What Do Consultants Really Do?
Let’s start with a scenario that might sound familiar: Your company’s profits are flat, employees are not exactly thrilled to be there, and your competitors are leaving you in the dust. What do they do? Hire a consultant, of course! But what happens next? Does a consultant just come in, wave a magic wand, and solve the problems overnight? Not quite.
But while consultants might seem like corporate superheroes, swooping onto the scene when things are tough, their work is much more down to earth. Contrary to the impression of lone decision-makers out in the cold, consultants are disciplined problem solvers at work in concert with companies to understand their challenges and make real choices to address those challenges. First, let’s shine a light on behind the scenes of the world of consulting; what is it exactly that consultants do?
1. Understanding their Client’s Business
The first thing the consultant does when they start a new project is to learn inside and out about the client’s business. This involves looking at the company’s operations, culture, expenses, as well as place in the market. They ask a lot of questions to uncover not only those things in front of the face but those hidden in the shadows. They aren’t afraid to dig down below the surface of what’s going on behind the curtains.
For instance, say a retail business is not growing properly, companies would suffice to help with it by looking at things like the supply chain to see if there is any room for improvement, and customer demographic to give ideas on what needs to be done with the products, even store layouts. They demand to know: “Why isn’t growth happening?” What could we do better?" It wants to get a handle on all aspects of the business to see where it can improve.
2. An Objective Analysis of Problems.
Once a consultant knows exactly the business in front of her, then it’s time for problem-solving. Now the key is to objectivity itself. There is one of the biggest advantages they, as a consultant, bring: it provides them with a fresh, unbiased perspective. They aren’t shrouded by office politics or sentimental ties to systems and people. It allows them to see what a topic can do while a company may not.
Suppose an organization has having high turnover. For example, although the company may believe the reason stems from the salary issue, a consultant may find that the reason is really an inability to develop a career. Consultants analyze employee feedback, industry data, and internal reports and don’t just address symptoms of the problem — they dig into and understand why it exists in the first place.
3. Developing a Solution for that specific customer
Nor do consultants offer generic solutions once the issues have been identified. The client with their unique needs is customized to specific strategies they design. These solutions could include everything from minor changes to a company’s workflow, to a complete organizational overhaul. The problem is not about executing a playbook—consultants rely on their experience, expertise, and research to create a plan that fits the culture, goals, and challenges of the company.
Suppose there is a consultant for a manufacturing company, for example; they may recommend changing the production process to make it more efficient and lower cost. The consultant could build an entry strategy for a company that wants to go global or form a strategy to expand internationally for a firm by taking into account local market dynamics, regulatory issues, and cultural differences.
4. Guiding Implementation
This is where consultants fall to work. Identifying problems and offering solutions isn’t sufficient, it’s all about getting the work done. A great consultant doesn’t disappear after handing over the report. They help the organization carry out the plan. At this time, consultants can get involved and help train staff, monitor project timelines, and revise strategies according to real-time feedback. The task of the organization is to make sure that the business is well-positioned to carry out these new strategies, and that the new strategies will be sustainable. However, a plan that looks great on paper is useless if it can’t be implemented successfully in the real world.
5. Managing Change
Change is hard, but it is hard on most businesses. Every change, no matter how major or minor, there is a possibility of opposition. Many times, consultants are charged with shepherding this change—moving an organization from old, more arduous working methods to new, more efficient ones. This could be anything from helping management to effectively convey changes, receiving buy-in from employees, or even mediating between conflicting employees. Companies use consultants to show them the way through the whirlwind of change with an eye on the end goal.
What Does a Consultant Do, Then?
In a nutshell, consultants are problem solvers and strategists, and they change the game. From the outside, they are brilliant at uncovering hidden problems, designing a custom solution, and working with an organization to make that solution — actually — a reality. The useful handful of consultants can help tackle complex financial challenges facing the company or provide opportunities for business in unexplored market opportunities and can make a company flourish in an ever-changing world.
Not, though, do they just sail in, make a few observations, and depart? At its core, consulting is a business about partnership and collaboration and working together to build up lasting value for the companies they work for. Next time you hear someone referred to as a ‘consultant', know that they are the original business partner, looking to help but never with a 'one size fits all' option.