Mervidelle F.

Castro

Management consultancy- Prelim

1. Describe the rationale for using management consultancy.

Management Consultancy is more than the advice, below are some reason why
management hire consultants.
a. A consultant has the right expertise. – they have the specialized skills in the
specific area that the organization’s staffs lack.
b. A consultant may be hired to identify problems - Sometimes employees are too
close to a problem inside an organization to identify it.
c. A consultant can supplement the staff – Even though a consultant's fees are
generally higher than an employee's salary, over the long haul it makes good
economic sense to hire a consultant for a week rather than hiring a full-time
employee.
d. A consultant can act as a catalyst for change. – Since no one likes change, a
consultant may be brought in to implement the changes and can do such things
without
worrying about the corporate culture, employee morale, or other issues that get
in the way when an organization is trying to implement change.
e. A consultant may be hired to teach. Consultants are called on to teach many
skills.

2. Describe how consulting adds value to a client.

Consulting adds value to a client in the following ways:
a. Supplementing – When there are short to medium-term staffing needs due to any
number of factors impacting your business, consultant help to fill these gaps. it
involves the consultant adding to the existing skill profile to increase its capability.
The consultant is an additional resource who takes on a project that cannot be
taken by the staff due to time restrictions.
b. Complementing – it occurs when the organization notices a gap in its profile of
management roles and asks the consultant to fill that role. This may require the
consultant to specialize in any of the basic role types; interpersonal role,
informational role, decisional role. A consultant may be called in as a disturbance
handler to help the business’s management deal with a crisis.
c. Differentiating – Consultants can integrate various roles into a better, more
flexible structure for your company. Role differentiation within an organization is
critical to growth. For instance, a small company may have one individual
undertaking both decision-making and spokesperson functions. But as the business
grows, these roles will likely be passed on to others. Consultants can help facilitate
 this evolution, designing and reshaping organizational structures and related
managerial responsibilities and communication systems.
d. Integrating – Mature organizations are characterized by well-defined organization
structure and role responsibilities. As with differentiating, the consultant can be
called in to integrate roles into a new, more flexible structure.
e. Enhancing – Enhancing is the most general type of role development process. It
demands not so much that the role profile of the organization be changed but that
the manager’s performance be improved. Training of individual managers is usually
an important part. The training may be directed towards improving technical and
functional skills or may develop interpersonal skills. Training may be supplemented
through structural changes and attention to overall strategic understanding.

3. Identify and briefly explain the attributes that a management consultant

must possess.
A management consultant must possess the following areas of skills:
a. Team Players – Ideal consultants will ‘fight in the trenches’ with their colleagues,
are dependable, have a strong willingness to learn, and are receptive to feedback.
b. Professional – Great consultants are able to relate to the client whilst maintaining
professionalism.
c. Influencers – The ability to instill change is contingent on one’s ability to influence.
Top consultants listen effectively, perform their due diligence, exude confidence,
and continuously deliver on their promises.
d. Analytical problem solvers – Analysis is at the core of what consultants do –they
should be able to detect the root cause and provide pragmatic solutions.
e. Driven and productive –The best consultants are disciplined and work both hard and
smart; they are able to deliver measurable results in the shortest amount of time.
They are constantly driving towards the next best thing rather than simply trying
to get the job done.
f. Take initiative –Great consultants execute beyond their job descriptions or outlined
deliverables.
g. Balance strategy and tactics – Consultants will ensure that the solutions they
provide are practical today yet relevant tomorrow.
h. Quick, organized thinkers –Consulting requires team members to digest large
amounts of information, make quick decisions, and disseminate clear communications
to their team and the client.

4. Identify and briefly explain the code of ethics of CPA in the Philippines
relevant to management consultancy services.

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 A professional accountant is required to comply with the following fundamental
principles: integrity; objectivity; professional competence and due care; confidentiality;
and professional behavior. As a consultant, one should serve clients with independence,
honesty, integrity, competence, and objectivity. One should also maintain and keep client
information confidential as one continues to work with different companies, and of course,
will not take advantage of the information gain from one company against the other. And
also, will encourage reporting of violations of the code of ethics.