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The European Handbook of Management Consultancy


Description: The European Handbook of Management Consultancy is a comprehensive guide to all aspects of management consultancy in a fast-changing world. Compiled by the European Innovation Programme (Project RA340 Ter), an EC-sponsored consortium of advisory bodies from Norway, Ireland , Germany Denmark and elsewhere in Europe. The book provides ‘best practice’ advice on the link between the new technologies and strategic planning for consultants throughout Europe.

The Handbook offers management consultants a complete source of practical information on all aspects of consultancy – an overview of new management concepts; critical advice on how to conduct a diagnostic analysis of the organisation; key success factors in developing a coherent strategy; practical measures for project implementation; and concise descriptions of the key functional areas, such as finance, marketing, operations, human resource management, information technology and product development, among others.

In addition to providing a wealth of practical information, The European Handbook of Management Consultancy offers three key lessons on management consultancy today:

-If consultants are to play a central role in developing strategic innovation in small and medium sized companies in the EU, the consultancy sector itself must be able to demonstrate a professional competence that will enable it to perform that function.

- The work of management consultants should not only address immediate, short-term problems of companies, but also must help the companies transform themselves into learning organisations for ongoing success.

-In situations where the managers of the SME’s are absorbed in day-to-day chores, an external management consultant can become the driving force behind the strategic project implementation.

Sponsored by the European Commission this handbook provides a standardised approach to the process of management consultancy for SME’s in the EU. The European Handbook of Management Consultancy will be an indispensable guide to help small and medium-sized companies in Europe to develop a coherent innovation strategic to compete in the global economy.


Contents: Overall Orientation

Strategic Management
Introduction
The Concept of Strategy and Strategic Management
The Strategy Process
Assessment of External Factors
Assessment of Internal Factors in the Company
Assessment of Strengths and Weaknesses against Opportunities and Threats
Formulation of Strategy
Technology Strategies
Implementation of the Strategy

New Management Concepts
Introduction
Common Aspects of Modern Management Ideas
Overview of Different Management Concepts
Using Modern Management Ideas
Total Quality Management
Lean Production

Management of Change
Introduction
Forces that Influence Companies
Resistance or Joint Commitment
The Importance of Information
Employee Expectations
Development of Employee ‘Competence’
Importance of One’s Own Though Processes
Importance Aspects of Good Management
Conclusion.

Process Consultancy
Introduction
The Company/Consultant Relationship
Consultancy Roles
Communication and Learning
Communication Techniques
Some Consultancy Techniques
Tact and Diplomacy
Practical Psychology

Diagnostic Phase


General Strategic Business Analysis
Introduction
Business Analysis
General Strategic Analysis

Information Gathering
Introduction
The Interview Process
Selection of Interviewees
Questionaires
Conducting the Interviews
Processing after the Interviews
Standard Questionaire

Prioritisation of Goals, Issues and Options
Introduction
Establishment of Goals
Issues/Options List
Prioritisation of Issues/Options
Prioritisation, A Numerical Method.

Financial Key Ratio Analysis
Introduction
Financial Key Ratios
The DuPont Model
Use of the DuPont Model for Ratio Analysis
Use of Modifies Boston Matrix.

Product/Market Priorities
Introduction
Product/Market Priorities: An Example
Identify Product/Market Combinations
Assigning Priorities to Product/Market Combinations – Business Considerations
Competitive Strategies
Buying Criteria
Key buying Criteria and Fundamental Buying Criteria
Buying Criteria: Main Principles

Tools for Operational Analysis
Introduction
Activity Analysis
Information Analysis
Implementation of the Activity and Information Analysis in Practice
Material Flow Analysis
SWOT Analysis

Problem Solving
Introduction
Different Phases of Problem-Solving
Creative Problem-Solving
Formulation of Issues
Analysis of Causes
Generating of Ideas and Possibilities
Brainstorming
‘Wallcharting’ as a Key Technique
Selecting Participants

Strategies and Action Plans


Establishing Strategies and Action Plans
Introduction
The Strategy and Planning Process
Drawing Up and Action Plan
Project Implementation
Critical Success Factors for Project Implementation
Suggested Structure for Strategic Plan
Concluding Remarks


The Planning Process, Identification of Measures, Success Factors
Introduction
Organisation/Control of the Planning Process
Identification of Specific Measures
Success Factors

Assessment of Options using Cost/Benefit Analysis
Introduction
Rough Cost/Benefit Analysis
Quantification of Benefits
Detailed Time and Cost Estimates
Investment and Liquidity Analysis

Risk Factors and Risk Assessments
Introduction
What is Risk?
How to Carry Out a Risk Analysis and Established Risk Management
Implementation Risk
Financial Risk
Risk Related to Cost/Benefit Estimates – sensitivity Analysis
Key Issues in Risk Identification

Implimentation


Project Implementation
Introduction
Consequences of Strategic Innovations
What does the Implementation Process Involve?
Funding
Planning and Organisation
Company-Internal Organisational Activities
Supplier-Oriented Technical Activities
Company-Internal Technical Activities
Follow-Up
Evaluation

Critical Success Factors for the Implementation of Measures
Introduction
Critical Success Factors in the Preparatory Phases
Critical Success Factors in the Implementation Phase

Specification of Requirements
Introduction
Why Compile a Specification of Requirements?
Evaluation of Alternative Requirements
Contents of a Specification of Requirements
Characteristics of a Good Specification of Requirements
Pitfalls to Be Avoided When Drawing Up Requirements
Who Should Work on Drawing Up the Specification?
Pitfalls to Be Avoided when Drawing Up the Specification
Quality Assurance

Project Planning
Introduction
The Planning Process
Project Organisation
Reporting and Follow-Up
Project Scheduling
Organisation of the Schedule
Establishing the Schedule
Follow-Up and Monitoring against the Schedule
Checklist for Individual Schedules

General Topics


Financial Management and Accounting Systems
Introduction
Financial Management/Accounting
Principals of Accounting
Balance Sheet
Profit and Loss Account
Financial Control Systems

Project Financing
Introduction
Calculating the Capital Requirement
Types of Loan Financing
Equity Financing
Drawing Up the Loan Application

Marketing
Introduction
Market Strategy
Resources of Marketing
Personal Sales

Integrated Customer-Based Product Development
Introduction
Product Development Strategy
Integrated Customer-Based Product Development
Product Safety
Examples

Product Technology Overview
Introduction
Production Engineering
Computer Numerical Control (CNC)
Design for Manufacture (DFM)
Computer-Aided Design (CAD)
Computer-Aided Manufacture(CAM)
Automated Assembly
Materials Handling
Electronic Data Interchange (EDI)
Just-in-Time Manufacture (JIT)
Computer-Integrated Manufacturing (CIM)

Organisation of the Production Process
Structural Organisation
Fundamental Principles of the Operational Organisation: Process Orientation
Relevant Process – Chains in Production
The JIT Philosophy within the Lean Production Philosophy
Regional Headquarters for Order Management as One Tool to Lean Production
Segmentation of Production
Introduction of Teamwork

Human Resources
Introduction
Changing Society
The Learning Society
Employee Resources
The Demand of the Enterprise on the Employee
The Employees Demands on the Enterprise
The Economic Dimension
The Organisation’s Role
The Changing Nature of the Personal Function
Labour/Management Relations
Union/Management Relations as a Process of Psychological Growth
Conditions of Effective Leadership in an Industrial Organisation
Summary

The Need for Competence-Building
Introduction
Analysis of Organisational Structure
Competence-Building and Training
Organisational and Personnel-Related Consequences

Information Technology
Introduction
Information Analysis
Analysis of Existing Systems
Data Processing Technology Platform
Information Required by Operational Management

Industrial Co-operation/Networking/Clusters
Introduction
When Are Industrial Co-operation Projects the Right Approach?
Phases of the Co-operation Process
Scheduling a Co-operation Process
Handling the Relationship with the Board and Management
Pitfalls in the Co-operation Process
Analysis of Motives for Co-operation
Searching for Co-operation Partners
Conclusion

Purchasing
Introduction
Specifications
Purchase Orders
Purchasing Management
Vendor Assessment
Vendor Rating


Overall Orientation

Strategic Management
Introduction
The Concept of Strategy and Strategic Management
The Strategy Process
Assessment of External Factors
Assessment of Internal Factors in the Company
Assessment of Strengths and Weaknesses against Opportunities and Threats
Formulation of Strategy
Technology Strategies
Implementation of the Strategy

New Management Concepts
Introduction
Common Aspects of Modern Management Ideas
Overview of Different Management Concepts
Using Modern Management Ideas
Total Quality Management
Lean Production

Management of Change
Introduction
Forces that Influence Companies
Resistance or Joint Commitment
The Importance of Information
Employee Expectations
Development of Employee ‘Competence’
Importance of One’s Own Though Processes
Importance Aspects of Good Management
Conclusion.

Process Consultancy
Introduction
The Company/Consultant Relationship
Consultancy Roles
Communication and Learning
Communication Techniques
Some Consultancy Techniques
Tact and Diplomacy
Practical Psychology

Diagnostic Phase


General Strategic Business Analysis
Introduction
Business Analysis
General Strategic Analysis

Information Gathering
Introduction
The Interview Process
Selection of Interviewees
Questionaires
Conducting the Interviews
Processing after the Interviews
Standard Questionaire

Prioritisation of Goals, Issues and Options
Introduction
Establishment of Goals
Issues/Options List
Prioritisation of Issues/Options
Prioritisation, A Numerical Method.

Financial Key Ratio Analysis
Introduction
Financial Key Ratios
The DuPont Model
Use of the DuPont Model for Ratio Analysis
Use of Modifies Boston Matrix.

Product/Market Priorities
Introduction
Product/Market Priorities: An Example
Identify Product/Market Combinations
Assigning Priorities to Product/Market Combinations – Business Considerations
Competitive Strategies
Buying Criteria
Key buying Criteria and Fundamental Buying Criteria
Buying Criteria: Main Principles

Tools for Operational Analysis
Introduction
Activity Analysis
Information Analysis
Implementation of the Activity and Information Analysis in Practice
Material Flow Analysis
SWOT Analysis

Problem Solving
Introduction
Different Phases of Problem-Solving
Creative Problem-Solving
Formulation of Issues
Analysis of Causes
Generating of Ideas and Possibilities
Brainstorming
‘Wallcharting’ as a Key Technique
Selecting Participants

Strategies and Action Plans


Establishing Strategies and Action Plans
Introduction
The Strategy and Planning Process
Drawing Up and Action Plan
Project Implementation
Critical Success Factors for Project Implementation
Suggested Structure for Strategic Plan
Concluding Remarks


The Planning Process, Identification of Measures, Success Factors
Introduction
Organisation/Control of the Planning Process
Identification of Specific Measures
Success Factors

Assessment of Options using Cost/Benefit Analysis
Introduction
Rough Cost/Benefit Analysis
Quantification of Benefits
Detailed Time and Cost Estimates
Investment and Liquidity Analysis

Risk Factors and Risk Assessments
Introduction
What is Risk?
How to Carry Out a Risk Analysis and Established Risk Management
Implementation Risk
Financial Risk
Risk Related to Cost/Benefit Estimates – sensitivity Analysis
Key Issues in Risk Identification

Implimentation


Project Implementation
Introduction
Consequences of Strategic Innovations
What does the Implementation Process Involve?
Funding
Planning and Organisation
Company-Internal Organisational Activities
Supplier-Oriented Technical Activities
Company-Internal Technical Activities
Follow-Up
Evaluation

Critical Success Factors for the Implementation of Measures
Introduction
Critical Success Factors in the Preparatory Phases
Critical Success Factors in the Implementation Phase

Specification of Requirements
Introduction
Why Compile a Specification of Requirements?
Evaluation of Alternative Requirements
Contents of a Specification of Requirements
Characteristics of a Good Specification of Requirements
Pitfalls to Be Avoided When Drawing Up Requirements
Who Should Work on Drawing Up the Specification?
Pitfalls to Be Avoided when Drawing Up the Specification
Quality Assurance

Project Planning
Introduction
The Planning Process
Project Organisation
Reporting and Follow-Up
Project Scheduling
Organisation of the Schedule
Establishing the Schedule
Follow-Up and Monitoring against the Schedule
Checklist for Individual Schedules

General Topics


Financial Management and Accounting Systems
Introduction
Financial Management/Accounting
Principals of Accounting
Balance Sheet
Profit and Loss Account
Financial Control Systems

Project Financing
Introduction
Calculating the Capital Requirement
Types of Loan Financing
Equity Financing
Drawing Up the Loan Application

Marketing
Introduction
Market Strategy
Resources of Marketing
Personal Sales

Integrated Customer-Based Product Development
Introduction
Product Development Strategy
Integrated Customer-Based Product Development
Product Safety
Examples

Product Technology Overview
Introduction
Production Engineering
Computer Numerical Control (CNC)
Design for Manufacture (DFM)
Computer-Aided Design (CAD)
Computer-Aided Manufacture(CAM)
Automated Assembly
Materials Handling
Electronic Data Interchange (EDI)
Just-in-Time Manufacture (JIT)
Computer-Integrated Manufacturing (CIM)

Organisation of the Production Process
Structural Organisation
Fundamental Principles of the Operational Organisation: Process Orientation
Relevant Process – Chains in Production
The JIT Philosophy within the Lean Production Philosophy
Regional Headquarters for Order Management as One Tool to Lean Production
Segmentation of Production
Introduction of Teamwork

Human Resources
Introduction
Changing Society
The Learning Society
Employee Resources
The Demand of the Enterprise on the Employee
The Employees Demands on the Enterprise
The Economic Dimension
The Organisation’s Role
The Changing Nature of the Personal Function
Labour/Management Relations
Union/Management Relations as a Process of Psychological Growth
Conditions of Effective Leadership in an Industrial Organisation
Summary

The Need for Competence-Building
Introduction
Analysis of Organisational Structure
Competence-Building and Training
Organisational and Personnel-Related Consequences

Information Technology
Introduction
Information Analysis
Analysis of Existing Systems
Data Processing Technology Platform
Information Required by Operational Management

Industrial Co-operation/Networking/Clusters
Introduction
When Are Industrial Co-operation Projects the Right Approach?
Phases of the Co-operation Process
Scheduling a Co-operation Process
Handling the Relationship with the Board and Management
Pitfalls in the Co-operation Process
Analysis of Motives for Co-operation
Searching for Co-operation Partners
Conclusion

Purchasing
Introduction
Specifications
Purchase Orders
Purchasing Management
Vendor Assessment
Vendor Rating




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