6 Steps to Obtaining a Consultancy Service

Businesses nowadays must cope with the uncertainty of the environment and find ways to adapt and survive. Gathering and analysing information, developing strategies to overcome obstacles, and seizing growth opportunities while improving processes require substantial expertise and specialised skills.

That’s why companies turn to consultancy services at various life cycle stages. Interestingly, in a 2021 study by Deloitte, 71% of CEOs who worked with a consultant believed they achieved better business results and made more informed decisions faster.

Consultancy services benefit companies operating in various fields, so let’s dive deeper.

The Right Approach to Engaging with a Consultancy Firm:

The right approach for companies seeking consultancy services for the first time is to break down the process into phases or steps. Starting to identify your true objectives is very important to ensure a clear outcome from the engagement.

Choose several consultancy firms for an initial briefing to discuss relevant expertise, experience, and the status of each. The more complex the objective, the more careful you must be with your choice. Here are six steps to securing a consultancy service:

1. Define Your Goals:

The first step in the consultancy process requires the company to identify specific problems, objectives, or opportunities that necessitate external expertise. These can range from operational efficiency to marketing strategies or digital transformation. Defining the scope and goals of the consultancy project involves key stakeholders in the organisation, such as CEOs and department heads.

Set SMART goals to ensure they are Specific (clear and precise), Measurable (quantifiable), Achievable (realistic), Relevant (aligned with the company’s mission), and Time-bound (have a deadline).

Key performance indicators (KPIs) should be established to gauge progress. For example, if the goal is to increase market share, KPIs might include the percentage growth over a specific period.

Note: Consultancy always begins with setting clear and measurable goals because they guide the successful implementation of the consultancy project.

2. Project Establishment:

The consultancy firm should start by creating a comprehensive project plan that includes tasks, milestones, and timelines and clearly defines each task’s purpose and expected outcomes. The project plan allocates responsibilities to team members from the consultancy and client teams, ensuring everyone understands their roles and responsibilities.

Creating a project charter summarising the project’s purpose, objectives, scope, stakeholders, and key timelines can be incredibly useful. It serves as a reference document throughout the project’s duration.

The project establishment phase clearly sets expectations, communication channels, and project management processes. It ensures that both the consultancy and the client’s teams consistently understand the project’s objectives and the steps necessary to achieve them. This phase is crucial in maintaining project clarity and ensuring effective communication throughout the consultancy period.

Tip: Form a project team that works closely with external consultants by including members from relevant departments. It shouldn’t be just one person; consider the diverse expertise of the internal team.

3. Data Analysis:

Consultants gather and analyse the necessary data for diagnosis. They work with the client’s team to identify and access data sources, including internal company data, industry databases, market research reports, customer feedback, and competitor information.

Consultants may use descriptive statistics, regression analysis, clustering, or machine learning algorithms depending on the project's goals. Data is often presented visually using charts, graphs, and dashboards to make complex information more accessible and impactful for both the consultancy and client teams.

Consultants can explore the root causes of identified problems or opportunities to help your company understand the underlying factors affecting your business. Based on data analysis, they draw practical conclusions and offer informed recommendations to address the client’s challenges.

Note: Consultancy sessions may conclude at this step or the next, so be sure to clearly express the scope of work that you expect the consultancy firm to complete.

4. Strategy Development:

Consultants customise strategies and roadmaps based on their analysis to achieve your business goals. These guidelines are discussed and finalised with the company’s management to ensure alignment with the company’s vision and goals.

Consultants engage in brainstorming sessions to develop a range of strategic options and approaches to tackle the identified issues. Each option is evaluated in terms of risks and potential trade-offs. Consultants often develop a phased implementation plan and a roadmap that outlines the sequence and milestones required to implement the recommended strategies. KPIs and metrics are established to measure the progress and success of the strategy.

Note: Ask the consultancy firm to assess whether your company has the necessary resources, capabilities, and skills to implement the recommended strategy efficiently.

5. Implementation:

Consultants often take an active role in implementing the recommended strategies since they work closely with the company’s staff. Implementation involves putting the strategies developed in the previous stages into action. Effective implementation of the plans requires coordination between the consultancy team and the client organisation. Here, rigorous oversight is key to successful strategy implementation.

Pilot Testing: When the strategy involves significant change or innovation, small-scale pilot programmes or trials may be conducted to test and refine the proposed initiatives before full-scale implementation.

Training and Skills Transfer: Consultants may train the company’s employees to ensure the sustainability of the implemented solutions.

6. Final Assessment:

The success of the project is measured against the pre-defined goals and KPIs. The consultancy firm provides a final report summarising the outcomes of the implemented strategies. This step ensures that they have met the goals, delivered value, and equipped your company with the knowledge and capabilities necessary for sustained success.

A typical consultancy model involves teamwork to achieve measurable results aligned with the company’s goals. It combines industry expertise, data analysis, and strategic planning to create solutions that drive business growth and innovation.

Areas of Business That Can Benefit from Consultancy:

1. Management Consultancy:

They offer advice to organisations on how to improve their performance. They assist with strategic planning, organisational structure, and operational efficiency. For example, a management consultant could help a retail company optimise its supply chain to reduce costs and improve delivery times.

2. Financial Consultancy:

They provide advice on financial planning, investment strategies, and risk management. For instance, they might help a company optimise its tax strategy and build an investment portfolio.

3. Marketing Consultancy:

They help companies develop effective marketing strategies to reach their target audience. For example, a start-up might hire them to create a marketing strategy for a new product.

4. Technology Consultancy:

They are specialists in IT solutions and systems. They assist companies in implementing software, cybersecurity measures, and digital transformation strategies. For example, they might improve patient data management by advising a healthcare organisation to implement electronic medical records and oversee the entire process.

5. Legal Consultancy:

They are experts in all aspects of law and can assist companies with legal matters. For instance, they might help a start-up navigate intellectual property rights and trademark registration.

6. Sales and Business Development Consultancy:

They focus on sales strategy, market expansion, and revenue growth. They can help software companies identify new market segments and develop a sales strategy to target them.

7. Human Resources Consultancy:

They provide advice on talent acquisition, employee relations, and workplace policies. For example, they might assist a growing tech company develop a competitive compensation package to attract top talent.

8. Environmental Consultancy:

They offer advice on sustainability, environmental regulations, and related issues. They can assist a manufacturing company in implementing eco-friendly practices to reduce carbon emissions and ensure compliance with environmental laws.

Notably, the above list of business consultants is not restricted to these domains. Nearly every field of business has its own specialists with deep expertise in specific, complex issues, capable of finding solutions for very precise and customised requests.

Five Benefits of Consultancy Services:

1. Expertise and Specialised Knowledge:

Consultants bring extensive expertise and specialised knowledge. They often have backgrounds in various fields and are familiar with emerging trends and innovative solutions. This knowledge and expertise help companies solve complex problems and make informed decisions while saving time and resources.

2. Cost-Effectiveness:

Consultancy services provide a cost-effective way to access high-level expertise without the long-term commitment and overhead costs associated with hiring full-time staff. Companies can engage consultants for specific projects or for a set period.

3. Fresh and Objective Perspective:

Consultants offer an unbiased, external perspective. They can identify opportunities and risks that may not be apparent to internal teams because internal biases or politics do not influence them. This fresh perspective allows for a more flexible and creative problem-solving and strategic planning approach.

4. Efficient Project Implementation:

Consultants often have clearly defined methodologies and tools to optimise project completion. They work to optimise operational efficiency, leading to faster project delivery and achieving desired outcomes within budget constraints. Additionally, at the outset of collaboration, all parties define the goals to be achieved, the necessary resources, and the timeline.

5. Risk Mitigation:

Consultants help companies identify and mitigate the risks associated with project implementation. As part of the overall project, they analyse the risks of the chosen strategy before implementation, ensuring that you always have a backup plan.

To Wrap Up:

The fast-paced business environment necessitates expertise for growth and innovation. Consultancy firms can be valuable for their specialised knowledge and industry expertise. Don’t hesitate to tap into this powerful resource to gain a competitive edge. Keep in mind that working with one is always a win-win partnership, and consultants are always eager to help you succeed.