The greatest advantage of business consultants is that they come from outside and can objectively and independently assess the company and the environment in which it operates, making it easier to find the most suitable approaches, methods, and solutions to problems. However, choosing a good business consultant is by no means a simple task.
written by Mr. Sc. Anton Florijan Barišić
Chronos Info
Sales, market position, and profits have declined, and pressure on cash flow has increased. It is necessary to identify weak links and correct mistakes. At the moment when it is time to start addressing more difficult corrective issues, management calls for help – a business consultant. In business turnarounds, when making tougher decisions, business consultants are becoming increasingly important in Croatia, as managers focused on managing daily operations find it challenging to implement and sustain necessary changes.
Business consulting is particularly important due to the adaptation of the Croatian economy to European standards, where consultants take on the role of moderators in the process. This professional service generally helps managers analyze and diagnose problems and conditions, as well as develop solutions and implement changes in organizations. The greatest advantage of business consultants is that they come from outside and can therefore objectively and independently assess the company and the environment in which it operates, making it easier to find the most suitable approaches, methods, and solutions. They also familiarize managers with best practices in business management by sharing effective examples from practice and good experiences of other managers. One of the advantages for the client is that they will receive the expert service of a business consultant without having to add an expensive permanent employee to the payroll.
Who are business consultants
Business consultants should be professionals who bring specialized knowledge and a set of specific skills to the client’s company. They usually have formal education relevant to the area of consulting they are engaged in. Since they work in numerous companies, they typically bring knowledge and experience from previous consulting work, which helps their clients in new situations such as business growth, crisis management, etc. Their task is to capitalize on the client’s advantages and realize opportunities while simultaneously addressing shortcomings and mitigating threats, with good prospects for finding suitable solutions. To successfully carry out these tasks, they must possess the skills necessary for research, analysis, communication, and change management, and be able to identify problems, find relevant data, synthesize information, develop proposals for improvements, break down resistance to change, transfer management techniques, and help clients learn from experience.
How to choose a business consultant
Six key steps
1. Gather resumes and references from several business consultants. Request evidence of education, work experience, previous results, and commitment to continuous improvement of knowledge and skills (attending seminars and how often, meetings, symposiums, consultations, engaging in writing and transferring knowledge to others).
2. Talk to each consultant and explain the situation in which the company finds itself and clarify what kind of help you expect, while the business consultant should present their experience and qualifications during that conversation.
3. Request a written proposal from each business consultant that includes: identification of the problem, basic approach and process for developing recommendations, initial work plan (activities and timeline), and pricing (per day of work, by completed segment, or a fixed amount after the completion of the consulting task).
4. Make a selection and sign a contract for consulting services with the chosen business consultant. Hold an initial meeting as the start of the consulting task and introduce the consultant to the employees who will be involved in the implementation.
5. Monitor the consultant’s work in the company and check whether a diagnostic analysis of the work and the problem itself has been conducted, whether the diagnosis has been presented to management; whether recommendations based on agreement on the findings and conclusions of the diagnosis have been developed. Monitor whether the approved plan is being implemented as agreed, whether employees of the company are involved in the task implementation, ensuring knowledge transfer, and whether regular meetings of working teams and consultants with management are held to assess achieved results.
6. Conduct an evaluation of the consulting task in which you will analyze and assess all completed elements of the consulting task (reports, findings, proposed solutions, a list of recommendations for further development, employee obligations, etc.), gather feedback from employees who worked with the consultant, and perform a final financial assessment of the effects of the consulting.
Partners in the task
A successful business consultant must know how to engage the client to become as involved as possible in solving the problem. Do it together. The consultant must truly understand why the organization has a particular problem and include all possibilities, as the real-life situation of the company may be even more complicated or different than in the initial diagnosis. It should always be left open that the company, following the analysis made by the business consultant, may gain other insights that may be better and more appropriate. The role of the business consultant is to raise positive energy and create an atmosphere in which organizational life will be contemplated and efficiency improved. Change requires energy, and it can be created by motivating people, encouraging them to think, participate, and create. The business consultant must become an ally of their client and speak from that perspective rather than being superior or opposed. However, the business consultant does not have to be engaged solely to solve a specific problem but also to utilize their specialized knowledge and methods such as conducting interviews, diagnostics, communication, persuasion, obtaining feedback… This way, new competencies are introduced into the organization, helping managers and employees learn from their own experiences.
Crucial questions
However, choosing a business consultant is not an easy task. The correct selection is crucial for the success of the task. Evaluating a consultant is primarily an art and then a science. The process begins with defining the consulting task and the criteria for the success of the task. This process usually leads to a list of references that the business consultant should have. Many clients use scoring cards (tables) with criteria based on which they can evaluate characteristics that are directly and indirectly related to the problem that needs to be solved. Of course, a new table will be created for each consulting task that will include a unique set of criteria of varying weights.
Some questions that need to be answered are: Does the business consultant have enough experience with similar industrial and technical issues? Do they have qualified references and recommendations regarding their success in previous tasks? What approach to problem-solving does the business consultant offer? Do they have the ability to manage unforeseen situations during project implementation?
It is important to assess how innovative/creative the proposed solution is, as well as whether their expertise is applicable in various areas. One should not overlook questions regarding whether the business consultant has assembled a qualified consulting team and whether there is a possibility of contracting external consultants. Users of consulting services should also check that the business consultant is not subject to any conflict of interest, for example, whether they work for a competitor. And if all of this is fulfilled and the answers are positive, it should always be kept in mind that the success of the project does not depend solely on the business consultant but also on the support of management and the actual involvement of people at all levels of the organization.
