The practice of management consulting aims to improve performance of various organizations by developing plans, and analyzing existing problems. Consultants help organizations maximize growth and create value. Specialized firms must be aware of the best practices to provide strategy development, change management assistance, improvement services and development of coaching skills.

What is Management Consulting What is Management Consulting Pictures

The first management consulting firm, Arthur D. Little was founded in 1886 by a MIT professor. It specialized in technical research and had an important role in the progress of operations research, business strategy, synthetic penicillin and word processor. The company still exists today, and in 2013 it ranked 21th according to the Vault ranking of Prestige Consulting firms.

Management consultants focus on the structure, management, organization, operation and strategy of a business. They identity possible solutions, additional resources and facilitate strategic restructuring. “Boutique” consultancies are smaller firms that focus upon one or just a few of those specialties, while larger firms offer end-to-end solutions. Projects length vary on the type of consultancy the client requires. Management consulting services include marketing, human resources, information technology, e-business and financial control.

Usually the consulting services costs depend on the material and time invested, based on the number of hours worked and others such as travel expenses. Two decades ago the prices were results-based, but today both firm and client share risks. More and more fields require management consulting, like the public sector. Government industries and non-profit companies need the advice and support of a specialist.

Many large corporations create an internal consulting group by employing as many as 30 full-time management consultants from other firms of from within the company. An internal consulting group in more familiarized with the organization’s environment, and is able to rapidly implement a project that would otherwise be more expensive and time-consuming. Empowered consultants can make valuable strategic and tactical improvements in the corporation’s long term objectives. Confidentiality is another advantage because an internal employee is more likely to maintain corporate information private. External firms will prioritize their own health over the health of the client, although the two influence one another. Internal management consulting groups can work together with external teams to enure better operational relationships, delivery and quality.

If the consulting compensation is high because of a strong industry, the recruitment process can be slow. It is also difficult to evaluate the real costs and benefits on internal consulting, because the economic value of such services are not efficient in troubles financial times. Also, an internal employee isn’t as objective as a specialized company an may not recommend the best practices.

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