Management consultancy is an advisory service paid for and provided to organisations by trained and qualified individuals who help the organisation to achieve an objective in an objective and independent manner.
The advantages of using management consultants
Expertise. Consultants can bring expertise in one or more fields
Additional resource. Consultants can provide short term and skilled resources
Project focus. Consultants can be focused on specific areas of the organisation. Typically, consultants are not encumbered by the day-to-day issues that inhibit line managers
Independence. An outsider has a different view from the people within the organisation and can therefore bring in new thinking, fresh idea and challenge accepted norms. Many organisation like to involve impartial advice before making important decisions.
The disadvantages of using management consultants
Cost. Many organisations perceive consultants as being expensive compared to internal staff
Unfulfilled expectations. The end of the consultancy assignment may leave the organisation feeling that its expectations were not fully delivered by the consultancy.
Changing personnel. The consultancy may change the personnel involved in the project and place reliance on junior consultants.
Resentment. Internal staff may resent the employment and use of external consultants
10 steps for the successful use of consultants
- Define the task. The first step is to define exactly what the consultancy is being used to achieve. What are the deliverables and outcomes? What is the scope and timescales? Commit the task to paper and gain consensus and agreement on the requirement.
- Involve senior management. Involving senior management in the decision to employ consultants is vital to ensure the consultants are accepted within the organisation and that their work will be supported by the departments involved.
- Search the marketplace for the appropriate consultancy. Consultancies vary in the scope and and scale of their work. Others are focused on industries or particular activities. It is therefore important to evaluate what is available.
- Shortlist possible consultancies. Use list of consulting companies, industry bodies and recommendations to identify potential suppliers.
- Request a preliminary survey. This may be undertaken for free or for a nominal charge. Use this time to establish the scale of the consultants' experience and expertise. Also use the time to clarify the goal and discuss possible approaches.
- Study the consultancy proposal. The consultancy will submit a proposal to address the task you have defined in Step 1. Watch for sections within the proposal on: their understanding of the issue, the deliverables, schedule of work, timescales, staff involvement, resource requirement, and fees and costs.
- Agree the use of consultants. Gain internal agreement to use consultants including the scope of work, timescales and cost.
- Inform interested parties. Brief interested parties on why the consultants are being employed, for what tasks and over what period. Highlight the involvement necessary from internal resources and focus on the expected outcomes and deliverables.
- Maintain control and communication. Throughout the period of consultancy, maintain close touch with the consultants to verify that adequate progress is being made and that no unmanaged issues.
- Assess the outcomes. When the project is complete, assess the original outcomes against the final deliverables. Were the goals achieved? What lessons can be learnt? What were the benefits, dis-benefits and unexpected outcomes?
