Management consulting has been proven to be a lucrative career. It has grown significantly in demand these past decades. If you are planning to consult or establish a career in this field, you should know its fundamentals.
The ever growing and volatile economic conditions have in one way or another paved the way for small or large scale organizations to enlist the help of management consultants. The companies have benefited from their services over the years. They have found the recommendations to their problems useful in the efficiency of their business. Below are some information you can make use of as you pursue this career path.
Types of Consultancy According to Employment
There are two types of consultants that provide solutions to organizational problems: external and internal. Both types are expected to be equipped with the knowledge and skills necessary to help improve the company’s performance. External consultants, having been exposed to a lot of situations, are expected to have more varied skills because of their experience. They work independently or are hired through management consulting firms like Bain, Booz and McKinsey.
On the other hand, internal consultants are usually employed by the company on a permanent basis. Some organizations prefer this setup since it’s more cost-effective. They are expected to be adept in that particular industry because of their familiarity and experience with the regular operations. Their recommendations are also based on the culture of the company, which in most cases are more practical.
Tools of the Trade
Being equipped with the necessary competencies to address problems is of great value to management consultants. They must know the history of their client, utilize the various consulting frameworks and possess analytical, data gathering, presentation and negotiation skills. Companies always want to get a good value for their money, which is why they pay the premium to hire the best. It is given that they are computer literate, graduated from a reputable university and have the courage to rise to the challenge.
As management consultants, part of their job description is to improve the performance and output of companies by solving problems and developing recommendations. Their primary role is to give advice and share their expertise. This includes knowing the best practices in the industry that serve as the benchmark in the implementation and improvement of a specific condition. It is assumed that they have the exposure and experience within a variety of organizations. This includes knowing the best strategies, plans and whatever works best in a given scenario.
Much is expected from management consulting firms because the inputs consultants give are very valuable to the company or organization. They know the basic management principles, above all else, to be able to handle this work effectively and efficiently.