External Consultants

from Market
AN EXTERNAL CONSULTANT IS SOMEONE
EXTERNAL TO THE ORGANIZATION WHO CAN BE
CONTRACTED TO CONDUCT THE EVALUATION -
SOMETIMES THEY DEVELOP THE EVALUATION
DESIGN AND SOMETIMES THEY IMPLEMENT THE
DESIGN OUTLINED IN THE TERMS OF REFERENCE.
IMPORTANCE OF EXTERNAL
CONSULTANT
1. For the Competitive Edge-

Consultants often work with many different companies

and may have worked through a problem in the past with
someone else, they can really provide a perspective
based on what they’ve seen work (or not) before. The
specialized skill set brought in by these agencies always
brings newness to the work; it breaks through the
boredom in design and minimizes duplicity, which is
extremely important for brands to stay ahead of their
game in an era of cutthroat competition.
2. A Long-Term Investment Rather Than an Expense-

Consultants basically serve as highly skilled employees;

they come as your guardian angels. They’re not full-time
employees of the company, so it is often cheaper to use
consultants than to escalate fixed cost. Think about saving
up on employee travel for trend study, because of these
consultants all round exposure in the industry, they are
constantly updated with the latest trends and looming
innovations. Not to forget that because of their far and wide
presence in the market they tend to open a number of
doors for the brands to work with e.g.- investors, vendors,
celebrities etc.
3. For That Expert Opinion Wherever and Whenever
Required-

By engaging a consulting firm, brands get access to a

group of professionals who have skills; you have your very
own set of expert individuals by your side. Through these
consultants, brands can bring in that skill set on demand
whenever and wherever they need it. These design
consultants bring in a 360-degree approach, because their
business activity involves collaborations and engagements
with all kinds of people and brands
 Role of External Consultants in Business
• Coach – helping individuals to clarify and achieve a goal by helping
them to bring out and apply their own wisdom.
• Collaborator/partner – working with another to benefit from the mutual
relationship.
• Educator/trainer – helping others especially to develop new knowledge,
skills and insights.
• Expert – providing specific information and expertise in specific areas.
• Facilitator – helping members of a group to clarify their desired goals
and how they want to achieve them -- and then helping them to bring
out and apply their own wisdom to achieve the goals (thus, a coach
who is coaching a group also works in a very facilitative manner).
• Problem solver – helping others to clarify their problems and then
helping them to “solve” them.
• Researcher – collecting, organizing, analyzing and reporting
information for others.
Advantage #1: Established Reputation
For decades, large consulting firms such as
McKinsey, Bain, and Boston Consulting Group have
maintained their reputation for having the best
strategy consulting practices. However, along with
the expertise comes a hefty price tag that many
client companies are not so willing to cough up. Yet
their reputation precedes them for good reason,
after working with multiple large, influential
corporations. Despite the cost, external consultants
have advantages which internal consultants can’t
necessarily replicate due to their long-term
reputation for good work and for hiring the best
MBA graduates from the best schools.
Coming from an outside perspective allows
consultants to have a more objective, bird’s eye view
of the company and the industry as a whole. Instead
of becoming too engrossed within a specific company,
external consultants should be on top of the industry
as a whole. Not only do they have a broad
perspective, but an experienced consultant will have
had multiple experiences working with other
companies in the same industry and that faced similar
challenges. Therefore, they can apply experience from
the past into their current projects and engagements.
ADVANTAGE #3: EXPERT STATUS

Another advantage of not being as integrated into the work

project environment is the ability to be regarded as an
expert and not a peer. Due to the lack of concrete
understanding of the role, internal consultants can be
viewed just another pair of hands to make changes within
the organization. Instead, external consultants are hired
for the sole purpose of their expertise and ability to create
change for a specific business problem. This brings more
clarity and focus to the role, and helps concentrate efforts
on the project at hand, and often, helps ensure client buy-
in.
Disadvantage #1: Missing The Point

While internal consultants battle company politics from

inside the company, employees often regard external
consultants with suspicion. This reputation, unfortunately,
is often deserved. Many consultants come into an
organization without an understanding of the company or
a willingness to hear opinions. Instead, they often try to
implement one-size-fits-all strategies either taught to
them by their consulting firms or from past consulting
experiences. While knowledge from other consultants can
often be helpful, it does not necessarily apply in all similar
situations.
Disadvantage #2: Passing The Buck /
Implementation Risk

External consultants also face the bad rap of coming in,

presenting solutions, and leaving. This conduct leaves
many firms without a solid game plan, and causes them
to flounder in the implementation process. External
consultants don’t tend to stay aboard after proposing
their various strategies, and most clients don’t want to
pay them afterward either. Unfortunately, this leaves
clients spending far too much money for too little change.

https://tixware.wordpress.com/2015/04/13/ventajas-y-desventajas-de-contratar-a-un-consultor-externo/
 ACTIVITY

5 reasons why you should hire an

external consultant and give example
1. Explain the key elements in managing
a consultancy

• Steering Committee
• Milestones and Deliverables
• Performance Indicators
• Variations
• Performance Appraisal

2. What are the guidelines to consider

in hiring a external consultant?