Business Consulting Defined

I am sure most of you have heard the phrase, or term,
business consulting. And I am sure some of you wonder
what this business consulting is all about.

How does it make money?

How does one become a business consultant?

Perhaps you even see some of these business
consultants in your office and secretly ask what these
people are doing in your boss’ office or over the
phone so often.

And when someone tells you that they are there to
advise your boss, you ask yourself why does your boss
need advising? Isn’t he supposed to know what he
should be doing?

After all, he’s the boss and he is paid very high to
do his job. So to stop you from guessing and demystify
the business of consulting, here is business
consulting-defined.

Business consulting is the practice of advising the
executives of an organization on how to improve the
officers’, as well as the business’, performance in
certain fields or areas.

Business consultants are hired temporarily to analyze
the problems and dilemmas of the business and then
develop a management plan to solve the problems, or
improve the weak areas of the organization.

They can guide the organization’s improvement and
progress through a step by step process, guiding them
all the way. However, the extent of their involvement
still depends on the client organization’s decision on
how deep they want the business consulting firm to get
involved in their management.

Now, why does an organization need outside
consultancy?

Are the top executives not capable enough to solve the
problem?

Organizations avail the services of these so-called
business consulting firms for different reasons and
depending on the need of the company.

Some hire external consultants to have a fresh mind
from the outside, giving more objective analysis of
the problem. It might be that the company’s executives
have already been too involved in the problem that
they might already be taking it personally.

Hence, their judgment is already clouded with personal
feelings. Others hire them for their specialized
expertise on a particular new area, with which the
company is not yet familiar.

Most common service that business consulting firm are
hire for is the business development service, which is
usually on a per project basis, where hiring a
permanent employee for the task would be unnecessary
and expensive.

In this case, business consultants are hired for a
particular period of time depending on the length and
depth of the project. Sometimes, they are retained
during the first few months of the project until such
a time the officers can manage on their own. Or
sometimes, they are retained for the whole duration of
the project, up until its completion.

Another common service business consulting is known
for is management coaching for the organization’s
executives, wherein consultants conduct a one on one
training to a particular officer and guide him to the
successful management of business. The consultant here
is usually duty on-call for whatever advising need
that may rise anytime.

Consultants may also provide assistance in the area of
change management for the organization’s employees,
who are about to go through major changes and
development within their work place. Today, business
consulting has become one big industry, as it becomes
popular with more and more organizations recognizing
the importance of an objective analysis and focused
expertise from outside the company.