Business Tips

6 Explanations Why Companies Spend Millions to employ Management Consultants

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Consultants may have a negative status – charging $two million for 12 days work that leads to stacks of PowerPoint slides, which are archived right into a dusty closet (digital or else) right after McKBain Group leaves the premises.

Below, Ill paint an optimistic (and much more realistic) take on the 6 explanations why companies hire business consultants. After studying, you’ll have a better take on management talking to like a future career.

1) Staff augmentation – minimal value-added role that consultants offer. Companies frequently have short-term staffing needs (within the situation of presidency work, this could extend for quite some time) as a result of number of factors (eg. company downsizing’s, unplanned growth). While costly, it may be commonplace for operational talking to firms (eg. Deloitte) and, to some lesser extent, public sector talking to firms (eg. Booz)

2) Exterior change pressure also known as political cover. It’s not easy for businesses to complete whats right (sacred cows and all sorts of that jazz) ” especially with regards to job layoffs, reductions in benefits, major operational shifts. Hiring management consultants could be a method to achieve the preferred conclusions with political cover in situation key parties are unhappy (eg. disgruntled employees or perhaps a displeased Board) or things go wrong (Regardless of the major cost increase, we implemented Mercers recommendations ” there’s little that what we should might have done better)

3) Guidelines across functions and sectors – consultants have the expertise of:

a) Serving different clients within the same sector (eg. Consumer Goods, Semiconductors) b) Serving different clients facing similar problems in various industries (eg. Eastern European expansion, Central Asia outsourcing)

This enables them a kind of pattern recognition for effective solutions, applying training learned in relevant situations.

4) Analytical manpower

A corollary to staff augmentation, companies frequently require assistance to address problems where their understanding and skillsets are missing. Consultants could be of effective value given their training – a large reason talking to tasks are difficult to find!

5) Fresh perspective

Companies frequently require an outdoors point of view – you would be surprised about the quantity of value business consultants can also add in line with the most commonplace observations. Critics contend this is proof of consultants selling good sense, however for front-line workers as much as senior executives, it may be simple to fall under daily routines without casting a clear, crisp eye towards self-critique and improvement.

6) Set of skills augmentation and training

Every talking to project – specially the ones with heavy client interaction – incorporates worker training like a central component. The very best recommendations are useless if clients cant implement and keep recommended changes after talking to teams leave. Thus, a main a part of what business consultants do is educate client employees the required skills, understanding, and mindsets.