Some Insights from my Consulting Journey

Introduction: What Consulting Means to Me

Consulting covers a broad range of services, from improving business processes to helping organisations grow and making people more performance-driven. In my work, consulting is not just about giving advice but about providing insights that can lead to real results. This article shares a few of my recent experiences, focusing on what consulting means to me and how it can benefit businesses.

Value Consulting: Setting the Context

In my work on Value Consulting, we focus on two main indicators for businesses: economic value and financial value.

Economic Value Indicator:

This is about understanding how relevant a product or service is to customers. It helps assess the value a business adds to the supply chain and how sustainable it is. This indicator provides insights into the true value a business offers in the market, which impacts its long-term success.

Financial Value Indicator:

This focuses on key financial metrics that market participants track. We compare these metrics with industry peers and advise businesses on how they can improve their performance. This becomes especially important when business owners, such as baby boomers planning for retirement, are preparing for an exit. Improving financial value takes time, requiring long-term planning and operational changes.

A Case Study: Resolving Indecision and Returning to Growth

I recently worked with a professional services organisation that had five shareholders. Each specialised in a different niche, but they were struggling with decision-making, for example, around how to allocate their marketing budget. They couldn't agree on whether the allocation should be based on revenue, gross margin, net margin, or another factor. This indecision was holding back their growth.

We stepped in to help by conducting research, holding discussions, and carrying out a benchmarking study. We identified the real issues that were causing the indecision and provided solutions that helped the shareholders agree on a plan. As a result, they were able to get back on track and move forward, which they greatly appreciated.

Value Consulting with a Clear Purpose

After completing the initial project, the same organisation asked us to do a value consulting assignment. They wanted to improve their financial metrics to increase their valuation over time. We analysed their business and provided suggestions on areas where they could improve their performance.

However, the shareholders also wanted to know if they were on the right track or if they should consider a new direction.

Knowing your Limits

This led to an important realisation—while we, as consultants, can give advice, we cannot provide the core purpose or the "why" of a business. That has to come from within the client. If a business owner is not connected to the purpose of their business, they might achieve short-term goals, but it will not lead to long-term satisfaction or success. The "why" and "what" must come from the client, not from an external consultant. We explained this to them and won their trust even more; knowing your limits and showing the right path won us a lifetime with the client.

The Importance of Taking Action

One of the key lessons in consulting is that results only come from taking action. As consultants, we can recommend the best practices, the right changes, and the most effective strategies, but it is the client who needs to act on these suggestions. It is important to define the scope of the consulting project clearly—whether the consultant is responsible for implementation or just for providing guidance.

Whenever I take on a project, I always try to see things from the client's perspective. I ask myself, "If I were in their position, would I engage this consultant?" This helps me stay focused on adding real value to the client. One of the biggest challenges in consulting is the gap between what the client expects and what is delivered. The solution lies in ensuring that the client takes action and that a proper system is set up to monitor progress.

Consulting for Long-Term Success

A successful consultant grows along with their clients. For a consulting project to succeed, it must lead to real benefits for the client. This requires setting up systems to track the progress of the recommendations and ensure that the expected results are achieved.

For those considering a career in consulting, this is a key takeaway—success in consulting comes from the real-world impact of your work. It is not just about giving advice; it is about seeing that advice turn into action. Continuous feedback from clients and refining your approach is essential for growth.

Your Feedback Matters

I hope these experiences help others understand the role consultants play, the boundaries that one should respect and the importance of action in consulting. Your feedback is valuable to me and will encourage me to continue sharing my journey and the lessons I’ve learned along the way.