6. OVERVIEW OF MAS BY CPAS
Specialization
in different
areas
Improvement
of business
education
Change in the
management
culture
Technical
Development
DEVELOPING TRENDS
7. OVERVIEW OF MAS BY CPAS
FUTURE PROSPECT
Management consulting will become even
more specialized
Insight provider, creator and sharer of
information
Management consultancy firms will tend to
remain small or quite large
Sophisticated marketing
Career attraction in management consulting
8. OVERVIEW OF MAS BY CPAS
THE CONSULTING INDUSTRY (definitions)
Information Technology (IT)
Consulting and system integration
Corporate strategy
Operations management
Human resources management
Outsourcing
9. 3 MAIN FACTORS IN GROWTH
Increase demand
Continued demand for information
technology spending
10. OVERVIEW OF MAS BY CPAS
IT Firms
Accounting
firms
offering
consultancy
Major
consulting
only firms
Independents
MAIN
TYPES OF
CONSULTI
NG FIRMS
11. OVERVIEW OF MAS BY CPAS
CAREER STRUCTURE
Analyst
Consultants
Senior Consultants/Managers
Business Development Managers
Directors/Partners
•Data Gathering
•Evaluation and
recommendations of the
client business
•3-5 years of experience
•Leads a consulting team
•Dealing with the client team
•Ability to take
responsibility in running
small consultancy project
•5-10 years of experience
•Developing firms product
•Responsible for building
relationship with its client
•Involved in some large,
complex consulting
projects
•Most experienced
consultant
•Responsible for the
development of the
organization
•Leads strategic
development
•Over-all responsibility for
12. OVERVIEW OF MAS BY CPAS
MANAGEMENT CONSULTING
Independent and objective advisory
service provided by qualified persons to
clients
Recommend solutions or suggested
actions with respect to the issues involved
Helps to effect constructive change in the
organization
13. OVERVIEW OF MAS BY CPAS
TWO TYPES OF ENCOUNTERS
1. Consultations
2. Engagements
•Providing advice and
information during a short
time frame
•Information provided is
orally
•Information are qualified to
limitations
•Analytical approach and
process is applied in a
study or project
14. OVERVIEW OF MAS BY CPAS
Independent
Viewpoint
• see the true
nature of the
problems
• distinguish
feasible and
infeasible
• unbiased
suggestion
Professional
Advisory
• possesses
special
knowledge,
skill and
variety of
personal
attributes
• introduce
new ideas
into the
organization
Agent of
Change
• catalyst for
change
Temporary
Professional
Service
• less
expensive
• temporary
professional
help
WHY USE MANAGEMENT
CONSULTANTS?
16. TYPES OF MAS ENGAGEMENTS
a) Nature of the Problem
b) Service Delivery Area
c) Phases of the Analytical Process
d) Techniques and Methodologies
Applied
e) Industry(or nature of
organization)
f) Geographical Area
17. NATURE OF THE PROBLEM
a. Corrective
b. Progressive
c. Opportunistic
Situation in which
conditions have
worsened.
Existing situation
that can be
improved.
Situation in which a
future opportunity
exists.
18. SERVICE DELIVERY AREAS
o functions or activities in which the problem
exists.
Example:
1. General Management
2. Manufacturing
3. Personnel
4. Finance and Accounting
General Accounting
Cost Accounting
Capital Investment
19. PHASES OF
ANALYTICAL PROCEDURE
a. Identifying objectives
b. Defining the problem
c. Finding out the facts
d. Developing the solution
e. Implementing the solution
22. AREAS OF MS PRACTICE
1. Management functions of analysis, planning, organizing
and controlling.
2. Introduction of new ideas, concepts and methods to
management.
3. Improvement of policies, procedures, systems, methods
and organizational relationships.
4. Application and use of managerial accounting, control
systems, data processing, and mathematical techniques
and methods.
5. The conduct of special studies, preparation of
recommendation.
23. TYPES OF CONSULTANCY WORK
A. Business planning and development or Project
feasibility studies
B. Information systems consulting
C. Management / Operations audit
D. Business process improvement / reengineering
E. Others such as
1) Marketing Research
2) Marketing Strategy Development
3) Developing promotional campaign
4) Planning sales force activity
5) New product development
6) Developing proposal for financial support
7) Staff Recruitment
8) Exporting and international market
24. BUSINESS PLANNING AND DEVELOPMENT
(PROJECT FEASIBILITY)
o Effective consultant can use the project
proposal to establish exactly what the
client wants and to manage his or her
expectations about what can
realistically be achieved.
25. INFORMATION SYSTEMS CONSULTING
Information needed:
Business’s external situation and its
internal state.
Operational Audit are conducted to
evaluate the effectiveness and/or efficiency of
operations.
MANAGEMENT / OPERATIONS AUDIT
26. BUSINESS PROCESS IMPROVEMENT /
REENGINEERING
o It is the complete redesign of a process with
an emphasis on finding creative new ways to
accomplish an objective.
o It involves developing new ways to perform
existing activities and ways to stop
performing non-value adding activities.
27. OTHER TYPES OF CONSULTANCY WORK
o Process through which managers
discover the nature of the competitive
environment in which they are operating.
MARKETING RESEARCH
TWO TYPES:
1. Primary Research
a. Quantitative Research
b. Qualitative Research
2. Secondary Research
28. OTHER TYPES OF CONSULTANCY WORK
MARKETING STRATEGY DEVELOPMENT
Defines the approach the business will take
in order to get the customer’s attention and
get them to spend their money on the
business’s products or services
DEVELOPING PROMOTIONAL CAMPAIGNS
Any program of activities dedicated to
informing customers about a product,
stimulating their interest and encouraging
purchase.
29. OTHER TYPES OF CONSULTANCY WORK
PLANNING SALES FORCE ACTIVITY
Overall organization of the team
Sales team training
Sales team motivation
Planning sales campaigns
30. OTHER TYPES OF CONSULTANCY WORK
NEW PRODUCT DEVELOPMENT
Understanding the customer’s needs through market
research
Technical advice on product development
Identifying and contacting suppliers of critical
components
Development of marketing and PR campaigns to
support the launch
Developing promotion campaigns to get distributors on
board
Financial planning and evaluation of the return on new
product investment
31. OTHER TYPES OF CONSULTANCY WORK
DEVELOPING PROPOSALS OF FINANCIAL
SUPPORT
Evaluation of the business’s investment
needs
Identification of funding providers and how
they might be contacted
Developing an understanding of the criteria
employed by funding providers and how
these might be addresses
Developing communications with funding
providers
32. OTHER TYPES OF CONSULTANCY WORK
STAFF RECRUITMENT
Assessing the firm’s human resource
requirement and identifying skill and knowledge
gaps
Creating advertisements to attract the right
people
Development assessment criteria, interview
procedures and psychometric testing of
candidates
Advice on the reimbursement packages new
recruits will expect
33. OTHER TYPES OF CONSULTANCY WORK
EXPORTING AND INTERNATIONAL
MARKETING
34. IN PARTICULAR THE CONSULTANT CAN
SUPPLY:
An overall insight into regional, social and
macroeconomic development
An analysis of the growth and evolution of
specific markets
An evaluation of consumer needs and
requirements and how these are being
satisfied currently
35. IN PARTICULAR THE CONSULTANT CAN
SUPPLY:
Information on regulatory and legal issues
Details of the existing supply structure and
competitors present
An investigation into distribution channels and
possible partners
Information on advertising and promotional
opportunities
38. I. TRADITIONAL SERVICE
B. Design and Appraisal of Accounting System
1. Development of an accounting system for newly-organized
firm
2. Revision, partial or complete, of an existing accounting
system
3. Extension of the present accounting system to cover new
business activities.
4. Accounting service in general
5. Accounting Machines installation
6. Internal Control Studies and Installation
C. Financial Management- related services
D. Project Feasibility Studies
39. II. EMERGING CONSULTANCY SERVICES
Global Risk Management Solution
Managing totality of risks-financial, operational
and systems, and strategic to improve financial
and business performance.
1. Financial Risk Management
2. Strategic Risk Management
3. Operational and Systems Risk
Management
4. Compliance Risk Management
5. Internal Audit Services
40. II. EMERGING CONSULTANCY SERVICES
Transaction Services
Involves services related to mergers, acquisition,
divestitures, joint ventures, spin-off and strategic
alliance
Financial Advisory Services
CPA’s provide financial, economic and strategic
advice to companies with complex business
problems and disputes.
41. II. EMERGING CONSULTANCY SERVICES
Project Finance and Privatization
Involves management advisory services related to
partnership between the public and private sectors in
delivering infrastructure and services or privatization
and project finance.
Valuation Services
Guide clients through complex business
transaction such as acquisition or divestiture of
investment, debt structuring and finance-raising,
entry to major stock exchange, mergers.
42. II. EMERGING CONSULTANCY SERVICES
Business Recovery Services
CPA’s provide services to troubled business by
emphasizing on the implementation and
rationalization and recovery programs designed
to rebuild value.
Dispute Analysis and Investigations
Environmental analysis, real estate damage,
investigative services, construction disputes,
investigative services, economic and financial
analysis.
43. II. EMERGING CONSULTANCY SERVICES
Computer Risk Management
Help client understand and manage their
business risks relating to implementation and use
of technology
Application Software Selection and
Implementation
Assist clients in prioritizing their needs, identifying
the right software and tailoring it to meet their
specific requirement.
44. DETERMINING SCOPE OF SERVICE
1. Responsibility to establish scope of
services
2. Independence
3. Competence
4. Requirement for specialization
5. Identification and Resolution of client’s
basic problems
6. Referrals
7. Code of Professional Ethics
45. TYPES OF CLIENTS SERVED
Types of
Clients
Served
Contact
Clients
Intermediate
Clients
Primary
Clients
Unwitting
Clients
Indirect
Clients
Ultimate
Clients
46. GROUP OF CLIENTS THAT CPA’S CAN
PROVIDE MAS
1. Privately-owned Business firms
2. Governmental Agencies and Organization
3. Not-for-Profit Nongovernment Organization
4. Professional Association
5. Others
47. THE DECISION TO USE AN
ACCOUNTANCT
A. What can I offer the client business that will
enhance its performance and help achieve its
objectives?
B. Why will my contribution be more valuable than
that which existing managers and potential
recruits can contribute?
C. How can I communicate to the client business
than what I offer is valuable?
48. Provision of Information
• Information is valuable to a business
• It has a cost
• Information is a resource that must be managed
Provision of Specialist Expertise
• Require the application of technical knowledge and
an ability to use specialist analysis techniques
Provision of a New Perspective
• Managers are not decision making automata
• 'cognitive maps', 'mindsets', or 'dominant logics' are
used by managers to see their managerial world
• Consultant can offer a fresh mind to an issue
PROVISIONS
49. PROVISIONS
Provision of Support for Internal Arguments
• Disagreements arise over a wide range of issues
• Conflicts of opinion take a variety of form
Provision of Support in Gaining a Critical
Resource
• Organization must attract resources in order to
survive
• One of the manager's most critical function is
attracting resources on behalf of the firm
• Consultant can be of great value in structuring a
proposal and advising on how it might be delivered
50. PROVISIONS
Facilitating Organizational Change
• Organizations change all the time
• Managers change their roles and responsibilities
• Change usually meets resistance
• Sometimes organizations call for change as the
primary goal of the consulting exercise
51. FACILITATING
ORGANIZATIONAL CHANGE
Organizations
change all the
time
Managers
change their
roles and
responsibilities
Change
usually meets
resistance
Sometimes
organizations
call for change
as the primary
goal of the
consulting
exercise