When businesses invest in consultants, they’re not just paying for expertise\u2014they\u2019re investing in tangible, beneficial results and extracting maximum value from consulting. So how can businesses ensure they’re extracting the most value from these partnerships?<\/p>\n
The answer is twofold: first, by partnering with consultants who are not just skilled but are truly passionate about their craft; and second, by fully understanding and monitoring the value that these professionals bring to the organization.<\/p>\n
A. The Transformative Power of Passion in Consulting<\/strong><\/h2>\nE.M. Forster once keenly remarked, “One person with passion is better than 40 people merely interested.”<\/p>\n
In the world of business, whether you’re a fledgling start-up or a well-established conglomerate, the passion and dedication of your allies matter, especially when those allies are consultants. Here’s why:<\/p>\n
1. Choosing a Consultant: Beyond the Resume<\/strong><\/h3>\nWhen you embark on the journey of hiring a consultant, their CV tells you about their skills and expertise, but it’s their inherent passion and unwavering commitment that will truly redefine the trajectory of your project.<\/p>\n
A consultant’s fervor isn’t just about an innate love for their field, but also a dedication to continuous learning and adaptability. Every niche has its depths, and a consultant’s enthusiasm ensures they dive deep, staying updated, evolving, and bringing the latest insights to your project.<\/p>\n
2. Passion as the Ultimate Problem Solver<\/strong><\/h3>\nNo project, no matter how meticulously planned, is immune to unforeseen challenges. The unpredictable nature of life, and indeed business, ensures obstacles will arise.<\/p>\n
Here, a consultant’s passion plays a pivotal role. Their drive, an innate result of their passion, means they won’t just find solutions; they’ll innovate and persist, ensuring your project doesn’t just navigate challenges but thrives amidst them.<\/p>\n
This drive is not merely about facing challenges head-on; it’s about elevating performance, pushing boundaries, and redefining excellence.<\/p>\n
3. The Impact on Results: Passion’s Tangible Outcomes<\/strong><\/h3>\nIn the realm of consulting, the real measure of success is the tangible outcomes produced. When a consultant is genuinely in love with what they do and the project they’re part of, they don’t just aim to meet targets, they aim to exceed them.<\/p>\n
This love for the job, fueled by passion, propels projects to new heights. The mindset it fosters, that of champions, is what truly differentiates a satisfactory outcome from an outstanding one.<\/p>\n
While expertise and experience form the bedrock of any consulting venture, it’s the intangible quality of passion that serves as the catalyst, accelerating projects towards unparalleled success.<\/p>\n
B. Understanding the Value from Consulting Created by Consultants<\/strong><\/h2>\nMany companies often perceive consulting merely as an additional resource, primarily through the lens of the project they are currently working on.<\/p>\n
Unfortunately, this limited perspective means that few executives truly appreciate the full value from consulting professionals.<\/p>\n
To shed light on this issue, it’s essential to recognize that the value from consulting can be broadly categorized into two main categories: Technical and Political.<\/p>\n
![\"Consultants](\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" "\\"\\"")
<\/p>\n
1. Technical Value<\/strong><\/h3>\nTechnical added value best corresponds with know-how in specialized professional fields. A seasoned expert in their area has decades of experience and can undoubtedly provide great benefits by working for your organization.<\/p>\n
\n- Providing Outside Knowledge<\/strong> \u2013 Derived from the wealth of their professional experience, Consultants possess rich information on customers, products, markets, and competitors. They can perform surveys, reach out to experts, and leverage their analytical power in ways unaccessible to clients. Indeed, the more consultants are specialized, the higher the chances they have faced similar issues or worked on adjacent problems. They provide a benchmark, state of the art elements, and perform maturity assessments.<\/li>\n
- Accurate Problem Diagnosing a Problem and Solutions<\/strong> \u2013 Often, the problem an organization struggles with, is how they \u2018see\u2019 the problem. Misdiagnosed problems will further complicate the situation. And often lead the team in the wrong direction. Finding a solution being therefore much more time-consuming and expensive.<\/li>\n
- Ability to frame and analyze an issue<\/strong> leads to structured problem solving and accurate and effective recommendations. A Consultant will normally gather, analyze treasure trove of information, and present it in a way that enables Executives to make effective and optimal decisions for the company.<\/li>\n
- Assistance in the implementation of a solution<\/strong> \u2013 Consultants can successfully offer help with facilitating the generation of a capability improvement roadmap as well as Securing\/Accelerating the execution \u2013 Projects Management; Additional dedicated resources; Increased expertise level are all elements of the execution which is the crucial stage to achieve the expected impact.<\/li>\n
- Audit of management practices<\/strong> \u2013 that includes analyzing performance; adherence to processes and policies; and also providing an independent assessment.<\/strong><\/li>\n<\/ul>\n
2. Political Value<\/strong><\/h3>\nIn any organization, regardless of how big or small it is, there is always politics and political games at play. That, unfortunately, can create tension, and cause friction between various interests, departments, groups or individuals.<\/p>\n
And Executives are especially affected by these dynamics. Consultants, however, can effectively contribute to smoother processes, introduction, and facilitation of new measures, and much more.<\/p>\n
\n- Providing legitimacy of decisions<\/strong> \u2013 Consultants often can be used as a scapegoat in situations where the solution of a problem requires it. An Executive can justify a decision in question, and have the Consultant take the blame in case something goes wrong. It provides relief for the Management team and mimics the famous crime drama plot with the Consultant taking the \u2018bad cop role\u2019 to execute painful decisions.<\/li>\n
- Facilitating the convergence between stakeholders<\/strong> on a variety of issues and decisions \u2013 analyzing a situation, building alignment and improving relationships among key stakeholders, and improving decision-making process, can yield great benefits.<\/li>\n
- Acting as a Trusted Advisor<\/strong> \u2013 Playing a sounding board role to bounce ideas off of when CEOs can\u2019t discuss them with their teams, is a valuable practice. It might feel lonely at the top as CEOs cannot share everything with their Leadership team. Besides, the Trusted advisor will not have an agenda and can provide an unbiased second opinion.<\/li>\n
- Enforcing unpopular changes<\/strong> \u2013 Cost cutting projects or restructuring are a great example. Those can, of course, be led internally, but it can be difficult to find volunteers to be the executioner of tough decisions or to be the one recommending to cut this or that part of the workforce.<\/li>\n<\/ul>\n
C. How to Best Measure the Value Created?<\/strong><\/h2>\nHaving established an understanding of the two types of values consultants bring, it’s crucial to navigate the next step \u2013 measurement. True value isn’t just about numbers; it’s the synthesis of both tangible outcomes and the subtle, intangible shifts that mold a company’s future trajectory.<\/p>\n
But how do we capture these nuances effectively? How do we balance the evident with the less visible?<\/p>\n
1. Tangible Benefits<\/strong><\/h3>\nTangible benefits have a direct impact on the P&L. They are easier to measure since they can often be evaluated in numbers.<\/p>\n
Increasing revenues:<\/strong> The work done with your Consulting Provider can improve your top-line with more Sales, better sales margins, or increase in market share.<\/p>\nReducing costs:<\/strong> The Consulting project can also have a positive impact on your costs, both direct and indirect through improved efficiency, better organized and sourced purchasing, and more.<\/p>\nAvoiding Costs (or avoiding future waste):<\/strong> It is a more complicated evaluation. However, it is often possible to calculate the avoidance of cost due to an improvement in reliability, a better focus, or a Capacity increase (assets and workforce expansion).<\/p>\nImproving Cash\/Working capital:<\/strong> Finally, financial measures such as cash and work capital improvement can also be considered as benefits from a consulting project, for instance, inventory usage and management, improved and optimized Payment terms, development of better Financing options and payment\/credit terms.<\/p>\n2. Intangible Benefits<\/strong><\/h3>\nWith no obvious method to date, it\u2019s easier to identify tangible P&L impacts. But there are other fields where subjective or intangible dimensions are measured. HR is an excellent example, with employee engagement, for instance.<\/p>\n
Culture, Diversity & Inclusion, Talent management:<\/strong> There are numerous examples in management literature of how a new culture has improved innovation, how diversity and inclusion lead to better decision-making or how an efficient talent management system can help bring in and retain stellar individuals. All these results have an impact on the performance of your company, and on the value created by your team, even though it is difficult to quantify it precisely.<\/p>\nProcess and Systems Optimization:<\/strong> In the same way, optimizing your processes and systems can only lead you to serve your clients better, and thus create more value for your company. For instance, gaining a half-day on a 5-day process can allow you to serve 10% more clients with sane resources, which has a direct impact on your top-line, and little on your costs.<\/p>\nThe long-term impact of the transformation program on the value of the company:<\/strong> If you launch a transformation program that moves an organization from a commodity player valued at x7 EBITDA to a specialty player valued at x10 EBITDA, you have naturally created tremendous value for your company and your shareholders<\/p>\nConclusion<\/strong><\/h2>\nEngaging with consultants is more than a mere transaction; it’s a strategic partnership aimed at fostering growth and innovation. While the deliverables and strategies they propose are vital, the ultimate test is the tangible and intangible value they contribute from consulting.<\/p>\n
Every dollar spent on consulting should yield results that move the business forward, be it in terms of increased efficiency, profitability, or innovation.<\/p>\n
Therefore, when businesses decide to bring consultants into their fold, they should prioritize those who genuinely love their work, bringing enthusiasm alongside expertise in extracting value from consulting.<\/p>\n
Moreover, it\u2019s equally essential for businesses to have mechanisms in place that allow them to see, measure, and appreciate the added value from consulting.<\/p>\n
With these elements in focus, the journey with consultants becomes not just a business move, but a recipe for sustained success.<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Keywords” _builder_version=”4.22.1″ _module_preset=”default” text_text_color=”RGBA(255,255,255,0)” text_font_size=”0px” custom_margin=”0px|0px|0px|0px|true|true” custom_padding=”0px|0px|0px|0px|true|true” global_colors_info=”{}”]<\/p>\n
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”how-conpulse” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#e1e1e1″ custom_padding=”0px||0px||true|true” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”How Consource Can Help?” image=”https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/lightbulb.png” image_icon_width=”60px” module_class=”b3_blurb_3″ _builder_version=”4.22.1″ _module_preset=”default” header_font=”|||on|||||” background_color=”#e1e1e1″ custom_padding=”40px|40px||40px|false|false” border_color_right=”#ff7700″ global_colors_info=”{}”]<\/p>\n
Consource<\/a> facilitates seamless collaboration between consultants, clients, and stakeholders. Harness the collective expertise to make informed choices, drive successful projects, and maximize the value you derive from consulting services.<\/p>\n[\/et_pb_blurb][et_pb_button button_text=”Book a demo” button_alignment=”center” admin_label=”Book a demo” module_class=”btn-primary btn-icon” _builder_version=”4.21.0″ _module_preset=”default” button_use_icon=”on” button_icon=”||fa||400″ button_icon_color=”#FFFFFF” button_icon_placement=”left” custom_margin=”||40px||false|false” custom_padding=”10px|10px||10px|false|false” custom_css_main_element=”width:280px;” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
Deseja otimizar seu investimento em consultoria? Aprenda estrat\u00e9gias e t\u00e1ticas comprovadas para garantir que sua empresa obtenha o m\u00e1ximo valor dos servi\u00e7os de consultoria. Mergulhe em nosso guia abrangente agora mesmo.<\/p>","protected":false},"author":4,"featured_media":58910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"
[et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"4.16\" global_colors_info=\"{}\"][et_pb_row admin_label=\"row\" _builder_version=\"4.16\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.16\" custom_padding=\"|||\" global_colors_info=\"{}\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.22.1\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<\/p>
So, you\u2019re about to launch a massive consulting project, right? Feeling a little overwhelmed, are you? Well, don\u2019t worry \u2013 that\u2019s completely normal. Decision-making in consulting can be crucial, don't you think? After all, this project is going to impact multiple functions and locations, so it\u2019s a pretty big deal.<\/p>
But before you start brainstorming your perfect outcome, let\u2019s talk about the most important thing: getting the right people in the room. I mean, you don\u2019t want a bunch of dummies nodding along to everything you say, do you? That\u2019ll just be the recipe for a disaster.<\/p>
Instead, take a page from John Wooden\u2019s book and surround yourself with smart people who\u2019ll argue with you. Yes, you heard that right \u2013 argue with you.<\/p>
Because when you have a team of knowledgeable individuals with diverse perspectives, you can ensure that all aspects of the project are thoroughly considered and that potential challenges are addressed from multiple angles.<\/p>
With the right group of experts on board, you\u2019ll be well on your way to launching a successful consulting project. And if things get a little heated in the process, well, that just means you\u2019re on the right track.<\/p>
Your Team Plays a Critical Role In Decision-Making In Consulting \u2013 Who Should Be in the Room?<\/strong><\/h2>Deciding who should be in the room when making big decisions is one of the most important aspects of any decision-making process. Obviously, those directly affected by the decision should be involved, but there are other key players whose voices need to be heard as well.<\/p>
Let\u2019s take a look at who are the right people to be in the room during the decision-making process.<\/p>
#1. Project Sponsor<\/strong><\/h3>Having a project sponsor is essential to ensure the success of the endeavor. They provide oversight and accountability while facilitating communication between different groups and stakeholders throughout the entire project lifecycle, from team members to leading executives.<\/p>
In addition, they have the responsibility of representing the team and making sure that resources are managed efficiently. The project sponsor should not be mistaken with a project manager or leader as their primary focus is to act as an advocate for both internal and external growth, promoting the purpose of the project and measuring results against it.<\/p>
Simply put, without an effective project sponsor, it\u2019s hard for a successful project to take shape.<\/p>
#2. Project Manager<\/strong><\/h3>A project manager is essential to success when it comes to completing a project. They have the authority and responsibility to bring the team together and keep track of progress, ensuring that tasks are completed on time.<\/p>
A good project manager will constantly communicate progress with stakeholders, providing assurance that things are going as planned and gathering input for areas where help may be needed.<\/p>
For any project or organization seeking to increase efficiency and productivity, having a supportive and experienced project manager leading the charge is key.<\/p>
#3. Procurement Manager<\/strong><\/h3>Having a procurement manager present ensures that every step of the decision-making process is being done properly and efficiently. Their expertise in the area can help streamline the process substantially, making sure that it runs according to company policies and procurement best practices.<\/p>
Above all else, those knowledgeable about procurement can make certain that the most cost-effective decisions possible are made for your business, potentially saving resources in the long run.<\/p>
So, if you\u2019re looking to ensure a smoother, simpler, and more efficient workflow \u2013 having a procurement manager in the room should be at the top of your list!<\/p>
#4. Main Stakeholders<\/strong><\/h3>It\u2019s true, if the main stakeholders don\u2019t come on board with the project, chances are it won\u2019t get off the ground. Everyone can offer something unique and valuable, that might contribute to making the project a success in ways we cannot foresee.<\/p>
We must ensure that communication is open and honest between stakeholders so that everyone is aware of their potential roles and responsibilities \u2013 this way everyone can be fully involved in getting the project going.<\/p>
It all boils down to commitment from all stakeholders; when we all share an understanding of what needs to be done, it sets us up for success!<\/p>
![\"Dream](\"https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/Dream-team-for-decision-making-in-consulting.png\")
<\/p>
Stepping into Larger Project Territory<\/strong><\/h2>Understanding the Shift to Strategic Projects<\/strong><\/h3>As you venture into the domain of larger consulting projects, the dynamics of decision-making evolve. While the stakeholders highlighted earlier remain integral to decision-making for any consulting project within your company, entering the domain of larger endeavors presents a distinct landscape. These larger projects are frequently synonymous with strategic initiatives, demanding a reevaluation of the decision-making process.<\/p>
Even though strategy is not always an explicit stakeholder, the group is responsible for designing and executing business unit\/corporate goals. And your project has a good chance to be a key piece of their action plan to make this strategy happen.<\/p>
They will potentially be your ally in evaluating the strategic value of the project. But they might also have ideas in the scope of the project. In the same way, finance is interested first hand by how the consulting budget is spent.<\/p>
If the project is large, you will have to convince them at some point in time that your project is strategic and worthy of the investment. Why not anticipate the objections and involve them early on? You will gain their support and probably shorten the decision-making process.<\/p>
What is a Strategic Project?<\/strong><\/h3>You won\u2019t like the answer\u2026 because it depends. The definition is linked to the size of your company and the extent of your\u00a0consulting spend<\/a>. In other words, for an SME, almost all consulting projects could be falling in that category when a large Fortune 1000 company could have a threshold of around $250k.<\/p>
When you embark on the journey of hiring a consultant, their CV tells you about their skills and expertise, but it’s their inherent passion and unwavering commitment that will truly redefine the trajectory of your project.<\/p>\n
A consultant’s fervor isn’t just about an innate love for their field, but also a dedication to continuous learning and adaptability. Every niche has its depths, and a consultant’s enthusiasm ensures they dive deep, staying updated, evolving, and bringing the latest insights to your project.<\/p>\n
2. Passion as the Ultimate Problem Solver<\/strong><\/h3>\nNo project, no matter how meticulously planned, is immune to unforeseen challenges. The unpredictable nature of life, and indeed business, ensures obstacles will arise.<\/p>\n
Here, a consultant’s passion plays a pivotal role. Their drive, an innate result of their passion, means they won’t just find solutions; they’ll innovate and persist, ensuring your project doesn’t just navigate challenges but thrives amidst them.<\/p>\n
This drive is not merely about facing challenges head-on; it’s about elevating performance, pushing boundaries, and redefining excellence.<\/p>\n
3. The Impact on Results: Passion’s Tangible Outcomes<\/strong><\/h3>\nIn the realm of consulting, the real measure of success is the tangible outcomes produced. When a consultant is genuinely in love with what they do and the project they’re part of, they don’t just aim to meet targets, they aim to exceed them.<\/p>\n
This love for the job, fueled by passion, propels projects to new heights. The mindset it fosters, that of champions, is what truly differentiates a satisfactory outcome from an outstanding one.<\/p>\n
While expertise and experience form the bedrock of any consulting venture, it’s the intangible quality of passion that serves as the catalyst, accelerating projects towards unparalleled success.<\/p>\n
B. Understanding the Value from Consulting Created by Consultants<\/strong><\/h2>\nMany companies often perceive consulting merely as an additional resource, primarily through the lens of the project they are currently working on.<\/p>\n
Unfortunately, this limited perspective means that few executives truly appreciate the full value from consulting professionals.<\/p>\n
To shed light on this issue, it’s essential to recognize that the value from consulting can be broadly categorized into two main categories: Technical and Political.<\/p>\n
<\/p>\n
1. Technical Value<\/strong><\/h3>\nTechnical added value best corresponds with know-how in specialized professional fields. A seasoned expert in their area has decades of experience and can undoubtedly provide great benefits by working for your organization.<\/p>\n
\n- Providing Outside Knowledge<\/strong> \u2013 Derived from the wealth of their professional experience, Consultants possess rich information on customers, products, markets, and competitors. They can perform surveys, reach out to experts, and leverage their analytical power in ways unaccessible to clients. Indeed, the more consultants are specialized, the higher the chances they have faced similar issues or worked on adjacent problems. They provide a benchmark, state of the art elements, and perform maturity assessments.<\/li>\n
- Accurate Problem Diagnosing a Problem and Solutions<\/strong> \u2013 Often, the problem an organization struggles with, is how they \u2018see\u2019 the problem. Misdiagnosed problems will further complicate the situation. And often lead the team in the wrong direction. Finding a solution being therefore much more time-consuming and expensive.<\/li>\n
- Ability to frame and analyze an issue<\/strong> leads to structured problem solving and accurate and effective recommendations. A Consultant will normally gather, analyze treasure trove of information, and present it in a way that enables Executives to make effective and optimal decisions for the company.<\/li>\n
- Assistance in the implementation of a solution<\/strong> \u2013 Consultants can successfully offer help with facilitating the generation of a capability improvement roadmap as well as Securing\/Accelerating the execution \u2013 Projects Management; Additional dedicated resources; Increased expertise level are all elements of the execution which is the crucial stage to achieve the expected impact.<\/li>\n
- Audit of management practices<\/strong> \u2013 that includes analyzing performance; adherence to processes and policies; and also providing an independent assessment.<\/strong><\/li>\n<\/ul>\n
2. Political Value<\/strong><\/h3>\nIn any organization, regardless of how big or small it is, there is always politics and political games at play. That, unfortunately, can create tension, and cause friction between various interests, departments, groups or individuals.<\/p>\n
And Executives are especially affected by these dynamics. Consultants, however, can effectively contribute to smoother processes, introduction, and facilitation of new measures, and much more.<\/p>\n
\n- Providing legitimacy of decisions<\/strong> \u2013 Consultants often can be used as a scapegoat in situations where the solution of a problem requires it. An Executive can justify a decision in question, and have the Consultant take the blame in case something goes wrong. It provides relief for the Management team and mimics the famous crime drama plot with the Consultant taking the \u2018bad cop role\u2019 to execute painful decisions.<\/li>\n
- Facilitating the convergence between stakeholders<\/strong> on a variety of issues and decisions \u2013 analyzing a situation, building alignment and improving relationships among key stakeholders, and improving decision-making process, can yield great benefits.<\/li>\n
- Acting as a Trusted Advisor<\/strong> \u2013 Playing a sounding board role to bounce ideas off of when CEOs can\u2019t discuss them with their teams, is a valuable practice. It might feel lonely at the top as CEOs cannot share everything with their Leadership team. Besides, the Trusted advisor will not have an agenda and can provide an unbiased second opinion.<\/li>\n
- Enforcing unpopular changes<\/strong> \u2013 Cost cutting projects or restructuring are a great example. Those can, of course, be led internally, but it can be difficult to find volunteers to be the executioner of tough decisions or to be the one recommending to cut this or that part of the workforce.<\/li>\n<\/ul>\n
C. How to Best Measure the Value Created?<\/strong><\/h2>\nHaving established an understanding of the two types of values consultants bring, it’s crucial to navigate the next step \u2013 measurement. True value isn’t just about numbers; it’s the synthesis of both tangible outcomes and the subtle, intangible shifts that mold a company’s future trajectory.<\/p>\n
But how do we capture these nuances effectively? How do we balance the evident with the less visible?<\/p>\n
1. Tangible Benefits<\/strong><\/h3>\nTangible benefits have a direct impact on the P&L. They are easier to measure since they can often be evaluated in numbers.<\/p>\n
Increasing revenues:<\/strong> The work done with your Consulting Provider can improve your top-line with more Sales, better sales margins, or increase in market share.<\/p>\nReducing costs:<\/strong> The Consulting project can also have a positive impact on your costs, both direct and indirect through improved efficiency, better organized and sourced purchasing, and more.<\/p>\nAvoiding Costs (or avoiding future waste):<\/strong> It is a more complicated evaluation. However, it is often possible to calculate the avoidance of cost due to an improvement in reliability, a better focus, or a Capacity increase (assets and workforce expansion).<\/p>\nImproving Cash\/Working capital:<\/strong> Finally, financial measures such as cash and work capital improvement can also be considered as benefits from a consulting project, for instance, inventory usage and management, improved and optimized Payment terms, development of better Financing options and payment\/credit terms.<\/p>\n2. Intangible Benefits<\/strong><\/h3>\nWith no obvious method to date, it\u2019s easier to identify tangible P&L impacts. But there are other fields where subjective or intangible dimensions are measured. HR is an excellent example, with employee engagement, for instance.<\/p>\n
Culture, Diversity & Inclusion, Talent management:<\/strong> There are numerous examples in management literature of how a new culture has improved innovation, how diversity and inclusion lead to better decision-making or how an efficient talent management system can help bring in and retain stellar individuals. All these results have an impact on the performance of your company, and on the value created by your team, even though it is difficult to quantify it precisely.<\/p>\nProcess and Systems Optimization:<\/strong> In the same way, optimizing your processes and systems can only lead you to serve your clients better, and thus create more value for your company. For instance, gaining a half-day on a 5-day process can allow you to serve 10% more clients with sane resources, which has a direct impact on your top-line, and little on your costs.<\/p>\nThe long-term impact of the transformation program on the value of the company:<\/strong> If you launch a transformation program that moves an organization from a commodity player valued at x7 EBITDA to a specialty player valued at x10 EBITDA, you have naturally created tremendous value for your company and your shareholders<\/p>\nConclusion<\/strong><\/h2>\nEngaging with consultants is more than a mere transaction; it’s a strategic partnership aimed at fostering growth and innovation. While the deliverables and strategies they propose are vital, the ultimate test is the tangible and intangible value they contribute from consulting.<\/p>\n
Every dollar spent on consulting should yield results that move the business forward, be it in terms of increased efficiency, profitability, or innovation.<\/p>\n
Therefore, when businesses decide to bring consultants into their fold, they should prioritize those who genuinely love their work, bringing enthusiasm alongside expertise in extracting value from consulting.<\/p>\n
Moreover, it\u2019s equally essential for businesses to have mechanisms in place that allow them to see, measure, and appreciate the added value from consulting.<\/p>\n
With these elements in focus, the journey with consultants becomes not just a business move, but a recipe for sustained success.<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Keywords” _builder_version=”4.22.1″ _module_preset=”default” text_text_color=”RGBA(255,255,255,0)” text_font_size=”0px” custom_margin=”0px|0px|0px|0px|true|true” custom_padding=”0px|0px|0px|0px|true|true” global_colors_info=”{}”]<\/p>\n
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”how-conpulse” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#e1e1e1″ custom_padding=”0px||0px||true|true” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”How Consource Can Help?” image=”https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/lightbulb.png” image_icon_width=”60px” module_class=”b3_blurb_3″ _builder_version=”4.22.1″ _module_preset=”default” header_font=”|||on|||||” background_color=”#e1e1e1″ custom_padding=”40px|40px||40px|false|false” border_color_right=”#ff7700″ global_colors_info=”{}”]<\/p>\n
Consource<\/a> facilitates seamless collaboration between consultants, clients, and stakeholders. Harness the collective expertise to make informed choices, drive successful projects, and maximize the value you derive from consulting services.<\/p>\n[\/et_pb_blurb][et_pb_button button_text=”Book a demo” button_alignment=”center” admin_label=”Book a demo” module_class=”btn-primary btn-icon” _builder_version=”4.21.0″ _module_preset=”default” button_use_icon=”on” button_icon=”||fa||400″ button_icon_color=”#FFFFFF” button_icon_placement=”left” custom_margin=”||40px||false|false” custom_padding=”10px|10px||10px|false|false” custom_css_main_element=”width:280px;” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
Deseja otimizar seu investimento em consultoria? Aprenda estrat\u00e9gias e t\u00e1ticas comprovadas para garantir que sua empresa obtenha o m\u00e1ximo valor dos servi\u00e7os de consultoria. Mergulhe em nosso guia abrangente agora mesmo.<\/p>","protected":false},"author":4,"featured_media":58910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"
[et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"4.16\" global_colors_info=\"{}\"][et_pb_row admin_label=\"row\" _builder_version=\"4.16\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.16\" custom_padding=\"|||\" global_colors_info=\"{}\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.22.1\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<\/p>
So, you\u2019re about to launch a massive consulting project, right? Feeling a little overwhelmed, are you? Well, don\u2019t worry \u2013 that\u2019s completely normal. Decision-making in consulting can be crucial, don't you think? After all, this project is going to impact multiple functions and locations, so it\u2019s a pretty big deal.<\/p>
But before you start brainstorming your perfect outcome, let\u2019s talk about the most important thing: getting the right people in the room. I mean, you don\u2019t want a bunch of dummies nodding along to everything you say, do you? That\u2019ll just be the recipe for a disaster.<\/p>
Instead, take a page from John Wooden\u2019s book and surround yourself with smart people who\u2019ll argue with you. Yes, you heard that right \u2013 argue with you.<\/p>
Because when you have a team of knowledgeable individuals with diverse perspectives, you can ensure that all aspects of the project are thoroughly considered and that potential challenges are addressed from multiple angles.<\/p>
With the right group of experts on board, you\u2019ll be well on your way to launching a successful consulting project. And if things get a little heated in the process, well, that just means you\u2019re on the right track.<\/p>
Your Team Plays a Critical Role In Decision-Making In Consulting \u2013 Who Should Be in the Room?<\/strong><\/h2>Deciding who should be in the room when making big decisions is one of the most important aspects of any decision-making process. Obviously, those directly affected by the decision should be involved, but there are other key players whose voices need to be heard as well.<\/p>
Let\u2019s take a look at who are the right people to be in the room during the decision-making process.<\/p>
#1. Project Sponsor<\/strong><\/h3>Having a project sponsor is essential to ensure the success of the endeavor. They provide oversight and accountability while facilitating communication between different groups and stakeholders throughout the entire project lifecycle, from team members to leading executives.<\/p>
In addition, they have the responsibility of representing the team and making sure that resources are managed efficiently. The project sponsor should not be mistaken with a project manager or leader as their primary focus is to act as an advocate for both internal and external growth, promoting the purpose of the project and measuring results against it.<\/p>
Simply put, without an effective project sponsor, it\u2019s hard for a successful project to take shape.<\/p>
#2. Project Manager<\/strong><\/h3>A project manager is essential to success when it comes to completing a project. They have the authority and responsibility to bring the team together and keep track of progress, ensuring that tasks are completed on time.<\/p>
A good project manager will constantly communicate progress with stakeholders, providing assurance that things are going as planned and gathering input for areas where help may be needed.<\/p>
For any project or organization seeking to increase efficiency and productivity, having a supportive and experienced project manager leading the charge is key.<\/p>
#3. Procurement Manager<\/strong><\/h3>Having a procurement manager present ensures that every step of the decision-making process is being done properly and efficiently. Their expertise in the area can help streamline the process substantially, making sure that it runs according to company policies and procurement best practices.<\/p>
Above all else, those knowledgeable about procurement can make certain that the most cost-effective decisions possible are made for your business, potentially saving resources in the long run.<\/p>
So, if you\u2019re looking to ensure a smoother, simpler, and more efficient workflow \u2013 having a procurement manager in the room should be at the top of your list!<\/p>
#4. Main Stakeholders<\/strong><\/h3>It\u2019s true, if the main stakeholders don\u2019t come on board with the project, chances are it won\u2019t get off the ground. Everyone can offer something unique and valuable, that might contribute to making the project a success in ways we cannot foresee.<\/p>
We must ensure that communication is open and honest between stakeholders so that everyone is aware of their potential roles and responsibilities \u2013 this way everyone can be fully involved in getting the project going.<\/p>
It all boils down to commitment from all stakeholders; when we all share an understanding of what needs to be done, it sets us up for success!<\/p>
<\/p>
Stepping into Larger Project Territory<\/strong><\/h2>Understanding the Shift to Strategic Projects<\/strong><\/h3>As you venture into the domain of larger consulting projects, the dynamics of decision-making evolve. While the stakeholders highlighted earlier remain integral to decision-making for any consulting project within your company, entering the domain of larger endeavors presents a distinct landscape. These larger projects are frequently synonymous with strategic initiatives, demanding a reevaluation of the decision-making process.<\/p>
Even though strategy is not always an explicit stakeholder, the group is responsible for designing and executing business unit\/corporate goals. And your project has a good chance to be a key piece of their action plan to make this strategy happen.<\/p>
They will potentially be your ally in evaluating the strategic value of the project. But they might also have ideas in the scope of the project. In the same way, finance is interested first hand by how the consulting budget is spent.<\/p>
If the project is large, you will have to convince them at some point in time that your project is strategic and worthy of the investment. Why not anticipate the objections and involve them early on? You will gain their support and probably shorten the decision-making process.<\/p>
What is a Strategic Project?<\/strong><\/h3>You won\u2019t like the answer\u2026 because it depends. The definition is linked to the size of your company and the extent of your\u00a0consulting spend<\/a>. In other words, for an SME, almost all consulting projects could be falling in that category when a large Fortune 1000 company could have a threshold of around $250k.<\/p>
In the realm of consulting, the real measure of success is the tangible outcomes produced. When a consultant is genuinely in love with what they do and the project they’re part of, they don’t just aim to meet targets, they aim to exceed them.<\/p>\n
This love for the job, fueled by passion, propels projects to new heights. The mindset it fosters, that of champions, is what truly differentiates a satisfactory outcome from an outstanding one.<\/p>\n
While expertise and experience form the bedrock of any consulting venture, it’s the intangible quality of passion that serves as the catalyst, accelerating projects towards unparalleled success.<\/p>\n
B. Understanding the Value from Consulting Created by Consultants<\/strong><\/h2>\nMany companies often perceive consulting merely as an additional resource, primarily through the lens of the project they are currently working on.<\/p>\n
Unfortunately, this limited perspective means that few executives truly appreciate the full value from consulting professionals.<\/p>\n
To shed light on this issue, it’s essential to recognize that the value from consulting can be broadly categorized into two main categories: Technical and Political.<\/p>\n
<\/p>\n
1. Technical Value<\/strong><\/h3>\nTechnical added value best corresponds with know-how in specialized professional fields. A seasoned expert in their area has decades of experience and can undoubtedly provide great benefits by working for your organization.<\/p>\n
\n- Providing Outside Knowledge<\/strong> \u2013 Derived from the wealth of their professional experience, Consultants possess rich information on customers, products, markets, and competitors. They can perform surveys, reach out to experts, and leverage their analytical power in ways unaccessible to clients. Indeed, the more consultants are specialized, the higher the chances they have faced similar issues or worked on adjacent problems. They provide a benchmark, state of the art elements, and perform maturity assessments.<\/li>\n
- Accurate Problem Diagnosing a Problem and Solutions<\/strong> \u2013 Often, the problem an organization struggles with, is how they \u2018see\u2019 the problem. Misdiagnosed problems will further complicate the situation. And often lead the team in the wrong direction. Finding a solution being therefore much more time-consuming and expensive.<\/li>\n
- Ability to frame and analyze an issue<\/strong> leads to structured problem solving and accurate and effective recommendations. A Consultant will normally gather, analyze treasure trove of information, and present it in a way that enables Executives to make effective and optimal decisions for the company.<\/li>\n
- Assistance in the implementation of a solution<\/strong> \u2013 Consultants can successfully offer help with facilitating the generation of a capability improvement roadmap as well as Securing\/Accelerating the execution \u2013 Projects Management; Additional dedicated resources; Increased expertise level are all elements of the execution which is the crucial stage to achieve the expected impact.<\/li>\n
- Audit of management practices<\/strong> \u2013 that includes analyzing performance; adherence to processes and policies; and also providing an independent assessment.<\/strong><\/li>\n<\/ul>\n
2. Political Value<\/strong><\/h3>\nIn any organization, regardless of how big or small it is, there is always politics and political games at play. That, unfortunately, can create tension, and cause friction between various interests, departments, groups or individuals.<\/p>\n
And Executives are especially affected by these dynamics. Consultants, however, can effectively contribute to smoother processes, introduction, and facilitation of new measures, and much more.<\/p>\n
\n- Providing legitimacy of decisions<\/strong> \u2013 Consultants often can be used as a scapegoat in situations where the solution of a problem requires it. An Executive can justify a decision in question, and have the Consultant take the blame in case something goes wrong. It provides relief for the Management team and mimics the famous crime drama plot with the Consultant taking the \u2018bad cop role\u2019 to execute painful decisions.<\/li>\n
- Facilitating the convergence between stakeholders<\/strong> on a variety of issues and decisions \u2013 analyzing a situation, building alignment and improving relationships among key stakeholders, and improving decision-making process, can yield great benefits.<\/li>\n
- Acting as a Trusted Advisor<\/strong> \u2013 Playing a sounding board role to bounce ideas off of when CEOs can\u2019t discuss them with their teams, is a valuable practice. It might feel lonely at the top as CEOs cannot share everything with their Leadership team. Besides, the Trusted advisor will not have an agenda and can provide an unbiased second opinion.<\/li>\n
- Enforcing unpopular changes<\/strong> \u2013 Cost cutting projects or restructuring are a great example. Those can, of course, be led internally, but it can be difficult to find volunteers to be the executioner of tough decisions or to be the one recommending to cut this or that part of the workforce.<\/li>\n<\/ul>\n
C. How to Best Measure the Value Created?<\/strong><\/h2>\nHaving established an understanding of the two types of values consultants bring, it’s crucial to navigate the next step \u2013 measurement. True value isn’t just about numbers; it’s the synthesis of both tangible outcomes and the subtle, intangible shifts that mold a company’s future trajectory.<\/p>\n
But how do we capture these nuances effectively? How do we balance the evident with the less visible?<\/p>\n
1. Tangible Benefits<\/strong><\/h3>\nTangible benefits have a direct impact on the P&L. They are easier to measure since they can often be evaluated in numbers.<\/p>\n
Increasing revenues:<\/strong> The work done with your Consulting Provider can improve your top-line with more Sales, better sales margins, or increase in market share.<\/p>\nReducing costs:<\/strong> The Consulting project can also have a positive impact on your costs, both direct and indirect through improved efficiency, better organized and sourced purchasing, and more.<\/p>\nAvoiding Costs (or avoiding future waste):<\/strong> It is a more complicated evaluation. However, it is often possible to calculate the avoidance of cost due to an improvement in reliability, a better focus, or a Capacity increase (assets and workforce expansion).<\/p>\nImproving Cash\/Working capital:<\/strong> Finally, financial measures such as cash and work capital improvement can also be considered as benefits from a consulting project, for instance, inventory usage and management, improved and optimized Payment terms, development of better Financing options and payment\/credit terms.<\/p>\n2. Intangible Benefits<\/strong><\/h3>\nWith no obvious method to date, it\u2019s easier to identify tangible P&L impacts. But there are other fields where subjective or intangible dimensions are measured. HR is an excellent example, with employee engagement, for instance.<\/p>\n
Culture, Diversity & Inclusion, Talent management:<\/strong> There are numerous examples in management literature of how a new culture has improved innovation, how diversity and inclusion lead to better decision-making or how an efficient talent management system can help bring in and retain stellar individuals. All these results have an impact on the performance of your company, and on the value created by your team, even though it is difficult to quantify it precisely.<\/p>\nProcess and Systems Optimization:<\/strong> In the same way, optimizing your processes and systems can only lead you to serve your clients better, and thus create more value for your company. For instance, gaining a half-day on a 5-day process can allow you to serve 10% more clients with sane resources, which has a direct impact on your top-line, and little on your costs.<\/p>\nThe long-term impact of the transformation program on the value of the company:<\/strong> If you launch a transformation program that moves an organization from a commodity player valued at x7 EBITDA to a specialty player valued at x10 EBITDA, you have naturally created tremendous value for your company and your shareholders<\/p>\nConclusion<\/strong><\/h2>\nEngaging with consultants is more than a mere transaction; it’s a strategic partnership aimed at fostering growth and innovation. While the deliverables and strategies they propose are vital, the ultimate test is the tangible and intangible value they contribute from consulting.<\/p>\n
Every dollar spent on consulting should yield results that move the business forward, be it in terms of increased efficiency, profitability, or innovation.<\/p>\n
Therefore, when businesses decide to bring consultants into their fold, they should prioritize those who genuinely love their work, bringing enthusiasm alongside expertise in extracting value from consulting.<\/p>\n
Moreover, it\u2019s equally essential for businesses to have mechanisms in place that allow them to see, measure, and appreciate the added value from consulting.<\/p>\n
With these elements in focus, the journey with consultants becomes not just a business move, but a recipe for sustained success.<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Keywords” _builder_version=”4.22.1″ _module_preset=”default” text_text_color=”RGBA(255,255,255,0)” text_font_size=”0px” custom_margin=”0px|0px|0px|0px|true|true” custom_padding=”0px|0px|0px|0px|true|true” global_colors_info=”{}”]<\/p>\n
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”how-conpulse” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#e1e1e1″ custom_padding=”0px||0px||true|true” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”How Consource Can Help?” image=”https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/lightbulb.png” image_icon_width=”60px” module_class=”b3_blurb_3″ _builder_version=”4.22.1″ _module_preset=”default” header_font=”|||on|||||” background_color=”#e1e1e1″ custom_padding=”40px|40px||40px|false|false” border_color_right=”#ff7700″ global_colors_info=”{}”]<\/p>\n
Consource<\/a> facilitates seamless collaboration between consultants, clients, and stakeholders. Harness the collective expertise to make informed choices, drive successful projects, and maximize the value you derive from consulting services.<\/p>\n[\/et_pb_blurb][et_pb_button button_text=”Book a demo” button_alignment=”center” admin_label=”Book a demo” module_class=”btn-primary btn-icon” _builder_version=”4.21.0″ _module_preset=”default” button_use_icon=”on” button_icon=”||fa||400″ button_icon_color=”#FFFFFF” button_icon_placement=”left” custom_margin=”||40px||false|false” custom_padding=”10px|10px||10px|false|false” custom_css_main_element=”width:280px;” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
Deseja otimizar seu investimento em consultoria? Aprenda estrat\u00e9gias e t\u00e1ticas comprovadas para garantir que sua empresa obtenha o m\u00e1ximo valor dos servi\u00e7os de consultoria. Mergulhe em nosso guia abrangente agora mesmo.<\/p>","protected":false},"author":4,"featured_media":58910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"
[et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"4.16\" global_colors_info=\"{}\"][et_pb_row admin_label=\"row\" _builder_version=\"4.16\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.16\" custom_padding=\"|||\" global_colors_info=\"{}\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.22.1\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<\/p>
So, you\u2019re about to launch a massive consulting project, right? Feeling a little overwhelmed, are you? Well, don\u2019t worry \u2013 that\u2019s completely normal. Decision-making in consulting can be crucial, don't you think? After all, this project is going to impact multiple functions and locations, so it\u2019s a pretty big deal.<\/p>
But before you start brainstorming your perfect outcome, let\u2019s talk about the most important thing: getting the right people in the room. I mean, you don\u2019t want a bunch of dummies nodding along to everything you say, do you? That\u2019ll just be the recipe for a disaster.<\/p>
Instead, take a page from John Wooden\u2019s book and surround yourself with smart people who\u2019ll argue with you. Yes, you heard that right \u2013 argue with you.<\/p>
Because when you have a team of knowledgeable individuals with diverse perspectives, you can ensure that all aspects of the project are thoroughly considered and that potential challenges are addressed from multiple angles.<\/p>
With the right group of experts on board, you\u2019ll be well on your way to launching a successful consulting project. And if things get a little heated in the process, well, that just means you\u2019re on the right track.<\/p>
Your Team Plays a Critical Role In Decision-Making In Consulting \u2013 Who Should Be in the Room?<\/strong><\/h2>Deciding who should be in the room when making big decisions is one of the most important aspects of any decision-making process. Obviously, those directly affected by the decision should be involved, but there are other key players whose voices need to be heard as well.<\/p>
Let\u2019s take a look at who are the right people to be in the room during the decision-making process.<\/p>
#1. Project Sponsor<\/strong><\/h3>Having a project sponsor is essential to ensure the success of the endeavor. They provide oversight and accountability while facilitating communication between different groups and stakeholders throughout the entire project lifecycle, from team members to leading executives.<\/p>
In addition, they have the responsibility of representing the team and making sure that resources are managed efficiently. The project sponsor should not be mistaken with a project manager or leader as their primary focus is to act as an advocate for both internal and external growth, promoting the purpose of the project and measuring results against it.<\/p>
Simply put, without an effective project sponsor, it\u2019s hard for a successful project to take shape.<\/p>
#2. Project Manager<\/strong><\/h3>A project manager is essential to success when it comes to completing a project. They have the authority and responsibility to bring the team together and keep track of progress, ensuring that tasks are completed on time.<\/p>
A good project manager will constantly communicate progress with stakeholders, providing assurance that things are going as planned and gathering input for areas where help may be needed.<\/p>
For any project or organization seeking to increase efficiency and productivity, having a supportive and experienced project manager leading the charge is key.<\/p>
#3. Procurement Manager<\/strong><\/h3>Having a procurement manager present ensures that every step of the decision-making process is being done properly and efficiently. Their expertise in the area can help streamline the process substantially, making sure that it runs according to company policies and procurement best practices.<\/p>
Above all else, those knowledgeable about procurement can make certain that the most cost-effective decisions possible are made for your business, potentially saving resources in the long run.<\/p>
So, if you\u2019re looking to ensure a smoother, simpler, and more efficient workflow \u2013 having a procurement manager in the room should be at the top of your list!<\/p>
#4. Main Stakeholders<\/strong><\/h3>It\u2019s true, if the main stakeholders don\u2019t come on board with the project, chances are it won\u2019t get off the ground. Everyone can offer something unique and valuable, that might contribute to making the project a success in ways we cannot foresee.<\/p>
We must ensure that communication is open and honest between stakeholders so that everyone is aware of their potential roles and responsibilities \u2013 this way everyone can be fully involved in getting the project going.<\/p>
It all boils down to commitment from all stakeholders; when we all share an understanding of what needs to be done, it sets us up for success!<\/p>
<\/p>
Stepping into Larger Project Territory<\/strong><\/h2>Understanding the Shift to Strategic Projects<\/strong><\/h3>As you venture into the domain of larger consulting projects, the dynamics of decision-making evolve. While the stakeholders highlighted earlier remain integral to decision-making for any consulting project within your company, entering the domain of larger endeavors presents a distinct landscape. These larger projects are frequently synonymous with strategic initiatives, demanding a reevaluation of the decision-making process.<\/p>
Even though strategy is not always an explicit stakeholder, the group is responsible for designing and executing business unit\/corporate goals. And your project has a good chance to be a key piece of their action plan to make this strategy happen.<\/p>
They will potentially be your ally in evaluating the strategic value of the project. But they might also have ideas in the scope of the project. In the same way, finance is interested first hand by how the consulting budget is spent.<\/p>
If the project is large, you will have to convince them at some point in time that your project is strategic and worthy of the investment. Why not anticipate the objections and involve them early on? You will gain their support and probably shorten the decision-making process.<\/p>
What is a Strategic Project?<\/strong><\/h3>You won\u2019t like the answer\u2026 because it depends. The definition is linked to the size of your company and the extent of your\u00a0consulting spend<\/a>. In other words, for an SME, almost all consulting projects could be falling in that category when a large Fortune 1000 company could have a threshold of around $250k.<\/p>
![\"Consultants](\"https:\/\/consource.io\/wp-content\/uploads\/2023\/01\/Consultants-add-value.png\" "\\"\\"")
<\/p>\nTechnical added value best corresponds with know-how in specialized professional fields. A seasoned expert in their area has decades of experience and can undoubtedly provide great benefits by working for your organization.<\/p>\n
- \n
- Providing Outside Knowledge<\/strong> \u2013 Derived from the wealth of their professional experience, Consultants possess rich information on customers, products, markets, and competitors. They can perform surveys, reach out to experts, and leverage their analytical power in ways unaccessible to clients. Indeed, the more consultants are specialized, the higher the chances they have faced similar issues or worked on adjacent problems. They provide a benchmark, state of the art elements, and perform maturity assessments.<\/li>\n
- Accurate Problem Diagnosing a Problem and Solutions<\/strong> \u2013 Often, the problem an organization struggles with, is how they \u2018see\u2019 the problem. Misdiagnosed problems will further complicate the situation. And often lead the team in the wrong direction. Finding a solution being therefore much more time-consuming and expensive.<\/li>\n
- Ability to frame and analyze an issue<\/strong> leads to structured problem solving and accurate and effective recommendations. A Consultant will normally gather, analyze treasure trove of information, and present it in a way that enables Executives to make effective and optimal decisions for the company.<\/li>\n
- Assistance in the implementation of a solution<\/strong> \u2013 Consultants can successfully offer help with facilitating the generation of a capability improvement roadmap as well as Securing\/Accelerating the execution \u2013 Projects Management; Additional dedicated resources; Increased expertise level are all elements of the execution which is the crucial stage to achieve the expected impact.<\/li>\n
- Audit of management practices<\/strong> \u2013 that includes analyzing performance; adherence to processes and policies; and also providing an independent assessment.<\/strong><\/li>\n<\/ul>\n
2. Political Value<\/strong><\/h3>\n
In any organization, regardless of how big or small it is, there is always politics and political games at play. That, unfortunately, can create tension, and cause friction between various interests, departments, groups or individuals.<\/p>\n
And Executives are especially affected by these dynamics. Consultants, however, can effectively contribute to smoother processes, introduction, and facilitation of new measures, and much more.<\/p>\n
- \n
- Providing legitimacy of decisions<\/strong> \u2013 Consultants often can be used as a scapegoat in situations where the solution of a problem requires it. An Executive can justify a decision in question, and have the Consultant take the blame in case something goes wrong. It provides relief for the Management team and mimics the famous crime drama plot with the Consultant taking the \u2018bad cop role\u2019 to execute painful decisions.<\/li>\n
- Facilitating the convergence between stakeholders<\/strong> on a variety of issues and decisions \u2013 analyzing a situation, building alignment and improving relationships among key stakeholders, and improving decision-making process, can yield great benefits.<\/li>\n
- Acting as a Trusted Advisor<\/strong> \u2013 Playing a sounding board role to bounce ideas off of when CEOs can\u2019t discuss them with their teams, is a valuable practice. It might feel lonely at the top as CEOs cannot share everything with their Leadership team. Besides, the Trusted advisor will not have an agenda and can provide an unbiased second opinion.<\/li>\n
- Enforcing unpopular changes<\/strong> \u2013 Cost cutting projects or restructuring are a great example. Those can, of course, be led internally, but it can be difficult to find volunteers to be the executioner of tough decisions or to be the one recommending to cut this or that part of the workforce.<\/li>\n<\/ul>\n
C. How to Best Measure the Value Created?<\/strong><\/h2>\n
Having established an understanding of the two types of values consultants bring, it’s crucial to navigate the next step \u2013 measurement. True value isn’t just about numbers; it’s the synthesis of both tangible outcomes and the subtle, intangible shifts that mold a company’s future trajectory.<\/p>\n
But how do we capture these nuances effectively? How do we balance the evident with the less visible?<\/p>\n
1. Tangible Benefits<\/strong><\/h3>\n
Tangible benefits have a direct impact on the P&L. They are easier to measure since they can often be evaluated in numbers.<\/p>\n
Increasing revenues:<\/strong> The work done with your Consulting Provider can improve your top-line with more Sales, better sales margins, or increase in market share.<\/p>\n
Reducing costs:<\/strong> The Consulting project can also have a positive impact on your costs, both direct and indirect through improved efficiency, better organized and sourced purchasing, and more.<\/p>\n
Avoiding Costs (or avoiding future waste):<\/strong> It is a more complicated evaluation. However, it is often possible to calculate the avoidance of cost due to an improvement in reliability, a better focus, or a Capacity increase (assets and workforce expansion).<\/p>\n
Improving Cash\/Working capital:<\/strong> Finally, financial measures such as cash and work capital improvement can also be considered as benefits from a consulting project, for instance, inventory usage and management, improved and optimized Payment terms, development of better Financing options and payment\/credit terms.<\/p>\n
2. Intangible Benefits<\/strong><\/h3>\n
With no obvious method to date, it\u2019s easier to identify tangible P&L impacts. But there are other fields where subjective or intangible dimensions are measured. HR is an excellent example, with employee engagement, for instance.<\/p>\n
Culture, Diversity & Inclusion, Talent management:<\/strong> There are numerous examples in management literature of how a new culture has improved innovation, how diversity and inclusion lead to better decision-making or how an efficient talent management system can help bring in and retain stellar individuals. All these results have an impact on the performance of your company, and on the value created by your team, even though it is difficult to quantify it precisely.<\/p>\n
Process and Systems Optimization:<\/strong> In the same way, optimizing your processes and systems can only lead you to serve your clients better, and thus create more value for your company. For instance, gaining a half-day on a 5-day process can allow you to serve 10% more clients with sane resources, which has a direct impact on your top-line, and little on your costs.<\/p>\n
The long-term impact of the transformation program on the value of the company:<\/strong> If you launch a transformation program that moves an organization from a commodity player valued at x7 EBITDA to a specialty player valued at x10 EBITDA, you have naturally created tremendous value for your company and your shareholders<\/p>\n
Conclusion<\/strong><\/h2>\n
Engaging with consultants is more than a mere transaction; it’s a strategic partnership aimed at fostering growth and innovation. While the deliverables and strategies they propose are vital, the ultimate test is the tangible and intangible value they contribute from consulting.<\/p>\n
Every dollar spent on consulting should yield results that move the business forward, be it in terms of increased efficiency, profitability, or innovation.<\/p>\n
Therefore, when businesses decide to bring consultants into their fold, they should prioritize those who genuinely love their work, bringing enthusiasm alongside expertise in extracting value from consulting.<\/p>\n
Moreover, it\u2019s equally essential for businesses to have mechanisms in place that allow them to see, measure, and appreciate the added value from consulting.<\/p>\n
With these elements in focus, the journey with consultants becomes not just a business move, but a recipe for sustained success.<\/p>\n
[\/et_pb_text][et_pb_text admin_label=”Keywords” _builder_version=”4.22.1″ _module_preset=”default” text_text_color=”RGBA(255,255,255,0)” text_font_size=”0px” custom_margin=”0px|0px|0px|0px|true|true” custom_padding=”0px|0px|0px|0px|true|true” global_colors_info=”{}”]<\/p>\n
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting
value from consulting value from consulting value from consulting value from consulting value from consulting<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row module_class=”how-conpulse” _builder_version=”4.21.0″ _module_preset=”default” background_color=”#e1e1e1″ custom_padding=”0px||0px||true|true” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”How Consource Can Help?” image=”https:\/\/consource.io\/wp-content\/uploads\/2023\/07\/lightbulb.png” image_icon_width=”60px” module_class=”b3_blurb_3″ _builder_version=”4.22.1″ _module_preset=”default” header_font=”|||on|||||” background_color=”#e1e1e1″ custom_padding=”40px|40px||40px|false|false” border_color_right=”#ff7700″ global_colors_info=”{}”]<\/p>\n
Consource<\/a> facilitates seamless collaboration between consultants, clients, and stakeholders. Harness the collective expertise to make informed choices, drive successful projects, and maximize the value you derive from consulting services.<\/p>\n
[\/et_pb_blurb][et_pb_button button_text=”Book a demo” button_alignment=”center” admin_label=”Book a demo” module_class=”btn-primary btn-icon” _builder_version=”4.21.0″ _module_preset=”default” button_use_icon=”on” button_icon=”||fa||400″ button_icon_color=”#FFFFFF” button_icon_placement=”left” custom_margin=”||40px||false|false” custom_padding=”10px|10px||10px|false|false” custom_css_main_element=”width:280px;” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
Deseja otimizar seu investimento em consultoria? Aprenda estrat\u00e9gias e t\u00e1ticas comprovadas para garantir que sua empresa obtenha o m\u00e1ximo valor dos servi\u00e7os de consultoria. Mergulhe em nosso guia abrangente agora mesmo.<\/p>","protected":false},"author":4,"featured_media":58910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"
[et_pb_section fb_built=\"1\" admin_label=\"section\" _builder_version=\"4.16\" global_colors_info=\"{}\"][et_pb_row admin_label=\"row\" _builder_version=\"4.16\" background_size=\"initial\" background_position=\"top_left\" background_repeat=\"repeat\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.16\" custom_padding=\"|||\" global_colors_info=\"{}\" custom_padding__hover=\"|||\"][et_pb_text _builder_version=\"4.22.1\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<\/p>
So, you\u2019re about to launch a massive consulting project, right? Feeling a little overwhelmed, are you? Well, don\u2019t worry \u2013 that\u2019s completely normal. Decision-making in consulting can be crucial, don't you think? After all, this project is going to impact multiple functions and locations, so it\u2019s a pretty big deal.<\/p>
But before you start brainstorming your perfect outcome, let\u2019s talk about the most important thing: getting the right people in the room. I mean, you don\u2019t want a bunch of dummies nodding along to everything you say, do you? That\u2019ll just be the recipe for a disaster.<\/p>
Instead, take a page from John Wooden\u2019s book and surround yourself with smart people who\u2019ll argue with you. Yes, you heard that right \u2013 argue with you.<\/p>
Because when you have a team of knowledgeable individuals with diverse perspectives, you can ensure that all aspects of the project are thoroughly considered and that potential challenges are addressed from multiple angles.<\/p>
With the right group of experts on board, you\u2019ll be well on your way to launching a successful consulting project. And if things get a little heated in the process, well, that just means you\u2019re on the right track.<\/p>
Your Team Plays a Critical Role In Decision-Making In Consulting \u2013 Who Should Be in the Room?<\/strong><\/h2>
Deciding who should be in the room when making big decisions is one of the most important aspects of any decision-making process. Obviously, those directly affected by the decision should be involved, but there are other key players whose voices need to be heard as well.<\/p>
Let\u2019s take a look at who are the right people to be in the room during the decision-making process.<\/p>
#1. Project Sponsor<\/strong><\/h3>
Having a project sponsor is essential to ensure the success of the endeavor. They provide oversight and accountability while facilitating communication between different groups and stakeholders throughout the entire project lifecycle, from team members to leading executives.<\/p>
In addition, they have the responsibility of representing the team and making sure that resources are managed efficiently. The project sponsor should not be mistaken with a project manager or leader as their primary focus is to act as an advocate for both internal and external growth, promoting the purpose of the project and measuring results against it.<\/p>
Simply put, without an effective project sponsor, it\u2019s hard for a successful project to take shape.<\/p>
#2. Project Manager<\/strong><\/h3>
A project manager is essential to success when it comes to completing a project. They have the authority and responsibility to bring the team together and keep track of progress, ensuring that tasks are completed on time.<\/p>
A good project manager will constantly communicate progress with stakeholders, providing assurance that things are going as planned and gathering input for areas where help may be needed.<\/p>
For any project or organization seeking to increase efficiency and productivity, having a supportive and experienced project manager leading the charge is key.<\/p>
#3. Procurement Manager<\/strong><\/h3>
Having a procurement manager present ensures that every step of the decision-making process is being done properly and efficiently. Their expertise in the area can help streamline the process substantially, making sure that it runs according to company policies and procurement best practices.<\/p>
Above all else, those knowledgeable about procurement can make certain that the most cost-effective decisions possible are made for your business, potentially saving resources in the long run.<\/p>
So, if you\u2019re looking to ensure a smoother, simpler, and more efficient workflow \u2013 having a procurement manager in the room should be at the top of your list!<\/p>
#4. Main Stakeholders<\/strong><\/h3>
It\u2019s true, if the main stakeholders don\u2019t come on board with the project, chances are it won\u2019t get off the ground. Everyone can offer something unique and valuable, that might contribute to making the project a success in ways we cannot foresee.<\/p>
We must ensure that communication is open and honest between stakeholders so that everyone is aware of their potential roles and responsibilities \u2013 this way everyone can be fully involved in getting the project going.<\/p>
It all boils down to commitment from all stakeholders; when we all share an understanding of what needs to be done, it sets us up for success!<\/p>
<\/p>Stepping into Larger Project Territory<\/strong><\/h2>
Understanding the Shift to Strategic Projects<\/strong><\/h3>
As you venture into the domain of larger consulting projects, the dynamics of decision-making evolve. While the stakeholders highlighted earlier remain integral to decision-making for any consulting project within your company, entering the domain of larger endeavors presents a distinct landscape. These larger projects are frequently synonymous with strategic initiatives, demanding a reevaluation of the decision-making process.<\/p>
Even though strategy is not always an explicit stakeholder, the group is responsible for designing and executing business unit\/corporate goals. And your project has a good chance to be a key piece of their action plan to make this strategy happen.<\/p>
They will potentially be your ally in evaluating the strategic value of the project. But they might also have ideas in the scope of the project. In the same way, finance is interested first hand by how the consulting budget is spent.<\/p>
If the project is large, you will have to convince them at some point in time that your project is strategic and worthy of the investment. Why not anticipate the objections and involve them early on? You will gain their support and probably shorten the decision-making process.<\/p>
What is a Strategic Project?<\/strong><\/h3>
You won\u2019t like the answer\u2026 because it depends. The definition is linked to the size of your company and the extent of your\u00a0consulting spend<\/a>. In other words, for an SME, almost all consulting projects could be falling in that category when a large Fortune 1000 company could have a threshold of around $250k.<\/p>
- Facilitating the convergence between stakeholders<\/strong> on a variety of issues and decisions \u2013 analyzing a situation, building alignment and improving relationships among key stakeholders, and improving decision-making process, can yield great benefits.<\/li>\n
- Accurate Problem Diagnosing a Problem and Solutions<\/strong> \u2013 Often, the problem an organization struggles with, is how they \u2018see\u2019 the problem. Misdiagnosed problems will further complicate the situation. And often lead the team in the wrong direction. Finding a solution being therefore much more time-consuming and expensive.<\/li>\n