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OVERVIEW OF MANAGEMENT CONSULTANCY

SERVICES BY CPAs

Pamela Kaye L. Tandoc LOGO


What is a consultant?
Has expertise in a specific area/areas
Offers unbiased opinion and advice for a fee
review, analysis, recommendation and
implementation
Independent contractor (short term or long-term)
successful consultants should have
expertise
good business skills
motivation
Reasons of Becoming a Consultant

1. Marketable skill
2. Perceptive mind
3. Need for independence and challenge
4. Ability to communicate with others and
persuade them to follow advice
5. Desire to help others in an effective way
6. Agent of positive change
(see page 5-1)
Nonmonetary reasons
1. Sharing their knowledge to help others.
2. Building business network and take a step up
in ones corporate career.
3. Being independent and making their own
decisions.
4. No fear of being laid off.
5. Having a flexible source of income.
6. A means of giving back to the community .
Do I have what it takes to become a
consultant?
Evaluating Strengths and
Weaknesses
Identify your skills, attributes and talents
Determine the following:
specialty areas and target market
ability to package and sell your services
How to take advantage of opportunities

See page 7 to 9
Self Assessment : Guideline to Develop a Realistic
Framework For Consulting Business
Evolution of MAS
1. Discovery of problems during audit engagement
and making suggestions for corrective action.

1. Natural development in the public practice


because it involves planning and control systems
that relied heavily on accounting and statistical
data.

2. MAS Division includes:


Accountants -Statisticians -Industrial engineers
Lawyers -Psychologist
Evolution of MAS
SMEs also seeks services (ex. controllership) of
management consultant because:
Increasing complexity of business

However, accounting firms limits itself in providing


advice and technical assistance to clients.
Developing Trends
Specialization
Improvement of business education

Catalyst of better management concepts and


techniques
Developing Trends
Change in management culture including
growth in size and complexity increased the
need for management consultants
Re-engineering of business process and re-training
workforce
Self-governance
Flattening or delayering of organizational chart
Technological advancement
Globalization
Future Prospects
1. Management consulting will become even more specialized.

2. The consultants orientation will be towards being an


insight-provider, creator and sharer of information.

3. Management consulting firms will tend eother to remain


small or become quite large.

4. Consultants will develop more sophisticated means of


marketing their services

5. Bright graduates of accounting, management and business


schools will continue to be attracted to careers in
management consulting.
The Consulting Industry
A. IT Firms
Ex. IBMs purchase of PWC Consulting leads to
increased in revenue
B. Accounting Firms
narrow focus on financial and transactions
(mergers and acquisition)
C. Major Consulting Only Firms
Ex. McKinsey & Co. , Accenture and Mercer
Management Consulting, IBM, etc
D. Independents
Career Structure in Consulting Firms
1. Analyst: Gather information and process it for the
consulting team.
2. Consultants: Evaluates the client business and
make recommendations
3. Senior Consultants or Managers:
Leading a consulting team
3-5 yrs of consulting expeerience
Dealing with members of client team
4. Directors or Partners
Most experienced consultant
Responsible for the development of organization
Lead strategic development
Nature of MAS by Independent
Accounting Firms

Management advisory Management Consulting


services Independent and
objective advisory
Function: Provides provided by qualified
professional advisory persons to clients to help
(consulting) services them identify and
analyze management
Primary purpose: problems or
improve the clients opportunities.
use of its capabilities
and resources to Recommend solutions or
achieve the objectives suggested action.
of the organization
Two Types of Encounter with Clients

Consultation
Providing advice and information (orally)
during a short time frame
orally
definitive or limited
Two Types of Encounter with Clients

Engagement

Analytical approach and process is applied that


involves:
1. Ascertaining the pertinent facts and circumstances
2. Seeking and identifying objectives
3. Defining the problem or opportunity for
improvement
4. Evaluating and determining possible solutions
5. Presenting findings and recommendations and
6. Implementing the solution, if appropriate.
Two Types of Encounter with Clients

Engagement
Following the clients decisions to proceed, the
independent accounting firm may also be
involved in producing solutions by
Planning and scheduling actions to achieve the
desired results, and
Advising and providing technical assistance in
implementing
Rationale for Using Management
Consultant

1. Independent viewpoint

2. Professional advisor and counselor

3. Temporary professional service

4. Agents of change
Independent Accounting Firms Role
in MAS
To provide advice and technical assistance which
would provide for client participation in the
analytical approach and process. Specifying this as
the proper role recognized both the appropriate place
of MAS and the realities of practice. This is the only
basis on which the work should permit it to be time.

Accounting firm should avoid making


management decisions or taking positions that
impair the firms objectivity.
CPAs Objective in Engaging in MAS
to utilize the essential qualifications it has available to
provide advice and technical assistance which will
enable client management to conduct its affairs more
effectively.

Essential qualifications includes:


1. Technical competence
2. Familiarity with the clients finance and control
systems and his business problems
3. Analytical ability and experience in problem solution
4. Professional independence , objectivity and integrity.
That in all things,
God may be glorified!