The Advisor’s Corner – When Should Consultants Be Used?

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Question:

We’ve brought in a number of high priced consultants to perform a business case analysis. In hind sight, it appears we could have done the same work with internal resources. Why then did we hire these costly advisors?

StrategyDriven Response:

There are many reasons for hiring consultants. One or more of these likely applied in your situation:

  1. The consultants brought unique insights and experiences from outside your organization; enabling them to develop and present points of view that would otherwise have not been available for consideration.
  2. The organization staff did not have the capacity to perform the given task. Therefore, the consultants were hired to augment the labor pool.
  3. The existing staff had the capacity but not the knowledge and skills to perform the work. (Note that this appears to not be a factor given the question asked but is a legitimate reason for hiring consultants.)
  4. The organization is reluctant to implement the recommendations made by those internal resources not viewed as being experts in a particular area. Subsequently, the consultants are brought in because of their ‘expert status’ that leaders know will enable them to move forward with a desired course of action.

The reason for engaging consultants should always be understood prior to hiring them. Clear, quantifiable expectations should be documented within the statement of work that define the value they are to bring to the organization whether that is external knowledge and experience, labor augmentation, skills augmentation, or to drive a particular perspective. The consultants must be held to the achievement of these established goals in order to ensure they have met the return on investment promised by their employment.

Final Thought…

Using consultants should always be on a temporary basis. Some organizations fall prey to hiring consultants for temporary staff augmentation only to find that these individuals remain in position for years if not decades. Such circumstances highlight an understaffing condition that should be alleviated by the typically less expensive option of hiring additional resources rather than engaging costly consultants for extended periods.

Additional Resources

StrategyDriven Contributors further highlight the benefits of using consultants in the article, Independent Assessors.

StrategyDriven Podcast Video Edition 2 – What makes an organization StrategyDriven?

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StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the principle, best practice, and warning flag articles found on the StrategyDriven website.

Episode 2 – What makes an organization StrategyDriven? examines the qualities and characteristics of a StrategyDriven organization as well as the benefits these organizations realize over competing firms not so well aligned.
 


 
Learn more about how to become truly StrategyDriven by reading: The StrategyDriven Organization.

Final Request…

The strength of our community grows with the additional insights brought by our expanding member base. Please consider rating us on iTunes by clicking here. Rating the StrategyDriven Podcast and providing your comments online improves our ranking and helps us attract new listeners which, in turn, helps us grow our community.

Thank you again for watching the StrategyDriven Podcast – Video Edition!

Recommended Resource – Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage

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Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage
by Scott Keller and Colin Price

About the Reference

In Beyond Performance, Scott Keller and Colin Price reveal that achieving organizational excellence is a combination of performance – the delivery of financial results – and health – the ability to perform year after year. Both are shown to be measurable and achieved through the five frames of:

  • Aspire: Where do we want to go?
  • Assess: How ready are we to go there?
  • Architect: What do we need to do to get there?
  • Act: How do we manage the journey?
  • Advance: How do we keep moving forward?

The findings presented in Beyond Performance are founded on extensive research and empirical data. This underlying evidence gives Beyond Performance a level of credibility few other business books have been able to achieve.

Benefits of Using this Reference

StrategyDriven Contributors like Beyond Performance because it provides a method for achieving organizational excellence that is founded on the real-world performance of top companies. Additionally, Beyond Performance provides insights to the role of organization leaders in fostering ongoing performance excellence.

The analysis behind the actionable performance enhancement method is presented in such a manner that it gives the reader a clear understanding of how excellence might be similarly fostered within his/her organization. Use of organizational characteristic models and definition tables further enhances this clarity. Enough detail is provided so that the reader can create performance metrics to measure for the existence of enabling organizational characteristics and performance improvement when the journey for excellence is undertaken.

Beyond Performance‘s method for achieving organizational excellence is well aligned with that recommended by StrategyDriven; making it a StrategyDriven recommended read.

How to Turn a Great Strategic Principle into Great Results

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Results start with a strong strategic principle – a shared objective about what the organization wants to accomplish. The strategic principle guides the company’s allocation of scarce resources – money, time, and talent.

The strategic principle doesn’t merely aggregate a collection of objectives.

Rather, this simple statement captures the thinking required to build a sustainable competitive advantage that forces trade-offs among competing resources, tests the soundness of particular initiatives, and sets clear boundaries within which decision makers must operate.

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About the Author

For more than 30 years, Linda Henman has helped leaders in Fortune 500 Companies, small businesses, and military organizations define their direction and select the best people to put their strategies in motion. Linda holds a Ph.D. in organizational systems, two Master of Arts degrees in interpersonal communication and organizational development, and a Bachelor of Science degree in communication. By combining her experience as an organizational consultant with her education in business, she offers her clients selection, coaching, and consulting solutions that are pragmatic in their approach and sound in their foundation.

Seven Strategies for Managing Workplace Internet Usage

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As social media and personal email continue to be many individual’s primary forms of communications, it becomes harder to keep them focused at the workplace. An increase in usage of media-rich sites can place a considerable strain on limited bandwidth, which can hurt the performance of critical business tasks. The challenge is establishing a proper workplace balance that allows some personal internet usage without a related drag on business efficiency.

As a business owner or IT manager, you need tips and tactics on striking the right balance. We offer seven strategies:

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About the Author

Keith RossKeith Ross is product manager for Networking products at Black Box Corporation. His product line includes Ethernet switches, media converters, network security, and WAN optimization products. Keith has over 10 years experience in telecommunications and data networking. He worked at FORE Systems, Marconi, and Ericsson previously. Keith has a BSEE from Carnegie-Mellon and an MSEM from Stanford University. To learn more about Black Box, click here.