Consultants can bad a negative reputation - charging millions for 3 months work that results in a bunch of PowerPoint slides, most of which are archived into a dusty digital closet soon after McKinsey or Bain leaves the premises.
Below, Ill paint a more optimistic (and personally held) view on the key reasons why companies need business consultants. Youll have a better understanding of management consulting as a future career.
1) Staff augmentation - self-explanatory. Companies often have short-term staffing needs (in the case of government work, this can extend for a long time) due to a variety of factors (eg, employee downsizings, sudden expansion). While expensive, its common for operational consultancies (eg, Deloitte and Accenture) and, to a lesser extent, for public-sector consultancies (eg, Booz Allen)
2) External change force aka political cover. It can be hard for companies to do whats needed (eg, sacred cows) - particularly when it comes to employee layoffs, salary reductions, major operational changes. Hiring business consultants can help accomplish needed goals with sufficient political cover in case select parties protest (eg, displeased Board or disgruntled employees) or things go wrong (Despite the significant cost increase, we implemented BCGs recommendations ” theres little that what we could have done better)
3) Best practices across industries and functions - consultants have the helpful experience of:
a) Serving multiple clients in the same sector (eg, Consumer Software, Automotive) b) Serving multiple clients facing similar functional problems in different sectors (eg, North African expansion, East Asia outsourcing)
This enables them to identify common characteristics of effective solutions.
4) Analytical manpower
A corollary to staff augmentation, companies often require help to address problems where their knowledge and skillsets are lacking. Consultants can be of great value given their training - a big reason why consulting jobs are hard to find!
5) Fresh perspective
Companies often need an outside viewpoint - youd be amazed at the amount of value business consultants can add based on the most commonplace observations. Critics contend that this is evidence of consultants selling common sense, but for front-line workers up to senior executives, it can be easy to fall into daily routines without casting a sharp eye towards self-criticism and improvement.
6) Employee training and buy-in
Every consulting project - particularly ones with frequent client interaction - incorporates client training as a key ingredient. The best recommendations are worth nothing if clients cant maintain suggested changes after McKinsey leaves. A big part of what business consultants do is to coach client employees on the necessary skills, knowledge, and mindsets.
If you would like to make a comment, please fill out the form below.
