Here, external consultants can be the answers to an urgent need for outside help. External consultants not deviated by immediate daily operational pressures will certainly remain more focused on the investigating project.
[Efficient]
As an external consultant, they are seen as an expert in the particular field, with special qualifications and skills. They are exposed to many similar, even more complicated issues in many different companies. Having face the similar problem numerous time, their specialist skill in investigation far exceed internal consultant. Thus, they are more efficient in getting the things done and able to reap the best results in the given time frame. External consultants also have the advantage of being experienced observers and analysts which allow them to challenge previously established position or way of thinking in the client company. They can justify the client’s decisions that are already made.
The required resource or skill base not being available within the organization and there is no justification for introducing a permanent position. External consultant offer a one stop temporary professional service and the client do not need to resort in employing a full time consultant at a short notice.
[Expert]
External consultants are more exposed to the state-of-the-art technology in investigation. As a specialist, they have developed numerous market-proven investigation tools and techniques that will enhance their capability. Internal consultant may solely rely on “bench-marking” based on their experience, but are not able to engage in knowledge production. Knowledge production may only be feasible in larger consulting corporation in the long run that is able to maintain their own research & development division. When an external consultant can employ proven methodologies, the client will have no need to set up a department to experiment with the organization and lose time, effort and credibility. Moreover, external consultants can cross-pollinate good practice from other industries or markets
External consultants can acts as coaches to support client in changing deep seated behaviors when it is call for (which may be a difficult task for an internal consultants), enabling the client to act in new ways to achieve business outcome. They are also able to show participants (clients) how to continue this process on their own, with the support of others (internal consultants) within the organization.
[External Network]
As an external consultant, they are obligated to work at the client’s timetable. They are often willing to cut back their recreational time or other commitment even if their normal workdays don’t end until the wee hours. They are aware the risk of a dwindling client base and are always eager and keen to establish a good client-consultant relationship. In the midst of marketing their company; they are willing to forged strong links with their clients and treat them with respect and honor.
In addition, external consultant having more external networks will know where to obtain appropriate additional resource on a contracted basis when required
Disadvantage of getting external consultant investigate
[Price]
Engaging an external consultant in investigation can be very expensive ranging between US1, 000 to US5, 000 a day. It is not a good allocation of economic resource in the midst of investigation, since external consultant comes with external expenses (office space, equipment, insurance) which the client company can supply the similar resource at a cheaper cost since they are shared by a pool of employee.
[Black Sheep]
Despite the prevalence of perfectly respectable & honest consultant, black sheep does exist in the discipline. Even when their credential are thoroughly checked, their skill in investigation may prove to be mediocre & unsophisticated
[Conflict]
Between the external consultant & their employee or partners, both may use different approach to investigating. This can be problematic as it causes huge disruption to the operation of the client business.
External consultants may take a long period of time to investigate the underlying problems if the client’s company has a complex organization structure. There may be confidential issue involved and this would demand external consultant to pledge not to disclosure company sensitive issue
Advantage of getting internal consultant to investigate
[loyalty]
Internal consultants would not only know the business better but possess greater loyalty to and understanding of the company’s culture, system, processes, structure, products and customers. All this important element would take time before the external consultant understand it and begin their investigation
[Internal Network]
They have an established network of relationships and know how to get things done quickly. Client’s internal consultants understand the business already and are often familiar with the issues and concern that employees and manager have. They also have access to the organization’s key stakeholder and have developed a level of credibility that is crucial to the success of any investigation.
They understand the cultural environment and are committed to helping the organization succeed. In addition, internal consultants are well aware of the budget and restrictions that business unit face as well as the internal politics that need to be overcome. Internal consultants can use their organizational knowledge & human resource (people) skill to investigate a particular operating problem. By developing targeted investigation, internal consultants can successfully develop partnership with manager & employees to discover the root problems.
The employee would have no fear of disclosing confidential issue with internal consultants alongside the investigation. The internal consultants can relate to company operations better and is well aware of past company history.
[Cheaper Prices]
Internal consultants are comparatively cheaper compared to external ones to investigate a particular problem. Internal consultants are at a better position to learn from established consultancy firm in the investigation skills. In the attempt those consultancy firms try to keep their knowledge a secret, internal consultant could re-engineered or network with the firm to gain access to this new knowledge. In this way, using in-house consultant helps to retain all the intellectual capital a project generates In addition, this new investigation tool can later be recycled by the client internal consultant in other different scenario.
[Prevention in the loss of knowledge]
The investigation can be conducted by external consultants assisted by internal consultants. Having a group of internal consultant in the investigation, intelligent firms can create their own proprietary knowledge both in investigation & problem solving skill. With the growth of the “knowledgeable company and knowledgeable management”, the expertise of external consultants will not be often needed. And at the end of their assignment the intellectual capital accumulated from the project wouldn’t walk away with the hired guns- nor would corporate secrets and proprietary knowledge wind up in the hands of competitors who later hire the same consultants.
With some training and on-the-job experience, internal consultants could broaden their skills and contribute to many other departments. Once they establish a track record in both investigation & problem solving, they may even be able to lead the company through many of the vital changes it needs to make in order to grow and compete.
Clients could have multiple internal groups of consultants. This group may focus on a narrow range of skills, such as information systems development or manufacturing, or contain generalists able to jump in to investigate a particular operating problem wherever they’re needed.
Disadvantage of getting internal consultant to investigate
[Part of the system]
Internal consultant may be entangled in the existing political climate of the organization; this can directly affect his/her work in investigation. Reputation and visible relationship with key department impact trust levels, as such, they in turn impact the willingness of respondents to tell the truth during the phase of data collection. The internal consultant would have to weigh the issues of status, trust and likelihood of respondent truthfulness when determining methods of data collection.
Internal consultants reporting to general managers enjoy more status than similar job levels reporting to the human resources function. Depending on his/her hierarchy in the company, if the internal consultant reports directly to the HR manager, he/her might encounter difficulty in investigating, interviewing the top management. The internal consultant’s status resides in the position level and reporting relationship within the organization, ultimately they are still part of the system/”problem”.
Conclusion
Before the Client engages both or either external or internal consultant, they will need to analyze, question and consider both advantages and disadvantages that these experts would bring. Where have the consultants demonstrated their abilities? What project management experience do the consultants have? Have this consultant coach upper management before? In short, which consultants are more efficient and effective in investigation?
It is always better to get alternative views & opinion. But this is only possible if budget is enough to engage both internal and external consultant to investigate the same operating problem.
The end results in hiring any consultant should be improved productivity, quality, customer service, and/or profitability. Clients should comprehend that there will be a timeframe in systematic implementation planning to accomplish these results. The selected best consultants have in the past managed long-term complex implementations and have contributed to bottom-line results. In understanding these, Clients should not forced quick/immediate results but to have in faith in the external consultants they hired.
Being a Client, it can seem like a very lonely job at the top and having an external consultant that is not entangle in the company politics can surely provide a trusted confidant and friend in dealing organization issues.
Last but not least, the chemistry that exists between clients and any consultants are vitally important. Skills and experience are definitely required to assist an organization in making lasting changes. However, if client overlook the chemistry factor, the whole consultation process would become a failure.
Bibliography:
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Clark, Timothy (1999), Managing Consultants: Consultancy as the Management of Impressions. Open University Press. Buckingham, United Kingdom
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Lacey, Miriam Y (1995), Internal Consulting: Perspectives on the process of planned change 3rd (Revised) Edition. International Labour Office, Geneva.
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Schein, Edgar H. (1999), Process Consultation Revisited --- Building the Helping Relationship. Addison Wesley OD Series. Reading. Massachusetts
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Smith, Roger C. (2000), Mind for Hire --- A Practitioner’s Guide to Management Consulting. UWA Press, Perth