Business consultant – finds ways to grow the company and tells what to do, who to do and how to do it. But he doesn’t do it himself.
People say, “If you immediately need a business consultant, then you do not need him.” That is, if you do not understand the intricacies of the business at the start, there is a high probability of getting into a pseudo-professional with his promise of 1000% profitability in the first month.
But if you already have a business base and can distinguish between conversion and leads, you can safely start studying after hiring such a specialist.
Consultant vs. coach
Let’s say everything was going well for the business, and suddenly a problem arises, for example, a few customers. And you have no idea where the problem came from. You do something, but “the beans still don’t grow.” Then you are looking for a person who will solve all problems simultaneously. And before that, you need to figure out which specialist will help here.
The coach uses the emotional impact on you and the staff to a greater extent. In addition, he comes more from his practice. And a business consultant (some say “business coach,” but a consultant is better) is a professional analyst and adviser, and he proceeds from what should be. Consequently, it is your responsibility to choose who to require in your case.
What are
Any business can have problems at different stages and in different processes. And to find intelligent business plan consultants, you need to know what they are. Therefore, for convenience, we divide specialists into two main classifications. The first is niche and non-niche consultants.
- Niche consultant. If your business, for example, is oil and gas, then a consultant from the trade sector will not suit you. In a specific niche, a specialist is needed who is oriented in it, taking into account the peculiarities of business processes, etc.;
- Not a niche consultant. Universal soldier: knows the tricks for different niches, easily switches from the same oil and gas to trade. However, he does not solve problems as deeply as a niche specialist.
The second important classification divides business consultants according to their subject areas or directions:
- For marketing. Works with internal processes (outsourcing, logistics, interaction between departments) and problems along the entire value chain for the client;
- By management. They have theoretical and practical knowledge of management functions (planning, organization, motivation, control, management);
- Sales. Proficient in sales and persuasion techniques. Able to reconfigure your sales funnel so that the number of transactions with a positive result grows;
- According to accounting. Examines problems in terms of finance and cash flow. Decide how to optimize taxation, how reduce costs and increase revenues;
- By strategy. A combination of other types. The pro thinks structurally and critically, sorts out the business, and determines the vector of development and tools.
But in practice, business consultants often combine several areas, because one cannot be solved without the other. For example, marketing and sales, management and strategy, finance and accounting. Strategy, by the way, is the most extensive and expensive direction. So more often than not, businesses need emergency assistance in specific areas.
So, before looking for a pro, decide what kind of specialist you need.
How does it work
Now you need to decide what the consultant does in the process and how his work is built. Otherwise, it will be difficult to assess the effectiveness of its activities. Therefore, we will draw up two algorithms for the consultant’s actions – for small and large projects.
Small projects
Step 1. Brief. The first meeting is an introduction to the selected candidate. Next, you set tasks for a business consultant and talk about problems. Finally, don’t forget to discuss what indicators you will use to judge the project’s success.
Step 2. Plan template. At the second meeting, the consultant presents an initial action plan. Small projects are most often of the same type, so the consultant has a prepared algorithm of actions, which is adjusted according to the task.
Step 3 Signing an agreement. After discussing all the terms of payment and work. Don’t forget to fill in the “penalties and sanctions” section. This will help if the consultant is dishonest or decides not to complete the project.
Step 4. Deep audit. Before starting work, a business consultant examines the external and internal environment of the company. For a small project, it takes 1-2 weeks. Here the consultant makes adjustments to the plan based on the audit.
Step 5. Compiling assignments. The business consultant draws up detailed terms of reference and instructions for responsible employees. It is necessary that he prescribes in detail all the necessary business processes and tools.
Step 6. Issuing tasks. Terms of reference and instructions go into the hands of responsible employees, and it is important to indicate to each employee the deadlines they need to meet.
Step 7. Interim meeting. To find out, “is everything okay?”. This is from the management control theory – you need to summarize the intermediate results. If they are not satisfactory, then adjustments to the strategy are made, and step 5-7 are repeated.
Step 8. Completing the project. The results are summed up if all the adjustments worked (or were not required). A business consultant makes a detailed presentation of his work and its results, showing “before” and “after.”
Large projects
Step 1. Brief. This step is initial for all projects. Problems are also discussed here, tasks are set, and desired results are indicated.
Step 2. Initial plan. Large projects have atypical problems, so there is no action template. Instead, the consultant generally sets the sequence of actions, tells what and how to do, and which of the employees will be involved.
Step 3. Making an advance payment. Since the project is quite laborious and long-term, it is necessary to make an advance payment. After that, the consultant proceeds to a deep audit, which, on average, takes from two weeks to a month.
Step 4. Making a plan. After carefully studying the situation, the consultant draws a step-by-step action plan. The result will be a physical document agreed upon at a meeting with top management.
Step 5. Signing the contract. Once management approves the action plan, a contract is drawn up. It should clearly state both the short-term and long-term results of the project. The more responsible the approach, the more levers of interaction.
Step 6. Compiling assignments. The principle is the same as in small projects: the business consultant draws up detailed terms of reference and instructions to be followed by responsible employees.
Step 7. Issuing tasks. The specialist issues TK to employees – a physical document, regulations, and a description of which procedures and tasks must be performed (appoint responsible persons, set tasks, determine deadlines, etc.).
Step 8. Intermediate evaluation of results. The specialist controls / corrects the actions of employees. If the results of the work are not encouraging, he makes changes. This algorithm is repeated from the beginning until the performer and the customer like the result.
Step 9. Completing the project. As a result, the consultant completes the work, makes recommendations, and the customer accepts the work. Short-term results are achieved, then the specialist develops long-term recommendations for the company.
Step 10. Payment for the services of a business consultant. After management accepts the short-term results of the project, the consultant is paid the remainder of his remuneration.
Step 11. Monitoring long-term results. Sometime after the completion of the project, there will be a follow-up meeting where the consultant looks at how the project is behaving in the long term. If there are problems, he leaves recommendations.
As you can see, big projects require more meetings, time, and labor. And as a rule, how long does the project last, and how much time does the consultant work with the firm?
In general, it is important for management to meet with the consultant as often as possible to supervise the work. But the minimum number of meetings for small projects is 5, and for large ones – from 8. Otherwise, everything depends on the terms of the concluded contract.
To hire business plan writers, you can also contact us. We provide the best business plan for a successful business.
What tasks does
They depend on the main goal. The specialist breaks it down into tasks and the tasks into subtasks (that is, he resorts to the goal decomposition method). For example, a business wants to increase profits. The consultant then determines how this can be done and draws up a decision tree.
Decision Tree
That is, he understands that there are two ways to increase profits (strategic alternatives): “How to increase income?” or “How to reduce costs?”. Thus, a scheme is obtained that reflects all possible options for action. In the case of the picture above, this is the division into subtasks of the items from “How exactly?”.
The final tasks that a business development consultant sets may concern all departments of the company and completely different specialists. And the correct thing, as I have already said, is to appoint responsible persons for each.
How to choose a CONSULTANT
The market for specialists distributing “magic beans” is completely legal and standardized. That is, for choosing an intelligent business consultant, there are some universal principles based on the experience and education of candidates.
- Experience
Internships, background, portfolio, well-known clients with a good reputation – all this is the practical experience of a consultant. However, many ” cadres ” have education and certificates but are completely incapable of growing “magic beans.” And the right system for selecting candidates will help to identify such moments, so let’s figure out how to evaluate the experience of a business consultant.
Council. Each selection stage can be used separately from the others. It all depends on how high-quality the selection you need. After all, the main thing is to find a specialist who will solve your problem.
1.1. Check experience in consulting companies
There are “Big Three” (Big3) and “Big Four” (Big4) of the largest international companies in the consulting services market. However, it is very difficult to get there. The competition for a place is 500 people (sometimes it is higher than for a budget place in a prestigious Moscow university). And not all the lucky ones maintain the working rhythm and can eventually become practicing business consultants. Therefore, consultants with experience in one of them are especially valued.
Even cooler if they received several promotion grades. However, such specialists’ wages are much higher than the usual market ones.
1.2. Conduct testing
In practice, as many as three types of testing are carried out: a theory test, a logic test, and a personality test. But you can just ask questions from your industry, for example:
- What marketing tools do you use the most?
- “How to calculate the effectiveness of the project?”
- “What are the key performance indicators for us?”
And also offer the consultant to solve a small problem that will show his knowledge and structural thinking.
1.3. Conduct a group assessment
For those who successfully completed the tasks, conduct a group interview to identify the best of the best at this stage: an assessment. It can be a business game or anything that allows you to simulate the desired situation. Watch how the roles are distributed in the group, who will become the clear leader, who will be the think tank, and who will be lost among the other participants.
Such selection in practice allows you to see how the candidate starts solving problems, how structural his thinking is, and how resourceful and optimal the solutions are.
1.4. Ask to solve a business case
The most illustrative method of evaluating experience. It can be used separately from all others, and it will reveal to you all the theoretical and practical skills of the candidate.
The bottom line is this: a business situation is modeled close to your field of activity. Then some time is given to decide. First, a business consultant must decompose the problem inside and out:
- Analyze the external and internal environment.
- Study the financial side of the issue.
- Formulate hypotheses and strategic alternatives.
- Choose a solution and.
- Justify it.
When evaluating a solution, pay attention to the depth of thought and breadth of thinking, and take a close look at the resulting metrics that the candidate believes are effective.
1.5. Evaluate the results of the candidate’s project
Experience perfectly confirms the existence and prosperity of the consultant’s business. Talk about how he leads it, how he manages it, what mechanisms he uses and how business processes are established. You can try to request financial results or sales reports. If the shoemaker is without boots, then go through other points for evaluating experience because this is not the only one.
1.6. Assess the quality of the portfolio and completed projects
If you are considering a candidate without experience in Big3 and Big4, pay attention to the effectiveness of the projects he led, general work experience and implemented ideas, project areas and customer reviews. Surely, such an applicant has a website or a blog – read what he talks about, what projects he leads and how he looks at business.
Education
The greatest demand is for specialists who have received qualifications in the TOP-5 universities of Russia. An especially demanding business, as a rule, is looking for a specialist trained in prestigious foreign institutions.
2.1. By business size
If you are a representative of a small business, then, by and large, the education of a consultant does not play a big role for you. However, Experience will be more important in your constant, and I have already told you how to check it.
But if you are a large business, and your company has weight in the market, then a consultant’s reputation matters here. After all, your competitors and, probably, the media are watching you – they will not miss the opportunity to highlight the difficulties that have arisen. But if you hire a business consultant with a prestigious education, a well-known name, and a broad background to help solve global problems, this will be a big plus for your company’s reputation.
2.2. In terms of certificates and skills
But there is another way to confirm professionalism – certification institutions for business coaches, analysts, and consultants. Although for specialists, this is not very necessary if they already have a prestigious education and extensive practical experience.
But it also happens that the candidate does not have a prestigious education, special certificates, and qualifications, but there are a couple of completed courses. But, at the same time, there is a lot of work experience, and it is clear that the candidate understands the issue.
This means that he has developed solid skills (knowledge of foreign languages, programming, and special programs) and flexible ones (self-study, time management, and negotiation skills).
Pay and hours of work
The remuneration is determined by the candidate’s experience, the task’s complexity, and the frequency of meetings. In addition, it is important that a specialist may be a member of the organization’s staff or maybe a free employee. The income of a business consultant can therefore be estimated.
Moreover, with payment for the project, everything is a little more complicated than a monthly one. Firstly, it is initially difficult to say how large-scale the project will be and how long it will last. Secondly, managers have nowhere to look at prices for similar services. So, there is a risk of greatly inflating the reward.
Important. Hire a specialist “on time” or hire staff – it’s up to you. But remember that a mercenary can look for problems where there are none and drain your budget.
Briefly about the main
Behind the excellent results of business, consultants are many procedures and processes. But, of course, if you find a good specialist. And in conclusion, I want to highlight the main points on the topic:
- Niche/versatility. If you want to get the most accurate analysis and solution to your problem, choose a specialist in a certain niche and direction;
- Meeting frequency. Regardless of the scope of the undertaking, every detail must be attended to the consultant should hold several meetings (on average 5-7) to analyze the results and adjust the plan;
- Hire a specialist. When choosing, rely on experience and education. You can check knowledge and skills in different ways, and the best in case solving or group assessment;
- Service cost. Varies based on the project’s scope and the consultant’s expertise. It is important to decide whether you need a specialist on staff or a hired employee is suitable.
Click here to read more articles.
