SEA - Practical Application of Science Volume II, Issue 1 (3) / 2014

Maria HERMEL – STĂNESCU Mihai SVASTA Faculty of Entrepreneurship, and Polytechnics University of Bucharest

MANAGEMENT Literature reviews and VERSUS viewpoint MANAGEMENT CONSULTING: WHICH COMES FIRST?

Keywords Management Coaching Consulting Mentoring Personal Services

JEL Classification L84

Abstract

In the fast growing business services market today, one manager may wonder whether to use coaching services or consultancy services. Questions might arise: which are the differences between the two types of services, their common points and the relationship between the two? This paper aims to explore the above mentioned questions while pleading for both services. The fact is that they are powerful processes that can bring added value to the through use of knowledge. The bottom line is that they work best in different situations, and they should not be regarded as a “one or the other” but as synergic knowledge related tools.

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Consulting, training & coaching are all not needed to hold a high level of expertise about transferring knowledge to the client. on the client’s field of business. According In time the method to do this may vary. to John Whitmore (2008), coaching is We may imagine for instance that Thales unlocking people’s potential to maximize and Pythagoras were , their own performance. It is helping them constructing and formulating theories and to learn rather than teaching them. Perry schools of thought, Socrates and Platon Zeus and Suzanne Skiffington (2008) were coaches, using dialogue as a main state that coaching is a conversation tool, helping people to reveal the truth between the coach and its client in a from the inner self, while Aristotle was productive, goal oriented way; Coaching is merely a trainer, teaching various theories learning – trough different coaching at Academia. techniques the client starts to autocorrect In present days, various researchers and (learning to change his own behaviour) professional bodies are trying to examine and to become auto-productive; Coaching and to list particularities and similarities of means much more asking the right management coaching and management questions than giving answers. consulting. Here are some opinions we Bermes E. (2007) states that coaching is a considered for the present paperwork: non-directive, professional process that helps individuals clarify values, strengths Why Management Coaching Is and priorities. Coaches help clients figure Different From Management out what they want (in any area of life), set Consultancy goals for getting there, and help them The differences of the two services can be overcome the obstacles that get in their described starting from the range of the way. This definition shows another objective. For coaching servicesthe difference between the two: the objective can range from: human change, directedness of the process. The coaching behavioural modification, personality is a non-directive process, as opposed to development, fostering cognitive ability, consultancy where the exercises self-directed learning, and growth through his content knowledge in a highly directive challenge, for the consultancy services the way, maintaining a professional objective can cover a broad ground, e.g. relationship with the client, based on a executive support, image/brand creation/ problem solving issue or dilemma. maintenance/ modification, profitability, (Genderen, 2014). quality, product, . Genderen (2014) The skills owned by the services supplier Another major difference between the two also constitute one of the differences. The is set by who exactly defines the problem, two require different skills to be able to the issue. In the coaching process the successfully supply the services. The coach sustains the client to define the issue coaching skills that are necessary for a at hand, as opposed to consulting services, successful coach are: Ability to where the consultant analyses the facts and understand/ employ the coaching process, the information given, and then based on the interaction between his expertise he defines the problem areas. awareness/responsibility, deep listening, This brings forth the following major asking effective questions. A coach must difference: the level of expertise needed in have the following personal skills: self- supplying the services. The consultant has esteem, regard for others, self-awareness, to own a high level of expertise in the field awareness of others, emotional resilience, of business when supplying the services, personal power, goal directedness, he has to be the specialist, for he is flexibility, invitation to trust, balanced expected to give solutions and customize outlook, emotional expression and , processes. The coach on the other hand is conflict handling. The successful

225 SEA - Practical Application of Science Volume II, Issue 1 (3) / 2014 consultant also has to have consulting high client interaction and low expectation skills – examine the organization, for problem solving, coaches need to understand the structure, assess the nature balance a nurturing and stern sole in order of power and politics, isolate the important for clients to get results. They need to see factors, use related business practices and the client’s problem in context. They are creativity to suggest solutions. Also a there to help the client set a tenable goal successful consultant must have the and to facilitate the process of the client following personal skills: self-confidence, reaching the goal by breaking down the courage, initiative, perseverance, ability to work into manageable steps. listen, ability in oral and written Also Keltto (2010) states that the communication, ability to teach people, consultant tends to be more analytical than ability to motivate and persuade, and the coach, as he analyses the client’s emotional maturity. (Genderen, 2014). problem and then suggests the best course Another difference between the coaching of action to resolve the problem. Although and consultancy processes is determined there is high client interaction, consultants by the area where the services are don’t handhold and advise more than provided. So to say, coaching process listen. Consultants are better equipped regards all aspects of the client’s life, as a with analytical versus counselling skills. systemic approach, whereas consultancy The differences between coaching and regards only work oriented aspects. consultancy are summarized in Appendix According to Homan Blanchard & Miller 1. (2010) each process has to deliver bottom line impact on performance. Coaching Why Management Coaching Is PartOf focus attention on underlying motivation The Management Consulting that compels people toward effective Basically, because in the latest years, the relationships through deep listening and understanding of the term management acceptance of wholeness; Model and consulting has evolved to such a broad impart unconditional curiosity that creates meaning, being difficult to restrict it into awareness, accesses hidden strengths and tight boundaries. In the author’s opinion, generates clarity and alignment, and also coaching is just one of the roles a partner with leaders to co-create an consultant is playing while performing his environment for direct communication, work as a management consultant. powerful questions and team work that is The acceptance of different activities as the source of improved performance. being ”management consulting” has Consultancy contribute new knowledge evolved during last years. Below one may and technical competence for creating find multiple definitions of the consulting organizational results; Provide objective profession, issued by European, Global or research and analytical assessment upon significantly relevant market professional which to base relevant content bodies. recommendations for change; and also co- create answers and action plans for European Federation of Management individuals and teams to create and Consultants, FEACO (2011), defines manage knowledge as well as implement management consultants as the rendering change. of independent advice and assistance about L. Keltto (2010) defined a distinction management issues. This typically between the coaching, consultancy, includes identifying and investigating training and freelancing services provided problems and opportunities, to the organization based on the amount of recommending appropriate action and problem solving and client interaction assistance with the implementation of the expected, and needed. He states that with recommendations.

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The following are considered the key management and business problems, fields of activity of Management identifying and seizing new opportunities, Consultancy: enhancing learning and implementing 1. Corporate and organisation change”. development This definition focuses on 5 key issues: 2. Financial and administration systems - Achieving organizational purposes 3. Human resources (including executive and objectives; search and ) - Solving management and business 4. Production and services management problems; (including technology, , R&D/ - Identifying and seizing new Innovation and quality control) opportunities; 5. Marketing and corporate - Enhancing learning; communication - Implementing changes. 6. Information technology and systems MCA, the British consulting association, 7. defines the profession as ”creation of value 8. Economic and environmental studies for organization, through the application of European Standard for Management knowledge, techniques and assets, to Consulting, EN 16114, defines improve business performance. This is management consulting as being a set of achieved through the rendering of multidisciplinary activities of intellectual objective advice/or the implementation of work, within the field of management business solution.(O’Mahoney&Markham, activities, which aim to create value or 2013) promote changes, by providing advice or Summarizing, consulting is about solutions, by taking actions or by knowledge and transfer of this knowledge producing deliverables to the client. Three steps can be usually O’Mahoney and Markham (2013) state seen: diagnostic, solution and that According to ICMCI, The implementation. In my opinion, in all these International Council of Management three phases the consultant may act either Consulting Institutes, a Management as a pure adviser, as a trainer or as a coach. Consultant is defined as one who helps Or she/he may choose a different role. organisations to solve issues, create value, O’Mahoey&Markham(2013) list in one of maximise growth and improve the most recent books on Management performance through the application of Consultancy published by Oxford their knowledge, techniques and assets to University, (pages 89-91) several provide objective advice, expertise and consultant roles. In their view, the roles of specialist skills which the organisation a consultant can be: may be lacking. Expert This definition includes those consultants The reason most clients cite for the use of who work alone as a singleton, as a partner consultants in their firms is to perform or employee of a practice or firm and those tasks in which the firm does not have who work as internal consultants in an expertise (Czerniawska 2002). This organisation or government body whose construction of the consultant as expert not primary purpose is not management only benefit managers who needs to justify consultancy expenditures on additional resources but is Milan Kubr (2002), a guru of management also an image that has been highly consulting, is defining the profession as cultivate by the large management ”an independent professional advisory consulting companies. service assisting managers and Coach/Facilitator/Process Consultant organisations to achieve organizational Edgar Schein is arguing in his book purposes and objectives by solving Process Consultant – Its role in

227 SEA - Practical Application of Science Volume II, Issue 1 (3) / 2014 organizational development that aware of his role, or she/he is playing and consultants should enable the client to switching different roles, as a project understand the organization betterand progresses. allow them to take the lead in diagnosing As a conclusion, none of the definitions and ameliorating organizational problems. provided by all European and global The role of the consultant in this situations professional bodies on management shifts from being an expert to being a consulting contains a particularity of coach or a facilitator. For Schein management consultancy which conflicts consulting is “a set of activities on the part with the definitions of the management of the consultant that help the client to coaching. perceive, understand and act upon the We can of course write books in which we process events that occur in the client’s can argue that mineral water is actually environment in order to improve the different from regular water. But common situation defined by the client” sense tells us that they are both basically Friend „waters” and the reasons people use them At the senior end of consultancy is pretty much the same. And this applies engagements, especially in the strategy to management coaching and management firms, partners often develop strong consulting, to a significant degree, too. friendship with CEOs and their board members. The relationship is established Coaching And Consulting: Synergy during years of interaction and it is Within Client Work enhanced because they often switch roles: The term synergy (συνεργία) originates many CEOs have been previously from ancient Greek and it means two consultants, at the same time many actions (ergos) put together (sin). Initially executives choosing a consulting carrier at the term designated the result of the a certain moment. common work of the deity, of God, and Drones the work of the ordinary people; presently From 2003 to 2006, professors Andrew its meaning is ”an effect of the interaction Sturdy and Tim Clark conducted a of the actions of two agents such that the longitudinal study into consultant-client result of the combined action is greater interaction. One of their central finding than expected as a simple additive was that, contrary to popular belief, combination of the two agents acting consultants only ”occasionally” bring separately”. And regardless how we call it, expert knowledge into an organization. this synergy is the goal of our actions, What they found that it was much more either we call it coaching or consulting. common for consultants to undertake jobs Actually, looking at the differences that the companies were too understaffed between the two services, one can easily to perform themselves. see the way this two can complete each Political Agent other if partnering to address key When analysts and academics undertake organizational issues. Using consulting qualitative studies into the use of and coaching services is a synergistic win- consultants by clients they often find that, win formula. Consulting competence contrary to the formal, espoused aim of the attends to the process of change relevant to project, which is about enhancing business content such as strategy, organizational efficiency, consultants operational execution, and productivity. deploy themselves as political legitimisers The mix of the two gives the opportunity of managerial actions (Clark and to simultaneously address the human Greatbatch 2002). relationship with change. Effective The authors suggest in the book that consultants bring organizational leaders actually, the consultants, is not really strategic awareness about essential

228 SEA - Practical Application of Science Volume II, Issue 1 (3) / 2014 knowledge within an industry, and and formulating theories and schools of effective coaches facilitate leader thought, Socrates and Platon were coaches, awareness of blind spots and limiting dialoguing with the client, helping himself beliefs that exhaust energy and hinder to reveal the truth from the inner self, innate creativity. In this way it is created while Aristotle was merely a trainer, the services wholeness focused on teaching various theories at Academia. developing the people who will sustain an There is no such project in which we organization in any economic or perform just a consultant, or just a trainer, competitive landscape. (Harvey 2010) or just a coach role. Or just a single role. Both services require “change”, are Our main role is to add value to the goal and solution oriented. Both target organization using knowledge; whether we enhancing the organizational performance. call it consulting, training or coaching is There appear to be many common actually less relevant to the client. competencies/skills required for success in Perhaps one of our mistakes is that we the capacities of both coaching and tend to call our work using terminologies consulting: emotional intelligence, we invent: we name ourselves coaches, creative/critical thinking, interpersonal and consultants, trainers, facilitators, etc.; we communication skills, etc. The relationship should probably allow, at least from time between the incumbent and the customer to time, the client to name our work and will most likely depend on the situation, as our position because the reality is the one well as the preferred working style of both which is seen through the eyes of the parties. According to Genderen (2014), client. coaching and consulting, whilst not being Maybe we should call ourselves identical professions – are also not knowledge suppliers, or providers of added mutually exclusive, and are far from being value. mere overlaps. Their core purposes are both to improve professional performance References via human beings. [1] Berman W.H. &Bradt G. (2006).Executive This is why more and more consultants, coaching and Consulting: “Different Strokes for different folks”.Professional Psychology: research these days, tend to adopt a more coaching and Practice, Volume No.37 (Issue No.3), 244-235. approach as well as coaches tend to add doi:10.1037/0735-7028.37.3.244 consultancy to their services portfolio. It is [2] Bermes E.O. (2007).Coaching vs. Consulting. already proven that awareness and Which is which and what to look for. Business responsibility have the potential to People,November, 42-43. generate solutions, and also a challenging [3] Clark, T. &Greatbatch, D. (2002). Knowledge Legitimation and Audience Affiliation through relationship with a neutral third party helps Storytelling: The Example of Management thinking trough difficult Gurus. In T. Clark and R. Fincham (eds.), Critical issues.(Berman&Bradt, 2006). It is the Consulting. Oxford: Blackwell. 152-171 coaching and consulting mix that helps the [4] Harvey J. (2010).Wholeness Matters. Be consultant and coach.Choice the magazine for client identify its own solutions and professional coaching. Volume No.8 (Issue No.2), overcome blockages for issues that are in 27-30. his area of expertise and knowledge, and [5] Homan Blanchard M. & Miller L.J. also to access expert advice and solutions (2010).Coaching and Consulting, meeting client for matters that are out of his area of expectations with an artful blend of these two synergistic disciplines.Choice the magazine for expertise. professional coaching, Volume No.8.(Issue No.2), Consulting, training & coaching are all 22-26. about transferring knowledge to the client. [6] Keltto J.(2010) Coaching vs. Consulting vs. In time the method to do this may vary. Training vs. Freelancing: Which one is best for We may imagine that Thales and you? The solopreneur life, Retrieved Pythagoras were consultants, constructing fromwww.thesolopreneurlife.com

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[7] Kubr M. (2002), Management Consulting, a guide to the profession (4th ed.) International Labour Office, New Delhi,Bookwell [8] O'Mahoney J. and Markham C. (2013), Management Consultancy(2nded.), United Kingdom, Oxford University Press. [9] Van Genderen E. (2014). Strategic Coaching and Consulting: More similar than meets the eye, Middle east journal of business, Volume No. 9 (Issue No.1), 3-7. [10] Whitmore J. (2008).Coaching pentruperformanţă.[Coaching for performance] Bucharest, Public Publisher. [11] Zeus P. &Skiffington S. (2008).Coaching înorganizaţii – ghidcomplet [The complete guide to coaching at work], Bucharest, Codecs. [12] FEACO, European Federation of Management Consultancies Associations (2010), Constitution as modified by decision of the Presidents. [13] European Committee for Standardisation (2011) EN 16114:2011, Management consultancy services, CEN/TC 381

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Appendices Appendix 1: Differences between coaching and consultancy Coaching Consulting The objective can range from: human change, The objective can cover a broad ground, e.g. behavioural modification, personality executive support, image/brand creation/ development, fostering cognitive ability, self- maintenance/ modification, profitability, directed learning, and growth through quality, product, service. challenge. The topic/ problem is identified by the client The topic/ problem is left to the consultant to distinguish. The coach doesn’t need to hold the expertise The consultant is one that holds the expertise, who can analyze, identify, recommend, and implement the desired changes. He is the specialist within an area. The coach has a non-directive approach The consultant exercises his content knowledge in a highly directive way, maintaining a professional relationship with the client, based on a problem solving issue or dilemma. Coaching skills – Ability to understand/ Consulting skills – examine the organization, employ the coaching process, the interaction understand the structure, assess the nature of between awareness/responsibility, deep power and politics, isolate the important listening, and effective questions. factors, use related business practices and A coach must have the personal skills: self- creativity to suggest solutions. esteem, regard for others, self-awareness, A consultant must have the personal skills: awareness of others, emotional resilience, self-confidence, courage, initiative, personal power, goal directedness, flexibility, perseverance, ability to listen, ability in oral invitation to trust, balanced outlook, and written communication, ability to teach emotional expression and control, conflict people, ability to motivate and persuade, and handling emotional maturity. Technical skills – knowledge and experience in a technical subject A coach asks questions goal oriented. Is A consultant gives answers and solutions. Is promoting discovery. oriented on solving. Coaching process regards all aspects of the Consultancy regards work oriented aspects client’s life Focuses on “you” Focuses on “me” Promoting interdependence Promoting dependence Focus attention on underlying motivation that Contribute new knowledge and technical compels people toward effective relationships competence for creating organizational through deep listening and acceptance of results wholeness; Model and impart unconditional curiosity that Provide objective research and analytical creates awareness, accesses hidden strengths assessment upon which to base relevant and generates clarity and alignment; content recommendations for change. Partner with leaders to co-create an Co-create answers and action plans for environment for direct communication, individuals and teams to create and manage powerful questions and team work that is the knowledge as well as implement change. source of improved performance. Genderen (2014), Zeus &Skiffington (2008), Blanchard & Miller (2010)

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