What is the problem with consultants?
Consultancy is one of the fastest growing sector in professional business people, the USA alone has over 700,000 of them. IBM Global Business Services and Ernst & Young have almost half a million consultants between them alone!
They charge a lot of money for their expertise and knowledge, if you get one through one of the top firms like McKinsey and Boston Group are unlikely to give you any change out of thousands of dollars an hour. Of course what you are buying in many cases at that level is something you already know, its more a corroboration perhaps when you are making a decision that has significant implications for your business, especially if you are looking at taking it into green fields, although most large businesses don’t take those sorts of risks in the first place even if the potential gains are huge.
Given that IBM possibly has the largest group of assembled business consultants of any company in the world, I guess the adage that no one ever got fired for buying IBM (not strictly true) still carries a cloak of implied job security for decision makers.
Perhaps it is the fees that put people off consultants especially when compared with the salary packages of the people who are hiring them, often to tell them things they already know, or for mining information from employees of their own company. Of course consultants don’t have job security between consults and often can’t even talk about what they did for their clients to earn those dollars because the IP is commercially sensitive. Do you get better value from a consultant who works for a top 1o company, or one who is self employed? Maybe, sometimes. Often not.
As a consultant myself, I think a common problem that people have is that the information they provide is known within the company, but for various reasons it wasn’t available to key decision makers, or they didn’t want to hear it from staff who sit below them on the corporate ladder. It is also frustrating for companies when it appears that the solutions or recommendations that consultants make seem to come so easy for them. It also frustrates many companies that they aren’t able to get those answers from interns and graduates they employ who they expect to have the latest thinking on their industry.
The problem for the graduate and the difference between them and the business consultant, is that the good consultant has business experience. They may have specialist knowledge in an industry, be that biochemical nano technology, banking or retail They have years of experience understanding and finding solutions for problems.
A key thing that I bring as a consultant, is that I don’t have emotional baggage in your business, I am not phased by who is the boss, I am not married to the corporate Business As Usual credo of ‘this is how we roll’. I can see things that might be staring in your face and you don’t see them, because we are wired differently. I’ll tell it to you how it is.
I am also passionate about solving business problems. I get out of bed excited about the opportunity to understand your business and help you to find solutions to your problems, how to grow your business, how to find out what your customers really want and need, how to harness the knowledge your people (your most valuable asset) have and want to share with you. I can save and make you money. Sometimes I can do that very quickly with knowledge I already have after many years of working in a variety of roles including my own companies, sometimes it may take weeks or months. I can take knowledge from a wide range of industries and transpose them into relevant solutions for yours.
The problem with consultants is that people bring them in too late. Why wait for an ambulance at the bottom of the cliff? Why not talk to specialists on your way up who can help accelerate your progress and help prevent costly detours or mistakes?
The problem with consultants is sometimes they will tell you what you don’t want to hear.