How can a Management Consultant Help your Business?
By Yohan Albo
The management consulting industry was worth more than $55 billion in 2015 in the United States alone, and about $550 million in Israel in 2017. That’s a lot of money. And sure, some of it goes to waste, making it crucial for businesses to understand how to most effectively use management consultants.
As has been discussed in previous articles, management consulting incorporates a wide range of vertical and horizontal activities. Horizontally, there’s strategy consulting, HR consulting, tech consulting, business consulting and the list goes on and on. Vertically, within a management consulting firm, there’s a template as to how to tackle the problem. However, the consulting process is often more complicated and variable than the template suggests.
But as a business looking to hire a management consulting firm, that’s not what you need to worry about. Rather, you need to be concerned with hiring a consulting firm that can in simple terms, help you out.
So how can management consultants help you?
On a basic level, businesses can use management consultants for gathering information and problem solving.
One of the most common reasons business owners seek assistance is to obtain information about their business, supporting ecosystem, competitors and technologies that have the potential to change their industry. Gathering information may involve employee interviews, customer survey, cost studies, economic analysis, creating MVP projects, market research, and more. Sometimes a business doesn’t have the time and resources to gather all this information themselves, outsourcing this to a management consulting firm who they can trust will carry out this task effectively.
However, it is often the case that the information the business client wants is quite different to the information he/she actually needs to improve the business. For example, business owners will often hire consultants to assess whether they need so many employees when they already know the answer: they don’t.
Companies give management consultants complex problems to solve. For example, a company might task a management consulting firm with finding out whether to take over another company, tap into another market or completely rebrand.
Finding solutions to these problems are not impossible but they can be extremely difficult judgement calls. Quite often a management consultant’s client needs assistance working out what the underlying root causes of his business problems are. It could be that simply asking the right questions can completely transform the trajectory of your business.
A management consultant will often ask the following questions to try understanding the root issues of your business:
- What strategies have been and haven’t been tried in the past ?
- What aspects of the business are going well, and which aren’t going well ?
- Are the solutions implementable ?
A good management consultant will neither accept nor reject the client’s initial explanation of the business’ current state. Often clients are reluctant to be honest about the true state of the business for fear of demonstrating incompetence and being at fault, providing an alternative reason as to why the business is failing. For example, the business owner will say he/she cannot compete with imports. This might lead the consultant to squarely focusing on the import market and seeing how the business can be competitive with it. But in actual fact, there are more pertinent issues facing the company and importers are only a scapegoat for the client’s own failures. This is the sort of trap a good management consultant doesn’t fall for.
Nevertheless, it is important that a management consultant is non-judgmental and open minded when dealing with his/her client in order to extract as much necessary information from the client as possible.
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DataToCapital is a boutique management consulting firm that supports global tier-1 firms and start-up companies operating in Israel in their route to excellence and market dominance. Our core services, designed for CEOs, Executives (VP-level and above) and Entrepreneurs, can be divided into three areas: Market Intelligence, Corporate and Product Strategy, and Execution Support on top-down strategic initiatives.
The quality of the work we deliver in the three areas mentioned above is equivalent to what your company may already get from the top-3 consulting firms that operate in the Israeli market, BUT here’s the twist and why our tier-1 clients think we are superior.
We don’t only provide smart recommendations, we work closely with the management team and can also support driving the execution of their strategic initiatives behind the scenes or as a proxy.
We are at the strategic intersection of Business and Technology. Thanks to our rich background, we know how to connect the dots between the two worlds, and how to be very creative when it comes to disrupting business models or addressing sub-optimized processes with the help of advanced technological solutions (Machine Learning, Big Data, Data Visualization, Enterprise Software Solutions, and many other tools present in our toolbox).
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No account manager, no complex communication chain, etc...
This is why our firm aims to dominate the management consulting market in Israel with no more than eight talents (...on steroids).
Our long-term vision is to become the trusted advisor to the most influential businesses and institutions operating in Israel, and help them become global leaders in their markets.