In the late 1800s, business schools in America presented academic principles for management as a discipline. The birth of management studies initiated further studies in business administration. Almost immediately, graduates went into business – the consulting business.
Results spoke for themselves. Third-party experts (with high-level academic knowledge) mentored business owners toward cost reduction and scalability.
Today, management and human resources consulting continues to unlock greater performance among organizations that seek it. Michael Garrow – a educational administrator turned HR consultant – explains how and why consulting is critical and successful for organizational success.
Diagnostics: What’s the problem?
It is very common for leaders to see poor or mediocre results and not know exactly how to course correct.
When decision makers spend all their time inches away from their business, it can be almost impossible see deeper issues, either due to being too close to the issue or due to missing important information. Because of this, many business leaders lean upon consultants to help them see an alternative perspective of the problem at hand.
Michael Garrow frequently enters a situation able to notice some success hindrances right off the bat. His external perspective sheds light on root issues. He knows what questions to ask from leaders, managers, and lower level employees.
Thankfully, many organizational issues are easily resolved with a few minor adjustments. Companies that hire consultants early on save thousands of dollars on troubleshooting before they eventually stumble upon the real solution.
GAP Analysis: Do our decisions match our values?
In business, the GAP analysis helps decision makers perform an audit of their own business. Consultants like Michael Garrow make regular use of GAP analysis tools for early fact finding.
This approach seeks to understand what are the organization’s stated goals, how far away that organization is from reaching those goals, and the reasons why goals are not being met.
Done well, a GAP analysis can show leaders the following:
- Whether or not certain values/objectives are realistic or authentic;
- How resource allocation is or is not focused on the right objectives;
- Where waste exists;
- Which leaders are or are not a good fit for the organization; and,
- What revenue opportunities the business is missing.
Due Diligence: Is this a good decision?
Major investment decisions, such as acquisition, financing, and new product launches, need a clear plan and forecast. Third party consultants are those most likely to help decision-makers achieve an unbiased view of the investment decision before they make it.
Michael Garrow states that due diligence is intense work. On the surface, it is a fact-finding mission. But on a deeper level, consultants tasked with due diligence must be able to use the facts they found to predict likely outcomes.
Consulting agencies have thus been able to deliver decision makers from potentially disastrous investment decisions. Further, the finest consultants know how to make alternative suggestions for an investment decision that delivers more for less.
Strategy: Where are we trying to go?
Once an organization is poised for growth, consultants become a key part of strategy. These organizations often have just acquired a large influx of cash and/or resources. They’ve also obtained market research to inform their growth decisions. But they need guidance.
Making sense of market research and planning expenditures is not easily done. Experienced consultants know that a big influx in cash today can still mean bankruptcy in just a few short months without a sustainable plan.
Retention: How can we keep more clients and employees?
It is always more expensive to acquire new customers and employees than it is to retain them.
Retention is perhaps the most-often discussed pain point by decision-makers that choose to hire consultants. Business consultants usually focus on how to retain clients, while HR consultants (like Michael Garrow) help leaders retain their top-performing employees.
A lack of retention on either front is usually a symptom of poor management. Objective, third parties will be more able to see why these symptoms exist and how to address them.
Organizations that prioritize retaining their clients and top talent find that their costs naturally decrease while sales steadily rise.
Michael Garrow concludes that the consulting industry is varied and its professionals have many tasks that make up their daily work life to help their clients achieve their short and long-term goals.
