III.

Conducting a Consulting Assignment

a. Problem Identification and Desired Outcome
Problem definition is the first phase of the problem-solving process and its position in the
process is well-established. The term problem definition assumes a variety of meanings
since it is used by numerous parties in reference to a wide variety of problem-solving
situations. A generally accepted definition however may be expressed as follows:
“ A problem is said to exist when the observed behavior of a system or process violates
the bounds of reasonable expectations.”

This definition usually requires the existence of the following factors:

a) Human awareness of the problem
b) Predefinition of the allowable tolerances, and
c) Recognition of the established standards

Problem Definition Phase

The problem definition phase begins with the initial recognition of a symptom pointing to
the problem and ends with the complete problem description. Key facets of the problem
description include among others:
1. Identity of the problem
2. Objectives of the problem-solving process
3. Scope of the problem
4. Intensity of the problem
5. Time dimension of the problem
6. Location of the problem
7. Human elements involved in the problem
8. Support system surrounding the problem
9. Tracking system related to the problem
10. Institutional process for managing the problem

Identity of the Problem

The first question asked and the last question that a consultant answers during the
problem definition phase is: What is the problem?
The final answer to this question will emerge only after completing two procedures,
namely:
 1. Problem finding, and
2. Problem stating

Problem finding involves the identification of the

a. Reasonable explanations pertaining to a system or process, and
b. Allowable tolerances from these reasonable expectations

Problem stating involves the formulation of a comprehensive and valid statement of the
problem. This may represent an expanded and polished version of the initial statement.
The final statement of the problem should contain such facets as:
a. The objectives to be achieved by the solution to the problem;
b. The problem’s scope, intensity, time dimensions, and
c. Location; the human elements involved in the problem;
d. The support system and tracking system related to the problem solution; and
e. The institutional process for managing the problem

Objectives of the Problem-solving Process

The desired outcome is generally the objective of the problem-solving process and
should be permanently expressed in the problem definition statement in terms of clear-
cut expectations or benefits. The nature of objectives depends upon the type of
problems, as well as the system or process involved. It may be expressed quantitatively
with designated time horizon.

Scope of the Problem

A clear statement of problem scope should suggest the extent of the needed response
or solution to the problem. It might also point to the need for repackaging the consulting
engagement. For instance, if the scope is discovered to be immense and to extend to a
variety of activities, it may be desirable to break the engagement into a series of smaller
problem areas. Each partial problem can then be solved more easily, and the solutions
can be contributed to attack the overall problem.

Intensity of the Problem

Another key aspect of the problem is its intensity - that is, the degree of difficulty or
adverse effects they bring to interested parties. The level of intensity may determine the
relative urgency and importance of initiating a particular problem-solving process.

Time Dimensions of the Problem

With the time dimensions of a problem, answering the following questions Is important
and will help in the development of a solution.
a. How long has the problem existed?
b. How much longer is the problem likely to continue if left unsolved?
c. How often is the problem likely to occur in the future?

Location of the Problem

The location, or focus, of the problem is the geographic point or points where it occurs.
While in most problem situations the location can be easily determined, in some extreme
situations the location may require laborious retracings of tangled paths. In every
situation, however, pinpointing the location is necessary to provide a complete
description of the problem.

Human Elements of the Problem

Human-related elements should be identified and assessed in the statement of the
problem. Examples are:
a. Attitude of involved managers and employees
b. Personal traits of involved managers and employees including intelligence,
motivation, leadership, quality, dependability, trustworthiness and interpersonal
skills
c. Training of involved managers and employees
d. Tenure of involved managers and employees
Another human-related element that may often appear in the problem statement is the
prevailing political climate. An assessment of this climate should be included as well as
an assessment of the priorities that have been established by the policy-makers.

Support System Surrounding the Problem

 Elements that comprise a support system should be identified in the problem statement
together with an analysis of their functional or dysfunctional effects upon the problem.

Tracking Systems Related to the Problem

A tracking system often detects a problem. The problem statement should reveal:
a. How the problem was brought to light
b. Whether the problem was detected by a tracking system so designed for the
purpose, or by another means (if not detected by the tracking system so
designed for the purpose, why the tracking system failed)
c. Whether tracking systems other than the one designed for the purpose should
have detected the problem
d. Whether tracking systems are available to monitor the situation reliably, as well
as to measure the degree of improvement in the process or system due to an
implemented solution

Institutional Process for Managing the Problem

Problems in an organization are managed through an institutional process. The process
may be informal in nature, with the management tasks being assigned quickly and with
little written evidence. On the other hand, it may be quite formal, involving a chain of
command and such written evidence as elaborate charts and graphs. The degree of
informality or formality in the institutional process may extend outside the organization
structure to encompass customers, lenders, suppliers, and consultants.

b. Identification of Suitable and Accurate Sources of Information and Data Gathering

Facts helps the consultant in sorting out clients symptoms from client problems
as well in structuring and organizing problems. They form the foundation for prospective
solutions and direct the consultant to the solution ultimately rendered. Because facts
serve such important functions, the consultant must be resourceful in fact gathering and
skillful in fact analysis.

Internal Sources
 a. People are the most important source of facts. The term people includes not only
a client’s management but also its clerical marketing and population employees.
b. Client’s Documentations are the second important source of facts. Most
organization classify their documentation that describe:
i. How organization is structured
ii. What is the organization has been doing
iii. What the organization plans to do
c. Relationship is the third important source of facts. Defining the relationship
among people, departments, and functions can provide you with information and
insights unknown or undocumented anywhere else within the organization.

External Sources
Sources from outside the organization provide many facts about the company. For
example, facts may be gathered from customers concerning their perception of the
client’s products and services as compared to those of the major competitors. A
company’s sales forecast may also be tested for reasonableness be comparing them to
projections obtained by an econometric model of the company.

Fact - Gathering Techniques

The following techniques are available for gathering facts concerning the underlying
problems:
a. Interviews
b. Questionnaires
c. Observation
d. Document Gathering
e. Charting
i. Organization Chart
ii. Data Flow diagram
iii. System outflow
iv. Detail Flowchart
v. Decision table
vi.
c. Data Analysis and Diagnosis
In most consulting engagements, a consultant needs to apply a variety of fact analysis
techniques. Four representative approaches to analysis
a. Decision-Level
b. Input/Output
c. Structured, and
d. Unstructured

Decision-level Analysis
Decision-level analysis has the purpose of depicting the varied interrelationships among
the decisions made throughout the segments and levels of organization. It is useful in
demonstrating to client management the variety and kinds of decisions that the
organization must take.

Input/Output Analysis
A problem situation may be analyzed in terms of its inputs and outputs. It should be
noted that while each input and output is described, nothing is included concerning the
process (i.e, how the input is converted to output) the data requirements, or the related
decisions.

Structured Analysis
The key assumption underlying this approach is that any organization is comprised of a
number of well-defined functions, which in turn are made up of a group activities. By
focusing upon these functions and supporting activities, you can gain a clear
understanding of the inputs processing, and outputs of the organization.

Unstructured Analysis
There are at least two unstructured approaches that can help extract and analyze facts.
These are:
a. Brainstorming, and
b. Delphi Approach

Analysis Strategies
a. Categorization
 b. Classification
c. Numerical Analysis
d. Association
e. Correlation
f. Causation

Reference: Management Consultancy: Principle and Engagements

By Ma. Elenita Balatbat Cabrera