Thought Leadership — Why Companies Hire Management Consultants

By Terry Corbell
The Biz Coach

Companies want knowledge and to manage risks. A good idea can be worth $1 million and more. That’s why companies hire thought leaders.

It’s also why you see many consultants position themselves as thought leaders and give away free information in how-to articles or studies, which lead to books, seminars and being quoted in the media.

Successful consultants know that’s the road to take — to become an in-demand consultant by companies and in the public sector.

In managing change, many businesses have unique challenges that are not easily solved. Such special projects typically require exceptional talents by outside participants accustomed to delivering high performance.

Challenges include but aren’t limited to the following:

Branding, financial turnarounds, globalization, marketplace competition, organization change, people skills, public affairs and policy, regulatory issues, taxes, technology, socioeconomic concerns, strategic planning, and white papers.

The trick is to hire the right consultant to help you improve your company.

ObamaCare has created a whole new industry for companies to hire consultants, especially in technology.

Hiring an information technology consultant can be costly in time and money, if the wrong consultant is retained. Due diligence is required. Sophisticated tech vendors and consultants of all sizes have been known for cost over-runs. (See the six tips to save time and money by hiring the right tech consultant.)

More on the reasons why companies hire consultants:

Lack of staffing — Whether the cause is downsizing or explosive growth, consultants can provide hybrid management services for short to medium-term staffing. That saves time and money.

Expertise — When companies have serious challenges, such as strategic planning or operational issues, they hire consultants.

Sometimes it’s for company political reasons.

A CEO can tell the board the right management consultant was hired to provide the needed expertise to save the company time and money while increasing revenue.

In managing change, many businesses have unique challenges that are not easily solved. Such special projects typically require exceptional talents by outside participants accustomed to delivering high performance.

Objectivity — Companies might need objectivity to help solve issues and to execute strategies. That’s really true if the companies’ employees don’t have the necessary knowledge and skillsets for an accurate perspective of the big picture.

Company employees are too close to the problems.

A fresh perspective is usually needed because employees develop habits and routines, which means they don’t critically view issues requiring analysis, improvement and measurement.

Time and cost savings — In saving the company time, consultants’ services will accelerate the improvement process resulting in cost savings for the short term.

Savings are extended long term if the consultants are retained to provide training for the necessary knowledge and skills.

The company must be able to incorporate and maintain the recommended changes. In this way, the companies’ human capital become even more valuable as assets.

Confidentiality — Many times, confidentiality is needed for sensitive situations. By turning to outside participants, the companies benefit from confidentiality.