Consult magazine - Fall 2011 issue by Canadian Association of Management Consultants

c GeneviĂ¨ve Bonin, FCMC

Why diversity is here to stay

The Magazine for Members of CMC-Canada

consult Fall 2011

peers over cultural change to 10 Consulting 14 Managing a demographic cliff maintain ethical standards

I find that if you’re doing something you love it’s easy to make it part of your life – be sure to take time for yourself so you don’t get overwhelmed.

Building a Better Community Kevin Schwenker, FCMC, Halifax, Nova Scotia

Departments:

03 editor’s note; 04 it’s a wonderful life; 06 industry insights; 08 coast to coast; 24 how’s your asset? 26 buzz; 28 top of mind; 29 remembering

PHOTOGRAPHER: AARON MCKENZIE FRASER

Diversity: Embrace it now or get left behind

Youroffice away from theofﬁce. Introducing the CMC Business Lounge Stuck in downtown Toronto and need a place to hang your hat? Want to catch up on work, prepare, or unwind between meetings? Your business demands a higher level of communication and productivity—no more noisy coffee shops, dropped calls, and rushed emails. Located in the heart of Canada’s financial district, the CMC Business Lounge offers 1,500 sq. ft. of modern office space available for your use. Book space for client meetings, signings, or just drop in and have a flexible place to work—whatever your need, we have you covered. CMC-Canada members can access the CMC Business Lounge with a nominal daily fee, a monthly fee, or our best value, an annual subscription. To subscribe/for more information, please visit cmc-canada.ca or email businesslounge@cmc-canada.ca

cmc-canada.ca/businesslounge

AT CMCCANADA

Editor’s Note Welcome to the fall 2011 edition of Consult, which has a refreshingly futuristic focus. As management consultants we are generally a forward-looking profession. We often assist clients in the process of organizational transformation, a task which requires keen understanding and awareness of the social and economic trends that shape the business environment. It is always useful, however, to hold a metaphorical mirror to our own profession and reflect upon the need to evolve and adapt our own businesses to the changing world in which we live and work. In this issue, Carl Friesen helps us stay ahead of the game by considering the developments that are likely to shape the nature of consultancy in Canada. One of the key changes is the increasingly ‘ethnoculturally diverse’ nature of the workforce, a trend that potentially has major implications for our own organizational cultures as well as those of our clients. Many readers, I am sure, are familiar with Hofstede’s research on cultural differences and how these affect business practice; related to this, there is an ongoing and unresolved academic debate as to whether moral standards and ethics are universal in nature, or reflect different value systems around the world. In light of the demographic changes in Canada, it is timely to consider the implications of growing workforce diversity for our own organizational cultures, approaches to business, and the ethical standards that guide our work. One school of thought on this, presented in a thought-provoking feature article by Christopher Harper, is that firms should proactively manage workforce diversity, with a view to maintaining existing standards. In contrast, Geneviève Bonin argues persuasively that business cultures should be allowed to evolve in line with the changing workforce. Whatever your own views on this issue, I am sure you will find that this edition of Consult provides much food for thought about the future of management consultancy in Canada. Enjoy!

Winter 2011 2011 was an important year for CMC-Canada. In June, our National Board made a courageous decision to endorse a business plan and budget designed to do two important things: Build Awareness and provide increased Regional Support. For many years, we’ve needed to promote the Certified Management Consultant designation more. In our 2010 member survey, members made this clear. Well, the 2012 business plan makes ‘building awareness’ a priority. Many members suggest we follow the lead of other professional associations and build awareness by advertising. This makes sense, until one appreciates that we have just over 3,000 members, not 50,000. To make a difference with limited resources, the key words are ‘focus’ and ‘discipline.’ Our budget does not allow for a broad campaign, but a focused approach, targeting one or two audiences, will make an impact. If we work closely with our Institutes and Chapters, we can have a ‘rifle-shot’ approach. Discipline is necessary, as we will have numerous suggestions and opportunities to expand our focus. We must be courageous and disciplined to not waver in our focus. A National Task Force, led by Mark Brown, CMC, Vice Chair of CMC-Canada, will work with CMC-Canada leadership to identify the one or two audiences who we will target including key decision-makers and influencers who purchase consulting services. We will attack the identified audiences with a holistic and broad-based campaign, building relationships, offering expert speakers, submitting articles to magazines, using social media, and advertising in an effort to build recognition of our designation.

The second thrust of the 2012 plan is to provide additional support to our regions with three initiatives: The Regional Support Co-op Fund allows Institutes to access additional financial resources to support the initiatives their constituents need, above and beyond the basic funding package. For members who do not know who does what at national office, they will have a friendly contact, who will serve as a ‘concierge’ and direct inquiries to the right person. No need to know who to call, just call the person responsible for your region. Finally, from Monday to Thursday, CMCCanada’s National Office will offer extended hours so our members across the country can always find a live person to support them. We have other important initiatives underway, but building awareness and regional support are at the top of our mind. I invite you to keep in touch with the new CMC-Canada. Visit cmc-canada.ca, read my blog, share copies of Consult Magazine, send me a note at gyonemitsu@cmc-canada.ca. Thank you for your continued membership and support. GLENN T. YONEMITSU, MBA, CMC CHIEF EXECUTIVE OFFICER

VISIT

cmc-canada.ca REGULARLY TO SEE WHAT’S NEW

Harold Schroeder FCMC, PMP, CHRP, CHE Schroeder & Schroeder inc.

consult Publisher: Glenn Yonemitsu, CMC Editorial Board: Harold Schroeder, FCMC, Mike Appleton, FCMC, Eric Inthof, FCMC, Ron Knowles, FCMC, Peter Milley, FCMC, Greg Richards, FCMC, Tony Wanless, CMC Editor in Chief: Harold Schroeder, FCMC Managing Editor: Andrea Vandenberg Contributing Writers: Mary Blair, Geneviève Bonin, FCMC, Carl Friesen, CMC, Christopher Harper, Jenny Sutton, CMC, Andrea Vandenberg, Glenn Yonemitsu, CMC

Creative and Art Direction, Design: Aegis Design Inc. Cover Photo: Nation Wong

Consult is published simultaneously on the Internet at consult-magazine.ca

Consult Magazine is published semi-annually by the Canadian Association of Management Consultants (CMC-Canada).

Consult welcomes unsolicited manuscripts for publication, comments, letters to the editor, or ideas on themes. Please send all feedback and address changes to Canadian Association of Management Consultants (CMC-Canada), PO Box 20, 2004-401 Bay Street, Toronto, Ontario, Canada, M5H 2Y4 or via email to consult@cmc-canada.ca

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consult magazine Fall 2011 3

PHOTOGRAPHER: NATION WONG

Rainer Beltzner, FCMC, racing in his 1993 Porsche.

IT’S A WONDERFUL LIFE

Driving force Two themes appear to dominate Rainer Beltzner’s life: learning and teaching. At times, they even intersect. BY MARY BLAIR

Rainer attended Acadia University with the intent of becoming the world’s greatest physicist. He’d excelled in chemistry, mathematics, and physics at the High School of Montreal and, while he could have attended McGill across the street, decided on Acadia as it was first in the alphabetical list of universities and he wanted the experience of living on campus. By his second year, Rainer had discovered an aptitude for computer science and statistics, eventually graduating Acadia majoring in mathematics with a specialty in statistics. In his final year, recruiters from three major accounting firms were on campus. The final interviews took place in Montreal, and as Rainer’s fiancée Eileen lived there, he was able to spend additional time with her on the recruiters’ nickel. He was hired by Clarkson Gordon & Co. and, after a summer in the bullpen, was informed that he was to become a Chartered Accountant. Rainer had only one of the 21 credits required, so he took night courses for three years. After writing the CA exam, he was so disgruntled with a number of the courses that he complained to the instructors. His comments were welldirected: he was asked to re-write three courses, which he subsequently also taught. Rainer continued to teach these courses – and others – at McGill and Concordia for several years until he moved to Toronto. In his ‘day job’ Rainer was auditing clients; usually large companies with huge data files. He preferred to use the clients’ computers to assist in the audit (this was before the days of laptops), eventually specialized in computer auditing, using his affinity for statistics, computer science, and auditing.

In 1978, Rainer moved to Thorne Riddell in Toronto and in 1981 became a Partner, leading the computer audit group. At that time, Thorne Riddell had a relationship with management consultants Stevenson Kellogg, and Rainer appreciated the strong methodologies that firm had developed in all consulting fields. As he worked more closely with Stevenson Kellogg, he learned and adopted more of the formal consulting processes and took on more management consulting work. He developed and taught the training and support to the firm’s computer audit process, while also building an advisory practice. Among his clients at varying times were each one of Ontario’s 24 community colleges. While at KPMG, Rainer met Murray Glow, who introduced him to the Certified Management Consultant designation and the opportunities in international consulting. The next few years saw Rainer in Haiti, Bangladesh, and Venezuela, with responsibility for international consulting at KPMG and also taking the courses, and writing the exams, to obtain the CMC designation. When Rainer ‘retired,’ he had three goals: to stay involved in teaching; to continue his management consulting work with some long-standing clients; and to work on Boards. And so the learning and teaching continued. Rainer wanted to understand the role of a director, so he worked to obtain the ICD.D designation and today he chairs the Board of Humber College and the ORNGE conglomerate (the former Ontario Air Ambulance). He also sits on the boards of the College Employer Council, CMC-Canada, and the Technical Standards and Safety Authority (Ontario), participating on

various of the boards’ governance and finance committees. Rainer’s appreciation of methodologies is partly behind his choice of where he serves on Boards. He equates the triage that ORNGE personnel perform on patients to the triage that management consultants perform for clients. All of the boards that Rainer is involved with are focused on continuing education, leading edge standards, and proven methodologies.

The learning and teaching continues into Rainer’s spare time: after his second child graduated from high school, he bought an old Porsche, fixed it up himself, took performance driving courses, and is now a certified driving instructor for Porsche, racing his car – he’s his own pit crew – with car clubs around the continent. He also teaches for Ferrari, SAAB, and a variety of professional performence schools, to both private individuals as well as professional race car drivers.This highly regulated field also appeals to Rainer’s appreciation of safety, standards, and methodology. And if you’re thinking ‘where does he find the time’ you’ll be interested to learn that Rainer’s garden in Oakville, Ontario has been featured in the annual Oakville Garden Tour. He spends an hour a day in his garden, and through advice from neighbours, reading, and trial and error, he has created what he calls ‘a small piece of heaven on earth.’

consult magazine Fall 2011 5

INDUSTRY INSIGHTS News and information about the management consulting industry and profession.

Growth in the

Global Consulting

Consulting Industry

The Economist and Kennedy Information both reported this summer that as the economy slowed in 2009, the global consulting industry shrank by 9.1%. These figures are similar to what CMC-Canada’s 2011 Industry Study found. It was the worst year since at least 1982, according to Kennedy. The work that was won in 2009 went to cutting costs rather than boosting growth (87%), says Kennedy. But, the tide has turned. In 2011, just 47% of project spending will be on cutting costs. The rest will go towards growth plans – from mergers to installing new computer systems. All practice areas will not benefit equally. Kennedy projects that consulting in operations management will grow by 5.1%, on IT by 3.9%, and on human resources by 4.0% between 2010 and 2014. CMC-Canada’s 2011 Study indicated similar results – with the greatest growth expected in the IT service line (indicated by 52% of the respondents). Following IT, growth was expected in HR (48%), operations (47%), strategy (43%), financial management (42%), and marketing (36%). Rather than a focus on cost efficiencies, as was experienced during the economic slowdown, this spending is expected on growth areas. More information on Kennedy’s report can be found at: kennedyinfo.com/consulting/research/ global-cvonsulting-marketplace To order a copy of CMC-Canada’s survey, visit cmc-canada.ca.

Management Consultancies Association (MCA) from the UK indicates strong growth in its 2011 first half report. The UK consulting industry recorded double-digit growth (11%) for the first time in three years. This is a significant improvement over same period results last year, which reflected growth of 6%. Financial services and manufacturing were the strongest markets for the industry with 71% and 63% of consulting firms reporting an increase in work respectively. More than half the firms reported operating at full capacity, which further supports the war for talent. Most interestingly, MCA’s report suggests increased use of fixed prices and performance-based fees, particularly in the public sector. For more information, visit mca.org.uk/reports/industry/2011-halfyear-report.

Industry

Grows

Talent As the management consulting industry strengthens, it’s no surprise that finding the right talent is becoming a key battleground between firms. In CMC-Canada’s 2011 Industry Report and in Consulting magazine’s ‘2011 Best Firms to Work For’ survey, the ‘war for talent’ is a key issue that is expected to increase in importance. The biggest takeaway from Consulting’s survey may be that employee satisfaction, especially among highly attractive consultancies, isn’t something that can be turned on and off. Once the firm breaks the trust with its employee, it takes more than a raise and a reinvestment in staff training to rekindle consultants’ desire to stay at their current firm. Within four years, the majority of pre-partners say they intend to defect (73% of entry level/analysts, 66% of consultant/ recent MBAs, 55% of senior/experienced consultants and 46% of director/managers). For more information on Consulting magazine’s survey, visit consultingmag.com.

Three

Consulting Firms Make the Profit top 25

Canadian Business’ 2011 Profit 200 ranking of Canada’s fastest growing companies included three consultancies in the top 25: • PrecisionERP from Ottawa topped the consulting list, coming in at number nine with more than 4,000% growth in revenues from 2005 to 2010. PrecisionERP provides IT consulting for enterprise applications. • Farmers Edge Precision Consulting, a Winnipeg-based firm that focuses on mapping to improve crop yields comes in at number 11, with more than 3,200% growth. • Finally, LOGiQ3 ranked 24, with 1,852% growth. LOGiQ3 provides life reinsurance consulting from its base in Toronto. To view the complete Profit 200 list, visit profitguide.com/awards/profit200_2011.

6 consult magazine Fall 2011

Competing for

Why

Self-Employed

Consultants Fail to Market Properly Alan Weiss, the consultant to consultants, and the keynote speaker at CMC-BC’s 2010 conference, was recently profiled in Businessweek magazine. Weiss asserts that many self-employed consultants do not market their services properly. Being a successful consultant is more than having a great methodology or process, it’s about being a savvy marketer. Many practitioners do not create intellectual property, nor do they become a thought leader. Many don’t have the confidence or support networks to succeed, Weiss argues. This also impacts billing strategies. Most self-employed consultants bill by the hour or day. Weiss suggests that value-based billing is the way to go. In order to do this, one must think about the impact on the organization and how much benefit is realized by the client. For more on this interview, visit businessweek.com/smallbiz/content/ may2011/sb2011059_763239.htm

CMC to

Become Recognized by Worldwide Accreditation Bodies

The International Council of Management Consulting Institutes (ICMCI) has ratified a move that will raise the awareness of the CMC designation in the business marketplace. For some time now, ICMCI has pursued membership in the International Accreditation Forum (IAF – iaf.nu), the world association of Conformity Assessment Accreditation Bodies. The IAF’s primary function is to develop a single worldwide program of conformity assessment, which reduces risk for business and its customers by assuring them that accredited certificates may be relied upon. At the 2010 ICMCI Congress in Jordan, delegates voted to have the organization become a full member of IAF. This vote was ratified in 2011. What are the implications? There is a movement to create an upcoming global standard for consulting practice, based on the CMC. IAF membership will mean that the CMC process we use could be recognized globally outside of ICMCI, including within American National Standards Institute (ANSI). This will pave the way for far greater recognition of the CMC designation in the marketplace, including an ISO standard in the next two years. In the fall of 2011, the European Comittee for Standardization (CEN) issued the new European Standard on Management Consultancy Services, EN 16114. The adoption of EN 16114 will contribute to competitiveness and business performance of both management consultancy services providers and their clients, based on:

2011

Best Firms to work for

Bain and Company once again took top honours in this annual survey by Consulting magazine. For the ninth consecutive year, Bain was rated the top firm – but more importantly, Bain placed first in five of the six categories (Culture, Client Engagement, Firm Leadership, Career Development, and Compensation & Benefits).

TOP 10 FIRMS IN Client Engagement

Firm Culture

Career Development

Compensation Satisfaction

Bain & Company

The Boston Consulting Group

North Highland

The Boston Consulting Group

North Highland

The Boston Consulting Group

North Highland

McKinsey & Company

Point B

McKinsey & Company

Deloitte Consulting

A.T. Kearney

Deloitte Consulting

PwC

North Highland

Oliver Wyman

Monitor

Ernst & Young

Booz & Company

Alix Partners

Slalom Consulting

Deloitte Consulting

Slalom Consulting

Deloitte Consulting

Capgemini

Booz Allen Hamilton

Point B

Kurt Salmon

PwC

Accenture

Booz Allen Hamilton

PRTM

McKinsey & Company

Slalom Consulting

Alvarez & Marsal

• Transparency of market, offers, qualitycriteria, responsibilities, and results. • Cost-effective, high-quality, and innovative management consultancy services delivering added value to businesses and corporations. For more information, visit ICMCI at icmci.org

For more details on the rankings, visit consultingmag.com

consult magazine Fall 2011 7

COAST TO COAST Events, news, and happenings at the Canadian Association of Management Consultants.

Vancouver Calgary

“Commitment is the willingness to carry through with a decision long after the mood in which it was created is gone.” Joe Roberts, Skid Row CEO

CMC-British Columbia held its BC second annual conference in May 2011 at the Victoria Marriott Inner Harbour Hotel in Victoria, BC. The conference theme was ‘Collaboration and Innovation in Leading Change.’ Speakers included international change expert Seth Kahan, one of Canada’s foremost futurists, Jim Bottomley, self-styled ‘Skid Row CEO’ Joe Roberts, and personal coach Steve Donahue, author of the bestselling book Shifting Sands, a guide to personal change based on his experience traversing the Sahara Desert. Participants in the two-day conference included a number of people from various BC Government departments.

8 consult magazine Fall 2011

“Management consultants, by the nature of their mandate, need to continually be managing and maximizing the key relationships that directly and indirectly affect their roles and responsibilities.” Michael Hughes, The Networking Guru

In October 2011, management consulting professionals gathered in Edmonton for an intensive learning experience. The 2011 CMC-Alberta Conference: Fostering Excellence in Consulting challenged attendees thinking, enhanced their practice, and offered exciting networking opportunities as delegates and speakers came together for the biggest learning and social opportunity of the year in Alberta.

“Remember, in strategic networking, the ‘gold’ might be more than a one degree away. Your objective should be to get into your contact’s black book.” “Not every contact is created equal. Your job is to identify the ones (connectors) who really matter.” Glenn Yonemitsu, CMC-Canada

In May, CMC-Saskatchewan hosted

SK two events: the first was a strategic

networking presentation with the Regina & District Chamber of Commerce, TD Small Business Banking, and TD Commercial Banking. CMC-Canada Chief Executive Officer Glenn Yonemitsu’s presentation on Strategic Networking raised awareness of the CMC designation among this group. Later that same day, the Institute hosted a Wine and Cheese Networking Reception at the Hotel Saskatchewan. The reception gave CMC-Saskatchewan members and guests the opportunity to meet and network with Glenn, other CMC-Saskatchewan members, and National Board members.

NEWFOUNDLAND AND LABRADOR

St. John’s

QUÉBEC PRINCE EDWARD ISLAND

NEW BRUNSWICK

Québec City

The Ontario Institute’s three chapters are focused on providing value to their members through social Pub nights and joint meetings with other professional associations in Ottawa, Special Interest Group meetings in Toronto, and events tailored to members’ needs throughout the province. Be sure to watch out for announcements about upcoming holiday parties, courses, networking events, and professional development opportunities.

In this photo (l to r): Ken Howell, CMC, David Richert, Dawn-Marie Turner, CMC, and Jeff Stoughton

2011 marks the 25th anniversary of

MB Bill C47 that created the CMC designation in the Province of Manitoba, and the Institute of Certified Management Consultants of Manitoba. To mark this event, the Institute offered its members some unique opportunities to get together as a group: In February 20 hardy souls braved the cold to attend the Institute’s first annual Snooker Tournament, a sold-out event featuring oneon-one coaching from a professional. In May 50 members attended the Institute’s Annual General Meeting and had a behind-the-scenes, guided tour of Manitoba Hydro’s new corporate headquarters, one of the most energy-efficient, large-scale buildings in the world and a model for cold-climate integrated building design. On October 20, CMC-Manitoba celebrated Certified Management Consultants’ Day. Event attendees heard the unique perspectives of two native Winnipeggers, race-car driver David Richert and Jeff Stoughton, two-time World Curling Champion. They discussed what drives them to success and how members can apply the same approach to their consulting business. The event coincided with CMCCanada’s Annual General Meeting and the presentation of the results of the 2011 Canadian Management Consulting Industry Study.

“If Facebook were its own country, it would be the third most populous nation in the world behind China and India – both countries have populations north of one billion people.” The Economist, July 2010 The Halifax Professional Development Summit was a full-day conference designed expressly to help attendees ‘Rise to the Top.’ Summit 2011 featured Canadian Olympic sprint canoer, Julia Rivard, and brought together professionals, presenters, and keynote speakers from across Atlantic Canada. Attendees learned from experienced professionals who’ve achieved remarkable success in their fields as they shared their knowledge, best practices, and tips.

NOVA SCOTIA

What started as a handful of

NL Newfounland-based CMCs meeting over breakfast once a month to compare war stories, has grown into a group of 20 or more in the province who continue to meet for breakfast monthly, and are now arranging luncheon meetings with speakers. This initiative was led by Atlantic Canada Institute president KathyJane Elton, who would be happy to speak with members in other parts of the country who want to start their own local get-togethers. New Research from Sobey School of Business, Saint Mary’s University, Halifax As part of CMC-Canada’s relationship with the Sobey School of Business, students are invited to submit research papers and presentations in Management Consulting and Project Management for publication. Ten such research articles have been provided to CMC-Canada members since the relationship began in 2002. In the past year, 13 new critical research works have been developed – both academic papers and narrated professional presentations, and are being added to the online CMC-Canada database of knowledge. Many Sobey MBA students come to the program with experience in management consulting. Those who take the program with a Management Consulting focus are deemed to have completed the educational requirements for the CMC designation. Upon graduation, they are well on their way to earning their CMC designation. The Sobey/ CMC-Canada relationship benefits these students, and through their research, all CMC-Canada members.

consult magazine Fall 2011 9

PHOTOGRAPHER: NATION WONG

“We’re on the cusp of potential boomer retirement, people have talked about it for a while, and now it’s happening.” —DAVID FOOT

Consulting peers over a demographic cliff BY CARL FRIESEN, CMC, MBA

Often called “the pig in the python” by demographers, Canada’s Baby Boom generation, born between 1947 and 1966, has been a powerful force in the economy. They’ve had elementary schools built for them, then high schools, followed by colleges and universities. Now, there is talk of the need for more elder-care facilities and hospitals. opposite: David Foot, Demographer and Economist.

consult magazine Fall 2011 11

Born right at the peak of the Boom, I’m both blessed and cursed by having this huge part of the population marching through life right alongside me.

design of products such as mobile devices with larger screens and keyboards, and vehicles that are easier to enter and exit.

This issue was popularized by University of Toronto economist David Foot, whose book Boom, Bust & Echo sat on the Canadian best-seller lists for three years following its publication in 1996.

Another reason to build contacts among younger people is for help staying current with technology and the way work is done. “The young have always been the champions of new technology,” Foot says. He adds that younger consultants are in position to help older consultants connect with younger clients.

Over the past 15 years, Foot has watched as the Baby Boom cohort has moved through working life to the point that the oldest Boomers are turning 64. “We’re on the cusp of potential Boomer retirement,” he says. “People have talked about it for a while, and now it’s happening.” Speaking as a consultant himself as well as author and speaker, Foot believes that this will spark major changes in the management consulting profession. For one thing, many 60-ish Boomers won’t want to completely stop working: while they may ‘retire’ from their jobs, they’ll start a whole new way of working as consultants, maybe to their previous employers.

Life expectancy in Canada has risen by two years each decade for the past 50 years, Foot says, so that a typical 65-year-old today can expect another 20 years of life. Recent increases in life expectancy have been due to the success of medical science in prolonging the end of life, he says, and many of these years are healthy and potentially productive.

Patrick McKenna, Edmonton-based principal of McKenna & Associates Inc., who consults strategically to professional services firms, agrees that the generational handover is of concern to consulting firms. Boomer consultants whose contacts within their client companies are of the same age can be a risk to continuity, McKenna says. If their client contacts retire, the firm may lose the client to a competitor with younger contacts. “There is ample statistical evidence that if the corporate client has many points of contact within the consulting firm, this means greater loyalty,” he says. It’s more than a generational thing, he points out: having consultants from several disciplines can also help maintain and grow the business. To McKenna, professional firms face a stark choice when there is one member of the firm who is the overall controlling force in the relationship with the client: build more points of contact into the client, or risk losing the relationship when the lead contact retires. The key is in taking the onus off the individual relationship to one that is more broad-based within the consulting firm and the client, he says.

These ‘young-old’ people may want to work two or three days a week, or on projects that last several months with a break in between. They will want freedom and flexibility, and instead of the mortgage and expenses of their child-rearing years, they now have pensions and savings. Consulting firms that adapt to utilize the skills and experience of retired Boomers may gain a competitive advantage.

That includes actively building contacts among younger people within potential client companies, so that one’s contacts do not all graduate to the golf course at the same time. This is one reason Foot recommends cross-generational teams in consulting firms; pairing a 55-year-old’s experience with a 25-year-old’s fresh viewpoint and need to learn about the profession. For their part, older consultants can give a firm an understanding of the needs of an older population and thanks to the Boom, this is a large market. This might include

12 consult magazine Fall 2011

GETTY IMAGE

To remain competitive, however, any employee wanting a smooth transition from salary to consultancy needs to stay current in several ways, Foot counsels.

In his consulting experience, McKenna says that in practice, the ‘800 pound gorilla’ partner, who won’t share contacts with the rest of the firm, is a rarity. McKenna sees rapid change in the services that consulting firms offer, and the technologies they use to deliver them. Some Boomer-age consultants may resist learning and adapting, he says, taking the attitude “Lord, give me five more years and I’m out of here.”

Suzanne Lowe of Expertise Marketing, a consultancy based in Concord, MA, says that one of the changes affecting Boomers and the firms in which they work is the whole delivery model and value proposition for management consultants. Much of this is based on the digital revolution Previously, the value proposition of most management consultants was based on knowledge they had that their clients didn’t, Lowe says. Now, with fast-growing online content and increasingly sophisticated tools for zeroing in on the information they need, it’s increasingly likely that clients will be able to inform themselves on issues they are facing. In some cases, it’s because of their participation in online forums through sites such as LinkedIn. Many professional firms feel under pressure to take their carefully-developed wisdom, long held behind their own firewall and inside the heads of their consultants, and make it freely available online. It’s how they build credibility with their clients and customers, and show that they have what it takes to get results for their clients. As a parallel, consider the shift in the knowledge relationship that medical practitioners started to feel years ago. They found that patients would come to them armed with fistfuls of Internet printout on their symptoms, possibly with their own minds made up about a diagnosis and what pharmaceuticals would treat what ailed them. Some of this ‘information’ was spurious, out of date and incomplete, but it changed the doctor-patient relationship irrevocably.

Doctors no longer had a monopoly on knowledge. This same trend, Lowe says, is being felt in consulting. Clients can be as knowledgeable as their consultants. It means that the consultants’ value has shifted from information provision to execution. In many cases, this means using advanced electronic tools to manage projects, share tasks between consultant, client, and third parties, and analyze the workflow to find and fix bottlenecks. As well as good technology, clients increasingly value a particularly effective methodology for analyzing a problem or opportunity, and recommending a solution. Older consultants, accustomed to the previous ecosystem in consulting, may have trouble adapting to the new realities, Lowe says. In this, she echoes David Foot’s recommendation for cross-generational teams. However, older consultants have a wealth of knowledge to offer about the nuances of developing a client relationship and keeping it on track, she says, as well as building “share of wallet” within each client. Consulting firms, and individual consultants – whatever their age – who learn to work within the new realities have a chance to gain competitive advantage and continue to offer value to their clients. Carl Friesen, CMC, MBA Principal of Global Reach Communications carl@showyourexpertise.com | 1.289.232.4057 showyourexpertise.com

ONE BOOMER’S EXPERIENCE In my own independent, Boomer-age consulting practice, I’ve found that staying current with technology and business is very much a generational thing. At one end of the spectrum, I recently worked with a client in Rhode Island in his late 60s who’d built several successful companies based largely on his charm and selling ability. Now, he wanted my help in writing a book on sales, on which to build a consulting practice. In the book, he recommended old-style cold-calling; walking into a prospect’s premises with the expectation of an immediate meeting with someone with buying authority. This might have worked in the years when he was building his business, but not any more, showing that at least in some ways, his understanding of business realities was sadly out of date.

BY CARL FRIESEN, CMC, MBA

I find that staying current on developments demands constant investment in learning. It’s also a straightforward business problem; the kind of make-or-buy decision process I learned in business school. For example, when I bought a digital camera for use in my business a few years ago, I found I needed to learn to manage and retouch the images on screen. I could have outsourced this work, but decided to learn it myself. To do this, I arranged for a twentysomething art student from my church to teach me. In about an hour in a coffee shop, she taught me some tricks in iPhoto I’d never have found out on my own. That was $100 well spent. For me, electronic photo retouching was clearly a ‘make’ decision. In other cases, it’s a ‘buy.’ Faced with the need to update my website, I thought of investing the time in learning to do my

own design. But I decided that developing my skills to the point I could deliver credible results was not worth it for me. So I found two students at Toronto’s Humber College, for whom working with a client to produce a website was part of their curriculum. I told them what I wanted, and they made it happen. Part of the arrangement was that they would also show me how to keep the site up to date. During my career I’ve had to learn dozens of technologies, many of which have since tiptoed into history. This includes the early Internet concepts like Gopher sites, Freenets, SLIP, Archie, Usenet, and .alt groups. Now, it’s Twitter, Facebook, and Google+. My investment in learning continues, and it’s been fun.

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Managing Cultural Change to Maintain Ethical Standards BY CHRISTOPHER HARPER

For those involved in international business development, the management of cultural change is key towards maintaining an organization’s ethical standards. Ethics: it’s about perspective It is clear that a firm with a culture that does not promote ethical conduct is not likely to achieve the status of trusted advisor, which most clients rightly demand. According to Robert Brouillard, FCMC, retired Managing Partner with Deloitte Consulting, what is ethical is a matter of perspective. Brouillard has worked at establishing international operations for Deloitte in Europe, and can offer a hands-on perspective: “There is a personal dimension to culture and there is what I would call a national dimension, and then of course there is a corporate culture. It’s helpful to sit down as a Canadian and say ‘if I look at my organization, which elements of our culture are driven by what we want to accomplish, and which have crept in just because we’re Canadians?’” Brouillard’s comments highlight the complexity of managing an organization’s culture. When it comes to deciding what is ethical, no one employee or partner is in a position to make that call. Instead, organizational leadership best serves in a facilitative role by uniting an organization’s objectives with the cultural contexts that support their achievement. Cultural tap dance When an organization is working with those from differing cultures to its own, the opportunities for a critical misstep are multiplied. This is especially true when seeking to manage culture with the goal of maintaining ethical integrity. According to Brouillard, there are several mistakes in the cultural tap dance that can be more deadly than others. He describes one of the most critical errors as being “If you arrive and your first premise is you’re going to change everything to look your way, two things will happen: either it won’t work at all; or, people will give you lip-service and the minute you go away it’s gone. I think that (forcing conformity) is the root of the errors that many make.” Brouillard also states that the opposite is true. Believing you can’t and shouldn’t change anything is just as erroneous, as it is important that organizations actively manage cultural change to preserve those organizational objectives that are non-negotiable, such as ethical standards.

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Balancing cultural differences & ethics Despite the complexity of managing culture with the intent of preserving ethics, there are approaches that can be used to maximize an organization’s success in this endeavour. Important is identifying those aspects of your organizational and national culture that are core to how you conduct business versus those aspects which are present, yet provide little value. “It is important to distinguish between a personal culture and a corporate culture… and you have to be able to look at your own culture and ask ‘what are the fundamentals of what’s important to us’… and show [culturally different employees] how those (culturally unique qualities) would work within the fundamentals of your organizational culture.” There is also a great benefit in employing individuals who understand both your native culture and those of the culture where you are seeking to grow a business. Brouillard recommends that organizations “identify people who are local but have had their own exposures to your culture.” Professionals born in one country but educated in another are valuable resources in this regard as they offer the ability to connect your organizational culture with that of their native culture. Local competitors are also a sound resource for what is acceptable ethical conduct in a foreign culture. Brouillard suggests studying and understanding how competitors conduct themselves as another dimension of defining what is acceptable. The reality of managing culture to maintain ethics When developing an international business, it’s clear that more of the compromises will be made by the organization than by the local culture. As Brouillard emphasizes, it’s important to determine which aspects of your organization’s culture are able to be shed and which new aspects are appropriate to adopt. For organizations wishing to maintain ethical standards in an international context, understanding that the context is both a personal, organizational, and national one is an important first step. From there it is about deciding those ethical standards that are must-haves, and those that are not.

Christopher G. Harper Sales Director, Western Canada, Ideaca ideaca.com

PHOTOGRAPHER: NATION WONG

Most professionals will agree that ethical standards are an important component of professional conduct. Yet, when cultures begin to mingle, ethical standards become much less explicit and more of a subjective judgment, where ‘right and wrong’ can be a matter of cultural perspective.

Robert Brouillard, FCMC, MBA, retired managing partner of Deloitte Consulting.

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Diversity:

Embrace it now or get left behind. BY GENEVIÈVE BONIN, FCMC SENIOR VICE PRESIDENT, CONSULTING AND DEALS PWC CANADA

Any way you define the scope of diversity – gender, culture, sexual orientation, age, or even differences in thought – the topic has become a big business issue. Societal and demographics changes, such as the aging boomer population, Gen Y’s distinctive work style, and an increase in foreign-born talent to battle domestic labour shortages, shape how we work. Whether diversity is characterized as an issue or opportunity is all in the eye of the beholder. From my point of view, diversity only becomes an issue if you fail to embrace it. Globally, and certainly in the cultural mosaic that is Canada, diversity is power. In committing ourselves to be a diverse workforce, we open our doors to a larger and highly-skilled talent pool, learn different ways of doing things, and are better equiped to serve increasingly diverse clients.

We’ve been asked how PwC Canada manages diversity to maintain ethical and professional standards. While some companies choose to manage diversity with strict rules and regulations, PwC has taken a somewhat different approach to fully embrace diversity and inclusion into everything we do. Our core values, the ‘PwC Experience,’ reflect values that increase inclusion and respect diversity. It’s a way of living out our values both internally and in the marketplace by putting ourselves in each others’ shoes, investing in relationships, sharing and collaborating, and enhancing value through quality.

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PHOTOGRAPHER: NATION WONG

Of course, diversity also exposes businesses to some challenges. Cultural differences bring different values, ethics, expectations, and approaches to work. Conflict could be a natural result of misunderstandings as people struggle to understand each other. As with any conflict, the key is to learn how to navigate it and learn from it.

GeneviĂ¨ve Bonin, P.Eng, FCMC, MBA Senior Vice-President with PwC. She is also a Canadian Trustee to the International Council of Management Consulting Institutes (ICMCI). A retired naval engineering officer, she serves as an executive of the Treble Victor Group and is a mother of four.

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PHOTOGRAPHER: NATION WONG

Sandeep Tatla, PwC Canada’s Manager of Diversity.

“There is a strong tie between diversity and our core values at PwC. We don’t have rigid rules, instead opting to work towards common values that support diversity in all its senses. By putting yourself in the others’ shoes, for example, we build better relationships and provide superior service based on better understanding. You can’t fully live the PwC experience without embedding diversity into the ways we treat colleagues and clients.” —SANDEEP TATLA

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In our profession, we adhere to industry and company-wide codes of conduct to ensure we’re providing the best service to our clients. These standards, together with a roster of diversity programs and training, act as a solid foundation to maintain ethical and professional standards, and enable PwC to deal with the complexity of operating a diverse workplace. Our diversity programs are vast, including (but not limited to): cultural awareness training for all staff, a Women in Leadership initiative to help promote more female talent into leadership positions, and support for organizations that cultivate diverse talent pools such as Treble Victor Group, which helps ex-military leaders transition into successful business careers.

PHOTOGRAPHER: NATION WONG

Philip Grosch, leader of PwC’s Technology Consulting Practice.

We’re also fortunate to have many of our people championing diversity within our organization. Philip Grosch, leader of PwC’s Technology Consulting practice, is a Canadian who grew up in South Africa. He is actively involved in some of the above mentioned programs. He elaborates on his views on diversity below: “Canada has derived incredible strength from its uniquely diverse population. As part of a large global network, PwC Canada is in the fortunate position to have numerous cultures and countries represented in our offices. This has allowed us to benefit from globalization and the associated opportunities. The challenge at hand is to find ways to harness the strength of this diversity. Instead of segmenting different groups, we need to find ways to put them together, creating a fabric that’s much more powerful.” What we’re striving for is a future where diversity isn’t such a hot topic. We want it to be the norm. Grosch’s vision sums this up:

“We need to move away from diversity programs to instead embedding diversity into all the ways that we think, act, and operate. We want to get to a state where PwC is naturally reflective of the communities in which we operate across the full spectrum of diversity.” —PHILIP GROSCH

To get there, we plan to continue to put a diversity lens on virtually everything we do – in how we interact daily with each other and with our clients. We need to let diversity flourish organically within the company to fully recognize its power. Sure, there may be a few bumps along the way as we continue to learn from each other, but diversity is here to stay and the future looks brighter because of it.

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PASSION IN THE PROFESSION

Building a better community PHOTOGRAPHER: KAREN ASHER

Sandra Altner FCMC, Chief Executive Officer Women’s Enterprise Centre Winnipeg, MB

“I believe that if you see something that isn’t done right, don’t complain about it, fix it.” Tell me how you first got involved in volunteering your time and expertise in your current role (not CMC-Canada). I believe that if you see something that isn’t done right, don’t complain about it, fix it. Over the years I have done formal and informal volunteer work. I talk to people who need information and access to resources, and as I become more experienced, I have more ammunition to give them. I enjoy working with entrepreneurs, giving them a good foundation on which to base their decision about how to move forward. I want to pass along knowledge – to help people take the next step without fear. What has surprised you most about your volunteer experiences? How much you learn from being a volunteer. I have had great board experiences, especially on policy boards that develop strategic direction for an organization. Recognizing as a board member where you are in a governance continuum and how that translates to the 20 consult magazine Fall 2011

increased health of an organization has been a fantastic learning experience.

poorly. Join to add value to the organization, not to get work for yourself.

What do you find most challenging? Rewarding? It can be challenging to depend on others to do things. You’re part of a whole team – so when all the parts work together properly, it’s great, but when it’s bad, it can crash a whole project or event.You have to be aware of taking on so much that you can’t meet obligations, as others depend on you.

What do you do when you aren't working, volunteering? How do you fit it all in? I’m a web junkie; I do research and surf the web and raid libraries for information. I use the Internet to stay connected with friends and colleagues as well as to communicate with my family in the States. I’m a fair photographer and I also write short stories. I am an avid reader and recently added a workout program that has increased my energy. I enjoy what I’m doing, as I am quite invested in my work and my projects.

What would you advise someone who is thinking about donating their time to a charity, community group, or other non-profit organization? Volunteering extends your reach and helps you integrate into your community. Follow your passion when selecting your volunteer path. Make sure you don’t take on too much: be selective with your choices. It’s much better to do one or two things well instead of 10 things

What other organization do you admire and would like to work with? I admire the Winnipeg Symphony Orchestra and the Canadian Museum for Human Rights. They would be great to work with. I would be happy if my work, life, and volunteer experiences could be of use to any worthwhile organization.

PHOTOGRAPHER: JEREMY BREHM

Gregory J. Fieger FCMC, CHRP, Office Managing Partner Conroy Ross Partners Regina, SK

“It’s important to get involved, contribute to something you’re passionate about, and stand behind it.” Tell me how you first got involved in volunteering your time and expertise in your current role (not CMC-Canada). Through previous roles in human services and criminal justice I saw the need to contribute to the community. It’s important to get involved, contribute to something you’re passionate about and stand behind it. I am most interested in helping youth through sport, so I have connected to opportunities that fit this niche. I recently reconnected with KidSport, where I had originally volunteered in the 90s. I made a three-year commitment as Committee Chair of the fundraising Golf Tournament. This long-term commitment provides continuity and stability to grow this event and build a succession plan. What has surprised you most about your volunteer experiences? Maybe not surprised but gratified. The willingness of very influential business leaders to step up and help. If you frame the value prop so volunteers see the merit of the cause, and how they can benefit they will join you. A great team can create something special and more

What do you find most challenging? Rewarding? Once you’ve made the commitment to take a leadership role seriously you must stick with it. We must all balance busy lives. It was wonderful to co-create a recent golf event where people had fun and enjoyed themselves – all for a great cause! It is exciting to build upon this initial success, setting up the foundation for the future success of the event and increase its value over time to KidSport.

What do you do when you aren’t working, volunteering? How do you fit it all in? There was a period where I refused volunteer work because work and family commitments took precedence. With four children and six grandchildren, Brenda and I have a busy household, but we wouldn’t want it any other way. It’s imperative to take care of yourself. A fitness routine, and continuing education is important to me. I like to have line of sight on where I want to be in 3-5 years, and a plan to get there. My present pursuit is the Executive Certified Management Accountant program and then the Board Director certification.

What would you advise someone who is thinking about donating their time to a charity, community group, or other non-profit organization? Ensure it’s a worthy cause, one they have passion for. Be comfortable with your capacity to follow through and commit the necessary time. Approach the work the same as if you were getting paid for it.

What other organization do you admire and would like to work with? There are so many great ones. I would like to work again with organizations I have been involved with in the past. Child and youth charities are priority for me because of our grandkids – I would love to see every child have opportunity for a positive, fulfilling, productive, fun-filled life!

powerful than one person alone. I’m amazed by the quality and dedication of staff to manage, motivate, and encourage volunteers.

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PHOTOGRAPHER: AARON MCKENZIE FRASER

Kevin Schwenker FCMC, Principal Schwenker & Associates Halifax, NS

“I work to live, not live to work. I am able to schedule my hobbies and my work into a rewarding lifestyle.” Tell me how you first got involved in volunteering your time and expertise in your current role. After graduation I joined the Dartmouth Chamber of Commerce. There I realized that getting involved in committees was an opportunity to give back to my community. Volunteers are essential to non-profits and non-profits make a community work. I became involved in some great organizations, like the Halifax Grammar School, coaching minor soccer, basketball, and baseball, and Boy Scouts of Canada (to be closer to my son). I loved helping these organizations grow. Most recently I got involved with the Canadian Youth Business Foundation (CYBF) as a mentor. My protégée was involved in Habitat for Humanity-Global Village and her enthusiasm got me involved there. What has surprised you most about your volunteer experiences? The emotional attachments you develop to other volunteers and to people whose lives you touch. With Habitat for Humanity, the family builds its home with you so you get close to them – it’s difficult and emotional to leave at the end of the build. What do you find most challenging? Rewarding? Most challenging is not upsetting those in the organization who are used to doing things a 22 consult magazine Fall 2011

certain way. And creating a succession plan to replace yourself. Most rewarding is the success of other people or the organization. Knowing you have contributed to their accomplishments. My protégée won the Halifax Chamber of Commerce Small Business of the Year award in 2010. Just hearing her name called for the award that night was awesome – I was so proud. Also, seeing the people whose lives I’ve touched – young men and women I coached – now grown up and successful 10-15 years later is immensely satisfying. What would you advise someone who is thinking about donating their time to a charity, community group, or other non-profit organization? Pick something you like, that interests you and offers you an opportunity to build your skills as well. Observe how things work at the organization first – then volunteer to assist on a smaller level and then go on to bigger things if you enjoy it. And commit to spending significant time to do it right. What do you do when you aren't working, volunteering? How do you fit it all in? I work to live, not live to work. I am able to schedule my hobbies and my work into a rewarding lifestyle. It took lots of hard work, focus, and discipline to get to this point. I find that if you’re doing something you love it’s easy

to make it part of your life – be sure to take time for yourself so you don’t get overwhelmed. What other organization do you admire and would like to work with? To work with a charity to raise funds and awareness around men’s health issues. I plan to continue with Habitat for as long as I am able. Perhaps go back to coaching minor softball or basketball. I also plan to work with another protégée at the Canadian Youth Business Foundation – entrepreneurship is the life blood of our communities.

In 2011, Kevin was selected as both the Atlantic and Canadian Mentor of the Year by the Canadian Youth Business Foundation, for dedication to building Canada’s young entrepreneurial community and for success in working with protégée April Glavine of Lean Machine Healthy Vending Inc.

PHOTOGRAPHER: NATION WONG

Anne Bachinski FCMC, Managing Director & Co-Founder Bradford Bachinski Limited Ottawa, ON

“The work is often draining, requires long hours and takes up people’s ‘free’ time. Yet they all do it happily, consistently, with warm heartedness.” Tell me how you first got involved in volunteering your time and expertise in your current role (not CMC-Canada). My first serious volunteer work was in Guelph, when my children were young. There were no pre-schools that met their needs, so I helped start a parent-run pre-school. We rented space, hired a full-time teacher and took turns managing the school and working in the classroom. One of the parents was Robert Munsch, who used to read to the kids. That school is still running. After moving to Ottawa, I sat on a number of boards, including the Council for the Arts. But the real focus of my volunteer work was my passion for social justice issues. I wanted to help marginalized people, a problem that was growing in Ottawa. The Sunday Supper Program at St. Margaret Mary’s Church was started by a small group of friends and I, with a handful of volunteers who made meals from scratch, and served them to people who were treated like guests. That was 12 years ago. Soon we were feeding 100+ people every week from October through May – and I was managing 70 volunteers. Our guests ranged from street people, to low income families, to people with mental health issues, to students.

The program has become a real exercise in community building, as guests and volunteers mix easily, and have formed real bonds. What has surprised you most about your volunteer experiences? The many faces of generosity. People are willing to donate time, effort, expertise, and money. The work is often draining, requires long hours and takes up people’s ‘free’ time. Yet they all do it happily, consistently, with warm heartedness. What do you find most challenging? Rewarding? It’s important to provide focus and leadership – to provide structure and manage the effort so everyone has a role and knows what it is. A positive for me was getting to know people, both volunteers and guests from all walks of life, and helping by creating a setting where everyone had a positive experience and found a way to contribute. The true reward is in the giving. What would you advise someone who is thinking about donating their time to a charity, community group, or other non-profit organization?

Be prepared to dig in, give your time, and roll up your sleeves. You must be willing to work with people from various backgrounds and at times, get a little uncomfortable. What do you do when you aren’t working, volunteering? How do you fit it all in? With a husband, three grown children, three young grandchildren, and a great network of friends, I need to maintain a good life/work balance. I enjoy yoga, which helps me stay fit and relax. Personal care and self-maintenance is key. I walk early in the morning and work out. I strive to be organized and keep the professional, social, spiritual, and physical parts of my life in balance. What other organization do you admire and would like to work with? Ottawa has an amazing new centre for cancer survivorship called the Maplesoft Centre, which will focus on cancer survivorship care. Being a caregiver during my husband’s illness was one of the most challenging roles I have ever had. I would like to share what I learned from this experience, perhaps by using my professional coaching skills to help others.

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HOW’S YOUR ASSET?

What Clients Really Want From Management Consultants Many consultants believe that they know what their client wants better than the client itself does. But the generally low level of satisfaction with consultants (based on a survey conducted in January 2011) tells us that, generally, consultants do a poor job of determining a client’s needs and then delivering solutions that meet those needs. BY JENNY SUTTON, CMC

OUTCOME

WHAT

CONSULTING CAPABILITIES

WHO PROJECT APPROACH

What Clients Want On the surface, what a client wants is an outcome or result, which may be focused on business performance, or even personal power or prestige. Clients usually care as much about how the outcome will be achieved as they do about the actual results. They are often quite specific about the capabilities that they require from the consulting team – going so far as to interview key engagement personnel. But what they often do not specify is how they would like the project architected: they assume that the consultant will propose an approach that is specifically designed to best achieve the client’s goals. However, most clients don’t realize that the fundamental building blocks of the consulting business model (leverage, utilization, and, hourly rates) almost always produce a project approach that is designed to best meet the needs of the consulting firm, not the client. Typically, consultants configure projects as a continuous service for a three month (or multiple thereof) duration, with the project being managed and the team being staffed entirely by the consulting firm. Surprisingly, that is often exactly what the client doesn’t want. But rather than saying so, the client will instead look for a solution from another source – internal resources, former employees, or independent contractors, where the client can exert more control over how the project is designed or the client will accept the consultant’s approach, but wage a constant battle over the approach, staffing levels, and value delivered.

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HOW

How do clients want consulting services to be packaged, structured, and delivered? The Consulting Business Model doesn’t necessarily serve clients well. It is premised on: • Leverage – the ratio of junior to senior staff. • Utilization – proportion of available hours that can be charged to a client. • Realization – percentage of standard hourly rates that are charged. These factors predispose consulting firms to propose a pyramid of people (according to the firm’s desired leverage ratio) for a defined duration (minimizing non-billable time during or between projects), charging fees based on the number of hours worked (assuring a planned realization rate). But for a client, having a consultant come in and take over the whole project is often problematic: staff don’t acquire new skills nor knowledge, their organization cannot work at the consultant’s pace, and at the end of the day the buyer is accountable for the results produced, regardless of whether consultants were involved or not. So, when writing a proposal, instead of automatically proposing the standard project structure and approach, think about deconstructing the building blocks of leverage, utilization, and hourly rates and reassembling them in a way that will better serve the client. Here are just a few things to think about.

1 The Pyramid is Ancient History Buyers of consulting services are often amazed when a large team is proposed to solve a problem or implement a solution, and that the consulting firm expects to fill every role on the project with its own (usually expensive, but perhaps inexperienced) resources. Instead, why not work with the client organization. Assume that it does have people who are capable of working alongside your consultants on the project. And that if the project is worth the client hiring outside professional advice, its best people will be made available. Allow the client the opportunity to develop its people by assigning them to the project. And ensure that knowledge transfer starts at project kick-off and ends at project closure, rather than simply delivering hefty volumes of paper to the client as you walk out the door. Projects that have an integrated client/consultant team will generate more client buy-in, and will more easily access key internal information and people, making the project more efficient. Avoid consultant-only huddles: involve the client team members as full project participants throughout. Leverage will probably continue to be an important building block of the consulting business model, but the target leverage ratio should reflect what is necessary to meet client’s needs. As clients demand more inclusion on projects, and selectively engage only the more senior, experienced resources, consulting firms must reconsider their leverage ratios and average experience level, which has implications for the recruitment and development of more senior and non-traditional hires.

2 Extract Value from Consultants: How to Hire, Control, and Fire Them ABOUT THE AUTHORS:

Jenny Sutton, CMC, is an authority on selecting and managing consultants to realize greater business value. As a consultant, and then partner with Deloitte, and subsequently ABeam Consulting (Japan), she has served dozens of clients in North America, Europe, and, for the past decade, Asia. Since 2006, when she and co-author Gordon Perchthold started The RFP Company (RFPCompany.com), she has focused on architecting complex projects for multinational clients in Asia. Gordon Perchthold is a co-founder and Partner of The RFP company, a management consulting firm that enables clients to make strategic choices.

Work at the Client’s Pace To maximize utilization, consulting engagements usually have hard starts and hard stops, with little time for either the consultant or the client to pause and think in the middle. Project plans assume that client steering committee members will make instant decisions on recommendations presented, and that issues will be immediately resolved to avoid project delays. But most organizations don’t work like that, not even consulting firms. Projects that are planned to allow time for client decision-makers to digest, propagate, and ponder information or recommendations received from the project team are less likely to suffer from neglect and passive

resistance as the project moves forward. Consulting firms that can adopt more flexible resource deployment models (perhaps requiring consultants to work with multiple clients concurrently) and gauge the appropriate pace for each client will realize better results by implementing meaningful change in their clients’ organizations.

3 Charge for Outputs not Inputs The standard professional service approach of charging clients by the hour (or day) is no longer acceptable to clients who want guaranteed results and intend to hold consultants accountable for value received. This does not necessarily mean that clients want contingent fee arrangements, where the consulting firm gets a significant bonus or percentage of the gains if the project achieves its objectives. This is usually a very one-sided arrangement: the consulting firm is in the money if the project succeeds, but it is seldom prepared to foot the bill (which may be more than the fees) if the project does not deliver. And of course there are only a small number of projects where contingent fees can be effectively applied, usually where there is an immediate, clear saving to be achieved. The client should only be expected to pay a reasonable fee (based on hourly rates) if the results expected have been achieved. If the consultant is not prepared to put its fees at stake, this sends a message to the client that lacks confidence in the people and approaches being deployed to deliver the results that the client is looking for. A New Consulting Business Model? For many firms, leverage, utilization, and realization is such a fundamental part of their DNA that they have no choice but to propose the same project structure to each and every client. But for firms that can re-invent themselves, or for new firms without the constraints of traditional staffing structures, this is an opportunity for differentiation.

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buzz News directly from the Institutes and Chapters.

01/CMC-Alberta

03/CMC-Ontario

Congratulations to Shilpa Stocker, FCMC on being awarded the FCMC designation.

CMC-Ontario Regulation Steering Committee

A big thank you to our Member Services Chairs, Rachel Foster and Mike Watson, for doing a fantastic job of organizing CMC-Alberta’s Fourth Annual Consulting Conference: ‘Fostering Excellence in Consulting’ held in October.

The CMC-Ontario Regulation Steering Committee was formed in the fall of 2010 to launch an important conversation among Ontario members about strengthening the self-regulatory structure and processes of the Institute of Certified Management Consultants of Ontario (ICMCO). The committee has an overall plan consisting of five phases.

We invite all CMC-Alberta members to become involved in building the awareness of the CMC designation and our global association. We welcome all members who are interested volunteering as committee and board members in the year ahead. Please contact Mark Brown, CMC (mark.brown@mnp.ca) when you are ready to commit to making the most out of your membership.

02/CMC-Manitoba New CMCs in MB in 2011 • Allen Moxam, CMC • Richard Brodeur, CMC • Bryan Crowley, CMC New life member: Sean Sweeney, FCMC Since 1977, the cornerstone of Sean’s work has been to help clients design and install ‘Best Marketing Practices,’ enabling them to compete on value, not price, resulting in accelerated revenue growth, superior revenue yield, and optimum shareholder value. Sean has been a CMC since 1980 and was awarded his FCMC in 1987. Sean authored the Marketing Assessment Guide for the $5 billion Western Economic Development Fund and was appointed by Industry Science & Technology Canada to chair the marketing adjudication committee for the Canada Awards for Business Excellence. He was selected by Royal Bank to partner with their business specialists in the ViaSource network and was the recipient of RAVE award from the National Research Council for counsel and guidance to the Industrial Research Assistance Program (IRAP). Sean has for more than 30 years demonstrated a sustained, significant, and recognized contribution to his profession, his clients, and his community.

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In phase 1, the committee explored the range of regulatory options available to determine where ICMCO stands in the overall regulatory landscape relative to other similar professions.

Phase II (currently underway) is designed to: • Communicate with members about and obtain input concerning the phase I results. • Explain and assess existing regulatory framework, as well as the committee’s preliminary conclusions and recommendations, including the opportunity of more fully realizing the potential of our existing legislation. • Discuss the risks and benefits of proposed changes and/or preferences for other regulatory options including the status quo. • Lay out a proposed phased course of action over the next couple of years. • Provide for future updates, consultations, and approval by the members before action is taken.

Intended outcomes • Summarize the interest in and support for proposed changes in CMC-Ontario’s regulatory framework, or in other options, as the basis for Council’s decisions for moving forward to the next stages. • Expand the knowledge base among members about regulation and broaden the capacity for volunteer involvement in the regulatory work of the Institute.

New FCMCs Anne Bachinski, FCMC Anne Bachinski received her FCMC not only for her contribution to the profession and the excellence of her client work, but also because of the exceptional and dedicated service she has provided to the community. She helped to establish the Royal City Cooperative Preschool in Guelph, Ontario, a preschool which thrives to this day. In Ottawa, Anne established a number of successful programs for marginalized people. One was founded 13 years ago, and still feeds more than 100 people per week in a ‘family dinner atmosphere.’

Anne’s service to, and accomplishments on behalf of, CMC-Canada and the profession at the local chapter, provincial, and national levels is exemplary. Clients and colleagues hold Anne in high regard, noting her integrity, sensitivity, ability to counsel people in times of change, and dedication to generating positive outcomes for all. Lynn Bennett, FCMC While acknowledging her work in her community (e.g., Yee Hong Centre for Geriatric Care) and the strength and the excellence of her work with her clients, Lynn received her FCMC primarily for the exceptional and dedicated service she has provided to the profession. She has served for almost 10 years, making substantial contributions progressively as GTA Chapter Chair, Vice-President then President of CMC-Ontario, and Vice-Chair (and now Chair) of the CMC-Canada board. In addition, she made significant contributions to National Advocacy Committee (Chair 09/10), Professional Development Task Force (co-Chair 09/10), and the Ryerson Task Force (08/10). Lynn’s clients and colleagues recognize her innovation, integrity, and independence, as well as her attention to detail, ability to build consensus while attending to each individual’s needs, and assiduous pursuit of excellence. Ingrid Pregel, FCMC Ingrid stands out in three areas, demonstrating a ‘balance of excellence’ in her commitment to her profession, her clients, and her broader community. As Vice-President then President of CMC-Ontario, she was instrumental in guiding, building consensus, and rebuilding the Institute in a turbulent transition. She subsequently served as a member of the Board of CMC-Canada. In her community, Ingrid has served on the boards of KidAbility (Centre for Child Development), the Food Bank of Waterloo Region, and the Brampton YMCA, making important contributions to each organization. Those who work with her as a volunteer admire her integrity, ‘stick-to-it-iveness,’ and ability to build consensus around practical agendas for change. Her clients recognize her ‘bi-focal vision,’ her ability to facilitate the development of strategies that not only are visionary but also eminently implementable. She is able to help clients establish the direction as well as the policies, processes, practices, and procedures required to help achieve their goals. Her clients, peers in the profession, and colleagues in her community regard Ingrid highly for her dedication and ability to shepherd practical solutions from concept to implementation.

04/Greater Toronto Area

05/Eastern Ontario

Member services chapter update

GTA Board elections were held in February, the new Board held its first meeting in March. Board members and their portfolios are:

Introducing the Eastern Ontario Chapter Council for 2011-12

Chair | Marylka Empey, CMC Student Internship | Mary Pearson, CMC Special Interest Groups | Abdul Waheed, CMC Volunteer Services | Raj Phalpher, CMC Advocacy | Husam Sha’ath, CMC Membership | Abraham Patricio, CMC Member Communications | George Socka, CMC Mentorship | Rishi Kumar, CMC Member Services | Nicholas Lal, CMC Treasurer | Turaj Seyrafiaan, CMC The Board recently completed a Strategic Planning process, facilitated by Jack Shand, CMC, with the emphasis on providing member value. Results of the CMC Member survey for the GTA Chapter were shared, and the Board completed a comprehensive SWOT analysis. As a result, the focus of the Board is to ensure that GTA members receive value in their membership, and the Mission Statement developed by the Board reflects this emphasis: “Deliver programs to and services for members and prospective members in the GTA to support the advancement of management consultants and the CMC designation.” The Strategic Plan captures initiatives pertaining to member communication, professional development, mentoring, student internship, special interest groups, signature events, networking, and membership growth. The Board has set very ambitious goals, all of which are intended to enhance membership value for GTA Members. The Board meets monthly to review action plans to implement the Strategic plan, and will provide members with regular updates on progress. Information on the Strategic Plan has been emailed to each GTA member, and is posted on cmc canada.ca/ go/gta. Involvement and engagement of members is key. We encourage members to participate in events throughout the year, and to consider volunteering on supporting committees to the Board portfolios.

Chair | David R. Bolton, CMC Past Chair, Government Advocacy Dorothy Milburn-Smith, FCMC Vice Chair, Treasurer | Douglas Nowlan, CMC Marketing | Ron Brophy, CMC Professional Development | Lindsay Rivard, CMC Membership Growth (New member of Council 2011-12) Stephen Donahoe, CMC Events (New member of Council 2011-12) Daniel Fallon, CMC Communications | Rick Nowak Thanking former members of EOC Council Thank you to those members of the 2010-11 EOC Council who have retired. You served us well. Vice Chair and Treasurer | Bron Vasic, CMC (Bron became Treasurer of CMC-Ontario) Director-at-Large | Eleanor Toews, CMC Membership Services | Phil Jensen, CMC

This has resulted in increased local capacity and an increased profile, which helps us to promote the CMC brand locally. We have also experienced increasing strength in our CMC community. In 2011 we started monthly breakfast meetings. These are well attended and provide an excellent opportunity for networking and engaging prospective members and encouraging their involvement. These meetings also provide an opportunity to inform members of national initiatives and ways in which they can increase their involvement. The attendees keep growing and after eight months we had to seek out a larger venue. The breakfast meetings have also spawned bi-monthly ‘Lunch and Learn’ meetings that will occur in alternate months starting in October. Building the CMC community at the local level across the country is critical to building recognized value and we need to advance all mechanisms that enable us to engage local members so that they understand the work that is occurring both regionally and nationally on their behalf, and so that they can contribute to advancing the CMC brand and its value. Starting small can get big pretty fast! Watch NL!

06/CMC-Atlantic Canada Growth and development in Newfoundland As Newfoundland and Labrador experiences unprecedented growth across many economic sectors, so too there has been strong growth in the provincial CMC community. This growth has not occurred naturally, but has required hard work and outreach from a small community of dedicated CMCs. Five years ago there were only seven CMCs in the province; we now number 15. And with two other candidates ready to proceed to assessment and three more ready to advance their formal applications, awareness of CMC and the value of the designation is building momentum! Newfoundland has also advanced participation in CMC-Canada on a national level. In 2010, the Atlantic Institute elected its first President from NL and the first NL CMC to sit at the National Table. Presently four CMCs from NL sit on the regional Board.

The Board welcomes your comments and feedback, and our contact information can be found on cmc-canada.ca/go/gta. We value your membership, and look forward to connecting with you in person!

consult magazine Fall 2011 27

top of mind Do you have an opinion, idea, or perspective that you want to share? ‘Top of Mind’ is written by our members to stimulate a dialogue on important issues. Send in your quotes to consult@cmc-canada.ca with ‘Top of Mind’ in the subject line.

As Albert Einstein said “perfection of the means, and confusion over the aims, seems to be our biggest problem.” Among the biggest mistakes organizations make is to move forward without a clear definition of desired and measurable outcomes; and without proof that the outputs of their efforts will actually enable those desired outcomes. To avoid this, we should stay away from the old ‘better, faster, cheaper’ provision of the status quo mantra, and get our clients to address three simple considerations: are we doing the right things (results); are we doing things right (performance); and are we doing things consistently to high standard (quality).” Russ Grabb, CMC, President, CMC-British Columbia

Organizations consistently under-estimate the requirements for overcoming organizational inertia. The toughest ‘hat-trick’ in business is changing the business will running the business. It requires realizing three goals: Change, Innovation, Transformation. Victor Rocine, CMC, Strategic Change Advisors LLC

It will be interesting to see whether the veteran consultants of the baby boom generation really will retire as expected. It may be that the pleasures and rewards of the profession (or the economic circumstances) prove so compelling that significant numbers will choose to continue practicing well into their sixties or even their seventies. The ability to choose the timing and conditions of retiring or cutting back is one of the great advantages of the field. This will great for those of us who want to continue working (and learning) but it might not be so good for those trying to carve out a foothold in an already crowded landscape. Ron Knowles, MBA, FCMC, Director, Western Management Consultants

Why are consultants the villains during each election campaign – or in between when the opposition need to besmirch the government – then called back again to straighten out the messes that any government inevitably cause through ideological, short-term, non-strategic thinking. Len Ashby, FCMC Life member

It is critical during the engagement initiation phase that consultants embark on a plenipotentiary mission and sensitively conduct an effective stakeholder consensus audit. Diplomatic disclosure of any conflict of ideals should be done by utilizing established governance procedures. The purpose behind the disclosure is to ensure that the consultant is not straddled with removing intentional barriers put forth by competing positions. Failure to do so provides the opportunity to the warring stakeholders to intentionally deflect the cause of the engagement stalemate from themselves to the consultant which may damage the consultant’s credibility. George Konstantopoulos, MBA, PMP, PgMP, CMC Senior Consultant, Welch International Management Consulting Group Inc.

28 consult magazine Fall 2011

remembering Remarkable lives lived within the CMC-Canada family. Send in your suggestions for someone to profile to consult@cmc-canada.ca, and put ‘Remembering’ in the subject line.

J.A.R. (RODY) WATT, B COMM., MBA, CHRP, FCMC

1932-2011 BY HEATHER OSLER

There are members who pay lip service to their organization, and there are those who commit to making a significant contribution. Rody Watt was unabashedly the latter. Fortunately for the Ontario Institute, one of his strongest passions was the growth and enhancement of the CMC designation. Rody was born in Montreal and earned degrees from both Concordia and Western. Following a career with one of Canada’s leading banks, Rody changed gears and became a management consultant with Hickling Johnston in Toronto. He and his wife Barbara and their children Jaime, Susan, and Patti had moved from Montreal to Oakville in the 1970s. He joined the Ontario Institute in 1979, earned the CMC designation in 1984, and later was elected by his peers in 2006 as a Fellow of the Ontario Institute. True to form, Rody stole the

spotlight at the presentation of Fellows that year. A staunch Canadian, just days before the presentation he had climbed a ladder to fix the family’s broken flag pole and had tumbled to the ground causing a broken ankle. Rody was also a Certified Human Resource Professional; his mentoring to many new and potential CMC members was greatly enhanced by the skills of a CHRP. He led CMC-Ontario’s membership committee for several years and during the summer months, the meetings were held on his treasured boat ‘Vitesse.’ Rody insisted the record show “the minutes were taken at 6 degrees of heel.” Perhaps his most important contribution in the 2000s was as a volunteer Oral Assessor for the CMC designation. Over the years Rody spent many weeks at the National Office interviewing candidates. In earlier days he had spent week-

ends marking the Comprehensive Exam with 50 other CMCs. Yet CMC-Canada was only part of Rody’s volunteer life. Quoting from his obituary, “he was a past chair of Cheshire Homes Foundation, past commodore of The Oakville Club, board member, instructor, and passionate ambassador of Track3 Ski Association. A natural athlete, Rody was equally at home on the hockey rink, ski hill, squash court, and the lake, sailing his boat.” Rody was a retired partner with Sobeco Ernst &Young. Once retired, he volunteered at the local hospital and drove for the Wellspring Cancer Support Centre as well as being treasurer of his condominium complex. He was also active in his favourite political party. Rody Watt The consummate volunteer

consult magazine Fall 2011 29

Show your passion. The Canadian Association of Management Consultants (CMC-Canada) is proud to offer members a growing range of high-quality products highlighting the Certified Management Consultant (CMC) designation. Browse around our online store, we offer a fast and secure checkout. Wear your designation with pride!

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30 consult magazine Fall 2011