Consultants can have a negative reputation - charging $2 million for 12 weeks work that results in stacks of PowerPoint slides, all of which are archived into a dusty closet (digital or otherwise) soon after McKBain Group leaves the premises.
Below, Ill paint a positive (and more realistic) view on the 6 reasons why companies hire business consultants. After reading, youll have a better view on 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 right (sacred cows and all that jazz) " especially when it comes to job layoffs, reductions in benefits, major operational shifts. Hiring management consultants can be a way to reach the desired conclusions with political cover in case key parties are unhappy (eg, disgruntled employees or a displeased Board) or things go awry (Despite the major cost increase, we implemented Mercers recommendations " theres little that what we could have done better)
3) Best practices across functions and sectors - consultants have the 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 recognize shared attributes of effective solutions and underlying causes, applying lessons learned across situations.
4) Analytical manpower
Similar to staff augmentation, companies often need help executing strategies where their capabilities and knowledge are lacking. Consultants can be of great value given their training and resources - another reason why consulting jobs are so hard to come by.
5) Fresh perspectives
Companies often need an external perspective - youd be impressed by the amount of value consultants can add based on seemingly obvious observations. Critics contend that this is an example of consultants selling glorified common sense, but for front-line workers, it can be easy to fall into daily routines and overlook mistakes and inefficiencies.
6) Skillset augmentation and training
Id argue that every consulting project - particularly ones with close client interaction - incorporates employee training as a primary ingredient. Big recommendations are worthless if clients dont implement and maintain suggested changes after Bain leaves. Thus, a central part of what business consultants do is to train client employees on necessary knowledge, capabilities, and mindsets.
Below, Ill paint a positive (and more realistic) view on the 6 reasons why companies hire business consultants. After reading, youll have a better view on 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 right (sacred cows and all that jazz) " especially when it comes to job layoffs, reductions in benefits, major operational shifts. Hiring management consultants can be a way to reach the desired conclusions with political cover in case key parties are unhappy (eg, disgruntled employees or a displeased Board) or things go awry (Despite the major cost increase, we implemented Mercers recommendations " theres little that what we could have done better)
3) Best practices across functions and sectors - consultants have the 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 recognize shared attributes of effective solutions and underlying causes, applying lessons learned across situations.
4) Analytical manpower
Similar to staff augmentation, companies often need help executing strategies where their capabilities and knowledge are lacking. Consultants can be of great value given their training and resources - another reason why consulting jobs are so hard to come by.
5) Fresh perspectives
Companies often need an external perspective - youd be impressed by the amount of value consultants can add based on seemingly obvious observations. Critics contend that this is an example of consultants selling glorified common sense, but for front-line workers, it can be easy to fall into daily routines and overlook mistakes and inefficiencies.
6) Skillset augmentation and training
Id argue that every consulting project - particularly ones with close client interaction - incorporates employee training as a primary ingredient. Big recommendations are worthless if clients dont implement and maintain suggested changes after Bain leaves. Thus, a central part of what business consultants do is to train client employees on necessary knowledge, capabilities, and mindsets.
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Management Consulted is a one-stop shop for prospective consultants. Written by a former McKinsey consultant, it covers topics including recruiting, resumes, interviews, and case studies. Read the guide to consulting jobs today!
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