When the crown is on clowns the games the “Corporate Consultants” play!

This article is an extraction from a detailed paper that I had written for an International HR Forum, on the subject of "unethical practices of the Corporate Consultant in today's business world".

Corporate consultants play a crucial role in advising businesses on various aspects of their operations, strategy, and growth. In Sri Lanka, a majority of the “Private Limited” Companies’ tend to depend on Consultants in various subject streams. Once a consultant is engaged and he/she enters the Organization, ownership of such Companies tends to reach out to these so-called subject experts for advice on all aspects of Management; even for the most trivial matters; forgetting the original scope that the Consultant was engaged for. Not that this does not happen in PLCs, etc., yet in my experience, not so much.

Like in any profession, there are instances where the actions of corporate consultants have raised ethical concerns, using the opportunity presented to them to exploit. As a consultant myself, and a part of the Senior Management in many Organizations, I have seen this from both sides of the table, and can vouch that not all consultants engage in such behavior. Ultimately, the success of a consulting engagement depends on the professionalism, integrity, and mutual respect between consultants and managers, as well as a shared commitment to the organization's best interests.

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This article aims to shed light on some of the misdeeds that have been associated with certain corporate consultants, highlighting the need for transparency, accountability, and ethical practices within any industry.

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1. Conflict of Interest:

One of the primary concerns surrounding corporate consultants is the potential for conflicts of interest. In some cases, consultants may prioritize their own financial gain over the best interests of their clients. This can lead to biased advice, recommendations that benefit the consultant more than the client, or even the misuse of confidential information.

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2. Lack of Transparency:

Transparency is crucial in any consulting relationship, yet some consultants have been known to withhold important information from their clients. This lack of transparency can hinder the decision-making process and prevent clients from making well-informed choices. It is essential for consultants to provide clear and honest communication, ensuring that clients have a complete understanding of the advice and recommendations being provided.

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3. Overcharging and Unfair Billing Practices:

Another area of concern is the issue of overcharging and unfair billing practices. Some consultants have been accused of inflating their fees or charging exorbitant rates for their services. This can create financial strain for businesses, especially smaller ones, and erode trust in the consulting profession as a whole. It is crucial for consultants to establish fair and transparent pricing structures, ensuring that clients receive value for their investment.

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4. Lack of Accountability:

Accountability is a fundamental aspect of any professional service, and corporate consultants are no exception. Unfortunately, there have been instances where consultants have failed to take responsibility for their actions or provide adequate follow-up support. This lack of accountability can leave clients feeling abandoned or dissatisfied with the services received. Consultants should prioritize accountability by addressing any issues that arise, rectifying mistakes, and maintaining open lines of communication with their clients.

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5. Undermining the authority and expertise of the management

In some cases, consultants may act in a way that could be perceived as undermining the authority of managers. This can happen if consultants prioritize their own interests or if there is a lack of clear communication and alignment between the consultant and the management team.

To mitigate this risk, it is crucial for organizations to establish clear expectations and guidelines when engaging consultants. This includes defining the scope of their work, establishing open lines of communication, and ensuring that consultants work in collaboration with managers rather than against them. Additionally, regular feedback and evaluation processes can help identify and address any potential issues that may arise. Most importantly, The Board of Directors or any governing body that would engage a consultant should not undermine the management at any given time.

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Conclusion:

While the majority of corporate consultants operate ethically and provide valuable services to their clients, it is important to acknowledge and address the misdeeds that have occurred within the industry. Though a consultant is an expert in one area, that does not mean that they are so in other areas. Mostly as long as the search engines provide information, and they have a nice way of presenting themselves, given an instance the management is considered lesser than the Consultant by the Ownership, such actions by an unethical consultant are inevitable. Transparency, accountability, and a commitment to ethical practices are essential for consultants to build and maintain trust with their clients. By promoting these values, the consulting profession can continue to evolve and contribute positively to the success of businesses worldwide.

Omal R Kaluarachchi

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