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Why Use Consultants and Advisers
(From the Institute of Management Consultants and Advisors, IMCA) |
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Why Use Consultants?
In today's intensely competitive international trading environment, the number of factors with which management must deal has increased dramatically and the speed of change is accelerating all the time. Changes in the domestic economy, the economies and politics of other countries, social legislation and the impact of new technology all bring with them challenges and opportunities calling for knowledge and expertise, not always readily available within an organisation. To meet these challenges and grasp the opportunities, organisations call in management consultants from time to time for specific assignments as part of normal management practice in just the same way as architects, designers and lawyers have always been engaged when the need arises.
In whatever assignment involved, the management consultant brings four resources which cannot be combined in any other manner: |
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Objectivity |
There is no real alternative for the independent, impartial, fresh viewpoint free of personal interest, pre-conceptions or existing traditions and loyalties. |
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Broad Experience |
Management consultants working with a wide variety of clients frequently tackle problems which confront any individual client only once in a decade or more. |
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Analytical Skill |
Management consultants are trained in a range of analytical skills and know how to concentrate on the main problem areas and define the requirements for solution and benefits to be gained. |
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Full-time Attention |
Consultants can devote full-time attention to the assignment free of the executive responsibilities of client managers. |
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When To Use A Management Consultant
The need to engage a management consultant may arise where: |
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A problem is known to exist, but the organisation does not have the time, the particular experience or the staff to tackle it. |
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The organisation has tackled the problem itself already but has not resolved it. |
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Expertise is needed to introduce new technology, new techniques and or fundamental change in the organisation's structure, nature or business direction. |
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A conflict of views on future policy exists within the organisation and an independent and skilled assessment is needed. |
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A specialist sort of experience or expertise is required which does not exist within the organisation and secondment of a management consultant for a period can help determine the type of permanent staff to be required. |
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A problem is known to exist but neither the symptoms nor underlying cause can be determined by anyone within the organisation in a completely unbiased way. |
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An appraisal of proposed changes is needed to confirm and/or amend the organisation's plans and help implement them. In the smaller organisation, there is a need to import a particular type of knowledge or expertise for a period to deal with such matters as market research, product development or diversification, industrial design or engineering, etc. |
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1. |
Describe the job you want done and the things you expect from the assignment, as well as the expertise you require. |
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2. |
Consult with others within your organisation. |
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3. |
Brief the consultants properly - with all pertinent facts. |
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4. |
See the individual consultant who will do the job and make sure the 'chemistry' between you is right. |
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5. |
Ask no more than three short listed consultants to provide detailed written proposals. |
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6. |
Ask for references and follow them up. |
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7. |
Keep in touch with the progress of the assignment. |
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8. |
The final report should contain no surprises. |
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9. |
Aim to get your staff to 'buy in' to or 'own' the recommendations - involve them as early as possible. |
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10. |
Be prepared to implement the recommendations - and involve your management as well as the consultant. |
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Selecting a Consultant or Adviser
So how does an organisation choose a consultant or adviser - especially when doing so for the first time - so as to ensure that the selection produces a properly qualified, sound professional? There are a number of steps to consider: |
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Defining the Problem
Describe the job you want done and specify the things you expect from the assignment. |
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Understand precisely how you expect your business will benefit from the work. |
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Decide on the timescale, scope and any constraints on the assignment. |
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Clarify which key staff (including yourself) will be involved, and how their time will be made available. |
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Consult any fellow directors/key managers on the nature of the problem (where appropriate). |
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Define the expertise you want - is it a systems or a human problem, as you perceive it? |
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You may find that the assistance you require fits better into a regular 'hand holding' discussion or counselling session with the consultant or adviser rather than into a defined assignment. Many clients obtain considerable value from scheduling assistance in this way - but make sure you still have a written fee quote and terms of reference.
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Choosing The Consultant or Adviser
Describe the job you want done and specify the things you expect from the assignment. |
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Properly brief the consultants or advisers asked to quote, i.e. give them all background to your definition of the problem. Otherwise you'll get proposals that don't meet your requirements.
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Make sure you only ask consultants or advisers to quote for the work who are qualified to carry it out. The Institute of Management Consultants and Advisers has a Code of Conduct which requires its members not to take on assignments for which they are not qualified. |
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If you do not know a suitable consultant or adviser, ask the Institute of Management Consultants and Advisers. It has a free enquiry service which can put you in contact with a number of qualified consultants and advisers both individuals and organisations. |
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Ask possible consultants and advisers to send you their CVs or to come to talk to you about the task - they should do this free of charge. |
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Consulting and advice is a people driven service - make sure the 'chemistry' between you and the consultant or adviser is right, and you see the person who is going to do the work. |
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Ask short listed consultants and advisers (two or three maximum) to provide you with a detailed written proposal covering:- |
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their understanding of the problem |
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the names and CVs of the people who will do the work |
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other support provided by the firm |
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the workplan and timescale |
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the reports and/or systems that will be delivered to you |
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fees and expenses and schedule of payment |
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the inputs required from you. |
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If you are not happy with any of the proposals do not feel pressured into accepting one - go back to the starting point or discuss it further. |
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Remember the cheapest will not necessarily give the best value for money. |
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Talk through your chosen proposal prior to making a final decision to ensure that you have any concerns answered and obtain references. |
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