What are the advantages and disadvantages of using an internal consultant as opposed to an external consultant to investigate a particular operating problem?

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“What are the advantage & disadvantage of using an internal consultant as opposed to an external consultant to investigate a particular operating problem”

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What are the advantages and disadvantages of using an internal consultant as opposed to an external consultant to investigate a particular operating problem?

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Alvin Chew hou ming        : 0359619

 

Introduction

External consultants come from outside the company, stay for the duration of the contract and then leave. An internal consultant is an organization development professional that is employed full time by an organization, and who reports to a general manager or other senior manager. In any event, both consultants have their own merits in their contribution to the client’s company. This article considers all aspects and drill in deeper in view whether client should engage either or both consultant in the investigation of a particular operating problem.

 

Advantage of getting external consultant to investigate

[Objectivity]

Advantage of using an external consultant in investigation is that internal politics entanglement & unnecessary paperwork could be avoided. And independent viewpoints are more easily generated by an outsider who is able to stand back from the company and objectively investigate & assess a particular operating problem. In getting an external consultant, investigation can be seen through a fresh eye that is not entangled in internal politics.

An external consultant can resolve sensitive, confidential problems and issues. After the investigation, external consultant can be a professional advisor, counselor especially to the Client over sensitive issues.  

[Fresh Feedback]

                                                                                 Fig 1

The above Fig1 shows the Johari Window. In quadrant II, shows the blind region, what others see and client do not see about. The best way of reducing this region is to ask for feedback. Ironically, it takes a long time for Quadrant II to reduce in size, because usually there are “good” psychological reasons, Client purposely blind themselves to the things they feel or do.

Customers, employees and suppliers are often far more willing to be frank with an independent entity than with company managers or internal consultants. These will enable the external consultant to investigate with high efficiency & accuracy, since external consultants are also trained to quickly assimilate the key business issues based on their experience with other companies.

 

[Focus]

In contrast to an internal consultant that works for an organization, external consultants have more free & unstructured time. As a consequence, they can be more focused in pin-pointing the client’s problem. Immediate daily operational pressures affecting current business performance may take a lot of management effort. Client may complain little or no time to devote to the potential opportunities that could underpin the company's future.

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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 ...

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