Working in management consulting is becoming one of the most attractive fields in business. And rightly so. After all, it allows people to focus on learning multiple skills that may not be limited to one specific sector. For instance, a contemporary management consultant will have to possess knowledge of everything from accounting and finance to negotiation and human psychology. Thus, those who may want to have a broad range of opportunities in their career will usually go into management consulting.
From the perspective of employers who hire these individuals, how can they justify bringing them on? In other words, how do hiring managers explain the relatively high costs of management consultants to their superiors? After all, companies must have a valid reason for spending money, and every hiring decision tends to be questioned. Especially when it is related to a position that has still not become formally accepted in all markets. Fortunately, those working as management consultants have no shortage of skills that make them an attractive choice for brands that need outside help.
Help Implement Changes
A lot of corporations, if not all, will face stages where they must implement changes to stay competitive. Examples include Facebook’s changing approach to data privacy or Chipotle’s new employee benefit packages that were introduced in 2015. Well, making these types of adjustments can be extremely difficult when the company has thousands of employees. Obviously, management consultants can take advantage of their expertise and experience to make the process as painless as possible. In other words, they can come in and help make these changes in a way that causes the minimum amount of disruption to the brand’s operations.
Streamline Operations – Eliminate the Bottleneck
Almost every company operates with something that is known as the “bottleneck.” For those unfamiliar, this is a term used to describe the slowest link in the supply chain. Meaning, it is the input that impedes the entire flow of the process. Hence the name “bottleneck.” Well, companies will frequently find themselves in a position where they may lack the innovation or creativity to resolve obvious bottlenecks. By relying on third-party providers such as management consultants, however, they can get the necessary push in the right direction. That way, they will be able to diagnose and resolve the issues faster which, in turn, will help maximise revenues.
Helping with Expansions
Another very common situation in which management consultants can come in handy pertains to any type of expansion. This includes everything from in-facility expansions of the work space to the creation of new facilities in different locations or expanding into entirely new markets. Although it sounds like a fairly simple concept, it can turn into a nightmare when it is not approached in the right way. For example, Crumbs Bake Shop was one of the largest cupcake vendors in the entire world in 2003. After reaching unprecedented levels of success, they began opening new facilities in innumerable cities.
Soon, however, the increased costs of overhead made it difficult for them to maintain profitability. In the end, they were forced to shut down the vast majority of their locations. Thus, knowing how to expand the right way is going to determine the longevity of some operations. Unfortunately, a lot of business leaders lack the humility that will push them towards slow and steady progress. Management consultants, however, have no bias that will cloud their judgement and can help organisations avoid expanding too fast.
Mitigating a Crisis
As Moksh Popli, who operates his own consulting agency, states, consultants come second to none when it comes to overcoming a crisis. For example, brands that go through public scandals will often see negative impacts on their stock prices and brand popularity. Just think about the fiasco that the airline company United went through in 2017 after violently removing one of its passengers off the plane. Brands will frequently hire public relations experts who know how to turn the situation around to minimise the long-term effects of such scenarios. Obviously, these types of professionals are just another layer of a management consultant who specialises in a certain field.
Although the list of ways that management consultants add value to businesses goes on, some of the most important ones have been mentioned. In the end, these professionals can pretty much handle any type of tasks that come their way. So, having them on retainer would probably be a very smart decision!
Sourced from Prague Post - written by Kyrstal Perkins