Hello! In this article we will talk about consulting.
Today you will learn:
- Definition and types of consulting;
- What are the benefits of consulting for doing business;
- What are the stages of consulting activity.
Any business owner or company, large or not very often, needs outside consulting help. A person cannot know everything, but it also happens that a fresh look at an existing problem is required.
What is consulting in simple words
In the staff of a company, even the largest one, it is not possible to contain several experts in different fields. But if an enterprise has a goal to develop, conquer the market, sooner or later the advice of such experts will be needed. So what is consulting?
Consulting is a process of advising managers, management personnel and other employees on financial, legal, investment and other issues.
A bit of history
Domestic consulting as a professional activity began to develop in Russia in the 90s. This is directly related to the change not only in the economic system, but also in the political one. In 1991, there were only about 20 consulting companies.
With the development of market relations, the consulting services market began to experience rapid growth. These services have become more understandable to managers, more professional. Gradually, the level of competition began to increase; big players from the West, this has put the consulting industry on a qualitatively new level.
Consulting company - what is it
Companies of this kind are engaged in providing their clients with consulting services. Most often they are external companies and are related to the companies of their clients. They provide assistance in various areas of their activities.
At the same time, they do not bear full responsibility for the result that will be obtained in the end. There is no unequivocal answer to the question of what consulting companies do.
In general, their activities are as follows:
- Providing assistance in various areas;
- Consulting services;
- Planning organizational and management activities.
Principles of work of consulting companies
In their activities, consulting companies adhere to the following principles:
- All of them use evidence-based data in their work;
- Use in their work of such tools as information technology;
- Specialists have the right to offer the customer their own scientific idea, if it helps in solving the problem that the customer has.
Types of consulting
In the modern economy, there are several varieties of consulting. We will review and provide brief description the most common of them.
Financial advisory
It is a set of services that are designed to build a reliable and functional financial management system. It includes: conducting an analysis and audit of the company's activities, consulting on finance and budgeting, introducing methods to strengthen the company's financial system.
Management consulting
It helps to establish which areas of the company are most vulnerable, corrects the company's activities as a whole.
It, in turn, is divided into several groups:
- Strategic – allows you to analyze the market in the global and local sense, calculate possible risks;
- Marketing- helps to develop the company's strategy, diagnose the target audience. Its main goal is to increase sales, as well as reduce advertising costs;
- personnel – advice on the selection and training of employees , creation and development of corporate culture .
In addition to all of the above, this type of consulting helps to solve the following tasks:
- Improve the work of all company management structures;
- Learn new management techniques;
- Develop a system to motivate employees;
- Optimize business processes.
Investment consulting
When company executives choose schemes for investing capital, or attracting such from outside, they mainly rely on the recommendations of professionals who can provide the necessary assistance.
Functions of investment consulting:
- Implementation of interactions with credit institutions, insurance companies and authorities;
- Assistance in the development of investment projects;
- Legal investment advice.
HR consulting
HR consulting is getting more and more popular.
Such consulting includes:
- Personnel certification;
- Personnel accounting;
- Personnel audit;
- Analysis of personnel policy;
- Document flow analysis;
- Analysis of the compliance of personnel policy with the norms of labor legislation.
Through HR consulting, you can:
- Form a certain corporate culture;
- Diagnose how loyal employees are to the company;
- Increase the efficiency of the entire personnel management system;
- Develop criteria for evaluating the work of personnel.
This type of consulting allows management to organize work not only with the team as a whole, but also with each employee individually.
Legal consulting
In today's business environment, it is often necessary to resolve emerging legal situations. And the situation itself is difficult to call transparent, then the manager will definitely need the help of a professional. And if there is no full-time lawyer in the company, then one cannot do without the involvement of a specialist from a consulting company.
Accounting consulting
The purpose of accounting consulting is to increase not only the efficiency of accounting. accounting, but also to control its correctness. Usually such services are provided by highly qualified specialists.
Accounting consulting services consist of:
- Services for the development and formation of accounting policies;
- Consultations on the construction of the accounting system. accounting;
- Assistance in the preparation of accounting reports;
- Assistance in preparing reports to the Federal Tax Service;
- Consideration and consultations on disputable situations in accounting.
Educational consulting
The practical significance of this type of consulting is that the consultant:
- Conducts seminars;
- Organizes lectures and trainings;
- Develops teaching aids.
Simply put, consultants train the personnel of the customer's company.
Expert consulting
Its essence is as follows: the client sets a task for the consultant, and he, in turn, using his own experience and knowledge, as well as relying on various sources, issues a ready-made solution. In addition to developing a solution to a problem, an expert can also diagnose a problem.
The client does not participate in the development of a solution to the problem.
Project consulting
Project consulting is the joint work of a consultant and company employees, during which a decision is made on how to optimize the company's activities. This type of counseling is called long-term.
Internet consulting
This area of consulting activity can include:
- Development of information technologies taking into account the needs of a particular company;
- Maintaining technology at a high level;
- Identification of existing problems;
- Creation of high-quality information infrastructure.
What tasks do consulting companies solve?
Consulting professionals can help in the following situations:
- When you need to adjust business process management;
- When is a business reorganization required?
- To restore the solvency of a company or enterprise;
- Support in the merger of companies;
- When advice is required on the acquisition of property;
- Budgeting;
- Development;
- When you need to prepare a financial forecast and so on.
This list of services is not complete and may be supplemented by other items.
Stages of implementation of consulting activities
Any company can be called a living, constantly evolving organism. If the body fails, then a doctor is required. But the treatment should be done by a professional, not an amateur. That is consulting company must have significant practical experience.
1.The customer acknowledges the existence of a certain problem. If the customer realizes that he cannot solve the problems that have arisen in the company without the help of professionals.
Example: the head of the confectionery company set himself the task of increasing the volume of products. But a problem arose: the manager himself and the company's specialists do not have enough knowledge for this. To achieve the goal, a decision is made to invite outside experts. And this decision will be reasonable and justified.
2.Conducting initial consultations and conclusion of the contract. When a suitable company is selected, you need to consult with its specialist. Then the contract is signed.
The following items must be included in the contract:
- The period during which the work will be performed;
- A complete list of services with an indication of the cost;
- Conditions in connection with which the amount of the consultant's fee can be changed;
- Conditions for early termination of the contract;
- Responsibilities of both parties.
The contract can be concluded both once and for a long period. The contract can be concluded in the form of, and in the form of a work contract.
3. The data necessary for cooperation is being collected. The specialists of the consulting company at this stage of cooperation collect and analyze data that will help determine how serious the problem is. The main thing here is to establish what the problem is, as well as develop a plan to solve it.
4. The process of developing a solution to a problem. This stage can be called the main one. Having established the problem and its causes, specialists draw up a plan according to which the problem will be eliminated.
5. The process of implementing decisions and monitoring their implementation. All procedures specified in the plan are carried out under the supervision of consultants. Also in the process, training of company employees is possible.
6. The process of evaluating the results obtained. An objective assessment of the results can be given only after a certain period of time. The head of the company together with representatives of the executing company will sum up the results.
7. Production of final financial calculations. If all the activities were carried out on time, production indicators increased, the company's income increased - this is an indicator that the activities carried out were effective, you need to make a final settlement with the consulting company. The amount specified in the contract is transferred to the account of the executing company.
Situations where consulting is needed
- The management and employees of the company have no new ideas, the company has entered a period of stagnation;
- The leader lacks certain knowledge or experience;
- The company is developing a serious project, but cannot implement it in full due to lack of knowledge;
- The company is required to conduct an audit with the participation of independent specialists;
- The company needs the management apparatus to work more efficiently;
- Companies need to recruit a number of qualified professionals.
This list of situations cannot be called exhaustive, since in fact there may be more than a dozen of them.
How to find a serious consulting company
If your company has a number of problems that it is not possible to solve on your own, the next step is to choose the right company that specializes in providing consulting services.
There are criteria following which you can choose a company and not make a mistake:
- Collect the maximum amount of information about the company with which you plan to enter into an agreement. Look at her official website, find out how much the company is on the market;
- Read reviews about the work of the company in the media, on the Internet;
- Ask if the company has a portfolio: each specialist is proud of his achievements and usually fixes them;
- Check if there are serious businessmen in your region among the clients;
- Focus on the cost of the company's services, too low should alert, as well as clearly overpriced.
It is best to have several companies in stock, and after a personal meeting and communication with specialists, make the final decision.
Requirements for companies and consultants
If a company or consultant has a high level of qualification and provides a wide range of services, then they must meet certain requirements, which we will discuss later.
- The consultant must: have knowledge and skills in strategic planning, be able to analyze and predict the economic situation, be proficient in diagnosing the situation at the enterprise, be able to establish contacts with specialists of different levels;
- The consultant (or consulting company) should not depend on the rules and unwritten laws, as well as the traditions that have developed in a particular company. The opinion of the consultant must be free and objective;
- The consulting company should provide assistance based on its experience and current legislation;
- A consulting company, in addition to consultations, should be engaged in gaining experience, accumulating, analyzing and processing data;
- The activity of a consulting company should also have a learning effect for its clients.
We suggest that you familiarize yourself with the table, which presents the main features of professional consultants and those who only consider themselves to be such.
What is the difference between a professional consultant and an amateur
Pro Consultant | Amateur |
Examines in advance the activities of the client's company | Does not undergo preliminary training, learns about the current situation from the client |
All offers are prepared taking into account the characteristics of the company | All developed proposals are not informative, but general, almost advertising in nature. |
Since the beginning of cooperation, he gives practical advice and recommendations to the client. | Emphatically obsessively talks about his achievements, puts himself an order of magnitude higher than the client |
In the process of communication, shows awareness of the situation in the client's company | Talks about experience in the same industry |
Asks questions, seeks the opinion of the customer | Speaks without objection |
Able to listen to the client | Prefers to talk rather than listen |
Answers additional questions | Additional questions are ignored |
Always responds to customer objections | Does not take into account the objections of the client, prefers to communicate by e-mail rather than in person |
Advantages of consulting
It should be noted that more and more often, not only those who have just joined the ranks of entrepreneurs, but also serious companies that have been on the market for a long time are turning to consulting companies for help. What are the benefits of consulting?
- Consultants have a higher level of knowledge than regular company specialists (which does not detract from the merits of conscientious employees);
- Consultants are more experienced due to communication with a large number of clients;
- Consultants have enough time to deeply and comprehensively study the problem;
- Consultants usually have an unbiased opinion, they are guided by the interests of the customer.
A clear advantage of consulting is that the company's specialists with a fresh look from the outside can identify problems that are simply invisible to the company's employees.
Consulting and coaching: differences between methods
Before figuring out the similarities and differences, let's find out what kind of animal this is - coaching.
coaching is a method of consultation in which the client and the trainer jointly look for ways to improve or solve a problem.
Skeptics may say that this technique just duplicates a number of others that are already familiar. Why invent something else if there are trainings and consulting? But it is coaching that does not repeat all previously known practices.
Coaching and consulting are not duplicative methods for one simple reason: the coach guides and advises his client to achieve the goal, and the consulting consultant is limited to making recommendations, leaving the client the opportunity to continue to act independently.
Who can consulting companies work with?
Consulting firms may partner with:
- Public and private enterprises that produce any products, provide services;
- With foreign companies operating in Russia (legally);
- With government organizations;
- with government agencies.
So, dear readers, now you know what consulting is, what its goals are and what it is for. If you take advantage of consulting conditions in a timely manner, then your business will successfully grow and develop. Your company will survive all crises and become a serious competitor for others.
Services
Our consulting agency provides consulting services to enterprises and organizations interested in improving performance through the search for new and more efficient methods of planning and organizing processes.
The consulting agency has extensive industry experience, a wide range of functional specializations and a valuable analytical and resource base. Therefore, the provision of management services for us, first of all, means partnerships and working side by side with the client in order to bring the business of our customers to a qualitatively new level of performance and growth in the long term.
We work not only with the private sector, but also with the public sector, where the provision of services is primarily aimed at helping to improve their service and, where necessary, reduce costs and achieve savings. SCM Consult's consulting services are aimed at solving our clients' most complex problems and exploring the most important challenges and opportunities within any industry and geographic location.
Consulting services for business in the context of functional specialization:
– the main focus of this functional practice of our agency is on achieving competitive advantages and sustainable development activities of our clients. Within the framework of this direction, assistance is provided in the development of the company's strategy with competitive analysis, the definition of short-term tasks and long-term goals. Marketing consulting will allow you to study the positioning of the company in the market and its strategic opportunities. The quality and compliance of human resources with corporate tasks will allow building personnel consulting. If organizational changes are necessary, our consultants will prepare possible solutions for overcoming crisis situations and recommendations in accordance with the best world practice. In addition, as part of anti-crisis consulting, we will help prepare a comprehensive transformation program and bring the company out of a crisis situation.
– consulting services in the field of production planning and marketing, assistance in the development, management and optimization of processes, optimal use of resources, inventory management, building quality control and monitoring systems through management panels, lean manufacturing technologies (Lean and Six Sigma), integration and management supply chains, from the point of purchase to distribution to the consumer and returns.
Our consulting agency will help you overcome organizational silos, unleash the full potential for growth and innovation to create a long-term and sustainable momentum for development.
Consulting services in this area include both assistance to Russian enterprises wishing to expand their markets or supplies (international purchases), or seeking investors for a project (investment consulting) and requiring investment and financial support, and international firms that have decided to master Russian market. Our consulting agency provides support throughout the entire project cycle, including the alignment of operational processes (project management) at the implementation stage, regardless of geographic location.
- assisting in the formation of socio-economic policy through economic research, improving the function of public management and preparing targeted programs and strategies through strategic planning, the introduction of innovative practices, such as clusters, industrial and technology parks.
Clients
Today on the territory Russian Federation exists a large number of various organizations. If you are interested in the question of what it is then you need to read this article.
The concept of consulting firms
These organizations provide their clients with various consulting services. In most cases, they represent an external company and are directly related to the firms of their customers. Consulting is providing necessary consultation for sellers, manufacturers, as well as for buyers. They can receive assistance in the technical, technological and expert areas of their activities. The main task of such a firm is to provide assistance in the field of management regarding the issues that customers set for themselves.
There is no single answer to the question of what a consulting company does. She can solve difficult issues, determine the goals of the company's financial position and take a direct part in the organization of production activities, as well as in solving strategic issues. Specialists who are involved in providing consultations to customers in the necessary issues. But they cannot be fully responsible for the final result of the activity. Consulting companies provide specific and precise advice that will help to apply in the course of further implementation of services or goods. But consulting specialists cannot put into action all the proposed plans and tasks.
Existing types of activities of consulting companies
In the field of consulting, there are several aspects of the services provided:
- Analytics. Specialists can conduct consultations for their clients, during which issues of further efficiency are decided. Any consulting company can draw up a plan. What is this modern direction? Only qualified employees can answer, who draw up a scheme for the implementation of effective processes in production, analyze price movements, and also conduct a thorough analysis of all stages of activity in the enterprise.
- Forecasting. This type of consulting implies a preliminary determination of forecasts for several months in advance. For this, an analysis of the activities of the customer's company is taken into account. All consultations extend to any area of functioning of the client's organization.
- Conducting an audit. Everyone is interested in what a consulting company that exists on the modern market does. Professional specialists not only conduct consultations, but also perform a scheduled audit. They determine its successive stages, select personnel and conduct the necessary trainings. Some customers trust specialists to plan further organizational and management activities, as well as the implementation of modern information systems.
How to choose the right consulting company?
In the field of modern business, one can see the rapid pace of development of market technology. Absolutely all organizations want to be competitive and succeed in providing consulting services. Entrepreneurs set goals for themselves to be successful and constantly develop their own business or production. That is why they decide to apply for the services offered by a consulting company. What kind of organization is this and how to choose the right specialist? This question is asked by a large number of leaders.
The services of this company cost a significant amount of money, so you should choose only proven professionals. Real consultants should not only organize all the necessary events, but also lead the entrepreneur to the result he needs. The process of this activity must necessarily be accompanied by practical advice, as well as assistance.
To choose the right consulting company for yourself, you need to pay special attention to the following characteristics:
- The cost of the services provided.
- Professional qualifications and work experience.
- The duration of the consulting company.
- Reviews of work from previous customers.
What are the principles of the consulting company?
There are certain principles that companies that provide consulting services adhere to:
- scientific validity. Specialists cannot begin to perform the task, using only the accumulated experience of a consulting firm. Consultants must apply in the data.
- The presence of additional tools that any professional consulting company should have. What are these tools? This may include information technology that will help to monitor the organization of the customer and find an effective system of assistance.
- Dynamism is maintained not only during the consultation of the client, but is also used in the activities of the organization after the completion of the work.
- Scientific perspectives. Specialists can offer customers their own scientific ideas that will help determine the best directions for the development of client business in the future.
Varieties of consulting companies
Today in the modern market you can meet specialists who understand many issues of organizational activity. Such enterprises may have a narrow or broad specialization. Consulting companies in Russia provide a range of services or perform an audit of an enterprise. Depending on the methods of activity, the following areas of consulting can be distinguished:
- Expert.
- Educational.
- Process.
Specialists carefully monitor possible ways to increase efficiency not only within the enterprise, but also take care of building relationships with international partners. Consultants solve a variety of issues, as well as perform tasks of any complexity. Today you can find specialists who will solve commercial, financial, legal, technological and environmental issues.
What structures on the territory of the Russian Federation turn to consulting services?
Companies that operate in the Russian consulting market can provide their services to the following structures:
- Russian enterprises that belong to the public and private sectors. They can be engaged in production activities and provide various services.
- Foreign companies operating in the market of the Russian Federation. The activities of consulting companies provide opportunities for providing services to enterprises that have Western investors or are just entering the Russian market. Consulting specialists are engaged in the implementation of modern and and demonstrate large-scale projects.
- Government organizations. This includes the mayor's office, the ministry, various departmental structures, state-based committees and administrative bodies.
When do companies turn to consulting services?
Today, people who run private businesses turn to the services of such specialists. The consulting company helps enterprises that want to have the status of a reliable firm. Managers receive an optimal scheme for restructuring the entire system of activities and the production process. Consulting specialists can offer optimal changes in the area of the current activity of the enterprise, as well as new profitable directions for doing business.
If the company is on the verge of bankruptcy or carries out unprofitable production activities, then consulting companies will help to get out of a difficult situation. Clients are offered crisis consulting services, where specialists, through analysis, find the necessary internal resources to solve the task.
What are the requirements for consulting companies?
Any consultant or large-scale consulting firm must meet a number of basic requirements. These may include the following items:
- Specialists must own proven technologies that help to solve even difficult tasks. The consulting company has skills in the field of formulating organizational diagnoses, strategic planning, uses information systems and various methods of analysis. Investment advisory firms should perform a complete and thorough diagnosis of production activities and the current situation, as well as establish contacts to communicate with investors.
- Consultants should not have connections or business relationships with multiple suppliers of products and goods. The opinion of a specialist is necessarily independent and has an exclusively objective character.
- Any consulting companies are sure to provide their customers with assistance in improving production activities.
Thus, clients turn to such organizations in order to receive high-quality analysis, processing and the opportunity to use the experience of specialists for the benefit of the business.
Features of legal consulting companies
Today, many people and can face serious problems. A legal consulting company guarantees its clients complete confidentiality and decency in the process of providing services. Specialists provide highly qualified assistance on all necessary legal nuances that are related to housing, civil, family, land and administrative issues. Consultants protect the legitimate interests of citizens, as well as organizations that operate on the Russian market.
The main activity of such a company is the solution of license disputes, the preparation and conclusion of various agreements. Specialists help during the court session and draw up claims.
Consulting services are popular all over the world, because they can be used to solve various kinds of business problems that are not directly related to the main activities of the company. Using consulting, the company has the opportunity to focus on core business.
Consulting is very useful service for businessmen. Those who have never used consulting services are interested in their cost. Not everyone understands the economic benefits of attracting specialists from outside, but it can be very significant.
In order to assess what significance a consulting company can bring to business development, we will give a definition and consider the essence of this concept.
What is consulting?
Let's start with the definition of consulting according to the Oxford Dictionary.
Consulting means "to be in the business of providing expert advice to people working in a particular field." In other words, a consultant is someone who gives advice to a specific group of people.
Consulting is expert advice business a certain group of people.
A consultant is someone who has a certain level of knowledge that a certain group of people find valuable, and people in that group are willing to pay the consultant for access to their experience.
Note that there is nothing mentioned about majors, degrees or certifications. If you can provide expert advice to a specific group of people, you can be a consultant.
All this begs the question, why is consulting so valuable?
The answer to this question lies at the heart of the meaning of counseling.
The true meaning of consulting - a consultant is one who gives advice. Therefore, it is worth asking the question “why do people buy advice”?
Why do people ask for advice?
They want to change something, achieve something and they need help.
If the financial condition of the company is not what the leaders want. That being said, they know what their desired state is, but they need advice on how to get there.
That's why people want advice. They want to get from point A to point B, but they don't know how to get there. They are either lost or face obstacles they don't know how to overcome.
The true meaning of consulting is to help people solve problems and move from the current state to the desired one.
And the more valuable the desired state is for someone, the more he is willing to pay for help.
For example, if a small business owner earns 60 million rubles. per year and their goal is to make 120 million rubles. per year, achieving their goal for them is 60 million rubles, and they are probably ready to pay 5 million rubles, 10 million rubles, 20 million rubles, perhaps even up to 60 million rubles.
Consulting in a Nutshell: Helping People in solving problems and achieving results.
So if achieving a desired state is so valuable to people, why don't they just figure it out on their own?
Why do people hire consultants
There are three main reasons why people decide to take outside advice:
- They are simply not able to understand it or get to the desired state on their own.
- They have a general idea, but they want to get there faster.
- They want to save time and effort by following an effective, proven system.
Three main types of consulting companies
When someone says, "I'm a consultant," they usually fall into one from three categories.
- Management consulting.
- Corporate consulting.
- Independent consulting.
Management Consulting is what most people think of when someone says "consulting". This area is dominated by large firms to help businesses improve strategy and operations or manage significant business events such as mergers and acquisitions.
Independent consulting comes up often when someone has developed experience in an area they choose to build and run their own business around that experience rather than continue as an employee.
Specific Sold experience can be almost anything, and thanks to the emerging gig economy, thousands of new independent consultants are creating very profitable businesses for themselves.
How can you become a consultant?
Exists two main ways to get a consultation:
- Get a job.
- Start your own business.
While getting a job in consulting is more competitive and more challenging than ever, starting your own consulting business is still no easier.
With the rise in staff costs, more and more companies are looking for temporary and permanent external assistance, often in the form of consultants and “do it for you” services. If you are interested in starting your own consulting business, there has never been a better time to get started.