What is management consulting - a complete overview of the concept and practical tips on how to order a consulting service in 5 steps + review of the TOP 3 consulting companies

Every entrepreneur in his business activity encounters problems that at first glance cannot be solved, or that seem to be a dead end. This may be an intractable drop in consumer interest in your product, or processes that generally affect revenue, or problems within the team that slow down work. Most often you just need to sit down and think. But here either there may not be enough time to correctly analyze the situation, or the answer will never come to mind at all. That is why consulting agencies exist on the market. These are companies that work for another business and solve its problems if the manager cannot cope with it. After all, sometimes a fresh look, which would be directed from the outside, is enough. This is the view that consulting provides you with.

What is management consulting

The effectiveness of any enterprise, even if it is a stand selling hot dogs, depends on competent management. The same business can be managed with talent, increasing income every month, or it can be managed incompetently, moving straight towards ruin.

Running a company is a difficult job that should be done by professionals, not random people. Management decisions are based on scientific data, personal experience, and the principles of common sense and expediency.

If your business is experiencing a protracted management crisis, you need outside help, namely professional management consulting. Changing department heads annually is not a solution to the situation if the management structure itself remains the same.

Example

About 10 years ago I worked in a large printing house. In the production department, the director changed the manager every 6-12 months, but these changes only affected the implementation of the plan for the worse.

The new boss began by tightening discipline and introducing new work rules for employees, but, like the previous boss, he found himself powerless when an unforeseen situation arose in the printing house.

For example, the printed sheets did not match the layout in color. In printing, this is called the term “variation of tone.” It took the production manager almost the entire working day to decide what to do next - start the stitching machines or reprint the entire circulation again, sending the “color difference” to waste.

It was necessary to coordinate further actions with three or four different authorities, including the director of the company himself, who could be away, on vacation, or at a conference.

Nerves, time, resources were wasted, production was stopped. This is because the management structure itself did not allow the boss to make decisions on his own, based on his own experience or the advice of experienced printers.

If the director of the printing house ordered management consulting services, this would certainly improve the situation with discipline, resolution of critical situations and implementation of the plan.

So, management consulting is an activity whose purpose is to improve the forms and methods of managing and running a business.

Assistance in managing the enterprise is provided by a third-party consultant or a group of competent specialists.

Management consulting performs many local tasks:

• optimization of business processes, regulation of the company’s work;
• optimization of individual areas of management - for example, sales and marketing management;
• planning;
• competent distribution of functions between employees;
• development of a personnel motivation system;
• control of financial activities (financial consulting).

In developed countries, consulting has long become a full-fledged industry with billions of dollars in turnover. Consulting companies in the United States form a staff of the best students from leading business schools and top managers of large firms who are retiring.

In Russia, the consulting market is just entering a stage of intensive development. However, a number of highly professional consulting companies are already operating in the country, providing consulting services based on their own innovative developments and technologies.

In what cases does a business need professional assistance from:

• a problem has arisen that requires an immediate solution, but hiring full-time company employees is unprofitable;
• there is a long-term, systemic task that cannot be solved using internal resources;
• it is necessary to radically change the management philosophy in the company, change or create from scratch the corporate culture;
• The company's managers do not have a common opinion on how to solve a specific problem, so an outside perspective is needed;
• employees or management do not have enough knowledge, experience and skills to solve current problems.

You will find more information on the topic of professional consulting in the review publication on our website “What is consulting”.

How to choose a consulting agency

The choice is entirely individual, but several standard recommendations can be identified:

• It is better if the company consists of at least several specialists. If this is one person, then a natural question arises - in what areas is he an expert? After all, you can’t be a master of everything. In addition, approaches such as team brainstorming produce much more results. At least because there are several views on the situation. And even more so if the company claims that it works in different areas.
• When choosing an agency, it is better to rely on the direct achievements of the company, and not on its bright advertising. Here it is important to pay attention to certificates confirming the achievements of the consulting company’s employees, and to its length of service in this field.
• Don't hesitate to give reviews about the company. It would be ideal if you know which companies the agency worked with before you, what types of services it provided, and whether past clients were satisfied. Naturally, in the modern market, the principles of black marketing also apply, and reviews are “ordered” for specific purposes. Therefore, the best option would be to have people among your acquaintances who themselves have used the services of this company.

What tasks does management consulting solve - 5 main tasks

Each company ordering consulting services solves its own problems.

Some companies need general recommendations and advice on business management, others eliminate specific problems - they want to increase sales, establish interaction between different departments of the organization, and optimize production costs.

Let's study the 5 most pressing problems of management consulting.

Task 1. Improving the quality of work of management structures in the company

The efficiency of the entire business depends on the coordinated and competent work of management structures.

Competent consulting helps improve the quality of management, minimize the time spent on making management decisions, and eliminate unnecessary information flows that slow down the process of making a profit.

Task 2. Development of new management techniques

If a company needs to change its management strategy and tactics, it cannot do without the involvement of experienced specialists.

They will help introduce new techniques at the lowest cost, provide training to management, and help eliminate problems arising at the enterprise related to innovations.

Task 3. Setting up management accounting and planning systems

Professional management accounting will provide the company with a system for the effective distribution of all types of resources and will help control profits and losses in the enterprise.

Improving the planning system will optimize the company's budget and allow us to develop a long-term development strategy for the company. Experienced consultants will help you identify weak and unpromising areas in the company’s activities in order to prevent unnecessary financial costs.

Task 4. Preparing an employee motivation system

As part of this task, consultants analyze labor productivity and the level of material (and moral) satisfaction of employees.

Based on the results obtained, specialists develop a system of incentives and motivation for personnel, introduce new methods of job evaluation, and propose measures to retain valuable employees and attract new personnel.

Task 5. Optimization of business processes

Any existing business faces numerous problems and obstacles in its development.

Consultants know how to find out the causes of such problems and can effectively eliminate them. They develop clear instructions and methods, identify weaknesses, and provide specific recommendations and advice.

A separate service in this area is the implementation of business automation systems. This procedure significantly increases work efficiency and eliminates unnecessary links in the production chain.

Comprehensive automation means timely settlements with clients, control of financial transactions within the company, prompt communication with the external environment and complete order in documentation.

Read the publication on a related topic - “Consulting services”.

Legal forms of business

In different countries, several types of legal forms of organizing a consulting business are allowed. The choice of one or another organizational structure is determined by various factors: current legislation, the taxation system, and the specifics of reporting.

The following legal forms are common in international practice:

• Sole proprietorship is owned by one specific person or family. This is the most suitable and accessible form for those who are just taking their first steps in management consulting and at the same time want to remain independent.
• A partnership is a popular form of business that involves a contract between two or more parties involved. The big advantage is the possibility of dividing labor and making the most optimal use of the partners’ qualifications.
• Corporation - acts as a legal entity in which the owners do not bear personal liability for obligations. The number of co-owners may vary, and some owners also act as employees.

In corporations and partnership firms, functional divisions can be distinguished, which are formed by function (personnel, marketing, strategy). A consulting project can only be developed in one direction, and only representatives of a specific department have the right to participate in it.

In addition, there are industry branches. They are represented by trade, transport, construction, banking and other divisions. Their creation makes sense only if there is a sufficiently high demand for specific types of services.

For the convenience of clients, reducing time and transportation costs, territorial facilities can also be created. They exist in the form of a separate regional office, whose employees work both independently and together with consultants from the head office.

Consulting services are an integral part of modern business. Firstly, they allow you to save on wages for a permanently employed specialist. Engaging consultants is paid as needed, usually no more than once a year, which means these are variable costs. Secondly, these are high-class professionals who guarantee the successful implementation of their projects.

What are the types of management consulting – TOP 4 main types

There are dozens of types of management consulting. There are as many of them as problems companies face in the field of business management.

However, experts identify 4 main varieties, which we will consider in this section.

Type 1. Strategic consulting

Consultants conduct global and local market analysis, assess the position of the client company among competitors, calculate risks and build an effective business model.

This is the main type of management consulting, during which consultants deal with the basic self-determination of the company. Based on the information received, consultants develop long-term goals and determine the means to achieve them.

Strategic management consulting is needed by those enterprises whose managers are interested in continuous business development and have ambitious plans. Such services are especially relevant during an unstable economy and during sudden changes in market trends.

More details on the topic can be found in the article “Business Consulting”.

Type 2. Marketing consulting

This is the development of a strategy for promoting the company’s services and products on the market. As part of marketing consulting, we are looking for effective sales techniques, ways to attract customers and interact with the target audience.

Not all companies have in-house marketing specialists. Meanwhile, this activity requires particularly careful calculation. Otherwise, promotion costs simply will not pay off or even cause losses.

Marketing consultants will optimize the advertising budget, find new promotion channels, and help correctly position the product on the market.

View 3. Designing an effective management system

This includes planning, establishing communications within the organization, optimizing document flow, and improving the decision-making system. This type of consulting is also called operational consulting.

Type 4. Personnel consulting

Consultants will help with the selection and training of personnel, eliminate personnel problems at the enterprise, and develop or improve corporate culture.

As part of the task, a full personnel audit is carried out, the compliance of the professional and personal qualities of employees with their position is revealed, and the degree of employee loyalty is checked.

The magazine has a separate article devoted to the topic of personnel consulting.

The table will give a clear idea of ​​the types of management consulting and their characteristics:

Structure and features

It has long been an honor for foreign companies to invite business consultants. This is considered a sign that the company has a sufficient business culture to take advantage of the intellectual capital that the market offers in management. The structure of consulting in the field of finance and any other area is:

• subjects are specialists with sufficient knowledge and skills to provide assistance to clients represented by private entrepreneurs and organizations;
• objects - certain areas of activity of enterprises or individual entrepreneurs that are subject to analysis and research and for which motivated, economically sound solutions are developed.

Subjects are divided into internal and external . The first are independent consulting firms or individual citizens working under an appropriate contract. Internal experts include full-time experts employed in a particular department of the enterprise.

Consulting services gained particular popularity at the end of the 20th century, when managers appreciated the benefits of hiring freelance professionals. The specialists assessed the progress and results of current activities in general terms, formed tentative goals and outlined tentative ways to achieve them. Over time, a clearer focus emerged.

A specific strategy has become part of the company's consulting structure. This is a developed detailed plan, according to which the organization must occupy the most advantageous position in the market and achieve sustainable competitive advantages. The strategy can change under the influence of innovations in management; its development is carried out taking into account external changes.

The strategic choice is determined by the range of services that can be provided to the client. This helps to correctly determine the essence of the company, its area of ​​activity, and profile. Solving business problems, experts help in matters of joint ventures, liquidation or organization. Providing assistance in functional areas involves the participation of specialists in the affairs of the financial group, the formation of a business image, sales, production support, distribution, etc.

The specific specialization is based on the modern classification of types of consulting and is also focused on the basic client.

How to use management consulting services - step-by-step instructions

During a period of permanent economic crisis, many enterprises are experiencing financial, personnel and other problems that need to be resolved in a timely manner. If you let the situation take its course, it will only make the situation worse.

By ordering a management consulting service, far-sighted managers will not only eliminate current problems, but also significantly improve the company’s performance by optimizing business processes.

So - step-by-step instructions for entrepreneurs and executives.

Step 1. Select a consulting company

Selecting competent advisors is not an easy task. There are many consulting companies. Among them there are both experienced market participants and newcomers.

The experts themselves, when asked what a consulting firm is, answer: it is a concentration of smart and experienced people in one place.

There is also a professional qualification for consulting companies. According to it, there are three types of suppliers, “gray hair” (that is, experience) and “procedures”.

The services of companies from the first category are the most expensive. They are used by the largest customers with an annual turnover of $100 million or more. The other two categories are more affordable in terms of prices for services. They solve local and well-known business problems.

There are also general selection criteria:

• year the company was founded and work experience;
• number of implemented projects;
• professional rating (the most competent assessment is given by the independent rating agency "Expert");
• availability of a functional website with feedback and free preliminary consultations.

The issue of choosing a company is discussed in more detail in the article “Consulting Company”.

Step 2. We provide the consultant with documents for review

The consultant will definitely need documents that will help study the company’s activities and draw preliminary conclusions.

The customer and the consulting company must enter into an agreement for the provision of services.

These documents indicate:

• timing of work;
• list of services and their prices;
• conditions for early termination of the agreement;
• duties of the parties.

Both long-term contracts and one-time contracts are practiced. It is more profitable for large companies to enter into a subscription agreement for regular consulting services.

Step 3. We receive the developed solutions and control their implementation

After the consultants analyze the business processes and management structure of the enterprise, they will develop a plan for performing current tasks, calculate the necessary costs and distribute responsibilities.

The company's management needs to competently implement the developed solutions and ensure that the consultants' recommendations are fully implemented in practice.

Step 4. Analyze the results obtained

Analysis of the results will help assess the extent to which the consultants' solutions helped improve the management structure and optimize business processes.

The best option is when changes are embodied in specific indicators - profits increase, production speeds up and problems that hinder stable development are eliminated.

Step 5. Pay for the company’s services

So, the planned activities were completed in full and on time, production indicators improved, work became easier and more fun.

This means that the consulting project was a success. The amount specified in the contract is transferred to the company’s account, the parties thank each other and disperse until the next meeting.

Where to order management consulting services - review of the TOP 3 consulting companies

Each consulting firm has its own approach to solving problems and its own working methods.

However, if you are interested in reliability, experience and reputation, choose companies from our expert review.

1) Finauditservice

The audit and consulting company has been operating on the market for more than 20 years. It is included in the list of the best Russian consulting organizations and has professional awards and prizes.

The company's list of services includes dozens of positions - management and legal consulting, tax consulting, personnel selection, financial analysis. Specialists will help you master new methods and technologies, take the company to new markets, open a branch, modernize and improve the management structure.

2) IPT Group

Year of foundation: 2005. Motto: “Keeping the essence, stimulate progress.” Areas of activity: business and investment management, legal assistance, assessment, consulting support for entrepreneurs.

The list of regular clients of the company includes 250 large companies. The main principle of work is to create a successful business through the implementation of the latest management and automation technologies. IPT Group has 1,500 employees of various specializations. All employees are professionals with over 10 years of experience.

3) A Dan Zou

A consulting company that specializes in business optimization and development. Specialists know how to improve the structure of enterprise management, increase profits and labor productivity.

"A Dan Dzo" will help your business become more competitive, profitable and promising. Consultants pay great attention to working with personnel. Invited advisors will develop a new motivation system, create or improve corporate culture, and select competent personnel.

Concept and types

Consulting is a complex of professional services provided to individual entrepreneurs and organizations of all forms of ownership in matters of carrying out management activities. Some specialized companies have a fairly narrow specialization and provide assistance in strictly defined issues, for example, in personnel policy or financial audit.

Others are ready to provide a wide range of advice in all areas of activity, taking into account the specifics of the industry.

The essence of the concept of consulting is professional assistance to the client, which can be provided in the form of useful and valuable information and recommendations or the implementation of specific tasks. Specialists from such agencies carefully study and analyze the existing situation at the enterprise, propose innovations and ways to solve possible problems, and also convince company managers to take the proposed measures and implement them in practice.

Frequent clients of consulting firms are large organizations, but similar services are no less popular among small individual entrepreneurs. The involvement of freelance specialists can be either one-time or carried out in the form of regular projects.

From the point of view of subject classification, there are 8 main areas of consulting activity:

• administration;
• general management;
• financial management;
• personnel management;
• marketing;
• production resources;
• information Technology;
• specialized consultations.

In Russia, the procedure is carried out in the form of the following methods: expert, process and training. Expert consulting involves independent analysis, diagnosis and development of recommendations by a representative of the company, and the client is obliged to provide full access to data and results of business activities.

Process consulting involves the joint work of freelance specialists and company employees, their active interaction in the search for ideas and proposals. The role of the former is not only to collect these solutions, but also to evaluate their effectiveness.

During training consulting, the experts involved must prepare employees to independently search for rational proposals by providing them with a theoretical and practical information base.

Which consultant will not help you - 3 signs that you are working with a non-professional

There are specialists of various levels in the consulting services market. Among them there are also amateurs.

They are easy to identify by their characteristic features.

Sign 1. The consultant does not take into account the client’s statements and ignores his objections

A professional always takes into account the client’s opinion and takes into account his objections and wishes. An amateur is the opposite: he ignores the customer’s objections and acts based on considerations known only to him.

Sign 2. The company representative is reluctant to express new ideas for solving the problem.

A professional consultant always has a lot of ideas for solving a customer’s problem. He is not afraid of being considered overly energetic or even annoying. His main task is to solve the problem as efficiently as possible.

Sign 3. The consultant constantly emphasizes his achievements

If a consultant constantly brags about his achievements, but does not demonstrate evidence of competence, you should be wary.

Phrases like “I just returned from a symposium of top consultants in Moscow” or “people from the Forbes list worked with me” do not in themselves mean anything. Specific evidence of skills and abilities is needed.

A video on the topic of the article will help consolidate the information.