What is consulting?

Just finished reading this book “What is Consulting” written by Kouichi Hori, previous president of BCG Japan, and currently the chairman of Dream Incubator (DI). He has been working as a strategy consultant since his graduation from the Harvard University MBA program 30 years ago. Some notes on this book:

Essence of consulting – thinking what is the problem?

Why need consulting –
1) Company may not really understand the customer need
2) Company tends to be bonded by previous success (experience)
3) Consultant pursues thoroughly the cause and causation
4) Consultant owns the skill and experience for strategy planning

Consulting process –
1)       Interview : find the gap in understanding/needs/feeling
2)       Accumulate facts
3)       Graphing : determine the x and y axis
4)       Present
5)       Implement (by Company)

Pre-requisite to be become a consultant
1)       Intelligence : logical thinking
2)       Flexibility : willing to hear what others say
3)       Diligence : curiosity + inquiring mind + hard work
4)       Toughness : able to work in pressure, able to stand up after fall down
5)       Luck : gambler luck?
MBA graduates promoted averagely after 3 and 7 years. But the “UP or OUT” is common within the consulting field where half will out within 3 years and half of the remaining will out within 7 years. But most OUT will still success in other fields because the logical thinking and look big perspective learnt in the consulting will help in any other fields.

Consulting fee – Manhour rate x Manhour x Multiplier
Multiplier > 3.0 accounted for overhead and benefits of the consulting company.

What is interesting about consulting – a consultant alone can bring a significant change to the company