Management Consultant: Luxury Or Necessity?

Why should any business, association, non-profit- Management consultants work from the
or other organization, regardless of size, engageperspective of best practices and use these as a
and utilize a management consultant? Mostbenchmark for evaluation and recommendations.
owners of small business believe no one knowsRegardless of how much companies and
more about their business than they do. Mostnon-profit organizations know about their industry,
non-profit organizations, with the exception of thetheir competitors and marketplace, they rarely
very largest ones, believe they cannot afford ahave the time, resources or the inclination to
consultant - it's just not in the budget.benchmark against others. Best practices - a term
CEOs of mid-sized companies often believe thatthat has been greatly overused - is a area where
the kinds of activities performed by managementconsultants can identify who does various
consultants can and should be carried out by theirfunctions and activities with excellence and
own management on top of their day-to-daycompare (or benchmark) that against any client.
responsibilities. And CEOs and senior executives ofWhile best practices change from field to field and
large global corporations, while generally moreyear to year, the concept continues to reap
open to management consultants that theirdividends for those who utilize it either internally
counterparts with small and mid-sized companiesor through a consultant.
often resist engaging management consultants- They can provide additional resource in
either due to their corporate ego or in view ofspecialized areas for a limited period of time to
cost controls.support a project, initiative or change such as an
So what should a company engagement aacquisition or divestiture.
management consultant?Let's face it, even in good times, businesses and
- Management consultants bring an independentnon-profit organizations do not have the
perspective.resources - meaning staff - to do all the things
They value of having a new and differentthey need to do. They need to generate revenue
perspective for a business or non-profitor raise funds. They need to delight their
organization is invaluable. Most organizations,customers or members. They need to deliver on
regardless or turnover and bringing in "new talent",the core activities as defined in their mission
are caught up in the day-to-day of how theystatement. As such, there is a need for additional
perform any function or activity.resources for everything from fine-tuning to a
- They often have specialized skills in areas suchcomplete re-engineering of processes. Consultants
as strategy, finance, operations, human resources- who are brought in for a set period of time and
or marketing.for a given amount of money can fill the gap for
With the exception of the very largest companieseven the most budget constrained business or
and corporations, most companies and non-profitnon-profit organization.
organizations have members of their staff wearWhile the reasons to engage management
multiple hats and perform a variety of functions.consultants are numerous, more often than not,
As such they end up not being experts in anythese four are key to the decision-making of
one of those functions or roles. Consultants oftenbusinesses, associations, non-profits and other
specialize in a function or type of activity.organizations of all sizes.