The Strategy Skills Podcast: Management Consulting | Strategy, Operations & Implementation | Critical Thinking

How do you become an outstanding management consultant? Should you excel at analysis? Should you master problem solving? Should you become the world's most gifted communicator? You could master all of the aforementioned items and still be an average management consultant at best. Great management consultants have all these skills but they have one more quality that makes them great, they are not just competent business people but they are also artists. In this podcast we explain the mindset we encourage teams to use on the study. This is the mindset I used in my career and it is very different from what you would expect. If you enjoyed this conversation we will be so grateful if you jump over to iTunes and share a quick review. It helps more people find us. SIGN UP FOR EMAIL UPDATES & RECEIVE FREE STRATEGY TRAINING www.firmsconsulting.com COME HANG OUT WITH US: Facebook / Twitter / LinkedIn

This is the next podcast discussing the Corporate Strategy & Transformation study.  In this podcast we use economics to explain what is the role of government, when governments should intervene, how they should intervene and when they should hand over certain activities to the private sector. If you want to further your understanding of strategy at the highest possible level you should listen to this. If you enjoyed this conversation we will be so grateful if you jump over to iTunes and share a quick review. It helps more people find us.  Also a huge thank you for making “Strategy Skills” one of the most popular podcasts in the world for careers.  SIGN UP FOR EMAIL UPDATES & RECEIVE FREE STRATEGY TRAINING www.firmsconsulting.com COME HANG OUT WITH US: Facebook / Twitter / LinkedIn

Welcome to the 29th podcast where we are covering the corporate strategy study, a transformation of the major power sector company. In today’s podcast we want to go back to a very core concept that you need to understand as we move forward. In the previous podcasts we spoke about the definition of corporate strategy. We explained what is corporate strategy. And no, working for the CEO or Chairman of the Board does not make it corporate strategy. Its actually very simple to know if a study qualifies as a corporate strategy study. Irrespective of what anyone tells you, if you go into a strategy study where the key question, or what we call an objective function, is known to you, that is not corporate strategy. This is because corporate strategy is not about knowing how to maximize an objective function. It is about choosing the objective function you want to maximize. That is the key difference between corporate strategy and every other kind of strategy. No matter what anyone tells you. In today’s podcast we ar

This podcast explains what is a conceptual thinker and how to demonstrate this skill. If you work at any major consulting firm, and especially if you want to be promoted, you must prove you are a conceptual thinker. The only problem is that it is hard to define the word conceptual. Once you understand this definition, things will be much easier for you. In this podcast I explain a similar problem experienced by a consultant on the Corporate Strategy & Transformation study and how I helped them improve. The definition also explains why conceptual thinker is a functional specialist (in strategy, operations, corporate finance etc.) and almost never specialist in sectors. If you enjoyed this conversation we will be so grateful if you jump over to iTunes and share a quick review. It helps more people find us.  SIGN UP FOR EMAIL UPDATES & RECEIVE FREE STRATEGY TRAINING: www.firmsconsulting.com COME HANG OUT WITH US: Facebook / Twitter / LinkedIn

In many cases, especially in a tough study like this turnaround, there is just not enough time and money to find the ideal evidence, or any evidence at all. In such situations you need to be creative because the consultants are being paid to arrive at a credible answer. You need to find data which proves something indirectly. In this podcast I explain just such a method we used for the crucial EVA analysis to prove there was no profit outside the core. This is arguably one of the smartest things we did on the study. I studied thermodynamics at university. This is a method we used extensively and will be common to anyone in the sciences. It has to do with altering the question, without changing the purpose of the analysis. If you enjoyed this conversation we will be so grateful if you jump over to iTunes and share a quick review. It helps more people find us.  SIGN UP FOR EMAIL UPDATES & RECEIVE FREE STRATEGY TRAINING: www.firmsconsulting.com COME HANG OUT WITH US: Facebook / Twitter / LinkedIn

  This is the next podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In just the last week we have had several issues erupt on the study. (1) A rival (?) firm has been appointed at the parent to potentially have oversight of the study. (2) The power outages are escalating while EI wants to double-down on investments which are not core to its likely future. (3) The unions are challenging the management skills analyses. (4) A budding romance has left our strategy team down one person with some liabilities to manage. All of these issues suck up a lot of management and partner time. They take time away from the study itself and can quickly derail the team, or slow down the momentum. In this podcast I discuss the process I use to manage all these issues while also keeping the team fully focused on the task at hand. This is one of those important podcasts where we discuss the critical soft skills to use when things never go according to plan. Pay careful at

This is the 25th podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. A stream of our consultants is assessing the management skills of senior EI managers and executives to manage the transformation process. This process has not gone well. A senior manager of EI felt the management skills assessment was designed to present him in a poor light. He, therefore, complained to the unions and is considering legal action against EI. This is not good, but fairly common on such studies. So there is no need to overreact, though it must be managed and done very quickly and efficiently. The spillover of this is that the unions are refusing to allow the management skills analyses to take place and many employees are also refusing to participate. In this podcast I discuss the process we will use to manage this misunderstanding. It is a real concern with the potential to spiral out of control. We have a plan and, to be fair, we could have managed this a little better f

This is the 24th podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In an update meeting with the CFO of EE who sits on the board of EI, he mentioned that McKinsey has been appointed by EE to conduct a “visioning refresher” workshop to help the EE board think through their options. The CFO stressed that the work does not overlap with our own since McKinsey is focused on EE’s broader issues and the investment in EI is just one thing they will briefly discuss. McKinsey is doing a lot of work at EE so this is not really all that surprising. In this podcast, I discuss the likely impact on our study, how a boutique firm should respond and how a boutique firm should not respond. The problem is that most boutique firms panic and overreact. The presence of an ego and a lack of realistic thinking forces most boutiques to behave irrationally, which ends up hurting them. A reaction is needed but certainly not in the way most companies would react.   SIGN UP FOR C

This is the 23rd podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. The first cut of the EVA analyses is done. In this podcast we discuss why EVA was selected as the performance metric and how it will be used. We compare the current EVA performance and the likely EVA performance if the businesses with EI met their planned budgets and targets for the year. We discuss why we are not using the budgets, how we will adjust them and the dangers of taking this step. The adjustments to the budgets are a pivotal step to prove our business case and should be handled very delicately or we will be accused of bias. This podcast demonstrates why a combination of soft-skills, business judgment and rational thinking are needed in combination to convince clients to changes their minds.  Brilliant rational logic alone will alienate the client.   SIGN UP FOR COMPLEMENTARY TRAINING: www.firmsconsulting.com COME HANG OUT WITH US: Facebook / Twitter / LinkedIn

This is the 22nd podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. As power outages escalate across the region, EI remains focused on growing internationally. It is crucial to remember that these podcasts reflect the team's strategy and thinking that we have not yet fully communicated to EI. That will happen over the next few weeks. So while you have heard lots about the need to focus on EE’s core business, EI is yet to come around to that thinking. In fact, EI is firmly focused right now on its original mandate. The challenge we face is in guiding the CEO to hold off on making large and irreversible capital investments until we present our plans. EI has several promising ventures on the table which require a decision. Those ventures move EI away from where we think it needs to focus in the future. We have to, unfortunately, pre-empt our carefully laid plans and discuss our initial thinking with the CEO. In this podcast, we discuss how we ran that mee

This is the 21st podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. Many readers have written in asking how we manage the fatigue of running such an intense study while managing all the numerous Firmsconsulting initiatives. In this podcast I briefly touch on the practical tools I use to manage my time, set priorities and manage my diary to ensure I keep the trains running on time. I also discuss the myth of loving what you do. While that is important, it does not insulate one from the trauma of dealing with abrasive situations. I manage this in a different way. Finally, I discuss the problem with reading magazines and articles on learning how to de-stress. Best practice, as you will learn, is not going to work for you.   COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   SIGN UP FOR COMPLEMENTARY TRAINING: www.firmsconsulting.com

This is the 20th podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In the Steering Committee meeting this morning we were directly challenged by a member of the committee. This podcast discusses the nature of the challenge and how we responded. The client raised a concern about our skills and also raised a potential conflict of interest we had not considered. We unpack the challenge and the thought-process we applied in managing this situation. Ultimately, we also explain why and how alumni of McKinsey and BCG who create boutique firms end up limiting their prospects for growth. Finally, we will discuss the differences in which conflict can be managed by engaging crowds and individuals. The trick is to engage only one of these groups and for a very unique reason.   COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   SIGN UP FOR COMPLEMENTARY TRAINING: www.firmsconsulting.com

This is the 19th podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. As the transformation recommendations are implemented, the implementation will cost billions of dollars to execute. The implementation cost is also known as the capital requirements. Understanding the size of the cost and drivers of the cost is critical. This podcasts discusses the 6-step process the divestment team will use to calculate the cost of the transformation. We will also discuss the key assumptions made and principles we are applying. Finally, we will address the questions the team will answer and the questions they will not answer. This podcast will discuss the level of modelling used in corporate strategy studies and the difference between the models used in investment banking.   COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   www.firmsconsulting.com

This is the 18th podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In this podcast we discuss the approach and philosophy used by the study leadership stream as they guide and mentor corporate leaders at the client. We discuss the 4 pillars on which our leadership philosophy is built and use practical examples to demonstrate how we help clients adopt these principles. The four pillars are: Sincere authenticity matters. Embrace, not hide, leadership flaws. Forget about image. Focus on results. This approach is about helping corporate leaders be successful in the short term. If you would like to learn more about this leadership work, please read this article.   COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   www.firmsconsulting.com

This is the seventeenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. This podcast discusses how to communicate recommendations which are radical in nature. If the recommendations are presented too early, they are hypotheses with little data backing them and they can be easily challenged. If the recommendations are presented at the end, it shocks the client and there likely will be little agreement from the client. The solution is to present early but to present them as hypotheses. That seems easy, but this podcast explains the mistakes in communication made when most consultants present complex hypotheses very early, and how to fix them. You will learn that communication, your choice of words and the way you emphasize them can dramatically alter the way the client interprets what you are saying. In fact, the emphasis will radically alter the meaning. COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   www.firmsconsulting.com

This is the sixteenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In this critical podcast, we focus on two things. First, we discuss the reason why corporate strategy studies rely so heavily on executive workshops. We explain why simply handing the perfect strategy to the client will never yield results, even if the client accepts it without any challenges. The workshop process plays a crucial role that cannot be easily replicated anywhere else in the study. That is the reason to hold the workshop. Second, we discuss the components of the corporate strategy analyses and how we use each part: 1 - Case studies2 - Market analyses3 - Customer value chain analyses4 - Client value chain analyses Finally, we discuss how all of these come together in the scenario planning. COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   www.firmsconsulting.com

This is the fifteenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In an earlier podcast I discussed our bold hypotheses which involved shutting down and selling all of the international businesses. Since that initial hypothesis developed in week 1, and after thinking about it for the last 2 weeks, we have changed our views. In terms of the number of initiatives, the majority of the international businesses will be shut down or sold. However, in terms of dollar value, the majority of international businesses will remain. If that sounds contradictory, this podcast explains how we decided which businesses to keep and the impact it will have on the funding of the transformation study. COME HANG OUT WITH US: Facebook / Twitter / LinkedIn www.firmsconsulting.com

This is the fourteenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. This podcast defines governance versus project management and explains the 6 governance levels on the study. We further break the 6 governance levels into those with a short to medium term focus and those with a long term focus. The six governance levels are: EI - BoardEI - CEO and EXCOEI - OPCOEI - Steerco. EE - BoardEE - CEO We explain further why in transformation studies the Steerco is one of the most important governance structures, trumpeting that of OPCO, even through Steerco members report to OPCO members.   COME HANG OUT WITH US: Facebook / Twitter / LinkedIn   www.firmsconsulting.com

This is the thirteenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. In this podcast we discuss how the client came to be the primary bidder for a telecom license which is far from their core business. We also discuss the process we used to decide if the client should keep the license, sell it or do something else. We developed 4 scenarios for the client. We also explain why immediately exiting this non-core investment hurts the client more than keeping the license. That is a counter intuitive recommendation which has to do with the value of real options. Although, this may seem surprising, many power companies consider telecoms to be a natural adjacency due to the physical overlap of infrastructure. www.firmsconsulting.com

This is the next podcast for the power sector corporate strategy study we will soon release as part of our Executive Program. The client has invested heavily in trying to develop the next generation nuclear technology for sale to foreign companies. In this podcast we discuss our decision making process on whether or not the nuclear investment should be kept, expanded, modified, reduced or eliminated. We discuss the 5 major scenarios open to the client for handling the nuclear investment and the financial impact of each scenario, as well as the anticipated impact on the client’s pending capital raising roadshow to raise money for its power build program. The bottom-line is that all options are costly. www.firmsconsulting.com