Oops! My consulting spend did it again.

"Control, control, you must learn control!" – Yoda

You broke in a cold sweat this morning when you looked at your quarter results. Your consulting spend has once again gone way overboard. How are you going to explain that to your boss?

Many executives have the feeling that the consulting spend should more or less remain the same for one year to the next. But unless your company also remains the same as well, which means no large-scale transformation, no cost reduction initiatives, no new market entry, no new product launch, this is not true. Your budget should fluctuate with your ambitions. Indeed, the consulting spend is there to support your strategic goals.

A sudden increase in your consulting spend can be justified if it coincides with the kick-off of a company-wide digital transformation project, for instance. Conversely, an increase in your consulting expenses while you are in a hiring freeze can signify that your managers are compensating with consulting.

Little padawan, this is not a unique challenge that you are facing. Many consulting buyers have been there before you. Just follow the words of Master Yoda: you must learn control.

But let me clarify. I don't mean that procurement (or any other entity for that matter) should take over the entire sourcing process for consulting services. A saying in French says:" Each its own expertise and the cows will be well looked after." It applies to consulting sourcing. Operational entities bring their business knowledge; procurement brings their sourcing expertise, and the consulting spend will be well managed.

Procurement should get control over the monitoring of the consulting spend. Consulting buyers need to know all the projects led during the year, who spend money, what type of project, what purpose, and what consulting firm.

Once have that information, you can start slicing and dicing to understand your consulting spend. Are your expenses relevant? Are they aligned with your strategy?

The only way to move forward is to understand why your consulting spend went off-tracks.

To learn more about these practical strategies, please check out the full article:" What went wrong with my consulting spend?"

As always, do not hesitate to reach out if you have any questions/wish to have a chat.

About the Author:

Hélène Laffitte is the CEO of Consulting Quest, a Global Performance-Driven Consulting Platform and author of “Smart Consulting Sourcing” , a step by step guide to getting the best ROI from your consulting. With a blend of experience in Procurement and Consulting, Hélène is passionate about helping Companies create more value through Consulting. To find out more, visit the blog or contact her directly"