Consulting Best Practices
Hiring business consultants can mean the difference between success and failure for your company. We'll go through the good, better, and best practices for working with your consultants.
Ensuring a good Return On Investment on Consultants
Consulting Best Practices Articles
Consulting services have one thing in common – they are a considerable investment for a business. Whether it is a marketing, strategy, operations, or risk management consultant, the consulting firm needs to prove its worth. However, proving a return on investment is difficult. Most companies find it hard to measure the ROI of a consultant.
Five Ways to Get Good ROI on Consultants
Hiring a consultant for your company could be the key to expanding your company and earning higher profits. However, there is a risk. Will you receive the return on investment in terms of time and money from hiring a consultant? Below are five ways that you can improve your ROI for consultants.
1. Choose the Best Structure for the Consulting Fee
Different consultants have different structures for their consulting fees. About a quarter of consultants charge hourly fees for their services. Almost one-half of consultants base their fees by the project. A small percentage of consultants charge daily rates for their services.
Most clients prefer paying a consultant by the project because they are focused on a clear ROI for consulting services. However, before you agree to a fee based on the project, make sure that the project's parameters are clearly defined and your expectations for results.
2. Be Prepared to Share Information
Consultants must have information about your company to perform their services. Open communication between you and the consultant can increase the ROI of hiring a consultant.
Use detailed and specific confidentiality agreements to ensure that the consultant cannot use any information you disclose or is gathered during their work.
3. Hire the Right Consultant for the Job
Knowing what type of consultant you need to accomplish your goals can be confusing.
For example, if you want to work on a strategic plan for your company, do you need a risk consultant in addition to a strategic planning consultant? Does a strategic planning consultant also cover strategic risk planning? You hire the right consultant for the job by asking lots of questions before hiring the consultant.
In addition to asking questions about the services the consultant provides, you should also ask questions about:
How they get buy-in?
Whom they've worked with in the past?
Testimonials and references
By asking questions, you can find the right consultant for you and increase your return on investment for consultant services.
4. Be Clear About What You Want to Accomplish
A consultant may assist you in identifying and defining your goals or objectives. However, you need to have an idea of what you want to accomplish if you expect a high ROI from hiring a consultant.
Additionally, ask the consultant how they measure ROI for a job. Discussing benchmarks and ROI can help you define what you expect to accomplish by hiring the consultant.
In addition to tangible achievements, it also helps to understand the intangible value of working with a consultant. Intangible value can include reducing stress levels and breaking through roadblocks, or overcoming hurdles that you may not have known existed.
5. Trust Your Consultant
This step could be the most challenging step in the process. Once you hire a consultant, you need to trust the consultant has the experience and knowledge necessary to perform the job. Unless the consultant goes far off in another direction, all the process to play through until the end.
Hiring a consultant for your company can be a risky prospect. However, if you take the time to choose the best consultant for the job and set detailed parameters and clearly defined goals, you can reduce the risk and improve ROI for consultants.
Experience the BFS Difference!
We think you'll find us much different than other consultants you’ve worked with. We combine our facilitation skills with a deep understanding of strategy design and risk identification, enabling us to see trends and drivers within your organization's designs and executes strategy; our unique perspective helps to identify blind spots that are slowing you down.
Using our Essential Strategy approach, we simplify the planning process, quieting the noise to help you create greater alignment up, down, and across the organization – we know it works because our clients tell us so!
Are you interested in breaking up the status quo – taking your organization to the next level?
Contact Erin to see if she might be a good match for your next planning event.
When Is It Appropriate to Hire a Consultant?
Unsure of when to hire a business consultant? Read on to help you see how investing in business consulting services can help you navigate strategy, ERM, risk management, and so much more.
What Is A Business Consultant?
A business consultant can help guide your company’s growth by offering specific advice, measuring risks, and even provide training to your team. Consultants have different areas of expertise, so researching your needs before choosing one is a great idea.
Here are some things to consider when hiring a consultant.
Unsure of how to measure the ROI of your business consultant? You’re not alone. Learn how to identify ways to get good ROI while working with business consultants.
When Should You Invest in Business Consulting?
There are several ways of working with a business consultant that can help your company. Having a fresh set of eyes can help with generating ideas, help navigate office cohesion, and help your business take appropriate leaps in growth.
They can even help you navigate social media marketing plans, plan the change of corporate titles, help determine what to focus time and resources on. Plus, your consultant will help you and your team learn these key skills all while listening to your concerns and not overcomplicating your process.
Calculated Risks with ERM
Enterprise risk management (ERM) is a detailed strategy to help businesses navigate and plan for any dangers, disasters, and other risks. By applying this mathematical approach to business adventures, you can assess and measure profits, losses, and determine the overall benefit of each calculated move.
A business consultant can step in to calculate the ERM and help you chart out potential obstacles, leaving your team to focus on goals and other key elements.
Strategy and Risk Management
Making smart business moves is all about taking calculated risks at the right time. Working with a skilled business consultant can help you build your strategy and assess the risk management of each endeavor.
Working with a strategic planning facilitator who is an expert in the strategy design process is a great way to help embolden and guide your team through ideas, differences in objectives, and highlighting gaps or unnecessary risks in your strategy design. By working with a business consultant instead of someone within your industry, you get a more objective opinion and fresh perspective.
The Black Fox Strategy
Our team is ready to help your business! We have years of collective experience working with private and public businesses of all sizes and specialties. We are proud to offer unique solutions and risk assessment based on your company's unique needs all while providing top-of-the-line industry tools and expertise.
Core Strategic Planning Package
Strategic Performance Alignment
Specialized Gap Assessment
Core Business Continuity Program
Customized Team Training
And Other Specialized Risk Assessment 360 Programs
Learn more about the services that we offer, and see how our team can help revitalize your company's growth.
Work With Erin
Looking for a second or unbiased opinion? Hiring a business consultant is a great way to craft a strategy for growing your business. They will help assess risks, navigate interpersonal communication, calculate risk assessment, and even help train your team.
Taking the leap and working with business consulting services can be an investment in your company's future.