In today’s dynamic business environment, the key differentiating skill among companies is their ability to push up new challenges and objectives. Management consulting comes into the picture by helping organizations strengthen their capacities to meet these new challenges and stay ahead of the competition. Companies seek expert advice from consultants while making tough decisions and also to reassure that the way they are approaching a particular problem is optimum. In this blog series, we will get into details on how management consulting can help you in defining your corporate strategy.
What is Management Consulting?
According to the Management Consultancies Association UK, the definition of it is: The practice of creating value for organizations, through improved performance, achieved by providing objective advice and implementing business solutions. Spanning across various domains from health to oil & gas, management consultants help businesses solve complex problems. Management consultants follow a very structured and time-tested approach to understand the business problems and discovering possible solutions to overcome the same.
Management consultants work with businesses of various sizes to improve their operational efficiency, people effectiveness and revenue strategy by providing function specific expert advisory. Management Consulting and advisory spans across various industry verticals and domains like corporate strategy, business efficiency, market entry strategy, finance, HR and marketing. Consulting often demands to work with senior management and providing and detailed audit of the current operational procedures and their recommendation for improvement and an action plan for implementation.
Why should you consider engaging a specialized management consultant?
They have the right expertise: Management consultants often have specialised skill sets that might not exist in-house. Consultants also would have worked with different companies that have gone through the same issues as your business, providing them the expertise to offer the best solutions. They are also abreast of the most current changes in business operations, regulations, and technology landscape.
Specialists in identifying the business problems: Consultants often carry a third party neutral outlook in identifying the business problems within an organization. As it happens, sometimes employees are too close to a problem inside an organization to identify, acknowledge or rectify it.
They have an objective approach to the problem: Management consultants provide an objective, fresh and neutral viewpoint about a business challenge without worrying much about what the internal stakeholders might think about the end results.
They help in diversification: Organisations hire domain-specific management consultants who are experts in a particular discipline to set up a new business line or vertical. They come with first-hand knowledge of the particular industry and already has exposure to what works and what doesn’t.
Helps save time and money: Companies find hiring external management consultants as a more cost-effective option because they can easily fill the skill gap that the business has without hiring a team as such. And more importantly, consultants are ready to perform from day one.
The consulting process:
Management consultants provide advisory on specific business issues and it involves and a lot of number crunching and data analysis. The typical steps in a consulting assignment are
Step 1: Problem definitions. Identifying the key challenges which need solutions
Step 2: Strategizing the approach and methodology
Step 3: Data gathering and analysis. In this step, the focus is on gathering all the necessary information to fill the puzzle. It also needs identification of the most appropriate manner to collect the information and best ways to analyse the data.
Step 4: Strategic advisory and recommendations: Based on the industry expertise and insights from the data, what are the best ways to overcome the business challenges.