1. Type author names here © Oxford University Press, 2013. All rights reserved. O’Mahoney and Markham: Management Consultancy, 2 nd edition Chapter 2: The Consulting Industry Dr. Joe O’Mahoney and Calvert Markham Adapted from:

2. O’Mahoney and Markham: Management Consultancy, 2 nd edition Chapter Objectives You will learn: What management consultancy is Why management consultancy exists The history of the consulting industry The institutions of the industry Variations in consultancy around the world

3. O’Mahoney and Markham: Management Consultancy, 2 nd edition 2.1 The basics of consulting

4. 1.What is consulting / management consultancy?

5. https://www.youtube.com/watch?v=3wPeND2gvqc

6. Seven keys to successful consulting https://www.youtube.com/watch?v=9zU2Q654vtQ

8. What are the main skills of a good consultant? What makes a great consultant? https://www.youtube.com/watch?v=oxFK6lQLGxE&list=PL1u9bQdmE5EEehC8RMOcTFsMoQIcL7nT6

9. O’Mahoney and Markham: Management Consultancy, 2 nd edition What is management consultancy? “The creation of value for organisations, through the application of knowledge, techniques and assets, to improve business performance. This is achieved though the rendering of objective advice and/or the implementation of business solution” (MCA 2009) Identifying a problem Researching and recommending a solution Helping implement that solution

10. Touch, Deloitte Arthur D Little 1886 Booz McKinsey Kearney Pure strategy consultancies: McKinsey Bain Background

11. O’Mahoney and Markham: Management Consultancy, 2 nd edition Defining the boundaries of consulting

12. Advisory, tax and audit

13. O’Mahoney and Markham: Management Consultancy, 2 nd edition The history of consulting The industrial revolution onwards Consultants 1990 – 2010 –Growth 1990 – 2000 –The dotcom crash –The credit crunch

14. O’Mahoney and Markham: Management Consultancy, 2 nd edition The growth of consultancy

15. O’Mahoney and Markham: Management Consultancy, 2 nd edition The impact of the credit crunch

16. O’Mahoney and Markham: Management Consultancy, 2 nd edition Recent trends affecting consultancies Personalised vs. commodified strategies The IT market and outsourcing Sophisticated clients From partnerships to public companies

17. O’Mahoney and Markham: Management Consultancy, 2 nd edition Personalised vs. Commodified strategies

18. O’Mahoney and Markham: Management Consultancy, 2 nd edition 2.2 The institutions of consultancy

19. O’Mahoney and Markham: Management Consultancy, 2 nd edition The institutions of consultancy Institutional weakness in consultancy? Professional institutes Trade associations Procurement institutions

20. O’Mahoney and Markham: Management Consultancy, 2 nd edition 2.3 Why do consultancies exist?

21. 2.3 Why do companies buy management consultancy?

22. O’Mahoney and Markham: Management Consultancy, 2 nd edition Why do consultancies exist? They do things clients cannot Transaction cost economics Economic development and specialisation Political and economic ideologies Government institutions Labour markets Legitimation and identity

23. O’Mahoney and Markham: Management Consultancy, 2 nd edition In House vs. External Costs

24. O’Mahoney and Markham: Management Consultancy, 2 nd edition 2.4 International perspectives

25. O’Mahoney and Markham: Management Consultancy, 2 nd edition International Markets North America Europe Asia Middle East

26. O’Mahoney and Markham: Management Consultancy, 2 nd edition Global share of consulting revenues

27. O’Mahoney and Markham: Management Consultancy, 2 nd edition Global share of consulting revenues

28. O’Mahoney and Markham: Management Consultancy, 2 nd edition Global share of consulting revenues

29. O’Mahoney and Markham: Management Consultancy, 2 nd edition Global share of consulting revenues

30. Consulting humour The Consultants https://www.youtube.com/watch?v=9KtqGhoddF4

31. O’Mahoney and Markham: Management Consultancy, 2 nd edition Summary

32. O’Mahoney and Markham: Management Consultancy, 2 nd edition Summary This chapter has shown: How consultancies expanded on the back of a growing industrial sector that required management expertise. That the industry has changed in response to economic crises, sophisticated clients, and the development of IT and outsourcing businesses. That there are varied and competing explanations for understanding why consultancies exist. How different international regions create different markets for consultancies.