Management Consulting Principles & Practices Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Management Consulting Principles & Practices flashcards as text
Which of the following best characterizes a 'trusted advisor' relationship between a consultant and client?
Answer: The client relies on the consultant for objective advice even on sensitive issues
A trusted advisor relationship is defined by the client's confidence in the consultant's objectivity, integrity, and willingness to deliver uncomfortable truths.
In change management consulting, the ADKAR model's 'K' component stands for:
Answer: Knowledge of how to change
ADKAR stands for Awareness, Desire, Knowledge, Ability, and Reinforcement — where Knowledge refers to understanding how to implement the change.
A consultant is asked to benchmark a client's cost structure. Which data source provides the most comparable and reliable benchmark?
Answer: Industry analyst reports and databases with peer company financials
Industry analyst reports and peer financial databases provide externally validated, comparable data essential for credible benchmarking.
Which financial metric is most commonly used in consulting to evaluate whether a strategic investment creates shareholder value?
Answer: Net Present Value (NPV)
NPV measures whether the present value of future cash flows exceeds the investment cost, directly indicating if the investment creates or destroys shareholder value.
When a consulting team identifies a significant negative finding late in an engagement, the recommended action is to:
Answer: Disclose it immediately to the client with context and mitigation options
Immediate disclosure of material negative findings — with context and solutions — upholds consultant integrity and gives the client time to respond appropriately.
Which of the following best describes the role of a 'straw man' in consulting work?
Answer: A placeholder answer or structure used to provoke discussion and refinement
A straw man is a preliminary draft — a purposely incomplete structure intended to be critiqued, debated, and improved by the team or client.
A client asks a consultant to sign a non-compete agreement preventing work with industry competitors for two years post-engagement. A CMC should:
Answer: Review the scope carefully and negotiate terms that are reasonable and professional
Non-compete agreements are legitimate commercial arrangements; a CMC should review scope and negotiate reasonable terms that protect both parties without unduly restricting future practice.