Many think that being in a management consulting firm; all you do is tell others what they are doing wrong and how to correct it. In part this is true, but there is more to it.
Management consulting is both a practice and an industry. The basis is to help organize a company and show them where improvements in their performance can be made by eliminating their bad business practices. This can help them become a more efficient company. There should also be a plan on how improvements can be made and implemented with the least amount of friction. This will lead to a happier work force and more profits.
The reason a company will hire a management consulting firm is to gain advice on what they think of the current company practices and if there is any way to improve them. In the 1980’s in America, this was a major business and a good number of businesses employed these firms to help cut costs and make them run more efficiently. The result was that most of these firms instituted the methodology of lean manufacturing to nearly every industry.
The most dramatic of the procedures that affected the workforce was the massive layoffs triggered from the advice of the management consulting firms. While running lean and mean is a good business practice, it was not necessary to spend millions of dollars to figure this out. Most companies can save the consultation fees of these firms if they are honest with the way their employees work and their work habits.
An advantage of having a management consulting firm come in and help out your business is their knowledge they have gained from working with so many in the industry. They are aware of the latest and best practices that are currently being deployed by other business to become more profitable. By applying what they have learned is where their experience will show in a positive manner or not.
The management consulting that most business looks for is to have an expert in the field of running a business in their industry efficiently and successfully. Unfortunate choosing the wrong firm that lacks this expertise could do more damage than good for a business.