How can management consultants help organizations increase their profits?

Consultants need to better define the value they create and capture a fair proportion. Day rate is such an outdated model and creates poor behaviours. Much better approaches include revenue share for uplift / cost reduction created ontop of fixed fee base engagements

If stakeholders listen, an outside voice and POV can be very valuable. Need to make sure scope of work is targeted with timelines and deliverables. Fractional workers can save companies a lot of time and money.

One of the best contributions a management consultant can make is to amplify the voices of key people at a client. They don't always get heard in all the noise of a large organization and are often too busy making things happen to get the support they need to do even more. Showcasing the quieter talent to the management team not only increases their impact but also creates the high-performance culture most clients are looking to improve.

Management consulting can help firms in a variety of ways including: - Developing and implementing winning strategies to achieve firm goals. - Analyzing the organization's current situation, identify key issues and challenges, and propose a solution and recommendation. - Improving performance including improving efficiency, reducing cost, improving customer satisfaction,...etc. - Managing change effectively - Improving operational efficiency - Increasing sales and revenue by developing and implementing effective sales and marketing strategies.

As an advisor we need to identify what businesses don't do - and find out what it takes to do a little of what they don't - then see what happens. A way of looking at it is to stop doing things that doesn't add value or give the expected outcome - ask and listen. By doing less you get time to find out. So, two simple questions; what to stop doing and what to start doing.

What's really important is that the proposed solutions are pragmatic and ones the client can actually implement. Too often consultants seek elegant solutions that are brilliant in an ideal world but that the client cannot implement. It's always better to have a grubby solution that the client can relate to, and can fully implement, even if at a stretch. Consultants need to go beyond their solution and visualize their client implementing...and if they can't, then propose an alternative solution.

Management consultants usually are a third eye and that helps them spot the blind spots. These blind spots can be because of ignorance, oversight or even confirmation biases. Ironing out these challenges help bring efficiency, operational effectiveness & customer experience leading to higher profitability

True value is attained by the execution of a good strategy. As the old proverbs say "the proof is in the pudding", "it's when the rubber meets the road", and this is when "the fun really starts" as real-world challenges reign over spreadsheet forecasts and theory. A management consultant is like a fitness coach... you could go to the gym yourself and leave after two hours maybe having lifted weights and most likely wondering around trying to figure out what to do next... or you can take a class with a fitness coach guiding you in what to do which allows you to focus on the activity to be done, leaving after 45min feeling sweaty, accomplished, and ready to take on the world!

A strategy is considered successful only if its implemented properly. Hence it's imperative to do a thorough assessment of the impact of proposed strategies on the growth with scenario analysis and simulation techniques. Once the management decides to go ahead with the implementation, the Management Consultant can assist in the proper execution of the same with time-to-time monitoring. This proactive monitoring can not only allow an assessment of how much the goal is achieved but can also keep a check on any deviation from the expected results which may be due to factors such as unexpected market conditions, deflection from assumed inputs etc. Hence the strategies can be further changed or tweaked to incorporate the new inputs.

In addition to bringing good practices, a fundamental contribution from management consultants refers to lessons learned. In other words, showing where others went wrong and what can be learned from it. Thus contributing to creating a culture of learning from mistakes, whether their own or those of others, which is also essential to sustaining innovation processes.

Management consultant need not to be an expert in a certain field but a jack of all trades who has a diversified skillset and can bring different perspectives into the table to make discussions more enriching and to identify loopholes if any. More the variety of skill and experiences with different clients the consultants have , the better they can contribute to the overall vision or the strategic discussion about a topic and therefore can create more value.

Indeed, this is a crucial and often overlooked value proposition of consultants. Beyond immediate solutions, they empower organizations to think differently for the long haul. For example, a tech firm might be struggling with product innovation. A consultant might not only help ideate a new product but also introduce brainstorming techniques, innovation frameworks, or even set up an internal "innovation lab", ensuring the company continues to innovate long after the consultant's contract has ended.

Contribuir en la transformación cultural de la compa?ía, desde los usos actuales a los que, realmente, pueden servir de palanca para conseguir los objetivos de la compa?ía, es un elemento clave en la consultoría. A través de la cultura creamos la base necesaria para construir todo el resto de mejoras en la estructura de gestión de la compa?ía. Sin cultura, se podrán definir muchos otros cambios, pero si no encajan con la que esté establecida no funcionarán.

Nothing is more powerful than sharing a case study that mirrors what your client is looking to accomplish. When you have a specific example of where you have helped another client in a similar manner, that illustrates your subject matter expertise. Which is EXACTLY what they are paying you for in the first place.

The challenge for consultants is to build a trust relationship, not just with senior management but to the middle and operational levels where the change will happen. Too often consultants are viewed by the rest of the company (excluding senior management) as executioners with only theoretical knowledge. In my experience consultants must engage (and listen) with all levels in an organisation, and make sure the operational levels understand the need for change. If this fails, the resistance and animosity against the entire project can be huge and can be a show stopper. Though their will always be a top-down push, every effort for bottom-up involvement and buy-in must be done

The keys to building trustful and meaningful relationships that drive profit for clients are skill-issues: 1. Directed discovery – having strong mental models to discover against that leverage long-term value. 2. Curiosity habits – asking the right questions before answering/replying/giving the answer, to uncover the deeper why behind initiatives 3. Elevate from transactional to strategic – take extremely tactical concepts and couch them in higher "what are you really trying to do" type concepts to more deeply impact the organization's direction and profit

Of building trust and relationships, building trust is not a major concern as your engagement indicates the trust. But the major challenge is to develop the relationship for a long-term partnership is very critical. 1. Demonstrate Expertise & Intent with Intensity 2. Communicate Effectively 3. Be Reliable and Consistent 4. Encourage and Build Personal Connections 5. Show Integrity and Ethics 6. Provide Customized Solutions 7. Foster Collaboration and Teamwork 8. Deliver Consistent Value 9. Accept and Act on Feedback Converting the Trust to Relationship and Relationship to Partnership is the game.

Trust will not only help consultants establish credibility, but it will also encourage confidence in the recommendations given by the consultant leading to taking meaningful actions towards change and improvement. Consulting is a relationship-based business, thus fostering trust can lead to better collaboration and understanding of the clients’ needs.

El Consultor aporta valor permanentemente, si no fuera así "pierde" al cliente, a diferencia de un empleado de la compa?ía que con un sueldo fijo, puede atravesar momentos de mejor o peor desempe?o, resultando mas difícil la decisión de desvincularlo. Por esto el vínculo empresa-consultor tiene que ser de confianza y crecimiento compartido.

Learning and unlearning is the key and as the phrase goes you adapt or perish in the journey to come. Hold the horses and make it work

Hoy hablar de aprendizaje, adaptación al cambio y plasticidad neuronal es común y necesario en cualquier ámbito profesional. El Consultor debe estar permanentemente estudiando tendencias de mercados y tecnologías para poder ayudar a las empresas a innovar y no quedar desactualizadas.

Consultants equip organizations with the ability to set financial goals, allocate resources wisely, anticipate market shifts, and mitigate risks. This does not only make an organization more responsible, but also resilient in the face of uncertainties. Organizations that focus on these components are well-positioned to navigate challenges, seize opportunities, and maintain a competitive edge. Consultants integrate performance metrics into the financial framework and help organizations gain a holistic perspective on success, incorporating both financial achievements and non-financial indicators.

Innovation: In the workplace context, innovation translates to the capability of creating fresh ideas and solutions. It involves finding unique strategies to deal with challenges and capitalizing on opportunities. Adaptability: Adaptability, on the other hand, defines a firm's agility and resilience.

Consultants help you see the big picture from an unbiased lens. They help you navigate towards blue oceans and bring in out of the box thinking! Employees tend to listen more to outside consultants as we don’t bring any internal biases, history or corporate rivalry! Consultants also provide a listening ear often blurred internally by hierarchical borders! And among senior management, often they need a sounding board without wanting to look silly and consultants provide that platform with no judgement.

Everyone aways says the one constant in life is change. I propose it's hubris. In all my years of management consulting I've witnessed countless organizations tout their uniqueness as the basis for the business decisions they make. Inevitably they've led to failure instead. Bringing an outside perspective and the ability to demonstrate how other organizations have addressed and solved the same problem leads to new and improved decision making and outcomes. I always say, don't look at how your competition solved the problem, look at how a stranger did.

Leveraging our extensive experiences, networks, and resources is a core advantage for our clients. We tap into collective expertise and cross-pollinating learnings, enabling our clients to make more informed decisions and execute with confidence.

One thing I have learned the moment I switched from consulting into corporate roles I really think should not be neglected - even though not necessarily linked to increasing profits: The moment uncomfortable decisions have to be made or communicated, organizations or specifically individuals start destroying their basis of good cooperation. Insights have to be made transparent and decisions have to be made - however do to sacrifice your personal relations and good climate - employ external consultants to transport the bitter truth. One could even argue that this is the only real reasons for external consultants to exist!

Leveraging networks and resources is essential for business success. Cultivate strong professional relationships with industry peers, clients, and partners. Actively participate in networking events, conferences, and associations. Collaborate with others to access knowledge, expertise, and potential opportunities. Seek mentors and advisors to provide guidance. Tap into shared resources and support, such as co-working spaces, incubators, or industry-specific associations. Utilize online platforms and social media to expand your network. Strategic partnerships and resource-sharing can enhance your capabilities, market reach, and overall success.

Management consultants can help organizations increase their profits by leveraging their networks. Some examples of this are; Benchmarking - Consultants can tap their databases of best practices and key performance metrics across industries to identify high-potential areas for improvement. Sourcing talent - Access to specialized interim executives, subject experts and recruitment channels to source hard-to-find skills. Vendor selection - Recommend vendors best suited based on client needs, reducing search/risk costs. Financing options - Guide capital decisions and deals. Peer-to-peer learning - Convene clients through roundtables, introductions, and best-practice showcases so organizations can learn directly from each other.

a. Don’t force consultant for unreasonable timeline, change is a process involving humans and cultural challenges. b. As decision of hiring consultant for an assignment is a business need, give consultant full autonomy. Any Negative feedback existing team is sign of resistance , deflect it firmly. c. First introduce change in the leadership team, then with the help of leadership team attempt transformation the team. Replace a team member who resist the change. d. Staggered , Fixed & Milestones linked Compensation, timely payment & without follow up. e. Have a list of strategic changes needed, growth expected out of change. f. Decision of hiring consultant based on credentials, than L1, g. Mutually agreement & notify Milestones

A senior stakeholder in a client of mine once quipped "Sayak, for the rate you are billing us, I can get a truckload of people." I quipped back "You'll need someone to tell them where to go and what to do, and that's us!" As consultants, we should not forget why we were hired in the first place. Budgets and billability aside, consultants add tremendous value to organisations in a very short space of time. This is done through several factors contributing in the right way. Last thing one would want to happen when consulting, is to forget why you do what you do!.

Corporate immunity - a significant area still without a holistic approach. In the management systems, areas like quality and environment are well established and covered. But with corporate security and immunity, it is not a case. There exists only particular standards, like ISO 27001 for IT, 45001 for OHS, 22301 for continuity and so on. Risk management itself doesn’t provide a good immunity because it treats only recognised risks - it is not a part of daily routine of most employees. Therefore, huge problems occur, like Dieselgate, 737 MAX or Enron. All those companies had good standards but poor immunity. This is a call for consultancies and us in TIC sector to work together on the creation of a corporate immunity standard.

Like all management consultants, I worry about my fees rates - are they too high or too low. As a self-test, I commonly ask my clients to tell me their value in terms of the market rate per hour - 'What would they charge if they were billing out their salary by the hour?" I then ask them to treat me like any investment. How much time do they save by purchasing my time? It always turns out to be a bargain.

Of course Good Consultants can definitely help Organisations to Increase their profit in Right Way. Role of Company Management is very Important in this.. Company Management has to follow the sequence of, > Identify the Issues / Pain Points / Problems > Identification of Good Consultants > Share the actual and complete details with consultants and define the scope > Set the Final Expectation of Project > Provide Technical & Management support to Consultants throughout the project > Review of Project updates on periodic interval > Set-up easy change approval system implement on approval One thing is Consultant must have to act as an Doers and Extra hand support during Project. Good Consultants can definitely bring change. Thanks