Modern market relations and technologies are developing rapidly. In an environment of high competition and growing consumer demands, it is very difficult to adapt and change a business strategy in a timely and productive manner.
Therefore, not only international companies, but also medium-sized, small entrepreneurs, government organizations turn to consulting centers. Consulting - what is it? Why are tens of billions of dollars spent annually on it?
Consultant is an ancient profession
Translated from English "consulting", means - consulting. It has roots dating back to the distant past, remember the seven sages of ancient Greece or Confucius. But as an independent profession, counseling began to take shape only at the beginning of our century.
The 20th century was marked by the emergence of professional pioneer consultants, such as F. Taylor, A. Little. The first consulting services organizations were opened by T. Perrin and G. Emerson.
Later, in 1914, E. Buz founded the business research service Buz-Allen and Hamilton. The first consulting enterprises focused on resolving problem situations in the workplace, organizing work processes, and cutting costs.
Consulting What does this mean today?
Modern consulting provides for the provision of advice, advice and assistance in management matters. This is an assessment of complex situations and opportunities, preparation of measures for their implementation.
Consultants are divided into external and internal specialists. External are independent organizations or entrepreneurs providing consulting services under a contract. Internal are full-time specialists, analysts.
Consulting specialists have a number of strengths that are not always present among corporate managers: independence, an unbiased, “unencumbered” look; a wide range of interests, the ability to access an extensive information base. They are less loaded with turnover and management problems. A significant advantage of such specialists (external) is work experience in different organizations.
Consulting business
Consulting as a line of business is relevant and promising. It is a professional assistance provided by qualified specialists in the analysis of managerial problems and the implementation of measures to optimize the work of the organization. Its feature is the objective view of a professional from the side, which is so appreciated by top managers.
Consulting is the provision of various services to organizations in such functions as:
- financial and economic activities of the company, taking into account all factors;
- management and investment;
- strategy planning;
- market analysis and forecasting;
- marketing programs;
- anti-crisis measures;
- assessment of objects and much more.
All areas of consulting are closely related. Thus, the main goal of consulting is to improve the quality of management and enterprise efficiency, increase the productivity of each employee.
3 stages of consulting
1. Diagnosis of problems | 2. Problem Solving | 3. Application of innovation, know-how |
Business process analysis | Development of plans and determination of prospects for the development of the organization | Innovations in economics, management, production technologies, taking into account the features of the organization |
3 styles of counseling
Counseling | Consultant Activities |
1. Expert style | The specialist offers a solution, but does not give comments or explanations. Consultation reflects only the essence and content of the problem |
2. Educational style | The specialist communicates the solution along with the necessary explanations and comments. The consultation reflects the content of the problem situation, including customer training |
3. Process style | The specialist assists in resolving organization problems. During the consultation, the client receives assistance in identifying the problem, its essence and organization of the solution. The client independently chooses the procedure and uses knowledge in practice. Thanks to process consultations, he develops the ability to work with specific problems. |
Financial consulting. What it is?
A study of the financial position of an organization involves evaluating the viability, capital mobility and asset operation.
Consulting is a combination of analytical and advisory services. In the field of finance, he aims to create a stable system of financial management of the company. Professional financial consulting. What is it and what directions can it include?
- qualified analysis and audit of all areas of activity, production and investment;
- recommendations on financial planning, budgeting;
- development of methods for the development and strengthening of the financial system.
Consulting in the field of investment is associated with the design, creation of business plans and programs for investment activities. Strategic financial consulting is consulting on the development of a strategy, choosing the optimal composition of capital and increasing its value.
The direction related to management accounting implies the creation of a financial, budget, investment management structure and an economic valuation department.
Management Consulting
Management consulting is a process aimed at creating new forms and mechanisms of management, setting up and optimizing all processes within an enterprise.
The goals of management consulting are:
- strategic management consulting, staff training;
- solving management problems;
- search and use of unused opportunities;
- achievement of corporate goals;
- implementation of the proposed innovations in the enterprise.
Management Consulting Areas
1. Strategy | Analysis of the state of the enterprise, determination of goals, programs for their achievement, development of a strategy |
2. The program | The main business processes of the company are being improved taking into account the specifics of the organization and are included in the action program. Business Process Engineering |
3. Structure | The optimal organizational structure for the implementation of business processes is selected |
4. Accounting | Based on the structure, a system of management accounting and budgeting is formed |
5. Staff | Business processes determine the content of the staff list and the list of competencies of employees. Motivation |
Thus, management consulting is help in the development of strategic plans, management methods, standards, incentive programs, improving the structure and coaching.
Marketing Consulting
Marketing consulting is consulting on conducting marketing, organizing promotions and campaigns, and building business communications.
Advertising is an investment in product promotion for maximum profit. The marketing company needs to be weighed and calculated. In fact, many organizations overpay up to half of the total budget spending on advertising.
The main goal of consulting in this area is to increase sales and reduce the costs of self-promotion of the organization.
The tasks of marketing consulting include:
- evaluation of an advertising company;
- optimization and minimization of the budget;
- search for effective media channels.
The work of a consulting firm begins with a marketing audit of the organization. Then follows the development of strategies, tactics and positioning of the product, service in the market. Consulting involves regular counseling, assistance in achieving your goals.
Investment consulting
Investment activity consists in the justification and implementation of effective areas of capital investment. Its basis is a sound investment policy.
When choosing investment schemes and raising capital, it is beneficial for managers and investors to rely on professional recommendations provided by investment consulting. What it is?
Investment consulting is a professional help in choosing:
- options for more efficient use of property;
- capital flow schemes for the development of an organization or project implementation.
Investment consulting is:
- the introduction of mechanisms to protect the interests of the enterprise, to ensure guarantees;
- negotiation services with banks, insurance companies and authorities;
- development of investment projects and financing schemes;
- forecast of capital flows;
- assessment of the effectiveness of investment areas and recommendations on financing methods.
In addition, investment consulting includes measures to find and attract investors (corporate financing), management and legal support of investments.
HR consulting
Maintaining personnel records, organizing paperwork, document management, labor relations and applying labor legislation are the areas of activity that directly affect the performance of any organization.
Professional consulting on personnel matters is gaining more and more popularity. Human resources consulting is a wide range of services: from diagnostics and analysis to the development and implementation of personnel policies.
- Recruiting, outsourcing staff.
- Certification and rotation.
- Formation of personnel policy, corporate culture.
- Personnel accounting, audit, document management from scratch.
- Registration of labor relations in accordance with legislative standards.
IT consulting
Project planning activities in the field of information systems, creating a system project and applications is called IT consulting. There are quite a few areas of his activity. Its main goal: high-quality IT infrastructure that meets all the needs of modern business.
Professional IT consulting, what is it and what are its tasks?
Firstly, the creation of an IT strategy, a plan for the development and maintenance of information technology at the required level, taking into account the needs of the business.
Secondly, the definition of requirements for ensuring the IT infrastructure of the organization and the identification of problems. Thirdly, the search for IT-solutions that meet all the objectives of the organization. And finally, the development of a model of the company's information system.
10 differences between a successful consultant and a layperson
Professional Consultant | Non-professional consultant |
- He studies the information on the client’s activities in advance.
- Offers are specially prepared for the client and take into account the features of the organization.
- With cooperation, he immediately helps the client with new ideas, gives advice.
- Reports new thoughts and decisions with confidence.
- When communicating, shows knowledge of the terms, data or production situations of the client's enterprise.
- He speaks out and asks questions, paying attention to the opinion of the client.
- He is able to listen.
- Organizes various areas of work, informs about their features. Willingly agrees to personal meetings.
- Demonstrates knowledge of the situation and the problem. He always answers additional questions.
- It takes into account and remembers the opinion of the client, does not disregard his objections.
| - Not prepared in advance, but learns from customers about the situation in the organization and the facts.
- The proposals that he developed are generalizing, standard in nature, as in the advertising of a consulting firm.
- It emphasizes its achievements and does not act as a partner.
- He expresses new thoughts reluctantly.
- Demonstrates work experience in organizations from the same industry.
- Speaks peremptorily.
- He talks a lot, but listens a little.
- Consulting work is carried out in only one way, communicating more with the client in writing.
- Performs with the prepared text without interruption.
- Statements of the client does not take into account, ignores objections.
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Regulators and consulting standards
Market structure |
Regulations at the state level that directly or indirectly regulate the market | Unions of consultants and managers (operating in more than 40 states) | General rules for the provision of consulting services in force in many states. ISO - 9000 (for the European Union) and others |
Internal rules for the hiring of consulting specialists adopted in the EU, the World Bank, the EBRD, etc. | Consulting Firm Internal Rules | Internal rules of client organizations |