One-time, resource-intensive projects such as reorganizing a company after a merger or launching a customer relationship management system to leverage point-of-sale data—these are the types of initiatives for which a company is likely to enlist a consultant. Because it would be impractical to keep such specialized knowledge in-house for a one-time project, companies might find it more economical to outsource these projects to outside firms.
Their fees might seem exorbitant, but consulting firms provide critical services to their clients and deliver measurable results. Though a company might bear a significant expense to retain a consulting firm to help with a post-merger systems integration, for example, it would probably cost that company even more to attempt the implementation on its own and make costly mistakes along the way.
Not only do consultants often preempt expensive mistakes when an organization attempts a significant change, they offer fresh, objective perspectives, as well as data and market intelligence that an individual organization would have difficulty obtaining on its own.
Because they offer targeted experience across multiple clients and engagements, consultants the processes and human resources capabilities to implement change more smoothly than the clients otherwise could. Clients also value consultants’ objectivity and immunity to internal politics: Unlike a company’s own leadership, consultants can recommend the best course of action for a company without worrying about whether their decision will be unpopular.
On the downside, consultants don’t often get to stick around long enough to witness the payoff of the projects they work so hard to design. They also are perennial outsiders who are often viewed with suspicion by the in-house experts they are supposed to be helping.
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