CHAPTER 11 MANAGING THE QUALITY OF 3.

the system employs satisfactory methods and

CONSULTING MANAGEMENT techniques that are within the sphere of
competence of the majority of client personnel.
The specific objectives of project evaluation and controls are:
4. The presentation and format of all procedures,
1. To provide assurance that the project is on schedule documentations and coding are neat, well organized
and within budget. and in conforme with established client standards.

2. To communicate the exact project status of all A quality assurance program includes the following
concerned personnel. components:

3. To ensure that a quality product will be 1. Independent reviews, and

implemented.
2. Quality assurance checklists.
The project controls generally include the following:
Independent Reviews
1. Administrative Controls
These reviews should be performed by someone who:
- project controls are formed at the organizational
a) is not associated with the project, and
stage of the project to provide overall guidance and
control to the implementation process. b) has a skill level at least as high as that of the
project leader.
The administrative framework would normally consist of:
Quality Assurance Checklists
1. one or more client management committees, with
representatives from the user areas. These checklists contain a series of questions concerning the
quality of work performed and should be
2. the top (executive) management, and
a) prepared by the project supervisor
3. the information processing services department.
responsible for the work, and
2. Time Reporting and Analysis Procedures
b) reviewed by both the project leader and the
- are necessary to keep the project within its time independent reviewer.
schedule and peso budget.
Maintaining Controls Over Competence and Service Quality
These procedures aim to accomplish the following objectives:
1. An operational definition of its practice
1. to provide project management with information scope, including a list of services that it
necessary for planning administering and controlling desires to provide.
the project.
2. A clear understanding of its clients, their
2. to prepare and control the project work program requirements, and the services that the firm
updates. might propose providing to each.

3. to account for all time used on the project by the 3. The standards by which proposed services
team members. are to be evaluated with respect to their
suitability for delivery.
3. Independent Quality Assurance Reviews
4. The criteria by which needed personnel are
- another means of control over projects are the
to be recruited.
quality assurance programs.
5. The programs for the achivement of needed
Among the more important objectives of quality assurance
staff development.
are to ensure that:
Types of Controls
1. the system satisfies all user requirements and its
operable on a day-to-day basis without assistance. 1. Preventive Controls (before-the-fact controls)

2. the system is being developed within the time frame -These controls establish benchmarks of expected
and costs estimates originally agreed upon. performance, i.e., standards of comparison.

2. Feedback Controls (after-the-fact controls)

-These are generated by measuring actual performance and
comparing it with the expected performance.
Through the use of these two types of controls, the
following situations may be observed.
A. When the actual performance are in reasonable
agreement with the expected performance, the activities can
be viewed as preceeding according to plan;
B. When the actual performance differ from the expected
performances but steps or measures are promptly taken to
correct defeciencies, the activities can be viewed as “in
control”.
C. When the actual performances differ significantly from the
expected performance and the differences remain or increase
over time, the activities can be generally viewed as “out of
control”.
To ensure the maintenance of sound controls over
competence and quality of services of the consulting firm,
the following steps may be taken;
1. Service review
2. Appointment of a practice director and service coordinator
3. Engagement analysis
4. Staff evaluation
Perform Service Review
Annual service reviews should be conducted for the purpose
of assessing the consulting firm's objectives, offered services
and record of competence in the provision of service since
the last review.
Appoint Practice Director
A person designated as practice director should be appointed
in order to establish responsibility for practice competence
and quality control. This person should also
a. Propose practice goals and supervise the overall service
planning process.
b. Be responsible for practice conduct.
Appoint Service Coordinator
A service coordinator should be appointed to administer daily
operations related to the provision of management and
consulting services. Among the responsibilities of this
position in relation the competent delivery of services are
a. Assign appropriate staff consultants to engagement after
consultation with managers-in-charge.
b. Obtain positive evidence that the delivery of services on
each engagement is in accordance with firms policies.
c. Pinpoint and report knowledge or skill deficiencies and
recommended staff development steps to correct them.
d. Coordiante all practice development activities, including
the screening of prospective engagement.
e. Devise and administer a plan of staff training, consisting of
both on-the-job and formal training courses.
Perform Engagement Analysis
A record of all engagements, even those that were very small
or for which no fees were collected should be kept by the
consultancy firm. The following information with the respect
to each engagement should be recorded for future reference
and/or reporting;
1. Client including name, address, servive location(s), client
control, referral (if applicable)
2. Engagement service classification code
3. Other engagements with this client
4. Staff consultant who were assigned to each engagement,
their tasks and hours spent on each task.
5. Total engagement hours, billed as well as those not billed
(inclusing explanation
6. Summary of other costs
7. Closing date of each engagement
8. Engagement evaluation and recommended follow-up
Perform Staff Competence Evaluation
An evaluation of the competence and related attributes of
staff consultants, managers and partners should be done at
least annually.
The procedure and content of staff competence evaluation
will vary from firm to firm and among staff levels. However,
there are certain steps that are common to all evaluations,
These are
1. The evaluator should study the following pertaining to the
staff members being evaluated;
a. personnel file
b. file of engagement participation
c.file of competence and experience
2. The evaluator should make certain that the engement file
fully reflects all information concerning all engagements in
which the staff member participated.
3. The evaluator should complete a competency evaluation
checklist.
4. The evaluator should meet personally with the staff
members to discuss the evaluation itself.
A Competency Evaluation Checklist for Consultants
Staff Consultant
1. Are the performance evaluations by managers and
partners satifactory?
2. Has this consultant participated in a training program?
3. Are client comments concerning this consultant favorable?
4. Is this consultant cooperative?
5. Have the knowledge and skill acquisition goals set during
prior evaluations been achieved (or pursued satisfactorily)?
6. Is this consultant interested in setting high (yet achievable)
learning goals?
ORGANIZINGTHE PRACTICE
FINANCING REQUIREMENTS
TIME SCHEDULING
BILLINGS AND COLLECTION
FINANCING REQUIREMENTS
A consulting practice is business and, like all businesses, must
have financing.
Financing can be provided by capital invested by the present
consultant or by funds borrowed from banks and others.
TIME SCHEDULING
To develop multiple consultant engagements, the consultant
will have a problem of time scheduling.
BILLINGS AND COLLECTION
Certainly one of the consultant’s most important
considerations is how he/she establishes professional fees.
BUILDING THE PRACTICE
Initial Client Base
The starting point for a new consulting practice is
usually one or more clients who provide the base.
Positioning the practice
Practice Development Network
- The development of an ongoing source of revenues is critical
to the success of the consulting practice.
Monitoring Results
Performance Measure
-Every business needs to maintain some type of scoreboard
to determine whether or not it is achieving its goals and
objectives.
-An important part of any consulting practice is establishing
quality control standards to ensure that the work is properly
performed.
CHAPTER12 MANAGEMENT OF THE
CLIENT RELATIONSHIP
Management of client / Consultant Relations
Maintain two key relationship:
• The consultant and the problem-solving process.
• The consultant and the client.
A requisite to the successful conduct of the problem-solving
process is a harmonious relationship with the client.
Relationship must also be established by the consultant
with other personnel of the client's organization
• Administrators and Employees who have
information and facts concerning the problem
situation.
• Managers and Employees who are likely to be
affected by the implementation of solution to the
problem solution.
• Managers and Employees who are assigned to
perform tasks under the consultant's guidance
• Managers and Employees who are assigned to serve
as liason's on a daily basis between the consultant
and higher level managers on other organizational
units with the support systems.
How to develop and maintain harmonious relationships.
• The consultant from the very start of an
engagement, should aim to develop a sense of trust
and openness.
• Harmonious relationships may be achieved through
botg written and oral means.
• Several presentations will probably be needed, since
each presentation should invovle a relatively small
 group of employees and managers from one of the
affected areas.
• Harmonious relations can also be established
through a round get-acquainted interviews.
• The consultant should reflect attitude of helpfulness,
may maintain an open-door policy, welcoming the
questions and communications of anyone at any
time.
• The consultant should not directly tell the client
what decision to made and how to solve the
problem. Instead, the consultant should
diplomatically guide the client toward the solution.
MANAGING CLIENT EXPECTATIONS
• An important aspect of maintaining harmonious
relationship is managing the expectations that are
being developed. The main danger is of creating
expectations that cannot be met. It is particularly
easy to ‘over-promise’ something when selling the
project.
When communicating what the consulting project can do for
the business, the following should be observed:
• Be clear as to what can be offered.
• Be positive about what can be offered, but be
realistic.
• Be honest about the limitation of the project.
• When talking about limitations put then between
positive statements.
Credibility relates to the recipient’s perception of the
sender’s ability to satisfy the expectations being generated. It
is not once-and-for-all thing; it is on going thing which can be
built over time. Initially, however, credibility is provided
through evidence. In particular this will be center on the
following:
• Is what is being offered viable?
• Does the proposer have the expertise/ability to
make the offer?
• Are the necessary resources in place?
• How satisfactory have previous experience been?
• What’s the proposer’s reputation?
MAINTAINING CLIENT INTEREST
• The consulting team must keep the manager
informed and motivated about the project.
• Keep up the communication.
• Give the manager regular updates on the project and
how it is developing.
• Remind him or her of the outputs of the project and
the value these will have to the business.
• Check on how the business developing.
Creating Opportunities for Client Build-Up
A number of consultants could trace most of their current
business to the following sources:
• Business contract gains throughout the business
community
• Speeches in professional and business organization
• Books written from experience
• Referrals from speeches, books and articles
• Word-of-mouth referrals
Some suggestions on how business contacts can be
established and made
• Join at least three organizations that offer regular
meetings and the opportunity to interact with peers
in the industry.
• Create a reference library that includes marketing
resources and other publications.
• Establish a circle of informal advisors, and make it a
point to contact them once a month.
• Establish Collaborations with other consultants.
• Mail to clients items of interest.
• Mail to prospective client items of interest.
• Publish articles in relevant periodical.
• Offer probono work for community, government and
non-profit organizations.
• Accept speaking engagements at trade associations
and conferences
• Create a website
• Business listing in phonebook/yellow pages.
Selling of Consulting Services / Marketing Professional
Services
• New business opportunities for most professional
service organizations are created through activities
in four major areas. These are:
1. Present client activities
 2. Non-client relationships
3. Public relations or promotional activities, and
4. Potential client activities.
Present Client Activities
The core of most new business activities for all firms normally
emanates from the present clients. In the professional
environment, a start-up situation means providing services to
a single client or small group of clients and almost always
preceded by a decision to “start” a public accounting practice
or consulting services.
Retention
Many professional firms espouse quality services to current
clients and at the same time actively monitoring client
satisfaction.
Some activities that can be undertaken to monitor client
satisfaction are:
• 1. Gather evaluation of personnel and performance
through client satisfaction letters, surveys or
meetings.
• 2. Ensure that regular contact with significant client
is maintained by more than one key professional.
• 3. Develop client service planning which includes
detailed plans for providing additional services to
key clients.
Expansion of Services
• Another purpose of present client marketing is the
so-called “cross-marketing” of services to current
clients. Many consultancy firms have realized the
substantial potential in providing further services
beyond those originally proposed to the client. The
full range of consulting services being provided by
accounting firms is a further indication of the
development of a new business within the current
client base. Specialists in one area should be aware
of the services and expertise of their own colleagues.
They should encourage and facilitate meeting with a
fellow partner-specialist who could address the
client need.
Generation of Referrals
Satisfied current clients are the best single source of referrals
for additional clients of professional service firms. They
should develop and cultivate service and personal
relationship with clients that will encourage referrals when an
opportunity arises. Current clients should be made aware of
the firm’s full range of services through brochures,
newsletters, seminars and other programs.
Non-client Relationship- Third Party Referral Source
Activities
Another important activity that will facilitate building a
consulting practice is the development of relationship with
significant third-party referral sources. These referral services
oftentimes are fellow professionals who serve mutual clients.
Former clients are a particularly good source for new
business referrals if one is just starting a practice.
Promotional and Public Relations Activities
The third general area for marketing professional services
involves promotional and public relations activities and
includes a wide range of traditional as well as innovative
strategies.
Special activities that would fall under the heading of public
relations/promotion range from advertising:
• Institutional advertising
• Product and service-oriented advertising
• Newsletters
• Seminars and workshops
• Speeches
• Articles in professional or industry publications
• Press relations
• Trade shows
• Participation in community trade and professional
organizations
• Symposia and panels
Effective Promotional Activity
• It is important to remember that all public
relations/promotional activities should be designed
to establish contacts that can be enhanced on a
personal basis as a follow-up to the activity. If a
seminar is conducted, an attendance list should be
maintained so follow-up mailings and telephone calls
can be made to establish and enhance personal
relationships. A professional on a fund-raising
committee for a community activity should make a
point of getting to know other committee members.
PROMOTIONAL AND PUBLIC RELTIONS
 Institutional Advertising
 Product and service-oriented advertising
  Newsletters  Offer to transfer the skills to the client, if
appropriate.
 Seminars and workshops
Conditions that could justify abandonment
 Speeches
1. Beneath the growing fee structure
 Articles in professional or industry publications
2. Unchallenging
 Press relations
3. Providing a reputation that does not fit the
 Trade shows
consultant’s growth strategy
 Participation in community trade and professional
Conditions that could justify abandonment
organizations
4. Overly specialized
 Symposia and panels
5. Unable to attract the kind of talent the consultant
EFFECTIVE PROMOTIONAL ACTIVITY
wants in his firm
 Every public relations or promotional activities
6. Unable to attract the kind of references the
should be designed to establish contacts.
consultant needs
 For example, after a seminar, attendance sheet
7. In areas and industries that themselves are not
should be maintained for follow-up mailings and
growing
telephone calls
8. Unpleasant and/or rude and offensive people
SEMINARS
9. Unethical in its actions and/or borderline illegal
 It is a popular tool for many professionals to
demonstrate indirectly the quality of their firm’s 10. Harsh in its demands for travel, support and other
people and expertise to a large number of people. logistics

 It is an effective medium for communication of

expertise

 It is a popular tool for many professionals to

demonstrate indirectly the quality of their firm’s
people and expertise to a large number of people.

COMMUNITY INVOLVEMENT

 Ideally, it is an opportunity to “repay” their

communities.

 Participation in such events should be based on

one’s desire to contribute to the community

 While enhancement of image and generating

contacts should be secondary

ABANDONING CLIENTS GRACEFULLY

 Explain to the client that certain assignments cannot

be cost-efficiently handled any more. Other
consultants may be referred to the client.

 Establish alliances with younger consultants who

wants to learn, obtain business and network. Refer
bottom-end work to talented protégés.

 Provide the client with notice that the consultant will

be accepting lesser assignments. But continue to
exact same high-quality job on current assignment