Management consultants can lend business owners an extra pair of hands—and a fresh perspective

Some business owners describe it as an intuition or a nagging sense that something is not right.

Others say it’s like the two days before the flu sets in – you know something is wrong, but you’re not sure what.

Perhaps you’ve lost a big account. Perhaps a long-time client is suddenly a questionable client. Perhaps long-term employees are leaving or you’re having trouble attracting new employees. Perhaps there are supervision problems, interpersonal issues or frequent crises you are called upon to address. Perhaps you feel a change in mood. Employees are stressed, or morale is low.

Whatever the issue, the biggest problem is there is no time to stop and deal with it. You have to keep doing what you’re doing: running your business. You feel like you need an extra set of hands or someone to talk to—or both. You’re too close to the situation to clearly assess it.
These are the times when a management consultant can be just what the doctor ordered.

Management consultants are skilled at analyzing situations, identifying areas for improvement, developing recommendations and assisting with implementation of changes that will get things running properly again. Typically, consultants take pragmatic, problem-solving approaches to addressing issues. They are practical and focus on changes that are doable. Their recommendations might include ideas regarding the firm’s structure, processes or efficiency. They work on a temporary, as-needed basis and are less expensive than adding an employee.

And, by all accounts, management consulting is a burgeoning industry. Career Journal lists it on its “Best Careers” list in 2006.
If you plan to hire a management consultant to help your company, consider the following:

• What is the consultant’s business experience? Specifically, what is the consultant’s experience in working with businesses like yours or of similar size?

• Do you have a good “gut feeling” about the consultant? Appropriate fit with your company and your issues is critical. Assess the consultant’s communication style and whether he or she has the interpersonal skills to be successful with your team.

• Does the consultant’s record indicate a series of cookie-cutter fixes or creative approaches to problem solving?

• Is the consultant a good listener? Will he or she provide honest feedback?

• Is the consultant willing to take the time to learn the history of the company and understand both its culture and its story?

• Are your employees willing to meet with the consultant and be candid about their assessment of the situation?

• Is the consultant willing to see the work through to implementation, or will she simply give you a list of recommendations and leave the implementation to you?

The time a consultant spends with your company depends on the complexity of the issues. Assessing the situation could take anywhere from two to three days to more than a week. Some business owners are tempted to go for the “quick fix” to keep consulting costs low, but that’s rarely the best long-term solution. Many times, the evidence that the owner sees—employees leaving, stress among workers, customers complaining—are only symptoms of the real problem, which may take some time to diagnose.

Implementation is often the hardest part of the equation. Effecting change within your own company is often slow and frustrating. Having a third party on hand to help you and employees deal with the changes can be a good investment.

The good news for mid-Missouri businesses is that this needn’t be an extremely expensive process. The Missouri Small Business Development Centers, housed within the University Center for Innovation and Entrepreneurship, offers the Strategic Management Analysis and Review Tool (SMART), a low-cost alternative to high-dollar consultants. Through the completion of a company assessment and interviews with key personnel, UCIE staff can assess a company’s performance, challenges, strengths and opportunities for improvement and issue a detailed report, including recommendations. Coaching and assistance with implementation are offered at no additional cost for as long as the business requests. Because the MO SBDC is funded by the U.S. Small Business Administration and the University of Missouri, the UCIE is able to provide the same high-quality consultation as the high-dollar experts at a fraction of the private sector cost. Call us, and we’ll be happy to help. v

Virginia Wilson is a counselor with the Missouri Small Business Development Centers in the University Center for Innovation and Entrepreneurship at the University of Missouri-Columbia. Reach her at 882-7096.