ANALYTICAL TOOLS FOR CONSULTING COMPANY’S DEVELOPMENT STRATEGY FORMATION: SELECTION AND OPTIMIZATION

In this paper the different analytical methods of strategic management were summarized as one analytical stage of the whole strategy formation process. The best practice of managers which was described in different research was reviewed and developed in terms to get more quick and suitable management tools for small and medium sized consulting companies. SWOT-analysis was used to estimate basic quality factors, which influence on the company. EFAS, IFAS, SFAS methods were used and supplemented by adding the reference data for consulting companies. Visualization with using a bubble chart was proposed for EFAS, IFAS, SFAS results interpretation with the possibility of considering company’s dynamic changes. The stakeholders’ analysis was proposed to use as a part of analytical stage of development strategy formation process for consulting companies. This type of analysis was improved by using the 5-scored scale estimation as a risk-management tool. That would help to build a stakeholders’ map for further visualization. As a result, the level of strategy objectiveness will be increased, total spent time will be decreased and the strong analytical background for further strategy formation process will be achieved.

Introduction. The issue of strategy formation is relevant for different sized companies. All aspects of this process are actual for managers as clear understanding of each formation stage can help to get the successful winning strategy. Thus, on the background of the rapid information technology progress the analysis of information may become a very useful tool to correctly estimate the current company's position and the main future trends of society's development before making any decision of moving forward. The quality and reliability of any strategic decision strongly depend on the quality of inputs. As and the results of the analysis. According to some research [16], analytics can be also a success factor which can increase the value of company's business. Among the main benefits of a well-done analytical job the strategic decision-making process and the knowledge of consumer can be strongly improved, operating costs can be decreased while sales can be grown up.
Material and Methods. The purpose of this paper is to present the results of investigation in the field of strategy management. The analytical stage of consulting companies' strategy formation process was described and developed. Main methods were used such as graphical method, SWOTanalysis, methods of Internal Factors Analysis Summary, External Factors Analysis Summary, Strategic Factor Analysis Summary, deduction and induction.
The problem of chosen the most popular management tool was investigated by different researchers [6; 4; 12].

Results.
As the general result of these investigations the two groups of the most widely used tools could be formed: traditional such as different types of matrix analysis and modern such as graphical analysis using modern information technologies tools. SWOT-analysis is the most popular among traditional analysis. But it lacks numbers and quantity characteristics. That makes it suitable for different private companies but increases the subjectivity of the output (Table 1). The EFAS (External Factors Analysis Summary), IFAS (Internal Factors Analysis Summary) and SFAS (Strategic Factor Analysis Summary) [5; 10; 13] are seems to solve the problem with quantity characteristics but input information, which could be useful for strategic decision-making, usually is private. One more drawback of SWOT-analysis is the absence of comparison with competitors. This could be improved with M. Porter's analysis and benchmarking but both methods require input quantity data which is also private for the most private small and medium sized companies.
So, using the results of expert survey, which was conducted among the consulting companies [8], the Modified Matrix for Consulting of External Factors Analysis Summary -MMC EFAS, Modified Matrix for Consulting of Internal Factors Analysis Summary -MMC IFAS could be proposed by author in this paper (table 2 and table 3). (Proposed by the Author) The "Weight of the Factor, which is measured by the Strategist" should be set directly by the decision-maker considering reference data from the 5th column. It may differ in any thus adding the Strategist's personal estimation. "Expert Weight of the Factor" and "Expert Summary Score of the Factor" are received empirically and should be taken from the research [8]. "Expert Summary Score of the Factor" should be taken as a negative meaning. MMC EFAS total score should be estimated as a sum of total opportunities and threats estimations.
As SWOT-analysis may contain factors which are not listed directly in research [8] the additional table (table 3) can be used or simply comments can be applied at the column 7 of table 2.   (table 5). The MMC IFAS total score as -0.17 can be interpretated as the necessity to improve some internal factors, for example, to increase resources.
Next step is compilation the results of MMC EFAS (   -from the table 2 and table 4 ** -SFAS total score = MMC EFAS total score + MMC IFAS total score In general, it can be made a conclusion that the analyzed consulting company should use its favorable external opportunities by improving its internal environment. But using only table data makes hard to estimate the level general positive and negative factors ( fig. 1). Correct results of this estimation could help to take int account the life stage of the company.

Fig. 1. Bubble chart for MMS SFAS results [Proposed by the Author]
So, comparing the size of two bubbles in positive (Bp) and negative (Bn) quadrants its can be said that company has almost equal opportunity as for successful development as for the failure. Thus, the bigger is positive bubble (BP) the more chance for success has the company. But also, this can help to understand company's life-stage (table 7).

Fig. 2. Dynamic bubble chart for MMS SFAS results [Proposed by the Author]
In 2010 positive factors strongly predominated comparing to negative ones. Thus, the conclusion about company's seed-growth life-stage can be made and proper decisions can be done.
The described MMC IFAS, MMC EFAS and MMC SFAS also could be completed with the stakeholder analysis [7]. The AA1000 Stakeholder Engagement Standard [15] can be used as a basic statement with quality characteristics for stakeholder's estimation. So, the decision-maker may choose any characteristics. But for further visualization the quantity data are also required.
In this paper it is proposed to use the 5-score system [14], where the 1 score will mean the minimal power (white color), 3 scoresmedium power (light color) and 5 scoresmaximal power (dark color). So, taking the list of main stakeholders from previous research [7] the basic heat table for visualization can be constructed (table 8). The petal chart ( fig.3) is proposed for creating a stakeholders map no the base of data from the table 8.

Fig. 3. Stakeholders map for consulting company [Made by the Author on the base of table 8]
So, the company has a low market power in quite opposite to its stakeholders. Discussion. Thus, the problem of choice the most effective management tools is always actual and have different approaches for solving. But in any case, for decision-maker it is important to possess as actual quality information as quantity data, which in the most cases are private. Also, it is necessary to consider the industry specific and the size of a company. That is why different research and expert opinions should be studied before creating a perfect practical tool for certain company.
Conclusions. The proposed analytical management tools combine the results of different investigations in specific consulting industry. The problem of getting quantitative characteristic for applying modern analytic tools is proposed to be solved. Using industry experts' estimations can help to improve the most popular analytical tools and combining them with elements of risk-management in the part of using probability scales can also help to choose the correct way of further company's development. This could help to diagnostic the company's life stage for quick and correct further strategy formation process.
By using the whole scope of proposals, the objective strategic evaluation of current company's position can be received as a successful result of analytical stage of development strategy formation process for consulting companies. But a lot of factors, which any strategist put in the basic scope of the analysis still can be investigated by other researchers.