What is management consulting & strategy?

Business Consulting

- 9/14 by McKinsey & Company

* Introduction to management consulting

- Strategy , Engagement

- What is management consulting & strategy?

* Management consulting

- solve problems & help client to make decisions

- Intellectual horsepower, objectivity, industry/functional expertise and experience(locked in logical barrier)

- Strategy, Operations, sales/marketing, cooperate finance, organizations.

- Consulting could result in immediate impact on client's business, while there are still ambiguity & uncertainty

- 7 step problem solving approach : Define problem -> structure problem -> Prioritize issues -> develop issue analysis -> conduct analysis -> synthesize findings -> develop recommendation

- business consulting vs pure sciences

- personal value -> capabilities -> skills -> knowledge

- Required capabilities : problem solving, personal impact, drive for excellence

- Critical Thinking : Provide own approach, unconventional thinking

- strategy support direction

* What is strategy?

- Ten timeless tests of strategy

- World is not static but dynamic

- hard-to-reverse choices, made ahead of time in the face of uncertainty, to create and capture economic surplus

1. Will your strategy beat the market? -> Increase your pie

2. What is truly special here? : Structure, Conduct. How they compete each other. What kind of assets and competence do you have?

3. Getting granular : 사업 성장의 2/3는 시장 자체의 성장에서 옴. 1/3 정도는 M&A에서. 시장 점유율 증가를 통한 성장은 단 4%정도..  실제 시장이 성장하는 곳으로 자원을 재분배하라. 시장 성장(35%), 지역(15%), 채녈(6%)

4. Make the trend your friend : 

5. Knowing things others don't : privileged insight & foresight

6. No crystal balls here either : use scenario to manage uncertainty

7. Does it balance commitment-rich choices with flexibility and learning : Chicken or pig

8. You are a victim, too : Overconfidence, anchoring, loss aversion, confirmation bias, herding, champion bias. We need to learn from failure. People always want to learn from the success, but it is usually justified case. 

9. Everybody on board - really? : 

10. Explanation required : clear actions & reallocation of resource. 

---

This lecture was done by 2 consultants from McKinsey & Company at 14^th, Sep. This is summary of that lecture.

At the first lecture the topic of ‘What is management consulting?’ was covered. Lecturer defined management consulting as ‘Solve problems & help client to make decisions.’ And he stated some characteristics of management consulting including intellectual horsepower, objectivity, industry & functional expertise and experiences. According to him, management consulting can be applied to various business areas like strategy, operations, sales/marketing, cooperate finance, organizations and so on. Regarding the effectiveness of management consulting, he said that consulting could result in immediate impact on client's business, while there would be still ambiguity & uncertainty. During his lecture he also mentioned about the 7 steps of problem solving approach as follows:

1. Define problem -> 2. Structure problem -> 3. Prioritize issues -> 4. Develop issue analysis -> 5. Conduct analysis -> 6. Synthesize findings -> 7. Develop recommendation

Difference between business consulting and pure sciences was dealt there in lecture. Required capabilities to be good management consultant were also emphasized. Those are problem solving, personal impact, drive for excellence, and critical.

At the second lecture, ‘What is strategy?’ was dealt. According to lecturer, strategy is very important, since world is not static but dynamic, decision is hard-to-reverse, decision is made ahead of time in the face of uncertainty. Lecture also introduced 10 timeless test of strategy with real examples and charts. Those 10 tests of strategy are as follows:

1. Will your strategy beat the market?

2. What is truly special here?

3. Getting granular.

4. Make the trend your friend.

5. Knowing things others don't.

6. No crystal balls here either.

7. Does it balance commitment-rich choices with flexibility and learning?

8. You are a victim, too.

9. Everybody on board - really?  

10. Explanation required.

 Taken together, this lecture was impressive in terms of lecturers’ fluent English, good manner and how they make presentations. Also it was a very good chance for me to understand the nature of management consulting business and consultants’ real job. 

2010년 9월 14일