Management Strategy: Internal and External Consulting

DePaul University Management Strategy: Internal and External Consulting Spring 2002

Belverd E. Needles, Jr. School of Accountancy Professor of Accountancy DePaul University email: [email protected] 6026 DePaul Center Office and Voice Mail: 312-362-5130

Web site: http://www.depaul.edu/~bneedles

Course Description

The course focuses on the management consulting process, as a creative problem-solving process, where the objective is to provide services that add measurable value to internal and external clients. The course uses a strategic business perspective and integrates and synthesizes all functional business areas. Case studies are used to demonstrate the consulting process as well as areas of consulting. The ultimate objective of the course is to enable students to serve as effective consultants to internal and external clients. It provides experience in the consulting process using real-world cases. "Practitioner Associates" will participate in the delivery of the course to examine specific consulting skills or technical consulting applications. The course emphasizes problem-solving, case analysis, teamwork and oral and written presentation.

Course Objectives

The objectives of the course are to enable the students to: Integrate and synthesize accounting and other functional business knowledge and skills in problem-solving:

 Identify, analyze and solve problems  Work effectively in teams  Use effective written and oral communication skills in a consulting environment  Use of business and accounting research tools and methods  Use diagnostic tools and diagnostic interviewing skills  Diagnose business problems and develop suggested solutions.  Recognize the use of technology as an enabler in business processes  Introduce and implement change within organizations  Recognize the human and interpersonal dimensions of the consulting process

Required Texts:

Hill & Jones, Strategic Management Theory, 5th edition (Houghton Mifflin) Harvard Case Packet Optional: Roberts & Sergesketter, Quality is Personal, (Free Press)

Grading and Assessment

Grading and assessment will be based on the following activities: Written case assignments, class presentations and participation—Various written assignments and presentation will be required during the quarter. All activities are due when assigned and will not be accepted late. Also, class attendance and participation in class discussions and team activities will be evaluated. A sign-up sheet will be available each class to verify attendance. Students are expected to attend the Lang Student Competition (date to be announced) unless excused. Independent Team Case—Beginning in week three and continuing to week five an independent team case is assigned. Evaluation is based on the quality of the report, the class presentation, and peer evaluation. The latter will be explained when the case is introduced. Capstone case analysis and presentation—The capstone case will involve an analysis of the proposed H-P/Compaq merger. and will be explained in the course. Comprehensive Final Examination—You are to keep a notebook of what you have learned during the quarter. You may bring this notebook into the final examination and refer to it in answering the questions on the examination. The notebook is to be turned in with your examination.

The weighting of the above activities will be as follows:

Written case assignments, class presentations and participation 25% Independent Team Case 25 Capstone case analysis and presentation 25 Comprehensive Final Examination 25 Total 100%

Scale: A 90% C+ 76% A- 88 C 70 B+ 86 C- 68 B 80 D+ 64 B- 78 D 60 F Less than 60 Note: This scale has a curve built into it and therefore reflects the final cutoffs.

Bonus: Book Review --5 percent on your final average for the course (i.e., course average x 1.05)—Accompanying this syllabus is a list of classic business strategy books. You are to choose the optional text: Roberts & Sergesketter, Quality is Personal, (Free Press), which is available in the bookstore, or any one of the others to read. If you choose Quality is Personal, you should write a review of the book develop a personal checklist and comment on it including how it has changed your attitude toward your activities. If you choose one of the other books, you are to apply the principles from the book to any company you wish by researching the company on the Internet. You are to demonstrate your ability to use the Internet as a research tool by investigating recent developments and the current financial situation with regard to the company of your choice. The book review and report should be no longer than five pages.

Incompletes: Incompletes are given only to individuals who cannot take the final examination at its regularly scheduled time due to an unforeseen difficulty such as an accident, illness, or death in the family. Incompletes are not given to individuals who fall behind in their assignments and class attendance due to work or other reasons. In the latter case, a withdrawal is the appropriate action.

Other Policies: Accounting and commerce students are expected to maintain the high ethical standards that are representative of the best in the profession they have chosen to enter. In general, failure to turn in an assignment when due or take an examination when assigned will result in a score of zero. Cases of academic dishonesty are viewed as a serious violation of professional ethics and will result in an F Grade.

SUGGESTED READING LIST FOR PERSONAL BENEFIT

Value Migration: How to Think Several Moves Ahead of the Competition (Harvard Business School Press, 1996) Adrian J. Slywotsky

Leading Change (Harvard Business School Press, 1996) John P. Kotter

Enabling Knowledge Creation: How to Unlock the Mystery of Tacit Knowledge and Release the Power of Innovation (Oxford University Press, 2000) Goerg Von Krogh, Kazuo Ichijo, Ikujiro Nonaka

The Balanced Scorecard: Translating Strategy into Action (Harvard Business School Press, 1996) Robert S. Kaplan, David P. Norton

The Fifth Discipline: The Art & Practice of The Learning Organization (Currency Doubleday, 1990) Peter M. Senge

Reengineering The Corporation: A Manifesto for Business Revolution (Harper Business, 1993) Michael Hammer & James Champy

Cost & Effect: Using Integrated Cost Systems to Drive Profitability and Performance (Harvard Business School Press, 1997) Robert S. Kaplan, Robin Cooper

On Competition (Harvard Business School Press, 1996) Michael E. Porter

The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Harvard Business School Press,1997) Clayton M. Christensen

The Discipline of Market Leaders (Perseus Books,1995) Michael Treacy, Fred Wiersema

When Lean Enterprises Collide: Competing Through Confrontation (Harvard Business School Press, 1995) Robin Cooper

Quality or Else: The Revolution in World Business (Houghton Mifflin Co., 1991) Llyod Dobyns & Clare Crawford-Mason

Cracking the Value Code (HarperCollins Publishers, 2000) Richard E.S. Boulton, Barry D. Libert, Steve M. Samek

The Tipping Point, (Little-Brown, 2000) Malcolm Gladwell Counting What Counts, (Persues Books, 1999) Marc J. Epstein and Bill Birchard

Promoting Yourself, (Wall Street Journal Books, 2002) Hal Lancaster OFFICE POLICIES

Belverd E. Needles, Jr. Arthur Andersen & Co. Alumni Distinguished Professor of Accountancy Room 6026 DePaul Center email: [email protected] (312) 362-5130 (Office and Voice Mail) or (312) 362-8770 (School of Accountancy) Web site: http://www.depaul.edu/~bneedles

Office Hours: 11:00-11:30 a.m. and 4:30-5:00 Tuesday 4:00-4:30 p.m. Wednesday Others by appointment

Regular Hours: Except where an unusual conflict arises, I will be available during the times listed above. You do not need an appointment to come by during those times.

Other Hours: I am normally in the office on Tuesdays and Wednesdays and at least one other day during the week. Please feel free to call or drop by anytime I am in the office. If I am involved in another matter, I will appreciate your understanding in setting up an appointment for a more convenient time. Also, about once per week, as announced, I will linger after class in the lounge area outside the classroom to talk informally.

Telephone Calls and Messages: You may call me at my office at any time. You will most likely find me in at the above office hours. My office telephone is (312) 362-5130. If I am not available, you will be connected to my voice mail. This is the best way to communicate with me. You may leave a detailed message. Please leave as much information as you can (e.g., office number, home number, nature of call, etc.). I will get back to you as soon as I can. If I am out of town, it may be several days before I return the call. If you want to talk to the School of Accountancy reception, dial "0" when you are connected to voice mail or dial (312) 362-8770. You may reach me via e-mail at [email protected].

Introductions: Please introduce yourself when we see each other in the office (or in the hallways). This practice will help me to get to know you better and to remember your name.

Services: I am, of course, available to talk about matters related to the course in which you are enrolled. However, even if you do not need this service, I hope that you will stop by the office at least once during the quarter, if only to say hello and to tell me how things are going. In addition, I am happy to talk to you about the following matters:

Advising: I am not an expert in all our programs, but I am willing to talk to you about your program and to try to find out answers for you or point you in the direction of someone who can.

Counseling: If you have broader questions about programs, jobs, careers, your professional direction, and related concerns, I will try to help. In this connection, I will be pleased to review with you a draft of your resume with a view to improving the presentation of your credentials.

School, College, or University Relations: If there is any way you feel I can help to make your life at DePaul easier, please let me know. I cannot promise results, but I am willing to talk to the appropriate person in the University and find out what the story is.

Future Contacts: Once you are my student, you are always my student. All of the above policies apply to you throughout your career at DePaul. Always feel free to contact me during the years to come, if you feel I can be of help. Management Strategy: Internal and External Consultants Spring 2001

Dr. Belverd E. Needles, Jr School of Accountancy DePaul University

Topic Outline

Date-Revised March 18, 2002 Topics

4/2 Strategic Management and The Case Method 4/3 A. Strategic Management

 Chapter I "The Strategic Management Process" (Hill & Jones)  Chapter 2 “Shareholders and The Corporate Mission” (Hill & Jones)

B. Introduction to the Case Method

 "An Introduction to Cases." Harvard Business School Publishing, 9-584-097. October 12, 1988, pp. 1-2.

C. Strategic Tool of The Week: SWOT Analysis

 Activity: Apply SWOT analysis to Midwest Manufacturing Company

D. Assignment for next class

 Read Chapters 1, 2 (Hill & Jones)  Read articles as assigned  Write up results of Midwest case

4/9 Creativity, Innovation and Problem-Solving, and Management Consulting 4/10

A. Creativity, Innovation and Problem-Solving

 Taraschi,Robert J. "Innovate or Disintegrate" Insight. December 1998- January 1999, pp. 14-17.  Innovative Design Video: IDEO Corporation  Activity: Success factors in Design Project

B. Strategic Tools of The Week: Core Competencies and Value Migration  Prahalad, C.K. and Hamel, Gary "The Core Competence of the Corporation." Harvard Business Review. May-June 1990, pp. 79-90.  Mascarenhas, Briance, Alok Baveja, and Mamnoon Jamil, “Dynamics of Core Competencies in Leading Multinational Companies,” California Management Review (Summer 1998), 117-132.  Value Migration  Activity: Application of Core Competency and Value Migration to McDonald’s

C. Introduction to Management Consulting  The Nature of Management Consulting  Management Consulting Services  Internal Management Consulting  Duncan, James R. and Mary Nixon, “From Watchdog to Consultant,” Strategic Finance (April 1999), pp. 42-47.

D. Introduction to Case: Dekalb Company

E. Assignment for next class

 Read Chapter 3 and 4 (Hill & Jones)  Prepare Dekalb Case  Read and take notes on Wal-Mart Case  Read articles as assigned

4/16 External/Internal Analysis 4/17

A. Debriefing of DeKalb Company Case

B. Communication In The Consulting Process

 Effective Written Recommendations  Stone and Frigo, “ Advisory Comments: A Remedy for Boilerplate”  Effective Oral Presentation of Recommendations

C. Strategic Management

 Chapter 3 "External Analysis" (Hill & Jones)  Chapter 4 “Internal Analysis” (Hill & Jones)

D. Strategic Tools of The Week: Porter’s Five Forces and Value Chain Analysis

 Porter's Five Forces Driving Competition  Value Chain Analysis

E. Introduction to Independent Team Case

 "Wal-Mart Stores, Inc." Harvard Business School Publishing, 9-794-024. August 6, 1996, pp. 1-21.  Activity: Begin work on Wal-Mart Case

F. Assignment for next class

 Work with teams on Wal-Mart Company Case  Attend lecture of Practitioner Associate

4/23 Increasing Shareholder Value 4/24 A. Strategic Tool of The Week: Economic Value Added®  Practitioner Associate: Dr. Marian Powers, Executive Programs, Allen Center of the Kellogg Graduate School Northwestern University “Using EVA® to Increase Shareholder Value”

B. Activity: Work on Independent Team Case

C. Assignment for next class

 Read Chapters 6 (Hill & Jones)  Finish Independent Team Case

4/30 Competitive Advantage, Core Competencies, Value Chain Analysis, And The 5/1 Consulting Process

A. Debriefing and Presentation of Wal-Mart Case

B. Strategic Tool of The Week: TBA

C. The Consulting Process

 Problem Definition  Fact finding and Definition  Solution Development  Implementation

 Read Chapter 12 (Hill & Jones)  Read and take notes on Chicago Adhesives Case  Read articles as assigned

5/7 Long-Term Objectives and The Balanced Scorecard 5/8 A. Strategic Management

 Chapter 12 "Designing Strategic Control Systems" (Hill & Jones)

B. Strategic Tool of The Week: The Balanced Scorecard

 Kaplan, R.S., and D.P. Norton, "Using the Balanced Scorecard as a Strategic Management System," Harvard Business Review (January/February 1996), pp. 75-85.  "The Balanced Scorecard" Harvard Business School Video (30 min.)  Activity: Applying the Balanced Scorecard to Chicago Adhesives Case

C. Introduction to Case Assignment: Industrial Pump Case

 Prepare Industrial Pump Case  Read Chapter10 (Hill & Jones)  Read articles as assigned  Read and take notes on Proctor & Gamble Case 5/14 Building Shareholder Value through Process Reengineering and Engagement Management 5/15 A. Debriefing of Industrial Pump Case

B. Strategic Management

 Chapter 10 "Corporate Development: Building and Restructuring the Corporation" (Hill & Jones)

C. Strategic Tool of The Week: Process Reengineering

 Hammer, Michael "Reengineering Work: Don't Automate, Obliterate." Harvard Business Review. July-1990, pp. 2-8.  Hayes, Robert H., and David M. Upton, “Operations-Based Strategy,” California Management Review (Summer, 1998), pp. 8-25.  "Proctor & Gamble: Improving Consumer Value Through Process Redesign." Harvard Business School Publishing, 9-195-126. March 31, 1995, pp. 1-20.  Activity: Apply Process Reengineering to Proctor & Gamble

D. Consulting Engagement Management

 Proposal Process  Engagement Management Planning  Engagement Documentation and Control  Client Presentations

E. Assignment for next class

 Read Chapter 5 (Hill & Jones)  Read and take notes on Ritz Carlton Case  Read articles as assigned  Write up results of Proctor & Gamble case

5/21 Strategic Control, Continuous Improvement, and Total Quality Management 5/22 A. Strategic Management (Read on Own)

 Chapter 5 “Building competitive Advantage through Functional-Level Strategy” (Hill & Jones)

B. Strategic Tool of The Week: Total Quality Management

 Continuous Improvement  Activity: Apply Continuous Improvement to Ritz Carlton  "The Ritz-Carlton Case: Using Information Systems to Better Serve the Customer." Harvard Business School Publishing, 9-395-064. May 4, 1995, pp. I- 1 6.

C. Introduction to Capstone Case—H-P/Compaq Corporation

 Capstone Case Experience  Group Work/Analysis of Case (5/28 & 5/29)  Presentations (6/4 & 6/5)  Debrief and Feedback (6/4 & 6/5)  Practitioner Associate/Faculty Panel Assessment of Presentations (6/4 & 6/5)

5/28 Capstone Case Continued 5/29 A. Case Analysis/Preparation/Presentations

6/4 Capstone Case Continued 6/5 A. Presentations and Debrief of Capstone Case Practitioner Associate

B. Summary of Course Preparation for Final Exam

6/11 Final Examination 6/12