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Why would I hire a cost consultant?

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Jim Agnew
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Why would I hire a consultant? Have you ever asked yourself that question or perhaps had a conversation with another person about it? It's not an unreasonable question; right? Certainly; I can't be the only business leader who doesn't see the value of bringing an outsider into my company to tell me about all that is wrong or maybe how to run things "better;"...right?

In reality; this is a great question because it should trigger a detailed; thoughtful search for the answer—complete with all the "pros and
cons;" "goods and bads;" and "pluses and minuses" of looking for a resource that will add value to the business.

Perhaps the final answer is that it makes no sense to pay someone to do what we should be able to do internally. On the other hand; perhaps the answer is that we really don't have the time or talent to address those things that need to be addressed; and an additional resource could add tremendous value.

The challenge comes in objectively searching for the answer; with the clear and unrestricted goal of finding the right answer rather than simply completing a cursory analysis intended to justify why we don't need to "go outside for help."

Recognizing that; in some cases; hiring an outside resource may not be the right answer; while in others; it is absolutely the right thing to do. How do we objectively determine which is which?

The truth is that hiring a consultant does not guarantee a miraculous solution to any problem. Hiring the right consultant; however; can bring several benefits to the business - a different perspective; an unbiased view of the situation; or an honest and forthright analysis of the options available to the company. My experience over the years has proven that the value of the "outsider" can be immeasurable; not only in financial terms but also in the insights that a person can bring to the organization.

So; what makes a consultant the right consultant? This may be the hardest part of the decision-making process.

Clearly; the consultant must be a good communicator; have the necessary knowledge and background in the area of concern; relate well to the internal team with whom they will be working; and have the resources to execute whatever solution is identified fully. It’s important to note that some on the internal team may see the consultant as a threat and may not be too willing to cooperate; at least initially. Management’s ability to identify – and address – these “resistors” quickly will significantly impact the outcome of the engagement.

Hiring a consultant is not an admission of inadequacy or a condemnation of the people within the organization. It's an acknowledgment that an "outside-looking-in" perspective can be incredibly valuable; shedding light on areas where we can improve.

In reality; consultants seldom solve problems alone. A good solution requires a cooperative effort on the part of all involved – consultant;
management; and employees. When all are focused on a clear objective and working in unison to achieve a specific goal; the solution(s) often present themselves.

In full disclosure; I am a consultant; and I firmly believe that the right consultant; working in the right environment with the right support; can add value to any business. Prior to entering the consulting field; I hired many consultants; which turned out to be a total waste of time and money. Then; there were those that provided amazing value to our company. What is the difference between successful engagements and those that didn't turn out so well? It all boils down to clearly understanding why the consultant is being hired; identifying reasonable/achievable objectives; and establishing a mutually understood/agreed upon path forward.

So; back to the original question – "Why would I hire a consultant?" Perhaps because it is the right answer to another question: "How can we improve our business in the most effective; efficient way; given the internal resources; other initiatives; and capital available?"

authors

Jim Agnew
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