Steve Shu on Management, Consulting, and Strategic Initiatives: In Consulting The Process Is An Essential Part Of The Deliverable

Situation for consultant #1:

Client needs help in determining business strategy and writing business plan for its Board
Consultant follows traditional MBA frameworks by performing 3Cs (Customer, Competition, Company), Porter's Five Forces and competitive advantage, etc. to research and analyze the best way for client to move forward
Consultant uses structured frameworks for outlining and documenting the tactics and logistics for pursuing the business (e.g., marketing 4Ps, traditional business plan outlines)
Consultant prepares full financial proformas (balance sheet, income statement, cash flow statement, and notes)
Consultant writes business plan to spec
Consultant delivers written business plan to client
Consultant invoices $40,000
Client ends up being lukewarm about the deliverable.

Situation for consultant #2 (differences in bold):

Client needs help in determining business strategy and writing business plan for its Board
Consultant sets up engagement timeframe and governance structure with consulting team and client leads, extended resources for all key workstreams, and steering/approval committee
Consultant follows traditional MBA frameworks by performing 3Cs (Customer, Competition, Company), Porter's Five Forces and competitive advantage, etc. to research and analyze the best way for client to move forward
Consultant sets up workshops and strategy sessions with the executive team, key functional managers, etc.
Consultant uses structured frameworks for outlining and documenting the tactics and logistics for pursuing the business (e.g., marketing 4Ps, traditional business plan outlines)
Consultant sets up regular review meetings and working sessions with client to review best practices, evaluate options, and refine and revise strategy
Consultant prepares full financial proformas (balance sheet, income statement, cash flow statement, and notes)
Consultant sets up working sessions to familiarize client with models, align financials with chart of accounts for client, get client input, and educate client about industry benchmarks
Consultant writes business plan to spec
Consultant involves client with interim drafts and presentations and gets organizational buy-in
Consultant delivers written business plan to client (largely same as before)
Consultant invoices $250,000
Client is very happy and ends up getting multimillion dollar business moving forward through Board and project launched.