Business development is influenced by multiple factors, and sometimes the strategy for its operation is not clear.
If it is difficult for the company’s management to calculate some steps, then it is useful to see the company’s activities from the outside with the help of a competent person. This is often a consulting company that provides a specific type of service to optimize the activities of various business structures.
Consulting to some extent there is salvation for other companies in modern world economic and technological risks and crisis processes in business development. There is no point in enterprises spending money on creating their own advisory service; it is enough to necessary cases attract outside professionals. Consulting services are incredibly popular today, since any company wants to win in intense competition.
Concept and characteristics of consulting
Consulting refers to business activities for the provision of consulting services various companies. The concept itself is borrowed from in English and means "consulting". It is impossible to unambiguously answer the question about the scope of activity of a consulting firm. According to common opinion consulting areas as many as there are main and auxiliary functions or departments in a large manufacturing company (management, legal service, finance, sales, technology, IT service, strategy, etc.).
primary goal activities of a consulting company - optimization, increasing the efficiency of its clients’ business.
Traditional types of services consulting firm in all areas production sector enterprises are:
- analysis,
- diagnostics,
- audit,
- forecasting,
- justification of development prospects,
- trainings, etc.
Help can consist of both competent advice and practical assistance in the client’s work.
All tools, methods and technologies consulting must be proven and scientifically based. Consultants are required to provide their services with the greatest possible degree of objectivity. It is unacceptable to use existing connections and relationships in the business world to solve customer problems.
Consulting specialist(consultant) must have higher education and experience in the chosen field. He must combine such traits as communication skills, flexibility of thinking, willingness to compromise, and be knowledgeable in legal and organizational issues, marketing, computer literacy, accounting, and securities.
When are the services of these companies needed?
Reasons for appeal to consulting firms may be the following:
- The company’s need for knowledge, experience, fresh ideas;
- Overcoming a critical situation in one or more areas of the company’s activities;
- Lack of agreement among the company’s management personnel on an important issue;
- Assistance in completing business projects.
At the same time, specialists in the field of consulting are not responsible for the final result of their clients’ activities, since they cannot interfere in the internal affairs of organizations. With the help of consultants, the company itself approaches integrated system vision internal situation cases, existing problems in production, as well as possible options for their solution, further strategic planning.
It is important to understand that companies do not necessarily turn to consultants when they are already in a critical situation. On the contrary, many large, reputable enterprises want to consolidate and strengthen their commercial success, take care of expanding the scope of its activities, finding the right unhindered path for further development.
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Types of consulting services
Despite the versatility of the consulting business, it can be distinguished many sustainable varieties of services depending on the areas of activity in the structure of any company.
Let's pay attention to some of them:
- Audit;
- Legal;
- Investment;
- Financial;
- Managerial;
- Small business consulting;
- IT consulting, etc.
In progress audit consulting All systems of the applying company are collected, received and comprehensively assessed, and the real situation at a given time is revealed. The establishment of correct and reliable financial statements of the enterprise and its compliance with existing legal standards is also carried out.
Specialists in the field legal consulting provide assistance on all necessary legal issues (civil, administrative, housing, land, family, etc.). Assistance is provided in the preparation and conclusion of contracts, conduct in litigation, and licensing issues. Complete confidentiality of contacting consultants is guaranteed.
Investment consulting includes an analysis of fundraising and leasing strategies at the enterprise. In the first case, an investor is searched for a specific business project. It is important here to assess the investment opportunities of a business, taking into account the base of potential investors available in any reputable consulting firm. Leasing is associated with the acquisition or transfer of property to individuals or enterprises with the right to further purchase it.
To the field of activity financial consulting This may include the search for the most effective financial strategy for a consulting firm. At the same time, all possible actions to optimize the financial system at the enterprise are taken into account, profitable sources of financing and options for increasing productivity are searched.
Management consulting, which is divided into marketing, strategic and personnel , strives to offer the most effective scheme company management. The labor model of a particular company is analyzed, a comprehensive assessment of the state of the enterprise and its main goals is given, a management strategy is developed and anti-crisis program in case of problems in the management sphere.
Small business consulting– a young and promising direction in the consulting services market. A small start-up company needs advice from competent specialists on business development, credit and investment policies, cost optimization and increasing profits.
IT consulting– a relatively new but in-demand area of consulting. The range of issues includes: assistance in organizing an IT service at an enterprise, determining an automation strategy, creating a corporate information system and its further management.
Criteria for selecting a consulting firm
Since the services of consulting companies are of considerable importance in the development of their clients’ business, and are also high in cost, it is important to correctly choose a company specializing in consulting services. In this case it's better give preference proven specialists who have solid experience in the services market, and have also ensured serious positive results in the business activities of their clients.
It should be understood that trustworthy consultants must not only provide their clients with all the necessary services informational in nature, but also to ensure that the company achieves a positive result in a specific business matter.
Exist certain criteria, allowing you to most optimally approach the choice of a consulting company:
- Length of activity of the company;
- Qualification of specialists, professional experience;
- Price of consulting services;
By according to RBC in 2017, companies spent about 120 billion rubles on consulting. This is almost the same as invested in marketing promotion in the Internet. Consultants earn over 150,000 rubles a month and do not stop there. So what is consulting and who can benefit from it? Let's figure it out.
Consulting - this is paid expert advice to business managers and private entrepreneurs on a wide range of economic, production, commercial and other issues to optimize business processes, increase and increase key indicators activities.
Simply put, consulting is paid qualified assistance to organizations that require independent assessment current activities, analysis of business processes and subsequent recommendations for running a business and improving its efficiency.
Quite simply, consulting is consulting assistance to top managers of enterprises on business management.
Who was at the origins of consulting
The main reason for the emergence of global consulting was industrial progress. Many competing factories appeared, and the number of jobs increased. Managers needed new knowledge on organizing and managing an enterprise.
This prompted Arthur Little, a chemist at the Massachusetts Institute, to found the first consulting firm in 1886. Arthur's company specialized in engineering research, helping businesses improve shop floor performance and reduce production costs. The company's employees analyzed the activities of plants and factories, found problems and drew up a strategy for solving them.
As consulting services developed and new companies emerged, there was an urgent need to systematize acquired knowledge and exchange experience and ideas. But Arthur was categorically against any systematization and refused to join professional association management consulting. While other consultants tried to build on their existing success stories, he took enormous risks, each time creating new strategies to solve enterprise problems. This approach was not successful, and his firm dissolved, giving way to companies such as McKinsey and Booz Allen Hamilton.
In the 1930s, consulting gained worldwide recognition. This was facilitated by the end of the global economic crisis and the growing industrial production. Gradually, consulting companies spread everywhere. In Russia, this period falls on the 90s of the twentieth century. At the end of 2017, the Russian rating of the best consulting agencies is shared by 100 companies.
Tasks and goals of a consulting company
The main goal of consulting companies is to improve the efficiency of the organization and business as a whole. An enterprise focused on development and growth will always need to attract additional resources. But modern companies do not maintain a large staff of experts, but turn to qualified personnel from outside.
It is this fact that attracts specialists from various fields of activity to consulting.
The main list of tasks of consulting companies:
- recommendations for improving productivity;
- development marketing strategy;
- analysis current situation and problem identification;
- advice and solutions for modernizing the technological process;
- audit of reporting documentation;
- assistance in reorganizing business divisions;
- personnel training and preparation of methodological manuals.
Let's look at these tasks in more detail:
High market prices and oversaturation of the market with goods and services force managers to increase advertising costs, attract new advertising channels and expand sales markets in order to maintain a stable market position. These actions often do not lead to the desired result and the company begins to lose profit. Management turns to a consulting firm to receive expert independent advice on exiting crisis situation. The consultant may recommend modernizing the technical base, finding ways to reduce costs, suggesting the enterprise open a new promising direction, or increasing staff motivation.
2 Development of a marketing strategy.
A consultant helps a business promote its products and services, increase profits and reduce costs. The promotion strategy includes analysis and segmentation of the target audience, identifying the needs of each segment, searching for effective advertising channels for promotion, launching advertising campaign.
3 Analysis of enterprise activities and search for problems.
When an enterprise cannot find a problem on its own, management turns to a consulting company.
Why turn to a consulting agency? Because not every organization can afford to have a staff of experts who could analyze and solve current problems. The problem can arise in any area of the enterprise – financial, legal, personnel and others. In this case, management decides to contact qualified consultants. The consultant’s task is to analyze the work of the enterprise, its departments and, based on an impartial assessment, find vulnerabilities.
4 Consultations on technological process modernization.
Technologies are developing at a rapid pace and enterprises do not have time to track trends. Consulting companies will help improve software or implement new ones.
5 Audit of reporting documentation.
The consulting company conducts an independent audit of the financial statements of the enterprise, compliance of documents general requirements accounting. The audit is ordered to find errors in reporting activities, before submitting documents to the tax office or when changing the chief accountant of the enterprise.
6 Assistance in the reorganization of business divisions.
Reorganization is the cessation of a company's activities and the addition of others to it. legal entities, merger of companies or division of control between owners. Not all organizations employ lawyers who specialize in business reorganization. Therefore, management turns to a consulting firm in order to attract outside experts to carry out the reorganization in compliance with current legislation.
7 Personnel training and preparation of methodological manuals.
Consulting companies help enterprises improve the level of competence of employees by conducting training in various fields of activity. For example, trainings and seminars for sales departments, trainings for managers on leadership, improving management skills and efficient use of time. Popular trainings on teamwork, on working with objections and conflict situations. Consultants can also develop methodological manuals, such as sales scripts or equipment instructions.
There comes a time in every business when a transition to new level development. Any enterprise strives to increase profits and improve its efficiency. During periods of economic crisis, this is especially true for all companies that want to stay afloat. But internal resources and experience of full-time specialists are often not enough - this is when the need for outside expert assistance arises, and management turns to consulting.
A consultant in consulting is an expert who provides consulting services to companies or individuals to achieve their business goals. Consultants analyze business indicators, identify problems and suggest ways to solve them.
The consultant may be an employee of a consulting firm or a private entrepreneur.
Many people imagine consultants as a white-collar community, with laser pointers and innovative gadgets. However, in practice this is not at all the case.
Consultants are ordinary people who perform their work competently.
Example of consultant activities:
A pharmaceutical company plans to launch new line products – vitamin supplements for athletes based on natural plant extracts. On their own, they cannot evaluate the effectiveness of the new project. Management enters into an agreement with a consulting agency. Consultants evaluate companies, analyze assets, and study the market. After detailed analysis and calculations, they conclude that the new direction is promising and the company’s profit margin is within 10-20%. Management pays for the work of consultants and begins to launch new products .
Clients have different requests for consulting companies.
Let's look at a few examples:
Based on customer requests, consulting services were formed into 5 main forms:
1 Analytics.
Analysis of the current activities of the organization, interaction of its divisions, study of market demand, competitive advantages company and opportunities for growth and development.
Example: The company experiences constant staff turnover. The manager was unable to find out the reason and hired a consultant who analyzed the work of the staff and identified the problem at the stage of adaptation of new employees. New people came to the company and did not receive support from experienced colleagues. This led to conflicts and frequent changes in personnel.
2 Forecasting.
Drawing up company development forecasts, identifying promising directions, estimation of profit from the launch of new projects. A consulting forecast is never based on the consultant's guesses; it is always based on numbers and facts.
Example: A wholesale company selling cabinet furniture decided to expand its activities and open 10 regional branches. To determine sales channels and identify the needs of buyers in the regions, the company enters into an agreement with a consulting firm. Consultants assess competition and customer demand in this segment and draw up a detailed forecast for the company's development. Based on this forecast, management changes its policy and opens only 6 branches instead of 10.
3 Expert consultations.
Consultations on any issues, advice on solving problems. Conducted one-time or on the basis of a long-term contract.
Example: transport company contacted a consulting firm to receive advice on reducing the tax burden. As a result of implementing the consultants' recommendations, the company was able to reduce tax costs by 40% and use the saved money to expand its fleet, which ultimately led to an increase in cargo transportation and increased profits.
4 Audit of the company's activities.
Independent verification of the current activities of the enterprise, search for problems. For example, checking accounting documents, the effectiveness of the sales department, the work of the service technical support.
Example: To improve the quality of customer service, the company ordered a consulting audit. The consultants listened to the recording telephone conversations, assessed the work of sales departments using the method secret shopper, conducted a survey of existing clients. Based on the results of the work done, scripts for conversations with potential clients, options for processing objections were improved, additional company products were introduced such as Upsell and CrossSell, which made it possible to improve the quality of service and increase sales by 20%.
5 Direct participation in the project.
Very often, consultants are invited not only for recommendations and inspections, but also for direct participation in certain projects. This could be the implementation or testing of a new software, staff training, conducting legal proceedings in court.
Example: game developer company mobile applications, is about to release a new app for learning Spanish. The application is made in the form of a game in which the user learns new words and goes through game levels. To identify possible shortcomings and understand user reactions, management enters into an agreement with a consulting firm to test the application and solve the problems found.
Types of consulting
Regardless of the form, consulting is divided into types. Below are the 8 main types of consulting:
IT consultants offer solutions for using technology to improve company performance. For example, developing new software, testing or upgrading existing programs.
Due to the prevalence of hacker attacks, IT consultants are increasingly involved in computer security and the implementation of effective protection.
Case 1: Checking IT infrastructure
Supervisor law firm turned to the consulting company Aytilia to conduct an audit of the IT infrastructure. As a result of the audit, it turned out that video footage from the company’s office was available for viewing by any Internet user. IT consultants found a critical error in the configuration of the installed video surveillance system. The password to the IP cameras and the connection port were not encrypted and were freely available. The consultants set up remote access only to the computers of the company’s management and closed the broadcast from the cameras to the Internet.
Case 2. Improving the work of the Call Center
The Yota company turned to the consulting firm PM Expert with a clearly defined task - to find and implement a solution to reduce the load on the company’s call center. IT consultants developed and implemented a “virtual consultant” system. The purpose of the system is to answer popular customer questions without the participation of call center employees.
Management consulting
Management consulting is a set of measures to ensure a sustainable position of an enterprise in the market and improve its key indicators. One of the main tasks of management consulting is to find problems that hinder the effective development of the company and eliminate them in the early stages of their occurrence. Management consulting helps managers and business owners in developing an overall development strategy for their enterprise, in creating strong competitive advantages in the market, in increasing client base
A management consultant can be compared to a general practitioner who identifies a general problem, draws up a treatment strategy and refers to highly specialized doctors.
The consultant's goal is to see the holistic picture and identify ways to increase the profitability and competitiveness of the company. He forms and controls a strategy to achieve long-term goals, which will ultimately lead the company to a new stage of development. Development of a step-by-step strategy - the main objective strategic consulting
, which is part of the managerial one and is in close relationship with it. Without developing a strategic action plan, it is impossible to solve current problems and provide the company with a stable market position. To implement the resulting strategy, methods of advertising promotion of the company in the market are developed, an analysis of the target audience is carried out, and effective advertising channels are searched. This is what he does marketing consulting
, whose actions are aimed at increasing the company’s profits, increasing the number of loyal customers and reducing production costs.
Thus, strategic, marketing and management consulting are three parts of a single mechanism.
Financial advisory Financial consultants are engaged in comprehensive improvement of the financial position of a business.
This includes advice on ways to manage expenses, developing and implementing investment strategies, advice on corporate insurance, tax issues and day-to-day financial expenses. Financial consultants will help you allocate wisely financial resources , estimate the costs of implementing projects, estimate the payback period of these projects, calculate financial risks and compose financial strategy for efficient distribution.
Money Manufacturing company turned to a consulting agency to review financial statements and find opportunities to increase profits and reduce costs. The company produces 30 types of products and contains 5 large workshops. Having studied the annual financial statements , the consultant came to the conclusion that the company could increase profits if it divided production into 5 separate areas, which would be distributed among workshops. The financial report showed that the 2nd workshop brings losses and should be abandoned, and the 4th workshop will bring in 2 times, if you direct financial resources freed up when closing an unprofitable direction to its development. The consultant also assessed the payback period for additional investments and calculated possible risks. After the work done and recommendations implemented, the company’s profit increased by 50%.
HR consulting
HR consultants specialize in public life companies. They evaluate staffing, identify problems in the interaction of departments, hire new employees and correctly distribute social roles. A HR consultant tests, develops and implements systems for motivating and rewarding staff, resolves conflicts and looks for ways to prevent them.
The head of the sales company contacted the consulting firm. mobile phones and accessories. The company consisted of 10 branches and had a staff of 120 employees. Management has noticed an increase in customer complaints over the past year. Most of the complaints pointed to insufficient competence of the sales staff. Customers did not receive answers to their questions and refused to purchase. The consultants' task was to evaluate the effectiveness personnel reserves and increasing staff motivation for further development and improvement of their knowledge. Management wanted to solve this problem through certification. But the staff HR specialists did not have sufficient knowledge in this matter.
The consultants were able to carry out the certification without causing discontent or stress in the team. Based on the results of the inspection, employees were sent for additional training. Some employees had to be fired. Over the next 3 months, the company did not receive a single complaint, and profits increased by 20%.
Investment consulting
Investment advisors seek and evaluate investment projects For profitable investment funds, help you choose a broker, make up investment plan and investment portfolio, advise companies or individuals on asset allocation.
A military pensioner at the age of 53 turned to an independent consultant with the goal of increasing his pension savings through profitable investments and regular replenishment of his investment portfolio. The client had active earnings of 30,000 rubles, and a pension of the same size, which he did not spend, but accumulated for initial investment capital. The consultant carried out a calculation and found out that after 10 years the client will be able to receive passive income in the amount of 10,000 rubles per month, subject to the accumulation of $100,000, taking into account inflation and the subsequent investment of the collected funds. The consultant drew up an investment plan, according to which the client was recommended to open a savings account in a foreign company with the condition of monthly replenishment of $500 and the possibility of receiving permanent passive income after 7 years, that is, by age 60.
Legal consulting
The task of a legal consultant is to search for, prevent and solve legal problems of an organization or individuals.
The scope of activity is extensive - legal assistance in matters of employment, documentation, corporate and intellectual property, real estate and other aspects. The founder decided to liquidate the organization, Chief Accountant which he quit and was unable to solve the company's problems. To look for possible violations in reporting and better understand the liquidation process, the director turned to a consultant. The consultant found the company’s debt, advised on the methods and timing of solving the debt and warned the client about possible risks
. Having the necessary information, the manager was able to close the debt before the start of the company's liquidation and carry out the liquidation procedure without any problems.
Accounting consulting
Accounting consultants put things in order in accounting, help companies understand reporting documentation, find opportunities to reduce the tax base, analyze accounts payable and determine the profitability of the business.
The company enters into a contract for the supply of medical equipment with a foreign organization. In-house accountants do not have sufficient experience to handle the transaction. The manager hires a consultant from a consulting company to support reporting documentation and currency control in order to comply with legal regulations and avoid errors in reporting.
Educational consulting
The head of the company needed the help of third-party consultants to train sales staff. Sales department employees were poor at cold negotiation techniques and faced constant objections from clients. The company was making losses. The consultants wrote selling scripts and taught the staff how to handle objections and telephone negotiations. With the implementation of scripts and the knowledge gained, sales increased by 30%, and the company's profit increased.
How not to make a mistake when choosing a consultant?
There is no magic formula or secret that makes one consultant more successful than another. A good consultant knows the nuances and subtleties of the area in which he advises.
He is not afraid to take responsibility and give guarantees. The results of his work are measurable. This is the main difference between a good and a bad consultant.
Main criteria when choosing a consultant:
1 Specific results.
The effectiveness of the work done is determined in precise measurable indicators. If the consultant is not ready to provide them, then his qualifications are insufficient for consulting.
2 Awareness of the client's problem.
A professional will study the client’s problems in advance. By pointing out solutions that the client has not seen before, he will demonstrate interest and confident knowledge of the subject. It is important.
3 Craving for questions.
An experienced specialist does not hesitate to ask questions. He is not in the shadows and actively participates in the project. The more expert questions appears to the consultant, the more likely it is that the client made the right choice.
4 Flexibility.
A professional respects his own point of view, but listens to the opinion of the client. Flexibility is one of the main qualities good specialist.
5 Practical activities.
A professional prefers practice to theory. The consultant's desire to implement the generated ideas indicates his experience and desire for greater achievements.
Now you can choose your own consultant. But what about a consulting firm? Which one should I contact? Read more about this.
Hello! In this article we will talk about consulting.
Today you will learn:
- Definition and types of consulting;
- What are the advantages of consulting for doing business?
- What are the stages of consulting activity?
Any owner of a business or company, large or small, needs outside consulting assistance. A person cannot know everything, and there are times when a fresh look at an existing problem is required.
What is consulting in simple words
It is not possible for a company, even the largest one, to have several experts in different fields on staff. But if the company’s goal is to develop and conquer the market, sooner or later the advice of such experts will be needed. So what is consulting?
Consulting is a process of consulting managers, management personnel and other employees on financial, legal, investment and other matters.
A little history
Domestic consulting as professional activity began to develop in Russia in the 90s. This is directly related to the change not only of the economic system, but also of the political one. In 1991, the number of consulting companies was only about 20.
With the development of market relations, the consulting services market began to experience rapid growth. These services have become more understandable to managers and more professional. The level of competition gradually began to increase, large players from the West entered the Russian services market, this brought the consulting industry to a qualitatively new level.
Consulting company - what is it?
Companies of this kind are engaged in providing consulting services to their clients. Most often they are external companies and are relevant to their clients' companies. They provide assistance in various areas of their activities.
At the same time, they do not bear full responsibility for the result that will be obtained in the end. There is no clear answer to the question of what consulting companies do.
In general, their activities are as follows:
- Providing assistance in various areas;
- Consulting services;
- Plan organizational and management activities.
Operating principles of consulting companies
In their activities, consulting companies adhere to the following principles:
- They all use scientifically proven data in their work;
- Using tools such as information technology in your work;
- Specialists have the right to offer the customer their own scientific idea if it helps in solving the problem that the customer has.
Types of consulting
In the modern economy, there are several types of consulting. We will review and give brief description the most common of them.
Financial advisory
It is a set of services designed to build a reliable and functional financial management system. It includes: analysis and audit of the company’s activities, consultations on finances and budget development, implementation of techniques to strengthen financial system companies.
Management consulting
Helps determine which areas of the company are most vulnerable and adjusts the company’s activities as a whole.
It, in turn, is divided into several groups:
- Strategic – allows you to analyze the market in a global and local sense, and calculate possible risks;
- Marketing– helps develop a company strategy and diagnose the target audience. Its main goal is to increase sales, as well as reduce advertising costs;
- Personnel – consultations on the selection and training of employees , creation and development of corporate culture .
In addition to everything mentioned, this type of consulting helps solve the following problems:
- Improve the functioning of all company management structures;
- Master new management techniques;
- Develop a system for motivating employees;
- Optimize business processes.
Investment consulting
When company managers choose schemes for investing capital, or attracting it from outside, they mainly rely on the recommendations of professionals who can provide the necessary assistance.
Investment consulting functions:
- Carrying out interactions with credit institutions, insurance companies and authorities;
- Assistance in the development of investment projects;
- Legal investment advice.
HR consulting
Consulting with HR specialists is becoming increasingly popular.
Such consulting includes:
- Personnel certification;
- Personnel accounting;
- HR audit;
- Analysis of personnel policy;
- Document flow analysis;
- Analysis of compliance of personnel policies with labor legislation.
Through HR consulting Can:
- Form a certain corporate culture;
- Conduct a diagnosis of how loyal employees are to the company;
- Increase the efficiency of the entire personnel management system;
- Develop criteria for evaluating staff performance.
This type of consulting allows management to build work not only with the team as a whole, but also with each employee individually.
Legal consulting
IN modern conditions When running a business, it is often necessary to resolve emerging legal situations. But the situation itself can hardly be called transparent; then the manager will definitely need the help of a professional. And if the company does not have a full-time lawyer, then it is impossible to do without hiring a specialist from a consulting company.
Accounting consulting
The goal of accounting consulting is to improve not only the efficiency of accounting. accounting, but also to monitor its accuracy. Typically, such services are provided by highly qualified specialists.
Accounting consulting services consist of:
- Services for the development and formation of accounting policies;
- Consultations on building an accounting system. accounting;
- Assistance in preparing accounting reports;
- Assistance in preparing reports to the Federal Tax Service;
- Consideration and consultation on controversial situations in accounting.
Educational consulting
The practical significance of this type of consulting is that the consultant:
- Conducts seminars;
- Organizes lectures and trainings;
- Develops teaching aids.
Simply put, consultants train the client’s company’s personnel.
Expert consulting
Its essence is as follows: the client sets a task for the consultant, and he, in turn, with the help own experience and knowledge, and also based on various sources, gives ready-made solution. In addition to developing a solution to a problem, an expert can also diagnose the problem.
The client does not participate in developing a solution to the problem.
Project consulting
Project consulting is the joint work of a consultant and company employees, during which a solution is developed on how to optimize the company’s activities. This type of counseling is called long-term.
Internet consulting
This area of consulting activity can include:
- Development information technologies tailored to needs specific company;
- Keeping technology on high level;
- Identification of existing problems;
- Creation of high-quality information infrastructure.
What problems do consulting companies solve?
Consulting specialists can help in the following situations:
- When it is necessary to adjust business process management;
- When business reorganization is required;
- To restore the solvency of a company or enterprise;
- Support of the company merger procedure;
- When advice is required on the acquisition of property;
- Budgeting;
- Development ;
- When you need to prepare a financial forecast and so on.
This list of services is not complete; it may be supplemented with other items.
Stages of consulting activities
Any company can be called a living, constantly developing organism. If the body malfunctions, then a doctor is needed. But treatment should be carried out by a professional, not an amateur. That is, the consulting company must have serious practical experience.
1.The customer acknowledges the existence of a specific problem. If the customer realizes that he cannot solve the problems that have arisen in the company without the help of professionals.
Example: supervisor confectionery company set itself the task of increasing production volumes. But a problem arose: the manager himself and the company’s specialists do not have sufficient knowledge for this. To achieve the goal, a decision is made to invite outside specialists. And this decision will be reasonable and justified.
2.Conducting initial consultation and concluding an agreement. When a suitable company is selected, you need to consult with its specialist. Then the contract is concluded.
The contract must include the following points:
- The time frame during which the work will be performed;
- Full list of services with cost information;
- Conditions in connection with which the amount of the consultant's fee may be changed;
- Conditions for early termination of the contract;
- Responsibilities of both parties.
The contract can be concluded either one-time or for a long term. The contract can be concluded in the form or in the form of a work contract.
3. The data necessary for cooperation is collected. At this stage of cooperation, specialists from the consulting company collect and analyze data that will help determine how serious the problem is. The main thing here is to establish what problem exists, as well as develop a plan to solve it.
4. Process of developing a solution to a problem. This stage can be called the main one. Having identified the problem and its causes, specialists draw up a plan according to which the problem will be eliminated.
5. The process of implementing decisions and monitoring their implementation. All procedures specified in the plan are carried out under the supervision of consultants. It is also possible to train company employees in the process.
6. The process of evaluating the results obtained. An objective assessment of the results can only be given after a certain period of time. The head of the company will sum up the results together with representatives of the performing company.
7. Making final financial settlements. If all activities are carried out in deadlines, production indicators have increased, the company’s income has increased - this is an indicator that the measures taken were effective, you need to make a final settlement with the consulting company. The amount specified in the contract is transferred to the account of the executing company.
Situations in which consulting is necessary
- The company's management and employees lack new ideas, the company has entered a period of stagnation;
- The manager doesn't have enough certain knowledge or experience;
- The company is developing a serious project, but cannot implement it in full due to lack of knowledge;
- The company is required to conduct an audit with the participation of independent specialists;
- The company needs its management staff to work more efficiently;
- The company needs to select a number of qualified specialists.
This list of situations cannot be called exhaustive, since in fact there may be more than a dozen of them.
How to find a serious consulting company
If a number of problems have arisen in your company that are not possible to resolve on your own, the next step is to choose a suitable company that specializes in providing consulting services.
There are criteria by following which you can choose a company and not make a mistake:
- Collect as much information as possible about the company with which you plan to enter into an agreement. Look at its official website, find out how long the company has been on the market;
- Read reviews about the company’s work in the media and on the Internet;
- Ask if the company has a portfolio: each specialist is proud of his achievements and usually records them;
- Find out if there are serious businessmen in your region among the clients;
- Pay attention to the cost of the company's services; too low should be a warning, as well as clearly overpriced.
It is best to have several companies in stock, and after a personal meeting and communication with specialists, make the final decision.
Requirements for companies and consultants
If a company or consultant has a high level of qualifications and provides a large range of services, then they must meet certain requirements, which we will discuss below.
- The consultant must: have knowledge and skills in strategic planning, be able to analyze and predict the economic situation, master methods for diagnosing the situation in an enterprise, be able to establish contacts with specialists at different levels;
- A consultant (or consulting company) should not depend on the rules and unwritten laws, as well as traditions that have developed in a particular company. The consultant's opinion must be free and objective;
- The consulting company must provide assistance based on its experience and current legislation;
- A consulting company, in addition to consultations, must engage in gaining experience, accumulating, analyzing and processing data;
- The activities of a consulting company should also have a learning effect for its clients.
We invite you to familiarize yourself with the table, which presents the main features of professional consultants and those who only consider themselves such.
What is the difference between a professional consultant and an amateur?
| Professional consultant | Amateur |
| Study in advance the activities of the client’s company | Does not undergo preliminary training; learns about the current situation from the client |
| All proposals are prepared taking into account the characteristics of the company | All developed proposals are not informative, but of a general, almost advertising nature. |
| From the moment the cooperation begins, it gives practical advice and recommendations to the client | Emphatically intrusively talks about his achievements, puts himself an order of magnitude higher than the client |
| During communication, shows awareness of the situation in the client’s company | Talks about work experience in the same industry |
| Asks questions, asks for the customer’s opinion | Speaks out without tolerating objections |
| Able to listen to the client | Prefers to talk rather than listen |
| Answers questions asked additionally | Ignores additional questions |
| Always responds to objections raised by the client | Doesn’t take the client’s objections into account; he prefers to communicate according to e-mail, not personally |
Positive aspects of consulting
It is worth noting that increasingly, not only those who have just joined the ranks of entrepreneurs, but also serious companies that have been on the market for a long time are turning to consulting companies for help. What are the advantages of consulting?
- Consultants have a higher level of knowledge than the company’s full-time specialists (which does not detract from the merits of conscientious employees);
- Consultants are more experienced due to communication with a large number of clients;
- Consultants have enough time to study the problem deeply and comprehensively;
- Consultants usually have an unbiased opinion and are guided by the interests of the customer.
A clear advantage of consulting is that company specialists with a fresh look from the outside can identify problems that are simply invisible to company employees.
Consulting and coaching: differences between methods
Before we find out the similarities and differences, let’s find out what kind of animal coaching is.
Coaching is a method of consultation in which the client and trainer jointly look for ways to improve or solve a problem.
Skeptics may say that this technique merely duplicates a number of others that are already familiar. Why invent something else if there are trainings and consulting? But coaching does not repeat all previously known practices.
Coaching and consulting are not duplicative techniques for one simple reason: the coach guides and advises his client until the goal is achieved, and the consulting consultant is limited to making recommendations, giving the client the opportunity to continue to act independently.
Who can consulting companies cooperate with?
Consulting firms can collaborate with:
- State and private enterprises that produce any products or provide services;
- WITH foreign companies who operate in Russia (legally);
- With government organizations;
- With government bodies.
So, dear readers, now you know what consulting is, what its goals are and what it is needed for. If you take advantage of the consulting terms in a timely manner, your business will successfully grow and develop. Your company will survive all crises and become a serious competitor for others.
Company
International consulting company SCM Consult Global
SCM Consult (SCM Consult) is an international consulting company with a head office in the UK (London), a network of managing partners in 20 countries and specialization in the markets of Central Asia and the CIS. We are experts in strategic consulting and operational process optimization for private companies and government organizations.
Our consultants, having a unique practical experience, help overcome barriers to business in the face of rapidly developing technologies and increasing volatility in the economy, by developing sustainable development strategies, introducing innovations, transformed organizational systems, reducing production costs and improving the quality of customer service.
We build teams that can challenge traditional thinking and become drivers of change. We help our clients make decisions that can lead to business success and sustainable development of the organization.
Our experts include business leaders, scientists, academics and consultants from various industries around the world. Our resource potential and intellectual capital are supported by deep industry specialization of experts, geographic range of resource availability, analytical accuracy and team approach to work. Our business consulting experts have the ability to challenge conventional wisdom, identify what others might be missing, and prepare innovative solutions, designed according to the requirements of our customers.
We have experience in work and consulting international companies Fortune 500, many regional and local organizations. The international consulting company provides business consulting services not only for the private but also the public sector, where we provide a full range of business services from strategic planning and economic research to the phased organization of events and implementation.
