Problem Solving for a Consulting Project

Our client, wanted us to quantify the impact of anti-ESG policies in Ohio. In the second phase of the project, we encountered two issues. The first issue is that the client was slow to return messages and did not deliver on expected data contributions as previously discussed. 

Initially, we presented three directions to the client in our biweekly meeting to align on the most relevant avenues to pursue. The client provided positive feedback, expressed particular interest in all the proposed directions, and committed they would provide the granular portfolio data of OFT and help us meet with the Texas team. However, the expected data list committed by clients still needed to be fed, and there was no further response to our three emails. This led me to reflect on the following aspects:

When facing data limitations in some domains, we should dedicate extra effort toward the facets that engage the client's priorities, enabling us to advance the project overall. To further study the policy impact, we no longer insisted on quantifying the effect of anti-ESG policies on pension funds in this situation. Instead, we researched more into the relative performance of ESG indexes and the relationship between ESG investments of state pension funds (if committed) and their rates of return. In addition, we examined anti-ESG provisions in other states. We used several cases from Texas, West Virginia, Florida, etc., to refine the impact of anti-ESG policies on banks' and insurance companies' business operations in Ohio. To build a comprehensive understanding, we want to research the effects of anti-ESG policies on a broader range of stakeholders like corporations, investment institutions, governments, etc.

Adopt a problem-solving mindset that explores diverse remedies while keeping updated, instead of counting on one fix. Before the interim presentation, we still need cross-referenced data with Texas and asked our professor for solutions. Fortunately, we obtained the contact information of students researching the Texas case. After the interim presentation, we actively inquired about data issues. The client suggested we directly contact the pension funds for information. This experience deeply reflected that in addition to the client's promised data list, we should proactively seek external assistance to produce research output continuously. Next, we will make more effort to actively contact relevant institutions and individuals to obtain as much quantitative impact data as possible.

The second issue we faced was the withdrawal of a team member, that made me consider that effective communication and collaboration within the team are critical. Although the withdrawal of a team member had little impact, its abruptness also led me to reflect on whether there were unreasonable aspects of team integration and division of contribution. In class, Group 10 shared that in the two weeks before the course starts, we could participate in social events and discuss more within the group to increase mutual understanding. This can ensure all team members are on the same page. Any withdrawal considerations could also be notified earlier to facilitate earlier contingency planning if we did what group 10 has done.

After the teammate dropped the course, I took the initiative to undertake her part of the research and found that the anti-ESG impact on insurance companies is huge. A bill in Texas could prevent them from considering risk areas when setting risk rates, such as hurricane zones. Besides, A bill in South Dakota prohibits insurance companies from refusing to provide services to anyone based on any factors other than 'fair risk-based financial standards. The anti-ESG regulation may increase the possibility of companies' payouts, potentially forcing them to withdraw from the region with anti-ESG legislation. Our team and clients know from the case study that the impact on employment and local tax revenue is enormous.                                                                                                                           

I feel my communication and resource coordination abilities have improved through this project. When facing various difficulties, I felt encouraged but proactively brainstormed solutions with team members. This attitude and experience will undoubtedly benefit my future work tremendously. I will remember these lessons and apply them to the next project. If we maintain a learning attitude, I believe we can grow into more outstanding consultants, delivering maximum value to our clients.