There are more reasons than you may think for hiring external consultants says Ian Dewsnap
Why do people hire consultants? It’s a good question and one I’ve been asked a few times lately. And it’s a question to which there is more than one answer, so let me provide some examples.
Go deeper with GlobalData
The most obvious reason, it seems to me, is to bring in expertise you don’t have within your organisation. Almost all businesses do this, either because they don’t have the role or they don’t have the need for the role full time. I think, for example, of accountants, lawyers and IT specialists.
OK, most of the larger business have these in-house, but many don’t, and even the largest firms sometimes need quite specialist advice. So you just hire in the expertise when you need it, or to supplement your existing team. Sometimes businesses have the capability, but not the available resource just when they need it.
The skill set required for the project is in demand, so this becomes equivalent to a agency hire, in that consultants are brought in to fill a gap. Although we speak here of project work, sometimes it can turn out to be more than that, such as hiring a CFO for an interim period, which can turn out to be rather longer than planned.
Next on my list would be the ‘external view’. Many of you will know Donald Rumsfeld’s famous ‘unknown unknowns’ quote. If you don’t, look it up on YouTube – it’s a good one. But the fact is that many organisations know only what they know.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThey crave external opinion, whether to get new information, market insights, competitor landscapes, or best practices – the list is endless. That’s why people commission market research studies, feasibility studies and benchmarking. They want to have a view on what’s out there, the ability to measure what they do, and explore what’s possible.
Then there are those who already know the answer – they just haven’t figured out the ‘how’ or the ‘why’. Sometimes directors will know where they want to go strategically, such as ‘we want to centralise our administration’ or ‘we want to enter the market in country X’.
What they require is someone with external experience to provide substance to their argument and validate the direction as correct and feasible. Typically, along with that comes the research, review of the existing capability of the organisation, the challenges of execution, and high-level planning.
Ah, and of course there are those who just don’t know what to do. Something is not right with an organisation, either a division, department, market or whatever.
They need someone to investigate and recommend solutions. Now those are the really
fun engagements. See, there are more reasons than you thought!
Ian Dewsnap is director of European operations at BenchMark Consulting International
