What Do Management Consultants Do?
Nowadays, every company seems to be hiring a management consultant, but what do they actually do? Do you need one for your business?
Broadly speaking, a management consultant is brought to offer project management expertise, strategic advice, and help resolve complex business issues. However, their role is not so cut and dried and can vary depending on the project or task at hand.
Suppose you own a business and have the desire to identify ways to improve, increase efficiency, solve any ongoing issues, or plan for the future. In that case, a business consultant can help you.
Let’s find out more.
What Is a Management Consultant?
Management consulting has been around since the mid-80s, and consists of individuals or firms brought in by companies wishing to improve performance or achieve specific objectives.
In almost all circumstances, a management consultant is not directly employed by a business. Rather, they are hired on a contract basis for a specific time or until a project has been completed. Â
This setup allows for an unbiased approach when problem-solving and enables the consultant to provide advice that hasn’t been affected by previous experience within the company.
What Does a Management Consultant Do?
A management consultant has many tools under his belt and can adapt and adjust his approach depending on the business or industry they are working in. However, the management consultant role generally falls into three categories:
- Analysis and objectivity: Provide deep analysis and extensive research to provide unique insights, perspectives, and solutions that is unaffected by bias.
- Functional expertise: A specialization in certain areas such as risk management, change management, company reorganization, or operations.
- Project management: Can manage implementation processes, including deliverable implementation, setting timelines, assigning stakeholders, and tracking progress.
Management consultants can often see past problems and identify solutions that business stakeholders cannot. This is generally because stakeholders are bogged down with company policy, culture, and other such restrictions.
As a brief example, here are some of the tasks management may carry out:
- Define problems and hypothesize solutions;
- Organize and facilitate communication with relevant business departments and stakeholders;
- Perform in-depth research and analysis;
- Consolidate and report findings;
- Create and carry out an implementation plan;
- Support business development activities.
What Qualifications Must a Management Consultant Have?
There are no hard and fast requirements for an individual to become a management consultant; however, it is widely accepted that they must possess the following:
- A bachelor’s degree in a business-related field;
- Mature research and analysis skills;
- A proven track record of achieving results;
- Advanced problem-solving skills and a creative mindset;
- A self-starter with an organized and pragmatic approach.
Management consultants can come from all walks of life. It isn’t uncommon for one to lack a bachelor’s degree and instead possess extensive experience in successfully running or managing businesses.
What Type of Business Is a Management Consultant Best For?
All types of businesses can benefit from a management consultant, providing they have a specific requirement for one. And while management consulting can be beneficial for most industries, financial and manufacturing tend to be the industries that require these services the most.
It’s also worth noting that management consulting is not just for established businesses either. Many startups find the expertise and advice offered by management consultants to be extremely valuable and fruitful.
How Can a Management Consultant Help Your Business?
It can be hard to understand whether or not your business will benefit from a management consultant. Essentially, if you’re having a hard time reaching solutions or finding a way forward, then it may be the right time to bring one on board.
Do any of these scenarios look familiar? If so, a management consultant can help.
- Trying to break into a new market but unable to work out how;
- Requiring department overhauls but unsure how to implement them effectively;
- Lacking specific expertise in certain areas;
- Unable to identify ways to make improvements or drive business growth;
- Getting bogged down with opinions and biased advice disabling your ability to move forward;
- Lacking the expertise to train and develop existing employees.
The Pros and Cons of Hiring a Management Consultant
Bringing anyone on board your business brings its own unique set of advantages and disadvantages. Here are the good – and bad – aspects of hiring a management consultant:
Pros
- You gain access to specialized expertise and knowledge;
- The consultant is generally hired on a fixed-cost basis;
- A management consultant can provide unbiased and neutral advice;
- Saves you time while reaching your goals more quickly.
Cons
- Typically a management consultant will take on several projects at once and, therefore, won’t always be available;
- Results are not guaranteed particularly if you make a poor hiring choice;
- The consultant won’t have in-depth company knowledge, so it can take time for them to get up to speed.
How to Find a Management Consultant
Did you know that management consulting does not need to be carried out in person? Remember that an in-person management consultant will incorporate travel and accommodation expenses into their fee, but this is not the case for a remote consultant.
Remote consultants do everything an in-person consultant does but from a distance. So, you get the same expertise and knowledge but for a lower price. Therefore, remote consultants can be a great choice for smaller businesses and startups that lack the budget for an in-person solution.
At Finvisor, we recognized the need for affordable and flexible financial consulting and saw the benefits that remote consulting can bring. That’s why we offer this service to our clients.
You get on-demand consulting when you need it without paying over the odds. We’re waiting to talk to you if you’re keen to find out more. Get in touch with us and understand how a management consultant can help.
To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- April 4, 2024
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