STAGES OF MANAGEMENT

CONSULTING
ENGAGEMENT-PART I

Chapter 7
I. Negotiating the engagement
II. Engagement planning
III. Conducting a consulting assignment
a. Problem identification and solution
b. Identification of suitable and accurate sources of
information
c. Data analysis and diagnosis
d. Solution development
e. Preparation and presentation of the report and
recommended solution
f. Implementation
g. Follow-up evaluation of the implemented solution
IV. Evaluating the engagement and post-engagement follow-
up
I. Negotiating the
engagement
Proposal letter
It is an advisable first step in most MAS
engagement. It is written
communication between the CPA and
the client setting forth the terms and
conditions of a proposed consultancy
work.
 Its contents generally include:
Objectives and benefits of the
engagement.
Scope of the work and the role of CPA.
Approach to the study.
Project organization.
Fees and billing arrangements.
Firm qualifications, where appropriate.
II.Engagement
planning
 Engagement Program or Work
Plan
Contents
1. Objectives and descriptions
2. Description of tangible output req.
3. List of manpower required
4. List of personal assigned
5. Starting and completion dates
6. Project costs
Objectives/uses of an
engagement plan
 Provide a means for arranging, distributing and assigning
responsibility for various segments of an engagement.
 Provide a means of control for determining g whether all
segments of the engagement have in fact been completed.
 Provide the framework for reporting progress of an engagement.
 Facilitate time and efficiency control over personnel assigned to
the engagement.
 Assist in an engagement review by a partner or supervisor.
 Provide the basis for estimating fees.
III. Conducting a
consulting
assignment
a. Problem identification and solution
1. Identity of the problem
2. Objectives of problem-solving process
3. Scope of problem
4. Intensity of problem
5. Time dimension of problem
6. Location of problem
7. Human elements involved
8. Support system
9. Tracking system related
10. Institutional process
b. Identification of suitable and
accurate sources of information

• Internal Sources of Facts

• External Sources of Facts
c. Data analysis and diagnosis

• Decision-Level Analysis
• Input/output Analysis
• Structured Analysis
• Less-Structured Analysis