Literature Review on Consultancy Methodologies

Faye Wood

Purpose of the literature review

As part of my role at the X unit Personality Disorder Treatment Service, I have been asked to complete a piece of consultancy work related to the recruitment of new discipline staff to the unit. Specifically, I have been asked to evaluate the existing interview and selection process and suggest ways in which this process could be improved. I therefore intend to use this literature review to develop my understanding of the history of consultancy, qualities of an effective consultant and specific models and methodlogies. Having this knowledge will subsequently enable me to better define my consultancy role, and ensure that I am practising in an evidence-based way. With this, included here will be a brief overview of the history and development of consultancy, a review of some of qualities needed, models / methodologies, and my own evaluation of their relevance to the work I have been tasked with.

What is consultancy?

Consultancy is the practice of helping organisations to improve their performance, usually by analysing existing organisational problems and developing plans for improvement. Organisations may draw upon the services of management consultants for a number of reasons, these include the desire to gain external, objective advice about a problem, or to draw upon the expertise of the consultant. Chapman (1998) suggests that the role of a consultant can vary depending on the situation and nature of the problem with Blundson (2002) suggesting that consultancy is needed when managers are aware that there is a problem within their organisation, but are not sure of what they need to do to fix the problem. Further to this therefore is the suggestion that the consultant should provide a “sense of control” within a situation, thereby “assisting them in the relief of any anxieties” (Blundsdon, 2002).

There appears to disagreement within the literature regarding the extent to which the consultant should be involved in the implementation of the solution. For example, Steele (1975) describes consultancy as “any form of providing help on the content, process, or structure of a task or series of tasks, where the consultant is not actually responsible for doing the task itself, but is helping those who are”. However a later definition from Kakabadse (1986) describes consultation as “continued development of the organisation by helping to diagnose problem areas, generate new strategies, implement solutions and review the continuous progress of change and development”.

The literature also highlights disagreement about the extent to which a consultant should be considered a specialist service. For example, Greiner and Metzger (1983) describe consultancy as “an advisory service contracted for and provided by organisations by specially trained and qualified persons” whereas this term is not seen in other definitions (e.g. Kubr, 1996) due to the fact that not all consultants are specifically trained.

Overall therefore from reading the literature related to consultancy, it appears that there is no single definitive description of exactly what activities a consultant undertakes. However, there are a number of differing models / methodologies which can be drawn upon to provide a framework in which consultancy work can take place. A selection of these methods will be discussed further in this review.

A history of consultancy

Organisations which specialised in management advice first emerged in the late in the industrial age. The first recorded instance of a management consulting firm being established was in 1890 by Arthur D Little who was a Technology Professor at the Massachusetts Institute of Technology (“Consulting ideas,” n.d.). However, due to the initial purpose of this firm being technical research, and with it only later on becoming a management consultancy firm, it is generally considered that Frederic Tailor’s “Treatise on Scientific Management”, published in 1911 marks the beginnings of business consultancy (Pellegrinelli, 2002). The field of consultancy grew in magnitude from the 1930s onwards and was driven by demand for “advice on finance, strategy and organization” (Kipping, 2002). However the biggest period of growth within the industry occurred in 1980s and 1990s as a result of an increased need for advice on Information Technology (Canbeck, 1998). Although consultancy has traditionally played a role in the mainstream private sector, consultancy can also play a key role in improving the functioning of criminal or civil justice organisations also (Ireland, 2010).

Approaches to consultancy

Just as there is no one single accepted definition of consultancy, there is no one single approach. Whilst there seems to be a consensus that consultation involves “a joint effort at problem solving” (Alpert & Meyers, 1983) there are a number of consultation models which represent the differing roles a consultant can take within the process.

There are many different types of consultants, and the role they take will depend on their position within the organisation. External consultants are those who do not hold an existing position within the organisaiton, whereas internal consultants are exisiting employees. The diagram below suggests that the role of the consultant can be viewed as being along a continuum; at one end are the full time consultants who are likely to be external to the organisation. Kakabadse (1986) describes these consultants as having “well developed and refined package solutions”. At the other end are consultants who tend to be more process led, but could internal or external. What is clear is that there are advantages and disadvantages to both internal and external consultants. An external consultant may bring greater levels of objectivity and independence, however internal consultants are likely to be more cost effective and are easier to access (Kakabadse, 1986).The diagram below demonstrates the range of approaches a consultant may take depending on their role and the level of involvement taken by the client.

Advocate Informal Expert Trainer/Educator Joint Problem Solver Alternative Identifier Fact Finder Process Counsellor Objective Observer     

Directive Non-directive

Task Oriented Process Oriented

(Adapted from Lippitt, G. & Lippitt, R. (1986). The Consulting Process in Action (2^nd Ed). United States of America: Pfeiffer & Company)

The orietnation of the consultant (i.e. whether they are considered to be a specialist service, or whether they are contracted to help with a process, will according to Marguiles and Raia (1972) affect the approach they take. That is to say, an “expert” consultant would be more likely to be more task oriented and will make specific recommendations at the end of the consulting process. Whereas a “process facilitator” would focus more on helping the client to develop their ability to solve their own problems and may work longer term with the client. As the diagram above suggests, the role of the consultant within the process is not fixed and may change depending on the client’s needs.

What is clear from the literature is that within any consulting relationship there is a power imbalance between the consultant and the client. As mentioned previously, a clients’ need to seek a consultant can often be driven by uncertainty and anxiety, this can often mean that the consultant is seen as the sole person who is able to relieve these anxieties by providing a solution to the problem (Lundberg, 1997). However McLachlin (1999) suggests that the consultancy process is at its most effective when the client and the consultant share the responsibility for change. Kubr (1996) highlights that whilst consultants can be involved in the implementation phase of the process “they have no direct authority to decide on changes and implement them”. This emphasises then the need for the client to take some responsibility for the success of the consultancy with Shenson (1990) suggesting that the responsibility should be split 50% between the client and 50% between the consultant. Whilst this is not a definitive figure, what is clear is that there is a need for the client to be involved in the consulting process to some extent.

Schein (1990) proposed three models of consultation:

• The supplier-purchaser model – This involves the purchase of skilled expertise
• The doctor-patient model – Here, the consultant uses their experience and knowledge to identify solutions to problems
• The facilitator – peer model – Here the consultant acts as more of a facilitator to the client and in so doing is acknowledging that the client themselves has some expertise to contribute to the consultancy process.

These three models provide a simplified conceptualisation of the variety of consultancy roles and as such are widely accepted as the core approaches to consultancy.

The stages of consultancy

Within the consultancy process, the consultant and the client undertake a clear and defined set of activities which allow the desired outcome to be reached. Within the literature, a number of different ways of dividing the process have been proposed ranging from three to ten phases. However, what is clear is that despite the number of phases proposed, there is a similar process to be followed for each. Although a universal model cannot and should not be applied to all situations, it is useful to follow a framework as follows:

Entry

This first phase is the preparation and planning phase and is considered to be an extremely important part of the process. Kubr (2002) states that this phase “lays the foundations for everything that will follow, since the subsequent phases will be strongly influenced by the quality of conceptual work done, and by the kind of relationship that the consultant establishes with the consultant at the beginning. Typical activities in this phase include agreeing objectives, timeframes and budgets etc. This phase should also include a discussion of, and clarification on the respective roles of the client and consultant (Kubr, 2002).

Diagnosis

This stage involves an “in depth diagnosis of the problem to be solved” (Kubr, 2002). The key to this stage is co-operation between the client and consultant in order to establish a clear picture of the problem to be solved. Kakabadse (1986) refers to this stage as “mapping” i.e. deciding whether the original objectives can be achieved.

Action Planning

After a thorough analysis of the data and providing feedback to the client, actions can then be planned and agreed. This phase can involve producing several alternative solutions to the problem which are then presented to the client. Lippitt and Lippitt (1986) suggest that problems can be encountered at this stage of the process if there are potentially unwanted consequences to the plan (for example, job losses). They also suggest that a client may be reluctant to make changes at this point, or may wish to rush the process, both of which can be problematic at this stage.

Implementation

As discussed, there is disagreement here about the extent to which the consultant should be involved in the implementation process, and the decision to do so will largely depend on the needs of the client and the task at hand. This phase provides the “acid test for the relevance and feasibility” of the proposed plan. At this stage, unforeseen problems may arise, and as with action planning stage, readiness to change will be an important factor at this stage (Kubr, 2002).

Termination

This phase includes several activities including the evaluation of the process by both the client and the consultant, the production of a final report and any follow up arrangements agreed. Once these activities are concluded the project is terminated by mutual agreement.

Qualities of an effective consultant

There appear to be a number of necessary qualities which contribute to the effectiveness of a consultant. Firstly, a consultant must possess a great deal of skill and expertise (Ireland, 2010). Specifically, a consultant should have sufficient knowledge of the subject they are being asked to consult in, as well as knowledge of the inner workings of the organisation for which they have been asked to provide consultancy (Kakabadse et al. 2006). As discussed above, this does not necessarily mean that the consultant will take on the role of “expert” however it is generally considered that the consultant will have a level of skill and knowledge to enable them to confidently take on the role of the consultant. Leadership qualities such as openness, transparency and collaboration are considered particular important here (Lippitt & Lippitt, 1986).

The literature also highlights the need for consultants to possess a high level of self-awareness and the need for regular self-reflection throughout the process. Hawkins and Shohet (2012) recommend that the consultant incorporate a number of questions into their reflective practice, noting their own thoughts, feelings and bodily sensations that could be acting as a barrier to the consultancy process.

One of the main concerns for the consultant throughout the consultancy process is the experience of the client. Within this, special consideration is given to the development of an effective relationship between the client and consultant. Marks (2013) describes the relationship between the consultant and client as “critical” to the success of the process and states that the role of the client is to “adapt the style of working to suit each clients’ specific requirements”. Ireland (2010) highlights the importance of effective listening skills in order to accurately understand the presenting problem, as well as having an appreciation of the wider context in which the organization operates

Conclusion

Having reviewed the literature, what is clear is that there are numerous different methodologies which can provide a useful framework to follow when undertaking a piece of consultancy work. The most suitable model, and the role of the consultant within this will depend largely on the needs of client and the piece of work to be undertaken. In general, various approaches to consulting can be thought of as lying somewhere along a continuum, with an ‘expert’ or prescriptive approach at one end, and a facilitative approach at the other. It is possible that the consultant will move along this continuum at varying points within the consulting process. There are also a number of key qualities which combine to make an effective consultant. When considering the literature in relation to the piece of work I have been commissioned to undertake there are a number of things which I will need to take into consideration:

• My approach to the consultation process, specifically where I fall along the proposed continuum.
• My role as an internal consultant and the need to ensure that I am aware of and am able to manage any bias this might incur.
• The use of supervision and self-reflection to manage any barriers to the consultation process.
• The need to keep the client and their needs at the centre of the process
• The need to follow the five phases of the consultancy process.

References

Alpert, J., & Meyers, J. (1983). Training in consultation. CC Thomas.

Blunsdon, B. J. (2002, August). Beneath fashion: why is there a market for management consulting services?. In BJ Blunsdon Professional Service Firms Workshop University of Alberta, Edmonton, Canada August.-2002 [Electronic resource]: Ðœode of access: http://canback. com/archive/blunsdon. pdf.

Canbäck, S. (1998). Transaction Cost Theory and Management Consulting. Why Do Management Consultants Exist.

Canback, S. (1999). The logic of management consulting: Part 2. Consulting to Management, 10(3), 3.

Chapman, J. (1998). Do process consultants need different skills when working with nonprofits?. Leadership & Organization Development Journal, 19(4), 211-215.

Consulting Ideas. (n.d.). Retrieved December 28, 2016, from http://consulting-ideas.com/

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Hawkins, P., Shohet, R., Ryde, J., & Wilmot, J. (2012). Supervision in the helping professions. McGraw-Hill Education (UK).

Ireland, C. A. (2010). Consultancy and advising in forensic practice: empirical and practical guidelines.

Kakabadse, A. P. (1986). Consultants and the consultancy process. Journal of Managerial Psychology, 1(2), 28-36.

Kakabadse, N. K., Louchart, E., & Kakabadse, A. (2006). Consultant’s role: a qualitative inquiry from the consultant’s perspective. Journal of Management Development, 25(5), 416-500.

Kipping, M. (2002). Trapped in their wave: The evolution of management consultancies. Critical consulting: New perspectives on the management advice industry. Oxford: Blackwell, 28-49.

Kubr, M. (1986). Managing consulting: A guide to the profession.

Kubr, M. (2002). Management consulting: A guide to the profession. International Labour Organization.

Lippitt, G., & Lippitt, R. (1986). The consulting process in action (2^nd Ed.). United States of America: Pfeiffer & Company.

Lundberg, C. C. (1997). Towards a general model of consultancy: Foundations. Journal of Organizational Change Management, 10(3), 193-201.

Margulies, N., & Raia, A. P. (1972). Action research and the consultative process. 1972) Organisational Development, Values, Process and Technology. New York: McGraw-Hill.

Marks, T. (2013). Discussing three models of client: consultant collaboration for effective training interventions–a case study approach. Industrial and Commercial Training, 45(7), 406-411.

Pellegrinelli, S. (2002). Managing the interplay and tensions of consulting interventions: The consultant-client relationship as mediation and reconciliation. Journal of Management Development, 21(5), 343-365.

Schein, E. H. (1990). A general philosophy of helping: Process consultation. Sloan Management Review, 31(3), 57-64.

Shenson, H. L. (1990). How to select and manage consultants: A guide to getting what you pay for. Lexington Books.

Steele, F. (1975). Consulting for organizational change. Univ of Massachusetts Press.