Business
5. Choosing a consultant
A consultant can give your company a big advantage -- or cost you dearly.The deciding factor in choosing a consultant is finding the right firm for the job, even if that means keepinga project in-house.
A consultant can give your company a big advantage -- or cost you dearly.
The deciding factor in choosing a consultant is finding the right firm for the job, even if that means keeping a project in-house. The table below can help you sort through the choices.
Ground Zero - Most growing companies can't spare the resources-people, space, expertise-for a major endeavor. For a specific project, a management consultant is overkill. Instead hire a specialty or technology consultant to design and implement the new process.
Head Start - If you have the expertise to undertake your project-and a clear goal for what you need-forgo the consultant and develop it in-house. This may mean hiring additional permanent staff to cover other areas of the company and to keep the project going.
No Clue - First figure out what you want to do-for example, increase sales or profits, add offices or retail outlets, expand customer base, or acquire or merge with another company. If your management team can't articulate a goal, turn to a general management consultant who can help you through the entire process.
Concrete Goal - If you have a measurable goal but don't know how to get there, call a strategy consultant to help map the course, then do it yourself.
Tight Budget - Companies on a tight budget should consider a regional partner who will typically demand less than a large firm.
Start Here - If e-business will be the primary focus - for example, if you're overhauling your entire business model - get a management consultant with a proven track record in e-business that can help you think through the entire process. Not sure if this is the right route? Check out "Develop an E-Business Plan" for details.
Know the Score - If you know the obstacles or changes in the marketplace and how they affect your business, you've got a head start. Add bonus points if you can grasp your key competitors or potential partners. What you probably lack is staff, so skip the consultant and hire a permanent employee for the project.
At a Crossroads - Even though you have this info, you may need help sorting it out. If that's the case, bring in a specialty firm that deals with business strategy or mergers and acquisitions.
Too Busy - If you don't know where to start or are too stretched running your core business, sign up with a management consultant.
The deciding factor in choosing a consultant is finding the right firm for the job, even if that means keeping a project in-house. The table below can help you sort through the choices.
Considering an e-commerce plan? A typical evaluation from McKinsey & Co. follows.
What Do You Want to Do? |
Ground Zero - Most growing companies can't spare the resources-people, space, expertise-for a major endeavor. For a specific project, a management consultant is overkill. Instead hire a specialty or technology consultant to design and implement the new process.
Head Start - If you have the expertise to undertake your project-and a clear goal for what you need-forgo the consultant and develop it in-house. This may mean hiring additional permanent staff to cover other areas of the company and to keep the project going.
What Do You Want to Do? |
No Clue - First figure out what you want to do-for example, increase sales or profits, add offices or retail outlets, expand customer base, or acquire or merge with another company. If your management team can't articulate a goal, turn to a general management consultant who can help you through the entire process.
Concrete Goal - If you have a measurable goal but don't know how to get there, call a strategy consultant to help map the course, then do it yourself.
Tight Budget - Companies on a tight budget should consider a regional partner who will typically demand less than a large firm.
What Do You Want to Do? |
Start Here - If e-business will be the primary focus - for example, if you're overhauling your entire business model - get a management consultant with a proven track record in e-business that can help you think through the entire process. Not sure if this is the right route? Check out "Develop an E-Business Plan" for details.
What Do You Want to Do? |
Know the Score - If you know the obstacles or changes in the marketplace and how they affect your business, you've got a head start. Add bonus points if you can grasp your key competitors or potential partners. What you probably lack is staff, so skip the consultant and hire a permanent employee for the project.
At a Crossroads - Even though you have this info, you may need help sorting it out. If that's the case, bring in a specialty firm that deals with business strategy or mergers and acquisitions.
Too Busy - If you don't know where to start or are too stretched running your core business, sign up with a management consultant.
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