Maximizing the Value of Consulting

A Guide for Internal and External Consultants

Jack J. Phillips, William D. Trotter, Patricia Pulliam Phillips

• Publisher: Wiley
• Year: 2015
• Print ISBN: 9781118923405
• eBook ISBN: 9781119123675
• Edition: 1
• Topic: Business
• Subtopic: Human Resource Management
• Index: Business

Provide organized, efficient, relevant consulting with lasting value

Maximizing the Value of Consulting is an indispensable, practical guide for managing, measuring, and delivering the results that make internal and external consulting a lasting value to clients and the company. Sponsored by the ROI Institute and the Association of Internal Management Consultants, this book provides a roadmap to relevance for consultants operating in the increasingly fast-paced, changing, dynamic environment. Readers will learn how to use resources properly and manage the investment efficiently, while truly connecting to the business, securing appropriate levels of commitment, and providing adequate levels of support. Detailed coverage includes guidance toward calculating the value of consulting in terms that executives understand, including business impact and ROI, and using the appropriate tools to show how things are working throughout the process.

Whether organizations are using internal or external consultants, or both, consultants can provide better value to the company. Consultants are needed to provide advice, support, and insight into the processes undertaken to improve the business, and integrate the input of different functional units into a more streamlined strategy. This book is designed to help consultants provide the utmost value to clients by maximizing organization, efficiency, and ultimately, ROI.

• Manage for value with better organization and cost control
• Set objectives at multiple levels to deliver useful results
• Measure implementation, impact, ROI, and intangibles
• Use final results to drive appropriate actions, creating lasting value

The skyrocketing need for internal and external consultants will continue, in almost every functional area ranging from HR and technology, to auditing and risk management. Maximizing the Value of Consulting provides a manual for relevant, value-driven consulting, with world-renowned expert insight.

Chapter 1
The Role and Importance of Internal and External Consulting

The beginning point of the journey described in this book is to reflect on the role and importance of consulting, from both the internal and external perspectives. At the same time, it is helpful to review the practices, changing expectations, and new requirements for these important areas. Finally, a snapshot into emerging trends and key success factors make this chapter a fitting introduction to this new book.

Trends in Internal and External Consulting

Both internal and external consulting have grown recently, and their importance continues to emerge. There is a natural evolution that makes consulting a logical solution for many situations. Also, there are a number of forces that have come together to make consulting a great choice for organizations and also as an occupation. While the drivers for growth in internal and external consulting have much overlap, some unique issues are emerging.

Emergence of Internal Consulting

The rapid rate of change coupled with heightened competition on a global basis is increasing the need for companies and public sector organizations to develop effective internal consulting capabilities. The development of this capability helps to better control overall consulting expenditures and obtain greater value for this investment. Internal consulting groups can support the development of key capabilities across the organization essential for future success in areas, such as strategic planning, project management, change leadership, and process improvement.

There are various areas across the organization that are realizing the importance of increasing their internal consulting skills to effectively provide services to their internal clients and developing more of a “business partner” role:

• One overall observation is that there is a new business model evolving regarding the emergence of more formalized and structured internal consulting service and their relationship with the external consulting resources with which the organization engages.
• The need to unlock the value potential of the total cadre of advisory resources spread across the organization is another key driver in the development of more formalized internal consulting capabilities. For example, most functions in an organization have a few internal consultants.
• Organizations are attempting to reduce staffing levels to keep their total employee count very low. This is driven by the desire to be efficient, and the employees on the payroll represent a fixed cost that can be very significant. Reduced staffing leads to opportunities for internal consultants to provide specialized assistance.
• Organizations and the work accomplished within are becoming more complex. This means that managers need help with a variety of work-related issues and processes.
• The continuing growth of globalization and fast pace of change requires specialized assistance with rules, regulations, culture, and change issues, creating opportunities for internal consultants.
• Outsourcing and shifting of transactional activities have created more opportunities for internal consultants. For example, in the human resources function, many of the activities are transactional (e.g., benefits administration, payroll administration) and they have been shifted to other functions such as finance and accounting. Other functions have been outsourced (e.g., help desks, training delivery). This leaves the HR function with a few generalists, often labeled HR advisors or consultants.

It is clear that internal consulting is not only a critical occupation in an organization, but one that is growing and adding tremendous value. From all indications, internal consulting will continue to grow and flourish and add value in all types of organizations.

The Growth of External Consulting

Consulting clearly is a growing occupation, at least among small consulting businesses. The following trends underscore its tremendous growth:

• In the United States, baby boomers are moving into their early retirement years. Many of them are seeking new challenges away from the bureaucratic structure of traditional organizations. Wanting to use their expertise and experience in a profitable way, they see consulting as a rewarding and natural next career.
• Shareholders of organizations increasingly demand more efficiency, profitability, and growth from organizations. This trend requires management to examine processes and work flow to ensure that organizations are the best that they can be. This, in turn, creates opportunities for external consultants who can assist in this important goal.
• Demanding customers are changing the dynamics of customer service. Organizations are constantly under pressure to provide the fastest, most reliable, and friendliest customer service. Consultants provide assistance in this vital area.
• Executives often require external validation of particular processes, products, performance areas, and outputs. External validation leads to the need for external consultants.
• Globally, there are many opportunities for consultancies as emerging nations eagerly seek to become more modern, up-to-date, and efficient in their processes.
• Demographic shifts in all countries are creating changes in market demands, creating opportunities for those who understand these issues and can help organizations meet these particular needs.
• The constant flow of fads in and out of organizations creates opportunities for consultants to help organizations address these trends and attempt to make them work in their organization. Some executives constantly seek the newest methods and employ consultants to help implement them.
• Executives sometimes prefer to use outsiders rather than rely on the input and advice of their own staff. They feel that the independence of the external viewpoint is important.
• In an attempt to become streamlined and efficient, some organizations outsource major parts of their work, creating opportunities for consultants. Often, these consultants come from the ranks of their previous employees.
• Executives and managers often have unpleasant tasks, processes, and issues to address. They prefer to use external consultants who are viewed as dispensable and can be quickly removed after the dirty work has been done.
• Finally, organizations, desperate to survive, seek all types of assistance and support to improve their situations. This creates many opportunities for consultants.

These trends and others create growth for the consulting industry. Depending on which estimates are used, the figures range from a growth of 15 to 25 percent per year for this profession. At the same time, the actual growth of large consulting practices is not as strong.

Opportunities for Collaboration

A key consideration for external consultants to develop their business in the long term is to explore ways to effectively partner with internal consulting groups and other internal support areas growing into that role. An increasing number of external consultants, from large organizations to sole proprietorships, are realizing significant opportunities to expand their business by working with internal consulting groups and other internals in that role. These partnering opportunities consist of various arrangements, including the following:

• Training on key skills and emerging methodologies
• Supplementing their expert...

Table of contents

• Cover
• Title Page
• Copyright
• Table of Contents
• Dedication
• About the Authors
• Acknowledgments
• Preface
• Chapter 1: The Role and Importance of Internal and External Consulting
• Chapter 2: Organizing the Consulting Practice to Deliver Value
• Chapter 3: Managing the Consulting Practice to Deliver Value
• Chapter 4: Controlling Costs and Enhancing Value
• Chapter 5: Utilizing the Consulting Scorecard for the Practice
• Chapter 6: A Logical Approach to Measure Impact and ROI for Projects
• Chapter 7: Developing Powerful Objectives at Multiple Levels
• Chapter 8: Aligning Projects to the Business
• Chapter 9: Planning the Evaluation
• Chapter 10: Methods of Data Collection
• Chapter 11: Data Collection at All Four Levels
• Chapter 12: Isolating the Effects of Consulting
• Chapter 13: Converting Data to Money
• Chapter 14: Tabulating Project Costs and Calculating ROI
• Chapter 15: Reporting Results to Key Audiences
• Chapter 16: Call to Action
• Index
• End User License Agreement