Management Consulting Approaches

Management Consulting Session

The following provides a typical approach that may be used for management consulting engagement.

The initial steps in the strategy development for an organization typically involves a review and evaluation of the existing mission and vision. An environmental scanning and an industry analysis would then be performed. An evaluation of external variables would be conducted to identify potential threats. The results of the external screening would be analyzed using an External Factor Evaluation (EFE) matrix.

A competitive/industry analysis would then be conducted, including analysis of benchmarking data and use of Porter’s Five Forces Model. An internal scanning and analysis would be performed including an assessment of internal strengths and weaknesses of the organization’s structures, system and processes using an Internal Factor Evaluation (IFE) matrix.

A SWOT analysis is typically completed to analyze the strengths and weaknesses and external opportunities for the division, and threats facing the organization. This usually involves stakeholder engagement with input from across the organization.

Possible models that would be considered for strategic analysis and strategy development include the BCG (Boston Consulting Group) Matrix, the TOWS (Threats, Opportunities, Weaknesses, Strengths) Matrix, the Internal-External (IE) Matrix, the SPACE Matrix and the Grand Strategy Matrix (GSM).

At a minimum the results of the SWOT analysis would be utilized to construct TOWS Matrix strategies by matching internal and external factors, to identify possible SO (Strength-Opportunity), WO (Weakness-Opportunity), ST (Strength-Threat) and WT (Weakness-Threat) strategies.

A QSPM (Quantitative Strategic Planning Matrix) would be utilized to determine the relative attractiveness of the potential strategies relative to internal and external critical success factors. The results of this analysis would be provided to the organization and stakeholders as part of the decision-making process for charting the future course of the organization.

A strategy would then be identified, which could involve, for example, a Cost Leadership Strategy, a Differentiation Strategy, or a Focus Strategy. Market-orientated strategic planning may then be undertaken, followed by the development of a strategic marketing plan with a marketing mix of Product, Price, Promotion and Place (the ‘4P’s’).

This strategic marketing plan may include a strategy to differentiate the company from its competitors and position it within an appropriate target market and correct the current confusion concerning the identity of the company. The strategic marketing plan would then be implemented as part of an action plan that includes appropriate monitoring and contingency measures.

A revised mission and a vision would be developed for the organization based on the results of the above process based on stakeholder engagement from all levels of the company. The mission would define the identity of the company, its business practices, and required activities for profitability. The vision would chart the future strategy of the company.

The above approach is usually modified to adapt the fit to the organization and the requirements of the engagement. Please contact McFarland Associates to discuss your needs for improving the performance of your organization.