The Purpose and Use of Management Consultancy Firm in Nigeria

THE PURPOSE AND USE OF MANAGEMENT CONSULTANCY FIRM IN NIGERIA (A CASE STUDY OF ONITSHA SOUTH (L.G.A) IN ANAMBRA STATE)

Consultancy is a two way interaction between two or more persons organization one of participants in the interaction usually has a specific problem, a solution or help to which he hopes the other participant has day virtue of his knowledge and practice in relation to the problem at hand.

This interaction has been described by lip port and Lippert (1978) as a process of seeking giving and receiving help consultancy has been in existence as long as man however only in the last couple of decades has formal professional training been introduced in the field.  But earliest know consultant or helper were tribal wise men medicine men and priests who developed skill in personal or group in problem solving.  Although there was no formal professional training programme for these roles there were apprentices and selection for talent

Lippert and Lippert (1978) said that in later years charismatic leaders such as Budha, Christ Mohammed and Confiscus developed a circle of follower who through role modeling conceptual training helping orientation and skill and presented themselves to people as helpers and changing agents.

Kubr (1977.12) noted that over the years consulting has developed as an external and internal service, as seen from the viewpoint of the client system

An external consultant is administratively and legally fully independent of the organization for which he works while the internal consultants is part of the particular organizational entity.

AN OVERVIEW OF THE CONSULTING PROCESS

Kubr (1977.3) defined the consulting process as the consultants and client joint activity aimed at solving the desired changes in the client organization. Kubr identified fine phases in the consulting process: entity diagnosis, action planning implementation and termination

PHASES OF THE CONSULTING PROCESS

FIG 1

1. Entry: First contact with client preliminary problem diagnosis assignment planning and assignment proposal to client
2. Diagnosis: Fact finding fact analysis and synthesis detailed problem examination.

iii.      Action planning:  Developing alternative planning implementation

1. Implementations: Assisting with implementation adjusting proposal training
2. Termination: Evaluation final report setting commitments plans for follow- up withdrawal

Source:       Kubr M. management consulting (19777:14) Prof. 110 Geneva

1. ENTRY: This is the first phases were the consultants are works with the client. Discussion are made on the changes the client would like to make in his organization and how the consultant can help him. This phase lays down the foundations of everything that follows; some the subsequent phase are influences by the quality of the work done.
2. DIAGNOSIS: This phase in depth diagnosis of the problem to be solved based on through fact-finding and fact analysis. The result of the diagnosis phase are synthesized and conclusion are drawn on how to orient work on action proposal so that the real problems is solved and the desired benefits obtained.

iii.      ACTION PLANNING: The third phase aimed at finding the solution to the problem. It includes work on alternative solution evaluation of alternative the elaboration of a plan for implementing changes and the presentation  of proposal to the client for decisions

1. IMPLEMENTATION: This is the fourth phase of consulting it provides an acid test for relevance and feasibility of the proposals developed by the consultant in collaboration with his client if the clients can handle the phase of changes there is no need for the service of a consulting reports can provide a full guarantee that the promised results will be attained.
2. TERMINATION: This is the final stage in the consulting process and it includes several activities

The consultants performance during the assignment, the approach taken the changes made and the result achieved have to be evaluated by both the client and the consulting firm.

• DEFINITION OF MANAGEMENT CONSULTANCY FIRM

When the artist institute of management created the register of management consultant.  In 1948, the committee defines a management consultancy as a firm or industrial concern competent to adhere to advice and assist on a profession basis.

Another definition given to management consultancy by some state that it is a person who provides a specific since to meet an already identified need e.g. a course on financial accounting management.  Also he or she can be seen as someone capable of diagnosing management problem and helping to identify were appreciate management development solution. Also the institute of management consultants of Nigeria (IMCON) formed in 1979 looked at management consultancy publicity and for a fee and who devoted a substantial portion of his working time to management consulting or in the administration of supervision of management consultancy.

In American the Association Of Consulting Management Engineers (ACME) defined management consulting in a way not necessary dissimilar from the one given by the British institute of management consultants but in a comprehensive and functional way that really brought out what is essentially involved in management consulting they defined it as the professional service performed by socially trained experienced problems associated within its goals objective strategy organization operations and procedural or technical problems in commending solutions to those problems and in helping to implement them when appropriate.

• REASONS FOR USING MANAGEMENT CONSULTANT FIRM

A lot of reasons permit the establishment of management consultancy firm

The reasons are:

1. So that industrialist might carryout adequate feasibility studies before stating any business
2. To help industrialist open enough business venture so as to create employment opportunities for the people of Onitsha South Local Government Area
3. So that industrialist will not have fear of lost in any business they want to engage in.
4. To help business venture in Onitsha South L.G.A to achieve the aim in which they are establish.
5. So that the Onitsha South L.G.A industrialist will be able to know their fundamental right in any business they are doing.
6. Management consultancy forms where also established in Onitsha South L.G.A for industrialist in the area to consult for their business advice.
7. The management consultancy firms established in the area for the industrialist to know the type of investment that is profitable to
8. Lack of time on the part of client or senior management of the client’s company to cope with the demand of business.
9. Consultants may be used in justifying management decisions this done by a manager referring to the consultants.

• WHO USES MANAGEMENT CONSULTANTS FIRMS

Kubr (197718) opened that management consulting as a professional service and method for implanting changes in not contained to a particular type of organization and economic or business situations; it has been spreading to new areas of human activity new countries and new regions.

This opinion brings to light two areas in which consultants are being used.

1. The international scene: The use of consultants for work in other countries other than their owns has been another development trend with many implications.

It was started by business corporations operating internationally and pursued by government and international organization.

Many consulting organization for government and business in developing countries in connection with technical project financed from loans provided by the World Bank.

2. The General Trend: It is clear that the demand for management consulting service comes from all sectors of human activity and from all types of organization because all are undergoing economic and social pressure to improve their management and attain higher standard of performance and efficiency

THE POTENTIAL CLIENTS OF MANAGEMENT CONSULTING

Lippert and Lippert (1978:5) classified them  into eleven client systems as follows:

1. Economic systems: Business industry, chambers of commercial associations.
2. Educational system, school, colleges adult education, programmes, state department of education.

iii.      Political systems: Political parties city government league of women voters governor’s office.

1. Religion systems: Churches, seminaries monasteries.
2. Recreation and leisure: Time system recreational programmes agencies park, comps hobby dints.
3. Cultural environment system: Theatres, museums, arts schools, musical societies.

vii.     Welfare system:    Hospital clincs health education.

viii.    Social profession agencies: Counts police legal and civil liberties

1. Mass communicating systems: Newspapers, radio, and television
2. Geographic entities: Neighbourhoods, communities countries and regions.

• REQUIREMENTS OF MANAGEMENT CONSULTANT

The American management association (1975:17-20) listed these criteria

Academic training applied experience comparable position help in industry, personality characteristic and results adduced in previous assignment as basis for selecting management consultants. Academic trainings each are of competence demands minimum level of attainment of academic proficiency in highly specialized area  such as operations research the consultants should have training in the applied science the mathematic logic statistics and economics.

Applied experience in comparable situations in related nature.  It is preferably but not essential for these experiences to have been in the same industry.

Personality characteristics: the management consultant should build a sound and workable relationship with people in the client company.  It is important that chemistry enables the consultant to function a them.  His personality should be compatible with their in order to establish a proper relationship results achieved in pervious assignment the consultants should have a proven track record of his own part from the accomplishment of the parent firm client. Client references and evaluating his past engagement.

• CONSULTING IN MANAGEMENT CONSULTANCY FROM

It has been known that most people are consulting in management consultancy firm.  It has also been an established fact from the research made on this topic that industrial establishments. In Onitsha South L.G.A of Anambra State are feeling reluctant to see the service of the management consultancy the researcher also finds out that industrial establishment in Nigeria have not been getting highly qualitative service from management consultants.

The study also brought out the fact that ignorance of the existence and benefits that will accrue to an organization that makes use of the service of the management consultancy services. Ti also bared the fact that industrialist in Onitsha South views that fees charge industrial espionage is also a contributory factor that prevents the industrialist in Onitsah South from using the service of management consultancy firms.

• PROBLEMS OF MANAGEMENT CONSULTANCY FIRMS

Walter Evans (1974) in answering the need  from management consultant saw the reason for  their need from am angle which is quite different in his approach on the reason for using management consultants as follows:

1. Objective: The consultant not being employee of the organization basest and  sentiments will make possible for the consultant to present an independent, impartial case from a fresh view point

1. Broad Experience: With their educational background and ht wide experience and skill gained while dealing with other organization makes it possible to know what actions to take when unexpected obstacle arouse or arises the likely reactions to expend from the people involved and what ingredients are necessary for an unsuccessful or successful result.

Kuber in his own contribution gave a straight four prices reasons why management consultants are needed namely.

1. Providing management with arguments which justifies predetermined measures and this makes management confident that a particular course of action or decision is optimal for particular problem.
2. Supplying intensive professional help on temporal basis which will make it possible for the organization not to worry about maintaining a permanent staff especially where such problem occurs.
3. Giving an impartial outside viewpoint. He is not subject to influence that arises from personal involvement existing traditions and habits within an organization.
4. Providing specialized knowledge and skill especially when an organization is short  of person needed to be able to tackle given problem with the same chances of success.

• THE EFFECT OF MANAGEMENT CONSULTANCY FIRM ON INDUSTRIALIST

Management consultancy firms have a lot of effect on industrialist some  of  these effects include the following:

1. Manageemnt consultancy firm have made industrialist to know the implication of any business venture they aspire to involve themselves.
2. It has helped industrialist to know the type of business they will engage in.
3. They increase in profit maximization when advice from manageemnt consultancy firms are applied.
4. Industrialist have their right in business as a result of consulting consultancy firms.
5. It has helped in promotion of feasibility studies before business ventures are established.
6. Industrialist have come to know which business is variable or not due to their consultancy to these firms.
7. The management consultancy firms have helped industrialist to determine the best way of handling their business ventures in order to yield needed profit.
8. They have successes in letting industrialist know where to invest so as to benefit from the investment without mush stress
9. Industrialist are now able to take correction measure each time they fail due to the presence of management consultancy firms

• REASONS FOR ESTABLISHING MANAGEMENT CONSULTANCY FIRM

A lot of reasons permit the establishment of management consultancy firms in Onitsha South Local Government Area some of the reasons are:

1. So that industrialist in the area might carryout adequate feasibility studies before starting any business
2. To help industrialist open enough business ventures in the area so as to create employment opportunities for the people of the local government area and its surroundings.
3. Difference in perception enables the best people within the organization to be influenced by their personal involvement and existing traditions and values to see a problem in its true light and think of feasible solution.

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