Man Con Reporting Script PDF

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PPT: https://www.canva.com/design/DAGPfi5fpcA/SkzKvvQw2hMHz5dp5j5IWw/edit?fbclid=IwZXh0bgNhZW0 CMTEAAR0G2ymZuj_esdyw_UOsYwFMBT6fnbgUor7GRod4gJPwmpvh0HmruvqKbTw_aem_K7P5few6- ABGmYI65__NWA Content Script Ladies and gentlemen, good evening! Today, we are going to talk about MAS Engagement. Management advisory services is the consulting process during engagements that have widely varying characteristics. CHAPTER 2 To kickstart, we will begin our lesson with the types of MAS engagement. It is classified according to 6 dimensions, which are: 1. nature of the problem 2. service delivery area 3. phases of the analytic process 4. techniques and methodologies applied 5. industry (or nature of organization) to which the client belongs 6. geographical area(s) where the engagement take place In the following slides, I will be providing a comprehensive explanation to each. Are you ready to hear it? First dimension we have is the nature of the problem, which is further classified into 3: 1. Corrective 2. Progressive 3. Opportunistic Corrective problems occur on situations in which conditions have worsened. This arises suddenly and demands urgent actions. An example of this is when there is a sudden drop in productivity within a critical department. In that situation, what do the consultants do? They are expected to suggest corrective actions or actions that will return the situation to its previous state. Progressive Problem is an existing situation that can be improved. To give you a better picture, an example for this is if a firm may have been acquired by the firm’s competitors but the firm’s procedures have remained unchanged. The firm has continued to employ old procedures in spite of significant growth in transactions and development in computer technology. In this case, the consultant is expected to provide considerable improvements to the situation. In my example, determine computer-based transaction processing systems that provide improvements. Lastly, an opportunistic problem is a situation in which a future opportunity exists. This situation is likely to lead to more risky as well as more potentially rewarding courses of action than are corrective and progressive problems. In a problem with this nature, the consultant should search out and recommend opportunities depending on the situation. For example, if the firm might have excessive cash and cash equivalents available then the consultant should search out and recommend opportunities for more effective use of the funds. Next dimension is the service delivery areas. It is the functions or activities in which the problem situation exists may be classified in a number of ways, which are presented on the screen. These listed items are principal areas, which have narrower areas. For example, finance and accounting has narrower areas such as: - general accounting  - cost accounting - short-term planning, budgeting, and control - credit and collections - long-range financial planning - capital investment - marginal income analysis - financial planning - valuation and appraisal - taxes - financial information and planning Next dimension is the phases of the analytic process, which are composed of the following shown in the screen. Can anyone read the following phases shown on the screen? Thank you! Remember that an engagement could involve one or more or all of these phases and generally cannot be isolated and that the phases represent the dynamic aspects of an engagement and are employed in every engagement, whether it be a routine evaluation of operation or a special research study of customer attitude. The last 3 are the following: - Techniques and methodologies applied - Industry (or nature of organization) to which the client belongs - Geographical area(s) where the engagement take place Can anyone read the details of the techniques and methodologies? Exactly, and some of the examples for this are: - capital investment planning: discounted cash flow model - information systems planning  and design: structured methodology Next, we have the industry or nature of organization, which may be a privately owned business firm, government agency, not-for-profit nongovernmental organization, professional association, and some other type of organization. And lastly, we have the geographical areas which may: - be restricted to a single location, such as home office of the client - involve multiple locations, such as several production plants and warehouses of a large manufacturing firm - involve locations in foreign countries, especially when the company has international operations Would you rather… Have a client that is privately-owned or a government agency? Now that you know the different dimensions of a MAS engagement, let’s proceed with the Areas of MS Practice. Can anyone please read a lot the areas of MAS practice? As seen in the screen, these are the ways in which a management accountant can add value. This makes it clear that the challenges consultants face are as wide as management itself, which is why when undertaking work on behalf of a business, it is important that consultants have a specific project in mind. With that being said, let’s see the most sought after types of consultancy work. First among the most sought after is the business planning and development or project feasibility studies, which are the broadest project types and are often encountered in businesses that have ambitions to grow and develop. Second, we have information systems consulting, which is used in decision-making. Third, we have a management/operations audit which is conducted to evaluate the effectiveness and/or efficiency of operations. And, lastly business process improvement/reengineering. This is a complete redesign of a process with an emphasis on finding creative new ways to accomplish an objective. Simply stated, re-engineering prescribes radical, quick, and significant change. However, admittedly, re-engineering entails high risks but can also bring big rewards. Aside from the Areas of MS Practice, there are also other consultancy work that you can also venture as a management consultant such as: 1. Marketing research - which is a process through which managers discover the nature of the competitive environment in which they are operating 2. Marketing strategy development - because usage of the research collected in the market research requires a marketing strategy 3. Developing promotional campaigns - examples for these are advertising and public relations campaigns, sales drives, direct mailing, exhibitions, and in-store demonstrations 4. Planning sales force activity - which addresses key issues such as overall organization of the team, sales team training, sales team motivation, and planning  sales campaigns 5. New product development - often undertaken by interdisciplinary teams 6. Developing proposals for financial support 7. Staff recruitment 8. Exporting and international marketing CHAPTER 3: AREAS OF MANAGEMENT ADVISORY SERVICES PART 2 CHAPTER 3: AREAS OF MANAGEMENT Alyssa: ADVISORY SERVICES PART 2 Fellow classmates and Ms. Sugar, good evening! Management Consultancy Services of CPAs So we have already learned the first part of the areas of management advisory. Tuo mo mao nato? No, there is more. On this stage of the reporting we will learn about the different traditional services and emerging consultancy services as well as the determination of the scope of the service. Moreover, we will tackle on the different types of clients when giving management advisory services. We will also learn about how the consultancy services will add value to our clients. So, without further ado, let us start with the management consultancy services offered by CPAs. Traditional Services There are 2 kinds of services which are 1. Managerial Accounting traditional and emerging consultancy - providing assistance to management related services. Under the traditional services, to planning and controlling business we have 4 different kinds. operations as well as decision making. Examples: First is managerial accounting. So what a. Financial Statement Analysis is it and why does it sound so familiar? b. Budgets and their preparation Managerial accounting involves c. Cost Analysis planning and control providing assistance to management related to planning and controlling 2. Design and Appraisal of Accounting business operations as well as decision System making. Example of this service includes - development of an accounting system for a financial statement analysis, budgets newly-organized firm and their preparation, and cost analysis - revision, partial or complete, of an existing planning and control. See? Very familiar accounting system ra ang service because as an - Extension of the present accounting system accountant, mao jud na ang ato to cover new business activities. ginabuhat or role sa company. The second traditional service is the design and appraisal of accounting system. This service is more focused on the development, revision, and extension of the accounting system. In other words, this kind of service focuses more in targeting a problem in relation to the accounting system of the company. Traditional Services The third traditional service is the 3. Financial Management-related services financial management-related services. Examples are: Examples of this service are studying of a. Study of working capital requirements. working capital requirements, studying of b. Study of methods of financing asset methods of financing asset acquisitions, acquisitions and credit and collection practice studies c. Credit and collection practice studies and and advice. Under this service, the CPA advice. is more likely to give advice under financing activities. They focus more on 4. Project Feasibility Studies capital, valuation of capital stock, or -an assessment of the practically of a capital investments. proposed plan or method -analyzing technical, economic, legal, The last traditional service is project operational, and time feasibility factors feasibility studies. A project feasibility study is an assessment of the practicality of a proposed plan or method. In this service, we ask the question “is it feasible” or in our words “kaya ra ba ni sya? Doable ra? Realistic?” This project is done by analyzing technical, economic, legal, operational, and team feasibility factors. So the CPA will give advice if the client’s project will have the people, tools, and resources necessary. Or will the project give the client the return on investment they expect. ok? Emerging Consultancy Services Now let us move on to the emerging 5. Global Risk Management Solution consultancy services. There are 9 -managing the totality of risks - financial, emerging consultancy services. operational and systems, and strategic to improve financial and business performance. The first is the global risk management solution. From the name itself – risk Areas of Risk Management Services management – the CPA is involve in a. Financial Risk Management managing the totality of risks to improve b. Strategic Risk Management financial and business performance. It c. Operational and Systems Risk also covers determination of critical risks Management that the firm faces, development of d. Compliance Risk Management recommendation to reduce risk e. Internal Audit Services exposure, and identification of opportunities for growth and expansion. Now what are these areas of risk management services that is covered in this service? First is the financial risk management, an example of this risk is measuring the risk-adjusted return on capital and link performance evaluation to creation of shareholder value. Second, strategic risk management, where they would review a whole business unit so that senior management can fully understand the risks of the operation. Third is the operational and system risk management where the CPA provides controls and assurance services, technology risk services, or operational risk services. Fourth is the compliance risk management where the service revolves around the review of compliance with regulatory requirement and ethical conduct standards. And the last area of risk management is the internal audit services. Examples of this is an assessment of the units’ performance against professional standards and peer organization. Emerging Consultancy Services Now on to the second emerging 6. Transaction Services consultancy services, we have - services related to mergers, acquisition, transaction services which is related to divestitures, joint ventures, spin-off, and mergers, acquisitions, divestitures, joint strategic alliance. ventures, spin-off, and strategic alliance. For example, the accountant will perform 7. Financial Advisory Services due diligence services to uncover - provide comprehensive, financial, economic potential financial and strategic risks and and strategic advice to companies with rewards. complex business problems and disputes. Next we have financial advisory services 8. Project Finance and Privatization where CPAs provide comprehensive, - related to partnership between the public financial, economic and strategic advice and private sectors in delivering infrastructure to companies with complex business and services or privatization and project problems and disputes. Examples are finance. investment banking, fraud and dispute analysis, etc. 9. Valuation services - guide clients through complex business Fourth is project finance and transactions privatization which is generally related to partnership between the public and private sectors in delivering infrastructure and services or privatization and project finance. One of the examples under this service is the development of commercial structure for a deal, including risk mitigation and contracts. The fifth is the valuation services which include guiding clients through complex business transactions like acquisition or divestiture of investment and debt structuring and finance-raising. Emerging Consultancy Services Moving on to the sixth emerging 10. Business Recovery Services consultancy services is the business - emphasizing on the implementation and recovery services where CPAs provide rationalization and recovery programs services to troubled businesses by designed to rebuild value emphasizing on the implementation and rationalization and recovery programs 11. Dispute Analysis and Investigations designed to rebuild value. For example - environmental analysis, real estate creditor services, or insurance services damages, investigative services, etc. like collectibility of reinsurance recoveries. 12. Computer Risk Management - understand and manage their business risk The seventh service is the dispute relating to the implementation and use of analysis and investigations. Examples of technology services under this category are environmental analysis, real estate 13. Application Software Selection and damages, investigative services, etc. Implementation - prioritizing their needs, identifying the right The eighth service is computer risk software, meet their specific requirement management where management consultants help their clients understand and manage their business risk relating to the implementation and use of technology. And the last of the emerging consultancy services is the application software selection and Implementation. The management consultant assists clients in prioritizing their needs, identifying the right software, and tailor it to meet their specific requirement. So to break the ice let’s play a short would you rather. Among the 13 different Services, what would you choose to engage yourself with? And why? Thank you for your answer [name]. Now the different services don't have a hierarchy but it is certainly up to the person which service they would favor to engage themselves more. Alyssa: Good evening again everyone! Tonight we will continue to discuss on the 3rd chapter, areas of management advisory services part 2. So last time we learned about the 13 different kinds of services in which 4 of them belong to traditional services while the remaining 9 services belong to emerging consultancy services. Now let us continue with the determination of the scope of service. Now there are 7 different factors to consider the scope of service. Who would like to read? The responsibility to establish the scope of services rests in the hands of the consultant and they are expected to have independence from the client as to not cloud their judgement. They are also expected to be competent in the services they offer but there might also be chances that their knowledge is limited and may require help from other specialist. The consultant may limit their scope or expand it with referrals. The consultant can inquire from another specialist through referrals as long as they have consent with their client. The scope of the service should also include the identification and resolution of client’s basic problems since that is the main reason they are called for. And lastly, just like any professional, the scope of the services should be within the premise of the code of ethics so that the consultation is done ethically and professionally. So let us have our first engagement for the night. So for you guys, what do you think is the most important factor in determining the scope of services? And why? Thank you for that [name]. All of those factors are equally important. Although it is ok to prioritize one factor over another, it is also important to consider other factors to have a balanced, effective, and efficient scope. Now consultants interact with a number of individuals within the client organization. First we have the contact clients, they are the person who first approaches the consultant and proposes that the consultant addresses a problem on behalf of the organization. Second is the intermediate clients, they are members of the organization who become involved in the consulting project. They usually work with the consultant and provide information like sitting in meetings and influence the way the project unfolds. Third are the primary clients. They are persons who have identified the problem the consultant has been called in to address and are most immediately affected by it. Next we have the fourth which is the unwitting clients. They are members of the organization who will be affected by the intervention of the consultant. They do not initiate the project, has no direct or formal control over it, and they are affected but not aware The fifth client, indirect clients, are kind of the the opposite of the previous client because they are affected but this time they are aware that they will be affected by the project. However, the consultant is not aware that the project will impact this client. The last type of clients are ultimate clients. They are the total community that will be affected by the consultant's intervention. This will include members of the organizaiton and, possibly, members of the organizations which come into contract with the client organization. Now the types of clients that CPAs can provide management advisory services is not limited to a certain individual. They may also offer their services to groups clients like: 1. Privately-owned business firms 2. Governmental agencies and organizations 3. Not-for-profit nongovernmental organizations 4. Professional associations; and 5. Others Now the decision to call in consultants are made after careful consideration of the costs and benefits the clients may obtain and it is the responsibility of the consultant to maintain the client’s confidence and belief that the consultancy exercise has something of value to offer. It is a challenge for management’s consultant and they constantly ask three fundamental questions: 1. What can I offer the client business that will enhance its performance and help it achieve its objectives? 2. Why will my contribution be more valuable than that which existing managers and potential recruits can contribute? and 3. How can I communicate to the client business that what I offer is valuable? To answer these 3 questions, the consultant should apply analytical, project management, and relationship-building skills. Now what are the actual outputs that consultants provide to their clients? First we have the provision of information since these are valuable to a business. The consultant add value by analyzing and presenting information in a way that enables the business manager to make effective decisions from it. The second output is the provision of specialist expertise. Certain projects require the application of technical knowledge and an ability to use specialist analysis techniques. Rather than have the managers learn it themselves, they call upon the support of consultants. The third output is the provision of a new perspective. The consultant can offer a fresh mind to an issue.  Consultants can also offer support in helping individuals and groups become more innovative in their thinking by using the creativity techniques. Now there are a lot of times managers do not always agree with each other. These conflicts range from open, honest exploration of different options to often quite nefarious political intriguing. This is where consultants add value by providing support for internal arguments. They can be presented as ‘independent’ and as coming from an expert. The fifth output for consultants is the provision of support in gaining a critical resource. One of the manager’s most critical functions is to attract resources on behalf of the firm. The key tasks of the consultant is identifying who can supply the particular resources, how they might be connected, and the issues involved in working with them. The last output of the consultant is facilitating organizational change. There are times where the company must undergo change and managers may be against the change due to conservatism. This is where consultants help the client evaluate the pros and cons in undergoing change. Slide 19: This is where chapter 3, areas of CHAPTER 3: AREAS OF MANAGEMENT management advisory services part 2 ADVISORY SERVICES PART 2 concludes. Thank you for listening and I -end- hope you will continue to do so in the next chapter. CHAPTER 4 Chapter 4: Last meeting we have tackled the different services that management PROFESSIONAL ATTRIBUTES OF A consultancy offers. Now Let's zoom MANAGEMENT CONSULTANT in to the management consultant who performs such services. Let's delve into the professional attributes of a  management consultant So question guys, when you hear about management consultants, what is the first thing that comes into your mind? Okay A management consultant is a specialist What is a Management Consultant? who helps businesses overcome difficult business problems and boost operational effectiveness by offering strategic counsel and project management know-how. They usually work closely with company executives in making strategic plans or effective solutions for the betterment of the industry. What are the roles and responsibilities of what are the roles and responsibilities of a Management Consultant a management consultant Some of a manangement consultant’s roles are providing solutions to any identified problems within the organization, Documentation and Research and Expert Advisory, providing specialized knowledge that an organization may lack internally. management consultant’s responsibilities are 1st is that management consultants learn their client's needs by conducting interviews and discussions with key stakeholders in order to identify pain points. Understanding the client more  when it comes to its culture and dynamics is crucial for consultant management in tailoring solutions for the client. 2nd is Go through the internal client data. this is done by analyzing the client's existing data to gain insights into operational performance and identify areas for improvement 3rd. Map out the Work Scope This is essential especially for clarity in the consulting management. consultants collaborate with the client to set specific,measurable objectives for a certain project. Establishing a timeline with clear milestones helps track progress and accountability. This ensures that the project remains focused and organized. 4th Train personnel consultants often provide training to empower the client's team with new skills and knowledge. This could be in the form or workshops or training sessions intended for the organization's needs. The goal of this is to equip employees with the tools necessary to implement changes effectively. and lastly is to optimize operations, in line with how we define a management consultant, MC assess current operational processes to identify any problems or inefficiencies and areas for enhancement. They analyze workflows and recommend best practices to streamline operations. So guys when we choose a What should a management consultant management consultant, ofcourse we possess? also consider the different skills, characteristics that such must possess right? or left? char. Similarly, What Technical skills should a Management Consultant A. Education possess? B. Common Core Requirement We categorize them into three first is the technical skills, Second is the Interpersonal Skills, and the Consulting Process skills. All of these are really self-explanatory but let's delve more on to each of this category. First is the Technical Skills this is the education requirements necessary for a management consultant must possess. These technical skills may revolve around management consulting, depending on the area of specialization. For technical skills we have 2 things to learn 1st Technical Training a. Length of Education -Having a bachelor's degree is a basic requirement to be able to practice management consultancy, and most of them right now have one or two graduate degrees as well. Undergraduate programs focuses more on teaching practical skills, emphasizing the "how" of problem-solving. But this usually lacks a deeper exploration of why these methods are implemented or the "why". -We also have graduate programs where these are designed to cultivate a deeper understanding of complex entity issues. They equip future management consultant with the ability to navigate uncertainty and ambiguity. b. Type of Education -Educational programs often include both technical and general degrees. a person ma opt to earn a general business degree at the bachelor's level. and Later they might decide to specialize in a specific field like information technology, at the graduate level. let's say a person with a bachelor degree decided na he/whe will pursue a  master's degree in computer science and information management. with this, it allows for that person to have a broad understanding of business alongside with technical expertise. -General degree provides foundational skills, while specialized degree offers deeper knowledge in a focused area. Letter B. is common core requirement whether taking general degree or a specialized one, these courses must be included in the educational program 1. Communications 2. Mathematics and statistics 3. Computer data processing m Interpersonal skills or Developed Next is the Interpersonal Skills Attributes A. Intelligence or capacity for A. A consultant's mental organization reflects their ability logical thinking and reasoning to process and structure B. Integrity information systematically and C. Objectivity logically. This skill enables them D. Understanding of people to absorb facts and connect (Human relations: empathy) related information to draw E. Judgment meaningful conclusions. F. Courage Inductive reasoning helps them form generalizations from G. Ambition specific examples, while H. Psychological Maturity deductive reasoning allows the I. Psychological Equilibrium application of general principles to specific cases. These abilities are essential for effective problem-solving and decision-making. A well-organized consultant can synthesize information and provide insightful recommendations. B. This refers to qualities like moral and ethical integrity, fairness, and equity in decision-making. It emphasizes the ability to distinguish between right and wrong and maintain dependability. A person with these attributes is free from corrupting influences or practices. They adhere strictly to  both the letter and spirit of agreements, regardless of personal interests. These traits ensure trustworthiness and consistent ethical behavior.regardless of personal considerations C.. The consultant should be capable of understanding and accurately representing facts without bias. They must approach situations free from prejudice. ns. Additionally, they should maintain independence in their judgment. This independence ensures impartial and credible advice. D. The consultant should be able to anticipate how people will react to different situations. Building and maintaining friendly relationships and mutual trust with individuals at all levels is essential. They must understand and respect the rights of others. Effective interpersonal skills are crucial for fostering cooperation. This ability ensures positive and productive interactions. E. 5. This refers to the consultant's ability to make sound decisions even with limited or unclear information. Strong reasoning skills help them analyze incomplete data effectively. They can determine the best course of action despite uncertainty. Their judgment allows them to reach wise conclusions under challenging circumstances. This capability is essential for problem-solving in complex situations. F. This the consultant's mental and emotional resilience in the face of challenges and disagreements. They confront difficulties with  determination and view obstacles as opportunities rather than threats. Their strength of character allows them to maintain firmness of spirit under pressure. They remain committed to their beliefs and decisions, even when faced with opposition. This courage and persistence ensure they uphold their convictions, regardless of external pressures. G. A management consultant should be motivated by the desire for professional recognition. Their drive comes from the pursuit of excellence in their work. They seek acknowledgement for their expertise and contributions. This ambition pushes them toward continuous personal and professional development. Ultimately, they strive to be recognized as a respected authority in their field. H. The consultant maintains a clear and balanced perspective in all situations. They act calmly and with control, even under pressure. Their focus remains on logical and ethical decisions, unaffected by external influences. Their decision-making is steady and consistent. This approach helps them handle challenges with integrity and clarity. A. Relationship-Building Skills Relationship-building skills which I.1. An ability to build rapport consists several characteristics such and trust with the client as I.2. An ability to question effectively a. Two people have rapport when they communicate easily and work  I.3. An ability to communicate well together. This rapport is built on ideas succinctly and precisely mutual trust and commitment. I.4. An ability to negotiate Effective communication, both written objectives and outcomes and verbal, strengthens their I.5. An ability to convince connection. Trust plays a key role in through verbal, written, and maintaining this bond. As rapport visual mediums grows, collaboration becomes more I.6. An ability to use efficient and harmonious. information to make a case for b.Questioning goes beyond gathering a particular course of action information; it's a tool for building I.7. An ability to develop selling rapport and guiding conversations. strategies By asking the right questions, one I.8. An ability to work can steer discussions in a desired effectively as a member of a direction. Effective questioning helps team establish connections and trust with I.9. An ability to listen others. For managers, strong effectively questioning skills are essential to I.10. An ability to demonstrate leadership. These skills are a key leadership part of a successful management strategy. c. (succinctly) A management consultant must offer expertise that the business cannot provide itself, often in specialized areas like finance or marketing. These technical fields have their own language, but the consultant must be careful about using jargon with clients. The client is more interested in how the consultant applies knowledge to create value for the business, not in the technical details themselves. To make the greatest impact, the consultant should communicate in the client's language. Ideas should be conveyed clearly, succinctly, and with minimal jargon. Translating complex concepts into simple terms is challenging but essential. This communication skill can be improved through practice. d. A consulting project requires clear objectives and outcomes that provide value to the client. However, at the start, the consultant and client may not always agree on these outcomes, especially if the client lacks a clear vision or has unrealistic expectations. The consultant may also believe that the client's goals are not ideal for the business. To overcome this, both parties must negotiate and align on realistic project goals. The outcome of this negotiation is a mutually agreed-upon project brief, which provides a clear direction for the project. This agreement ensures that the project stays focused and productive. e. In business, good ideas alone are not enough; they must inspire action. Ideas need to motivate managers to implement plans and convince investors to support them. Effective communication is key to making people believe in the value of these ideas. The success of the communication depends not just on the content but also on how it is delivered. Both the form and substance of the message are critical to persuading others to act. f.Ideas must have substance to deliver real value, which requires being backed by solid information. This includes both facts and the interpretation of those facts, with the logic behind the interpretation being clear. People within the client business may require information at different levels, presented in various ways. Some information should be shared during initial communication, while other details can be reserved for responses to questions or challenges. Effective communication balances the delivery of information with the needs and expectations of the audience. g. Effective selling requires a comprehensive set of skills that are both well-developed and clearly understood. These skills encompass various aspects of communication, persuasion, and relationship-building. Selling is not just about promoting products; it is a specialized management activity that involves understanding market dynamics and customer needs. Successful sales professionals must be adept at identifying opportunities and tailoring their approach to different audiences. h. Many significant consulting tasks necessitate a collaborative team effort. At a minimum, they require cooperation between the consultant and the client. Typically, these tasks involve an extended management team from the client’s organization. Consulting projects often have substantial resource implications, making them complex to execute. The demands of such tasks usually exceed the capabilities of a single individual, both in terms of time and technical expertise. Collaboration ensures that diverse skills and perspectives are brought to the project. Thus, a team-oriented approach enhances the effectiveness and success of consulting initiatives. i. As an active part of communication, listening represents a skill that can be improved. How can we improve our ability to listen effectively? we’ll tackle that on the succeeding slides j. The capacity to direct and concentrate people inside an organization to attain goals as a group is known as leadership. Senior managers are a valuable addition to their teams. Communication, inspiration, and vision articulation are all integrated into effective leadership. Together, these components create a plan that unites and energizes the company. In the end, effective leadership propels the company toward its objectives. So as mentioned, one of the abilities under relationship-building skills is to listen effectively. So how can you effectively listen to your clients or even to your co-workers inside the workplace or even now na students pata how can we effectively listen to someone speaking to us? Do you think you're listening effectively right now? These are some ways for you to improve our ability to listen effectively. At some point, even though you are able to listen and communicate effectively, there are still instances where these are hindered due to circumstances that we cannot control. here are some common barriers to effective communication between the client and the consultant 1. have you encountered this kind of person ba? and how did you deal with such a type of person? As a management consultant, when you somehow encounter a person like this, may it be the client itself or a personnel of your client, When dealing with a "know-it-all" person, it is important to remain professional and respectful, acknowledging their opinions without confrontation. Engage them with thought-provoking questions to encourage self-reflection and alternative viewpoints. Use well-researched data and evidence to support your stance without directly challenging their confidence. Recognize their expertise to avoid defensiveness, while subtly guiding the conversation toward collaboration. Finally, focus on team goals to shift attention from individual perspectives to the collective success of the project. 2. There are also instances na you'll have a client or employees who are not expert enough to understand the technical language of a management consultant. How can we remedy this one? A consultant should be cautious when using technical terms that may be misunderstood by the receiver. It's important to clarify the meaning of such words to avoid miscommunication. Immediate feedback should be sought to ensure both parties share the same understanding. This helps prevent confusion and ensures the intended message is accurately conveyed. 3. This is correlated with the previous barrier where, When dealing with clients or employees from diverse backgrounds, audience analysis is crucial for effective communication. A consultant must show patience and empathy to understand the receiver's perspective. Providing additional information and clarification helps ensure the message is clear.  Thorough explanations should be given to those who need further understanding. This approach fosters better comprehension and collaboration across different expertise levels. 4. Effecting change within individuals, including managers, can be challenging due to their natural resistance when it is seen as a threat. This resistance can hinder communication, so it's important for the consultant to seek the support and input of both the client and employees. Proposed changes should be explained in a positive way to alleviate anxieties. Openness and encouraging participation help create a more favorable environment for implementing change. This approach fosters collaboration and eases the transition during the change process. 5. and lastly Information overload, just like us students, they also have a limit to the amount of information they can handle, and exceeding this can hinder effective communication. Consultants should guide clients in managing time, setting priorities, and delegating tasks. If someone appears overloaded, avoid assigning more responsibilities to them. Even brilliant ideas may be rejected if poorly timed or presented. Exercising good judgment and timing is crucial when faced with such situations. A. Project Management skills K.1. An ability to define b. A plan delineates a certain sequence objectives and outcomes of events to accomplish a predetermined K.2. An ability to develop goal. Setting priorities and outlining activities are important components of formal plans planning. It is critical to comprehend how K.3. An ability to sequence the task order affects resources. This and prioritize tasks involves designating the person in K.4. An ability to manage the charge of each task. Planners also need financial resources that are to to think about the financial effects of be invested in the consulting these actions. project K.5. An ability to recognize the c. Even a basic plan needs several human expertise necessary to workers to complete different duties, deliver the project frequently at different times. These jobs K.6. An ability to manage might be complicated and many, personal time requiring close cooperation. To make sure that every task is in line with the overall objectives of the project, effective management is necessary. Responsibility gaps and overlaps are less common when there is coordination. The key to a successful execution is ultimately collaboration and open communication amongst all involved parties. d. Management activities always require spending money, and tracking these expenditures is a crucial responsibility. Before starting a project, budgets need to be established to understand the resource requirements. These budgets must be effectively managed throughout the project. Monitoring actual expenditure against anticipated costs is essential to ensure financial control. Even if a project delivers excellent outcomes, it risks disappointing the client if costs exceed expectations. Proper financial management helps prevent cost overruns. e. Recognizing the human expertise required for project delivery involves understanding the specialized roles within the consulting team. Each consultant brings unique skills, and specialization allows them to contribute effectively. Consultants must work collaboratively as part of a cohesive  team. This team serves as an extension of the client’s management team, supporting business objectives. By aligning their expertise, consultants enhance the overall success of the project. f. Effective personal time management is crucial in project management. It ensures time is used productively and helps prevent last-minute rushes. This leads to reduced stress and promotes a more relaxed management approach. A calm work environment boosts confidence and enhances learning. Overall, investing in time management improves efficiency and enjoyment in the project process. A. Analysis Skills a. Decision-makers require L.1. An ability to identify what accurate and relevant information information is available in a to make effective choices. A good decision-maker actively particular situation audits the available information L.2. An ability to identify what before proceeding. This involves information is needed in a asking insightful questions to particular situation those with relevant business L.3. An ability to process that experience. Effective questioning information to identify the helps define the problem and important relationships within it extract valuable insights. Ultimately, this process enhances L.4. An ability to draw meaning the quality of decision-making. from that Information and use b. Decision-makers require it to support decision-making accurate and relevant information L.5. An ability to recognize the to make effective choices. A business’s profile of strengths, good decision-maker actively weaknesses and capabilities audits the available information L.6. An ability to recognize the before proceeding. This involves asking insightful questions to opportunities and challenges those with relevant business the environment offers the experience. Effective questioning business helps define the problem and L.7. An ability to assess the extract valuable insights. business’s financial situation Ultimately, this process enhances L.8. An ability to evaluate the the quality of decision-making. c. Information alone has limited business’s markets and how value until it is processed to they are developing uncover meaningful patterns and L.9. An ability to assess the relationships. Identifying these business’s internal conditions connections helps to understand L.10. An ability to analyze the how businesses, customers, and way in which the environments interact. Analyzing decision-making occurs within these relationships is crucial for drawing relevant conclusions. the business After connections are made and conclusions drawn, it’s essential to assess their impact on the available actions for the client business. Understanding how these conclusions affect decision-making helps shape strategic recommendations. This process highlights the significance of the findings in relation to the consulting project. The next step involves evaluating how these insights can guide the client toward optimal outcomes. d. Every company has certain qualities that enable it to provide a distinctive value to its intended clients, giving it a competitive edge. These advantages set the company apart from the competition, but they can also make it more susceptible to attack from rivals. It helps to examine these advantages and disadvantages using different conceptual frameworks. e. A business operates within a dynamic environment filled with ever-changing opportunities and challenges. These fluctuations can present new ways to enhance customer service and drive growth. Evaluating potential opportunities and threats is crucial for businesses to navigate their markets effectively. This assessment is essential for creating successful consulting projects that align with market conditions. f. One of the most important measures of a company's  overall success is its financial performance. Finding out a company's market performance, possible hazards, and resources available for future investments are all made easier by doing a financial analysis. The research sheds light on the company's advantages and disadvantages. The efficiency of financial analysis is increased by the use of formal ratio approaches, which facilitate data interpretation. All things considered, careful financial analysis is necessary for well-informed choices and strategic planning. g. A market represents the overall demand for a specific good or service. The growth of a business is closely linked to the evolution of its markets. By analyzing market trends alongside the company's capabilities, businesses can identify strategic opportunities for development. This combined analysis enables the definition of consulting project outcomes that effectively support the business's growth. h. A business needs to maintain internal conditions that are adaptable and responsive to emerging opportunities. It must possess the necessary resources to innovate effectively and seize these possibilities. Additionally, the organization should have the capacity to grow in line with  market demands. This growth requires not only financial resources but also human skills and productive capacity. i. Consultants must persuade businesses of the importance of fresh prospects because they frequently fail to notice and act on outstanding ideas. The decision-making dynamics of the customer must be thoroughly understood by consultants in order to accomplish this. For influence to be effective, it is imperative to recognize and comprehend the vital decision-makers. Sturdy interactions with stakeholders are facilitated by the analysis of these processes. Gaining customer buy-in and energizing change requires building rapport and trust.  Consulting process skills 1. This phase has the purpose of fully a. Problem Definition phase describing the underlying problem. it b. Identification of Alternative Solutions begins with the initial recognition of a c. Selection of the most desirable system pointing to the problem and Alternatives ends with the complete description of d. Presentation the problem -The problem definition phase is vital for consultants as it clarifies and articulates the specific challenges an organization faces, ensuring all stakeholders share a common understanding. This clarity allows for the prioritization of issues, directing resources towards the most impactful areas and preventing scope creep by establishing clear project boundaries. Additionally, it aligns consulting efforts with the client’s strategic objectives, facilitating more effective data collection and informed decision-making. A precise problem definition enhances communication between consultants and clients, promoting better discussions and understanding of challenges. 2. Described as the finding of fact-finding and analysis phase where it involves gathering of information or facts essential in formulating solutions to the problem and also we analyze such facts to clarify the requirements of the best solution. 3. Selection of the most desirable alternative so this is where we develop different solutions in solving the identified problem. And among those solutions, we choose the optimal solution to the problem and develop a detailed plan of action. A plan of action should clearly outline the rationale behind its selection, emphasizing the benefits  and advantages it offers. It must include a detailed schedule for implementation, ensuring all phases are properly timed. The plan should also specify the resources required for successful execution. This clarity helps guide the process and aligns efforts with organizational goals. Ultimately, a well-defined plan ensures smooth and efficient implementation of the solution. 4. The management consultant presents what he/she had formulated from the previous to its client and after that 5. Implementation phase , by the name itself, to implement the chosen solution The implementation of a plan may involve significant logistical complexities. If environmental changes cause major deviations, it may become necessary to revisit and adjust earlier phases of the plan. This flexibility ensures the project remains aligned with evolving circumstances. CHAPTER 5: MAS PRACTICE STANDARDS AND ETHICAL CONSIDERATIONS Leslie: Now, let’s proceed to Chapter 5 where here I will discuss the eight essential standards promulgated by the AICPA’s Management Advisory Services Division. These standards serve as guidelines for practitioners in conducting Management Advisory Services effectively and ethically. But first guys, I have a question. Would you rather strictly adhere to professional standards but risk losing a major client, or compromise a minor ethical principle to keep the client and secure more business?... Thank youu for that wonderful answer Leslie: Now let's proceed to MAS Practice Standards. For Standard 1: Personal Characteristics: Practitioners must embody integrity, objectivity, and independence when delivering advisory services. Maintaining these personal characteristics helps ensure unbiased and accurate findings. Standard 2: Competence: It is vital that engagements are executed by practitioners with the necessary qualifications and experience. Competence involves understanding client needs, utilizing proper analytical methods, and effectively communicating results. Standard 3: Due Care: Practitioners should exercise due professional care throughout engagements, which necessitates diligent oversight and adherence to professional ethics. Standard 4: Client Benefit: Prior to accepting any engagement, practitioners should communicate potential reservations regarding expected client benefits. Clear expectations must be set concerning objectives and achievable outcomes. Leslie: Standard 5: Understanding with Client: Effective communication before the engagement is crucial. All significant matters, including objectives and fees, should be discussed and documented to ensure mutual understanding. Standard 6: Planning, Supervision, and Control: Engagements must be meticulously planned and supervised. Defining clear roles and controlling progress through measurable objectives are critical for success. Standard 7: Sufficient Relevant Data: Acquiring and evaluating ample relevant data is essential for substantiating conclusions. Practitioners must use professional judgment in assessing the data's credibility. Standard 8: Communication of Results: Lastly, practitioners must ensure that significant findings and recommendations are effectively communicated to the client through formal reports or detailed discussions. So, now we all know that These eight standards provide a comprehensive framework for practitioners in the Management Advisory Services field. Adherence to these guidelines ensures quality, transparency, and value in service delivery. Leslie: Now let’s move on to the significance of interim communications in management consultancy, as well as the ethical considerations outlined in the Philippine Code of Ethics for Professional Accountants. Starting with Interim communications play a vital role in management consultancy. They facilitate management’s active involvement and maintain their authority as decision-makers. Key Elements: Summary of findings to date Assessment of work accomplished relative to planning Discussion of tentative recommendations when appropriate These communications also serve to address encountered challenges, acquire management decisions, and allow for the reassessment of priorities. Leslie: Next, upon completion of an engagement, a final report is prepared to communicate results and recommendations to clients. This report must be responsive to the defined objectives and scope of the engagement, with detail levels influenced by interim communication. Leslie: After that, let’s explore the Ethical Considerations as outlined in the Philippine Code of Ethics for Professional Accountants. This code is essential for all Certified Public Accountants (CPAs) and applies to various sectors, including public practice, industry, and education. The Code of Ethics serves as a guiding framework for professional accountants in the Philippines. It outlines the responsibilities accountants have toward the public and emphasizes the importance of ethical conduct in their practice. Leslie: Now, let’s delve into the key ethical principles 1. Integrity: Professional accountants must uphold honesty and transparency in all interactions. It is crucial to avoid any association with misleading information that can undermine trust. 2. Objectivity: Accountants must remain impartial and avoid biases that could compromise their judgment. This includes steering clear of conflicts of interest and undue influence in business decisions. 3. Professional Competence and Due Care: A commitment to ongoing education is imperative in ensuring that accountants possess the necessary expertise to deliver competent services. Accountants must also adhere strictly to applicable standards while demonstrating diligence in their work. 4. Confidentiality: Respecting the confidentiality of client information is another cornerstone of the ethical framework. Accountants should not disclose any confidential information without proper authority or legal obligation, even after the end of a professional relationship. Professional Behavior: 5. Lastly, professional accountants are expected to comply with relevant laws and regulations. It is essential to conduct themselves in a manner that does not discredit the accounting profession, especially during marketing and engagement activities. Overall: By respecting these standards, professional accountants can uphold the integrity of their profession while delivering valuable services to their clients. Would you rather: Now for my introductory game: You work at a consultancy firm, and your colleague Alex has been taking credit for your ideas in team meetings, which is affecting how your manager sees your contributions. You're unsure how to handle it. Would you rather…  Discuss the conflict with a supervisor if you're unsure of the best resolution Handle it privately with the other party, without involving others? Even though we have different perception on the situation. We need to consider the ethical principles which we will be discussing right nowwww. Harnie: What should you do if you are required to resolve a conflict? Dont worry guys I will help you during these situations okay? So stay tuned. We know that every one of us has unique attitudes that sometimes can result in conflicts. But with the application of the fundamental principles, we can initiate either a formal or informal conflict resolution process: these could be through evaluating the relevant facts, ethical issues involved, fundamental principles related to the matter in question, established internal procedures, and alternative courses of action that is consistent with the fundamental principles. Harnie: If an ethical conflict remains unresolved, the professional accountant should take the following steps: 1. Seek advice from those charged with governance, such as the board of directors or the audit committee, within the organization.  2. Obtain advice from relevant professional bodies or legal advisors. 3. If, after exploring all options, the conflict cannot be resolved, the professional accountant may need to consider withdrawing from the engagement. This could involve leaving the engagement team, stepping away from the specific assignment, or resigning from the firm or organization entirely if necessary. Harnie: As consultants grow and their firms prosper, they encounter evolving ethical challenges. Let us take some examples of ethical issues faced by consultants and how should an ethical consultant respond to these challenges. Harnie: 1st challenge: If a consultant is in high demand, should they simply charge the highest fee possible without considering perceived value? Charging high fees can damage a consultant's reputation if it leads to overpromising and underdelivering. It's unethical to charge for more hours than worked. Fees should reflect actual work performed. Maintaining transparency and integrity in billing is essential for professional credibility. Harnie: 2nd challenge: A consultant says that he travels first class, stays on the concierge floor of the best hotels, and prefers limousines over taxis. He believes that he is worth it and as long as he is honest about it, the client should be billed for his normal travel preferences. So what are the key considerations? Only charge for luxury travel if explicitly agreed upon by the client. Bill clients for economy flights, taxis, and standard hotels, covering luxury costs personally. Even if covering luxury costs personally, travel modestly to avoid perceptions of excessive billing. Harnie: 3rd challenge: When consulting for multiple clients on a single trip, you might face the choice between prorating or fully billing expenses. Here’s how to handle this situation: Prorate shared expenses like airfare and lodging to avoid double or triple billing each client. Provide a cover letter and Statement of Expenses to explain the billing breakdown and demonstrate fairness and transparency. Harnie: 4th Challenge: If a consultant is approached by a competitor of a current client, they should ensure confidentiality by not revealing any sensitive information. It’s important to use different personnel for each project to prevent conflicts of interest. The consultant should also inform the current client about the competitor’s request and seek their input on whether to accept the new assignment. If the new project is accepted, the consultant must maintain strict confidentiality and not share any information learned from the current client. Harnie: 5th challenge, the consultant's plan to use client-provided first-class airfare for personal purposes, such as taking his family and using miles for additional benefits, should be disclosed to the client. Since the tickets belong to the client, transparency is crucial to avoid ethical concerns and complications. If the consultant feels uncomfortable sharing this information, it likely indicates that the action may be problematic or unacceptable. Harnie: These are the situations many consultants face. There are no magic answers to ethical dilemmas but the author of the book advises: Do the right thing. You can’t do much better than consistently try to do the right thing. Harnie: Here are some guidelines that a consultant may find useful in determining whether he is doing the right thing or not: 1. Does the activity improve the client’s condition or merely his own? 2. Is the activity something that one will be comfortable explaining to the client? 3. Is there harm being done to anyone without their being able to respond? 4. Is this treatment something the consultant would willing to subject himself to? So the following questions may not just be answerable by a yes or no. But the very act of putting the question to the client may be difficult to help one avoid ethical compromise. The Code of Conduct for Management Consultants -represents the attitude, principles, and approaches that have been found to contribute most to success and make for equitable and satisfactory client relationships. The summary of the Code of Ethics developed by the AICPA, Institute of Management Consultants, and Association of Management Consulting Firms, is to promote the highest quality of performance in the practice of management consultancy. These are the common principles found in the Code of Ethics are Basic Responsibilities, Practice Standards, Fee Arrangements, and Business Conduct Harnie: Now we delve into the common principles found in this Code of Ethics, first is on basic responsibilities of management consultants. Integrity and Objectivity. Management consultants must avoid misrepresenting facts and ensure their judgment is not influenced by others. They should prioritize client interests over personal gain and act with integrity. Consultants must disclose any relationships or interests that could affect their impartiality. Additionally, they should not take on management roles that could compromise their objectivity. Harnie: On independence, consultants must provide unbiased advice based on all relevant facts and avoid conflicts of interest. They should not serve clients under conditions that compromise independence and must be transparent if working with competing clients. If necessary, they should withdraw from assignments that threaten their objectivity. Harnie: In dealing with confidential information, Consultants must protect all client information acquired during their work. They should not exploit any inside information gained from their professional relationship. Confidential information should only be disclosed with the client’s consent. Harnie: Consultants should only accept assignments they are qualified to complete with professional competence. They must ensure they possess the necessary qualifications for each assignment. When presenting their qualifications to clients, they should focus on their competence, experience, and professional standing. Harnie: Consultants should thoroughly understand and discuss the assignment before accepting it, ensuring it is beneficial and not too limited in scope. They must plan and supervise effectively, assign qualified personnel, and provide a clear written proposal when needed. Due care must be exercised throughout the engagement, with any changes discussed and agreed upon with the client. Consultants should gather adequate data and avoid using proprietary information without permission. Harnie: Consultants should tailor recommendations to each client's specific problems, ensuring they are realistic, practical, and can be implemented efficiently. They should educate client personnel on the methods and techniques used so improvements can be managed and sustained. Maintaining detailed files on client work is essential for continuity. Consultants must avoid guaranteeing specific results or allowing their name to be associated with forecasts that could imply they vouch for their accuracy. Harnie: On fee structure standards, consultants should set reasonable fees based on the services provided and their professional experience. Fees should not be contingent on specific results, and consultants should agree on the fee with clients beforehand. They must avoid paying or receiving commissions for client acquisition or product  recommendations and ensure their pricing practices do not affect their independence or create conflicts of interest. Harnie: Consultants should uphold high professional standards, contribute to improved management practices, and share effective methods. They must avoid any actions that could discredit the profession, ensure honest advertising, and steer clear of conflicts of interest. Consultants should not solicit staff from other firms or clients without consent and must not work with those who do not adhere to ethical standards. Harnie: Remember, each consultant has a responsibility to himself or herself, to the profession to live by this code of ethics and to encourage others to do the same. Enforcement of the code is everyone's responsibility. That would be all for chapter 5, thank you for listening. CHAPTER 6: ORGANIZATION AND MANAGEMENT OF MAS PRACTICE CHAPTER 6 - Organization and hello muingon rakog next Management of MAS Practice Steffi:Welcome to chapter 6 where we learn about organization and management of MAS practice. Management Advisory Services Are u ready? How do we know we are ready to Developing MAS Practice develope mas practice?  Assess own talents and expertise Review communication skills, sales To effectively develop a MAS practice, ability, ability to focus, and maintain it's crucial to evaluate your own skills and knowledge. This involves reviewing objectivity communication skills, sales ability, focus, and objectivity. Understanding these personal attributes helps in identifying strengths and areas for improvement, which can guide how one positions himself in the consulting market. Scope of a Consulting Practice Steffi: A MAS practice can cover a a. Engineering broad range of areas. The scope b. Industrial management includes: c. Marketing Engineering: Consulting on d. Business management technical and engineering e. Financial areas problems. Industrial Management: Advising on the management of industrial operations and processes. Marketing: Providing expertise on marketing strategies and practices. Business Management: Offering guidance on overall business operations and strategy. Financial Areas: Consulting on financial management, accounting, and investment strategies. Conduct market research involving: Steffi: Conducting market research is