There’s a classic joke in France about consultants: “Un bon consultant, c’est quelqu’un qui regarde la montre de son client pour lui donner l’heure.” Translated, it means: “A good consultant is someone who looks at the client’s watch to tell them the time.” Consultants, for better or worse, don’t always have the best reputation. Some say it’s because they don’t add value. But really? With an industry that boasts almost $300 billion in revenue globally, there’s got to be more to the story than just telling clients the time, right?

So, what is the real value of consultants? Whether they’re helping you see your business through a new lens or lending you the expertise your team lacks, consultants offer far more than what meets the eye (or the watch, for that matter). Let’s break it down and figure out where consultants really bring value, why you might need one, and what they can offer beyond the obvious.

#1. Why Work with a Consultant?

Let’s face it, running a business today is like trying to juggle while riding a unicycle on a tightrope—one misstep, and everything can fall apart. Whether you’re looking to increase revenues, streamline operations, or set yourself apart from your competitors, you need every advantage you can get. That’s where consultants come in, acting as temporary superheroes who swoop in, fix the problems, and then disappear when the job’s done.

Key Benefits of Working with Consultants

• Temporary Expertise, No Long-Term Commitment: The beauty of hiring a consultant is that you get the expertise without the obligation. It’s like renting a brain trust—you bring in high-level skills for the duration of the project and then part ways without long-term costs.
• Objective and Unbiased Advice: A consultant doesn’t get bogged down in office politics or company history. They offer a fresh, independent perspective on your business challenges—something that’s hard to achieve when you’re too close to the problem.
• Specialized Knowledge: Need help with a specific challenge? Consultants often come with years (if not decades) of specialized experience that can cut through complexity. Whether it’s IT, HR, or strategy, they’ve seen it all before.
• Cost Efficiency: Hiring a full-time expert isn’t always in the cards, especially for short-term projects. Consultants offer a more cost-effective solution—they provide the expertise you need, without the overhead of a permanent employee.
• Flexibility: Need an extension on a project? Easy. Want to scale back? That works too. Consultants provide flexibility you just can’t get with full-time employees.

Choosing Between Big Firms and Boutiques

Interestingly, most consultants work in small boutique firms—87% of consulting firms in the US have fewer than 10 employees. Yet, these smaller firms only generate about 10% of the industry’s revenue. The bigger players, with more than 10 employees, rake in over 90% of the total earnings.

So what’s the difference? Boutique firms often offer niche expertise and personalized service, while larger firms bring more resources and brand credibility. Choosing between the two comes down to your specific needs—do you need the personalized touch of a boutique or the sheer manpower of a large firm?

#2. What Value Do Consultants Bring to Clients?

Consultants don’t just roll in with fancy PowerPoint presentations and billable hours. The real value of consultants can be broken down into two main areas: technical value and political value. Both are important, but they offer very different kinds of benefits.

Technical Value: The Hard, Tangible Stuff

Technical value is what most people think of when they hire a consultant. It’s the straightforward stuff: problem-solving, diagnostics, and implementation. Consultants are brought in for their in-depth expertise in a specific area—whether it’s cutting costs, streamlining operations, or providing strategic advice.

For example, let’s say your company is hemorrhaging money because of inefficiencies in your supply chain. A consultant can step in, analyze the problem, and offer concrete solutions. The results are tangible: you see lower costs, higher efficiency, and an improvement to your bottom line. It’s all about measurable outcomes, like reduced operational costs or increased revenue.

Political Value: The Soft, Subtle Stuff

Now, here’s where things get a little tricky. Political value is harder to define but just as important. Have you ever been in a situation where making a tough decision was met with internal resistance? Or maybe there were conflicting views between departments, and someone needed to play mediator. That’s where consultants often bring in political value.

Consultants can act as scapegoats when unpopular changes need to be made or as mediators to help align stakeholders. They can legitimize decisions that executives may be reluctant to push on their own. And sometimes, they’re just the neutral third party needed to facilitate difficult conversations between departments.

In times of trouble, having a consultant step in can be a strategic way to calm the waters and ensure that all parties are on board with the decisions being made. The political value they bring isn’t always easy to measure—but anyone who’s worked in corporate settings knows how critical it can be.

#3. The Bigger Question: How to Measure the Value of Consultants?

Now that we know where consultants provide value—whether technical or political—the real challenge is measuring that value. Unlike a product you can hold in your hand or a service with a clear price tag, consulting work can be a bit intangible. It’s like trying to measure the value of advice: how do you know it’s worth what you paid for?

Measuring Technical Value: The Numbers Game

The good news is that technical value is usually the easier of the two to measure. This is the stuff you can quantify: reduced costs, increased revenues, faster processes, etc. If you brought in a consultant to cut down operating costs, you can easily track how much you’re saving after their recommendations have been implemented. That’s your return on investment (ROI), plain and simple.

For example, let’s say a consultant identifies inefficiencies in your production line and suggests improvements that reduce costs by 15%. That’s a concrete outcome that you can take to your board and say, “This consultant saved us X dollars.” In this case, the value of the consultant is clear, measurable, and tied directly to your bottom line.

Measuring Political Value: The Intangibles

Then there’s the political value—and this is where it gets murky. How do you measure the effectiveness of a consultant in getting two warring departments to work together? Or how do you quantify the impact of a consultant stepping in to legitimize a controversial decision? It’s not like you can slap a number on better office morale or smoother internal communication.

However, just because it’s harder to measure doesn’t mean it isn’t valuable. Here are a few ways companies try to gauge political value:

• Employee Satisfaction Surveys: After a consultant helps mediate internal issues, you might see a boost in employee morale. Surveys can help measure the impact of improved relationships or communication.
• Stakeholder Feedback: You can gather feedback from key stakeholders about how well the consultant facilitated decisions, navigated conflicts, or brought alignment.
• Process Efficiency: Even political value can be linked to efficiency improvements. For instance, smoother decision-making often leads to faster project completion times or fewer internal roadblocks.

Set KPIs from the Start

The best way to avoid any confusion about whether a consultant brought value is to set Key Performance Indicators (KPIs) before the project starts. Whether it’s technical or political value you’re after, defining clear success metrics will help both you and the consultant stay on track.

For technical projects, KPIs might include cost reductions, increased sales, or faster product rollouts. For political value, KPIs could be tied to improved stakeholder engagement or smoother internal processes. Make sure both sides agree on these KPIs early, so you’re not left guessing whether the project was a success.

#4. Value Perception & Client Retention – Why Clients Aren’t Always Rehiring Consultants

Here’s a curious fact: even when consultants deliver great results, many clients don’t rehire them for future projects. In fact, a study published by Forbes Insights found that while 92% of executives reported that their consulting projects were successful, only 50% rehired the same consultants. Wait, what?

What’s the Deal?

Even when consultants deliver on the technical and political value they promise, something isn’t quite clicking when it comes to value perception. You’d think that if a consultant saves you time, money, or effort, you’d jump at the chance to work with them again, right? Yet, for many clients, the decision to rehire isn’t always so straightforward.

The Gap Between Value Delivered and Value Perceived

One potential explanation is the gap between the value delivered and the value perceived. A consultant might deliver technically excellent results, but if the client doesn’t feel involved or connected to the project’s success, they may not fully appreciate the value.

For example, a consultant could come in, implement solutions, and leave without giving your internal team a chance to participate in the process. The solutions may work, but if the client feels like they were kept at arm’s length, the perceived value takes a hit.

There’s also the relationship factor. Consulting is a people business, and maintaining a strong, collaborative relationship is key to client retention. Even if the project succeeds, if the client-consultant dynamic feels impersonal or transactional, they’re less likely to call back the same firm for the next round.

#5. Optimising the Consultant-Client Relationship – How to Get More Value from Your Consultant

Here’s the thing: consultants are only as good as the relationship they have with their clients. If you want to maximise the value of consultants, you need to work on Optimising that relationship. It’s not just about hiring the best consultant—it’s about making sure you’re getting the best out of them, and that happens when both sides are engaged and aligned.

Be Clear About Expectations

First things first: be crystal clear about your expectations from the start. Vague instructions like “help us grow” or “make us more efficient” aren’t going to cut it. Sit down with your consultant and hammer out specific goals, timelines, and desired outcomes. The clearer you are, the more likely the consultant is to hit the mark.

Involve Your Team

Don’t let the consultant do all the heavy lifting in a vacuum. Involve your internal team in the process as much as possible. This ensures that the solutions being proposed actually fit within your company’s culture and operations. Plus, it helps your team feel more invested in the project’s success, which can improve the perceived value of the consultant’s work.

Communication, Communication, Communication

Consulting projects live or die by communication. Check in regularly with your consultant—not just at the major milestones, but throughout the project. This gives you the opportunity to course-correct if things start to veer off-track and ensures that you and the consultant are always on the same page.

Building Long-Term Relationships

Consultants might be brought in for short-term projects, but that doesn’t mean the relationship has to be short-term. Building a long-term relationship with a consultant you trust can be incredibly valuable for your business. Not only do they become more familiar with your company’s inner workings, but you’ll also avoid the learning curve that comes with hiring new consultants for every project.

Conclusion: The Real Value of Consultants – It’s More Than Just the Numbers

The value of consultants goes beyond just cost savings or a shiny deliverable. Whether it’s providing the technical expertise you’re missing or helping navigate internal politics, consultants can add enormous value to your business. But here’s the catch: value is only as good as your ability to recognize it.

Set clear KPIs, foster strong relationships, and make sure you’re measuring both the tangible and intangible outcomes of the project. When done right, consultants aren’t just an extra set of hands—they’re a strategic partner that can help propel your business to the next level.

So the next time someone cracks a joke about consultants telling you the time on your own watch, just smile. You know the real value they bring—expertise, objectivity, and, yes, a little bit of politics.