Why Should Business Owners Get Management Consulting?

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Management Consulting

Jay Abrahams said, “The key to all of life is understanding how to add value to others.”

Sometimes as a business owner, we have so many questions and we might not have anyone to ask those questions to. This is especially true if it is just you in your business (solo entrepreneur) as well as if your are another type of micro or small business owner, Founder, or CEO. 

Engaging in management consulting in one the investments that you can make to grow your business in the direction of your strategic plan. When we grow our businesses, we are adding value to the lives of others as we are helping them solve a problem that they are encountering in their lives. 

History of Consulting

I’m sure that you have heard about consultants or consulting before. You may have even wondered what they do.

The history of business consulting started in the late nineteenth century with the expansion of management as a separate industry. With this expansion came the birth of business advisory and management firms that were started mostly by university professors.

Arthur D. Little, an MIT professor is credited with starting the first management consulting firm in 1886. That firm’s specialty was advising on technical research.

However, James O. McKinsey, a University of Chicago accounting professor, is thought to have started the first pure management and strategic consulting company in 1926. His company was called McKinsey & Company. McKinsey believed in taking the risk to identify unique solutions based on a company’s need, rather than taking an idea that worked in one company and applying it to another. McKinsey believed that management consultants should adhere to the same professional standards that lawyers and medical doctors.

Definitions of Consulting

In the simplest form, consulting is where a third party with a specific expertise provides advice, usually for a fee. Within business, consulting would involve an external business consultant providing business advice as it relates to organizational strategy, improving business operations, leadership model, marketing, and information technology for a fee.

Similar to how you go to your medical doctor with a problem and receive a consultation, a business consultant does the same with your business. Your medical doctor listens to the information that you provide and offers an analysis of the problem or diagnosis, then suggests recommendations or advice on the appropriate treatment for you to take to overcome your problem.

A business consultant follows a similar process with business owners, Founders, and CEO’s. The business consultant listens to or reviews the information that you provide, analyzes that information, diagnoses the problem, then offer recommendations or advice on the solution that you need to implement to overcome the problem that you are facing currently in your business.

In addition to providing advice, the business consultant may provide implementation services.

Business consultants can provide consultation at the individual level or at the systems level. At either level, the business consultant is going to engage in a process where you, the business owner, gets to ask questions. The business consultant will help provide you with answers that are aimed to help you solve you find solutions to problems or to outline what is needed for you to execute certain ideas.

What is Management Consulting?

Management consulting is the process where a business consultant focusing on helping a company’s leadership improve the overall performance and operations. Because of that focus, the management consultation sessions would typically only involve the highest-level executives in your business. Working with the highest-level of executives in an organization allows the consultant to help the organization solve their complex and complicated problems.

So, this means that if you are the CEO or President of your company that only has you as an employee, then the management consultation process would be with you.

If you have other members on your team that have leadership roles, you may want to consider including them in the management consultation process.

Management consultants are usually a third-party hire. This allows for your organization to get an external, objective view of your business.

All business consultants are problem solvers who utilize their expertise and knowledge to help companies (micro, small, medium, and large) find solutions to their complex business problems.

What is Involved in the Management Consultation Process?

Over the years, several management consulting companies have been created to focus on different aspects of business. Today, management consultants may focus on:

1. Organizational structure and design

2. Growth strategy

3. Diagnostics of the business

4. Scaling

5. Merger and acquisitions

6. Retention

Regardless of their area of focus, management consultants engage in a similar process. The management consulting process involves the following steps:

1. Identify the goals for the consultation process

2. Data gathering and research

3. Detailed analysis of the data gathered

4. Sharing the analysis and providing recommendations based on the analysis

5. Evaluation of the implemented recommendations and closing

Depending on the consultation package that you sign-up for with the management consultant, you may also get follow-up sessions with your management consultant. 

Through the management consulting process, the business consultant will providing you with services that adds value to your company.

Summary

Management consulting serves a specific function and can focus on several key areas with your business. If you have a found a consultant that you want to work with, be sure to ask them if they offer any complimentary sessions so that you can meet them and determine if that consultant would be a good fit for you.

As you select your business consultant, remember that consulting and coaching are different processes. Check out this video of what is business coaching to learn more so that you can ensure that you are signing up for the service that truly meets your current needs. 

If you are ready to get started with management consulting for your business, submit your coaching application and see if you qualify for a customized coaching program to meet your specific needs.

Thank you for taking the time to read my article.

Regards,

Dr. Priscilla "Dr. P" Kucer

Solutions+Actions=Results! (SoAR!)