Articles

Are Business Consultants Really Worth It?

June, 2019

What is a business consultant?

The concept of business consultant refers to the team of management personnel, who through their years of experience and expertise solve issues, that an organization faces while functioning business as usual. The business consultants ensure improvement in operation and overall performance of both, the management and the company. It depends upon the consulting firm, if its focus is on a single industry type like healthcare, IT or marketing. There are business consultants who also contribute towards issues related to regulatory compliance and employee engagement.

Mode of operation of business consultant

Most business consulting firm prefers to work on one project at a time since, it involves massive time and effort towards the beginning for data collection. The next phase involves analysis of collected data into comprehensible information.

Skills possessed by business consultant

A business consultant should have excellent analytical skills since, a major portion of the consulting involves gathering of data through interview of employees and generating a report basis that. The firm should also possess experienced consultants and must have operational license.

Worth of a business consultant

There is a myth that surrounds the competency of business consultants in the present-day scenario. It is often considered, that the consulting firms do not contribute anything new, rather represent the existing facts in a presentable manner and charge exorbitantly for that. The truth is, the requirement of a business consultant does not end with interpreting data, rather a consulting firm begins with identification of the prevailing business model of the company. This is followed by restructuring of programs, emphasizing on new products and services, manage employee benefits and employee productivity and restructuring of management. A business consultant is also hired to manage finance of the organization, look after employee safety and elevate the scope of advertisement and promotion.

Business consultants play a crucial role when a business suffers revenue loss followed by decrease in employee productivity. The consultant tries to identify the reason that triggered employees to become less productive. As a contingency plan, the business consultant also provides training to the employees to stay oriented to the established business operation. A business consultant also ensures continuity in productivity even after downsizing of a business through cost-effective business plans.

So, it can be said that the consultancy business is result oriented, it tries to understand the wider perspective and leverage asset-based technology. Also, it must be noted that often such firms prefer share of a company in place of consulting fee.

Prevailing Challenges

Sometimes depending on the consulting firm, the notions based on which consultancy is provided are not original. This creates hindrance towards successful business consultation. Also, certain firms deploy fresh interns for the job, lack of market experience can prove hazardous to the consulting. Again, it becomes a challenge when a firm outsources the consultation job to a small firm with low credibility. Since there is no specific job qualification to become a consultant, people without skill perform the consultation resulting in degraded service without result.

Sign of a genuine business consultant

Following are the signs that will ensure if the business consultant is capable of creating an impact:


  • One should have a business reputation where the client was actually benefitted from the consultation.

  • CPA licensing is mandatory for a business consultant to operate. So, while hiring, one should ensure that the firm has the required license.

  • The firm should possess prior experience in a similar consulting domain.

  • The individual who will be working on behalf of the firm also matters, he or she should have considerable experience for a successful consultation.

  • Recommendations of business associates is always helpful in hiring a business consultant.


Conclusion

It can be concluded that the true value of implanting business consultant can be gauged only by allowing the consultant to propose creative solutions. Here, trust is important in order to seek advice and gain out of the consultation.

– Kathakali Basu
Content Writer,
Infoholic Research