opinions based on many years in the corporate world as a middle and senior manager, combined with several years as a business owner. He knows a thing or two about small business, business start-ups, home-based businesses and doing business online.

For more info on this article or other topics you want help with or just want to discuss, contact Ed through his blog at http://gt350ed.wordpress.com/

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Risk Management and Change Management - 4 Basic Levels to Get Started

How do companies deal with the fact that the rules of business are constantly changing? While it is not only technology that is constantly changing, technology surely is one of the greatest impacts. The rules are changing and the dynamics are changing. Coming up with a way to deal with change is a primary focus of business. Businesses should realize that managing risk an intuitive exercise for most individuals.

In business there are two terms you hear more and more all the time. Risk Management and Change Management are everyday realities in businesses of all types and sizes. Businesses large and small are scrambling to come up with a change management plan to deal with the new world of commerce. Every aspect of business that is impacted by technology is changing so fast that it is almost impossible to keep up. Businesses mobilize to come up with a strategy to deal with the latest changes but by the time they get set to announce their plans it is too late and that trend has passed.

Risk Management

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Companies have to evolved from static operating procedures to a dynamic, evolving, ever changing plan of action. Flexibility is paramount. Changeability a must. This is true for all kinds of business whether you are selling a product, providing a service or just about anything you can charge a fee for.

Risk Management and Change Management - 4 Basic Levels to Get Started

When you are putting together a risk management plan or change management plan there are four basic levels of due diligence that should be followed. The four levels must be completed in sequential order to be effective for project preparation. Of course there may be several steps or stages to each level.

First you must Identify the factors that will have an influence, negative or positive on the success of your project. Second you will need to assess the impact of each factor or influence on the project. Next you must conceptualize or prioritize a solution to respond to all factors and impacts. Once you have completed these three levels of due diligence you are ready to begin the process of putting together a plan.

Level 1. Identify

Level 2. Assess

Level 3. Conceptualize

Level 4. Plan

Following these 4 levels will provide you with the basis to get started on your plan. Just remember there is much more to it.

The key to effective risk management and change management is to have a system that has measurable results. Risk management or change management for any project can be tied into a milestone schedule to assess and measure risk as it applies to scope schedule and budget.

Risk management is essential to success in business. Most of us are very well equipped to manage risk and change effectively. Our everyday activities prepare us well. You can find numerous parallels in everyday life.

Risk Management and Change Management - 4 Basic Levels to Get Started

Paul DeVetter, AIA, NCARB is a strategic property planning enthusiast and innovator with hundreds of successful projects throughout the United States. Paul's strategic planning business specializes in property development, property planning and process management.

Paul's passion is for helping people. I'll bet he can help you.

Make a Plan, Have a Plan. You'll be glad you did!

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Different Types of Marketing

If you want your company to succeed, at some point you will need to begin marketing your products or services. The old adage that the worst type of advertising is no advertising is still true. No matter what your marketing budget may be, there are many different types of marketing that you can take advantage of. Let's take a look at a few of the more proven techniques that combine low cost with major results.

Online Marketing

Video Marketing

Online marketing has opened up incredible avenues for small businesses. Thanks to companies like Google and Overture, you can place ads for your company right along side the big guns at competitive prices. Never before has it been easier to market your business than it is right now.

Different Types of Marketing

New forms of online marketing are also making headway. Online video ads are easy and cheap to shoot and give you the kind of exposure that was previously limited to expensive national television campaigns. With low production costs and reasonable pricing, you can run an online video campaign at a fraction of the cost of traditional advertising.

Offline Marketing

The benefits of traditional marketing cannot be overlooked in our digital age. Many companies are reaping the benefits of combining online and offline marketing techniques. For example, you can use direct mail or local advertising to drive potential customers to your site. This is a great and proven combination that results in increased traffic and better conversions.

You can actually save money on print campaigns by relying on your website to do the actual selling while the print ad can function as a pointer. You'll save money using less words while building brand awareness. Radio ads are still a proven way to increase awareness of your company. If you are new to radio marketing, try placing a sample ad with a local station. They'll be able to assist you in producing your first ad until you get the hang of the process.

Word of Mouth Marketing

Word of mouth is still one of the most powerful forms of advertising on the planet. The best word of mouth comes from satisfied customers. Go the extra mile for them, and really work towards building relationships with your customers. This will result not only in more leads but they'll keep coming back to you in the future. Try running special promotions or coupons for these regular customers to help them feel that they are special and you'll really be able to continue to build on these relationships in the future.

The best marketing strategies take advantage of all the different types of advertising. By spreading your ad dollars around you can be assured of greater success and better interaction with the public. Start small by combining a special promotion that will run both in print and online avenues at the same time. You can keep track of the success of each method by using coupon codes to see which form suits your company the best.

Different Types of Marketing

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