The benefits of using a consultant

The nature of the consultant’s engagement with the client will change over time as priorities are refined and projects develop.  This normal process should be managed well to keep the project focused and stop it becoming an open-ended arrangement.

It is therefore essential that the client retains a clear recollection of the initial purpose of the consultancy. It is important that subsequent changes in goals and directions are subject to an assessment at least as rigorous as the initial decision to contract for consultancy.

A consultancy assignment may contain some or all of these elements simultaneously.  In other cases there may be a clear sequence, essentially a serial consultancy, working from the strategic, through the tactical, to the purely operational.  This may well mean changing consultancies, or adding other practices to the team:  The practice best placed to advise on, for example the strategic implications of business-to-consumer e-commerce across European markets, is unlikely to be the most competent or cost-effective when advising on the consequential re-organisation of a particular warehouse.

The benefits of using consultants should include:

  •      unique solutions reflecting the particular circumstances and aspirations of the client.
  •      speed of action (because the consultancy team, unlike the in-house management, is not being constantly distracted by other tasks).
  •      knowledge of ‘best practice’ and effective solutions from within the client’s own industrial/commercial sector.
  •      exposure to expertise derived from other industries and sectors, or indeed other countries.
  •      provision of specific technical skills that are either non-existent or in short supply in-house, and often the transfer of such skills to in-house staff.
  •      change management skills, enhanced by the consultant’s position as independent, objective and ‘above the fray’.

This should all lead to ‘value for money’ from the consultancy assignment, demonstrated through improved performance by the client.

The client can increase the likelihood of a good outcome from the assignment by establishing with the consultant what the final report will include and how it will be written and presented.  They also need to have a clear understanding of the time commitment of the consultancy and who will be carrying out the work.

It is also important to have a clear agreement about knowledge transfer from the consultant to the client’s organisation and to ensure that the organisation is well briefed about the project to preclude obstruction or lack of commitment within it.

 

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Business Growth Clubs – a safer way of getting good quality external advice

Research shows that many small to medium-sized businesses are put off seeking external professional advice for fear of the costs and the likely returns despite the fact that the research shows conclusively that businesses that seek out advice grow faster and are more profitable.

Trusting a consultant to give good advice and value for money can feel like a step into the unknown.  This is a natural human concern if you are running a business.  Will you get on with the consultant, will he or she make you feel stupid, will he or she do what you ask, will you have control over the project and the outcomes are just some of the fundamental questions it is only reasonable to ask especially if you have not had good quality advice before and even more so if you have had a bad experience.

The design of a business growth club tackles many of these concerns head on.  Costs are easily contained and shared across the membership of the club, your exposure is limited, you can see how others in comparable situations handle the consultant team and how they ensure that they get value for money.  You can get to know the consultant team in a safe environment.  Moreover, you control what you share with the team and are only required to divulge what you wish about your business.  There is safety in numbers as you are one of a small group of clients. Altogether the business growth club is a good way of putting your toe in the water to see how it feels – it’s a relatively low risk option for getting advice and support and gives you more control over the process.

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Why should I use a consultant?

Management consultants may be employed by a client for a number of reasons, over varying timescales and in different ways.

These may be:

  • To provide a strategic overview of the position of the organisation in its marketplace or environment, and thence to recommend mid to long term strategic directions.  Typically, the client will be looking for a consultancy that not only has deep experience of the client’s particular industry, but can bring a broader view of how other sectors have coped with analogous problems or decisions.
  • To provide an independent review of a proposed course of action, or of the choice between two or more, typically tactical, decisions, based on knowledge of how such decisions have been effected in other organisations.
  • To catalyse change by recommending alterations to management processes and organisation.  Often this will be in cases where the client has a clear idea of problems and solutions (possibly though not necessarily as the result of previous consultancy) but is unsure of ‘how to get from A to B’.
  • To strengthen a team.  Client and consultant may create a joint team to develop in-house capabilities, for example to manage a new process.  The intention here is that once strengthened, the in-house team can carry on without the consultants.
  • To achieve the implementation of a new system or process e.g. Health and Safety, Environmental, Quality.  Sometimes the implementation of a new system, may be beyond the client organisation not because of any lack of skills but because those skills are fully deployed in other tasks.  If there is no longer-term justification for strengthening the in-house team, it may make sense to hand the implementation project over to consultants.
  • To be involved in the long term operation of the organisation.  It may be, particularly with IT, that the most desirable management solution is to employ the consultants on a long-term contract to manage particular processes or systems.  This of course is outsourcing rather than a consultancy, and should be contracted for like any other outsourced service.  It should be noted that the consultancy that identified this option will not necessarily be the practice best placed to provide the service.  If it looks as though outsourcing may be an appropriate option it is important not to make any commitment to the existing consultant about the destination of the service contract, and carry out a conventional procurement procedure (invitations to tender, bids assessed against pre-defined criteria etc).

You can find out about the benefits of using a consultant from our blog on: “The Benefits of using a Consultant”

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DOING YOUR BIT – CHARITY WORK…………..

Charities generate a huge amount of revenue and expenditure – in the order of £30 bn, with over 160,000 registered in the UK.  The good causes are endless and we may have all been involved directly, indirectly or both at some time.  Whether it is a national or a local aid organisation, donating or giving up our time to help counts the most.  As someone said to a colleague the other day when some gives you their money they show they can afford it; when someone gives you their time they are giving you part of their life.

In between my work and family commitments, I manage to devote varying amounts of time throughout the year to three charities:

Although financial funding is an increasingly common issue for all charities, very often it is the physical support generously provided by volunteers and supporters that is a rare commodity.  Even in our very busy lives, perhaps we should see what time we could find to contribute to a charity of our choice – in my experience it is almost never refused!  As the old saying goes “If you want something done give it to a busy person”

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The Lofstedt Review of Health and Safety Legislation – What will it mean to SMEs.

The increasing concern that the “litigation society” that has developed, is caused by interpretation of the law and not the law itself, has been confirmed and importantly, it identified that there are some current health and safety laws which are not fit for purpose and should be eliminated. In a nutshell, the report concluded that:

• Some health and safety regulations should be reviewed and streamlined or removed.

• Basic health and safety law is suitable for purpose. It is the interpretation and application of the law that produces the “red tape” burden on businesses.

• Where a business is working in a low risk environment and does not pose a risk to themselves or others, then quite rightly, they should not be expected to shoulder the same burden of bureaucracy that a large high- risk company has to manage.

• There are inconsistencies in enforcement of health and safety legislation. There should be a clearer focus for the Health and Safety Executive to address workplaces which present the highest risk.

• There is a need for employee responsibility and a review of action involved in making a claim to address the “litigation culture” which is one of the main burdens on industry. Whatever the size of your business, keeping people safe when doing their job should be of prime importance. The Lofsted report recognises that there are issues to resolve and identifies where changes are to be made.

As these changes are made, watch this space for further updates

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Behind with your PAYE or VAT – What should you pay!

We have learned some interesting information from some contact with HMRC with an honest client who has fallen a bit behind with their taxes.

It is little known the way that HMRC work.  Firstly they do not communicate between VAT and PAYE unless you have caused them considerable aggravation.

So the PAYE person contacting you knows nothing of your VAT and vice-verse.

The other thing we discovered is that is you pay the current month (quarter) that is much better than paying the oldest overdue.  This is because you are displaying that the debt to HMRC is not going to be getting any worse.  In their busy understaffed offices they will concentrate of those that are deteriorating and of a high level.

We must add that this advice is for those who are going to be able to pay their taxes in the future or need a breathing space to assess their position.

If you cannot pay and have real doubts about your ability to pay in the long term you need to seek advice.  There are lots of possibilities at this position but you must act not shy away from it.  Your professional adviser, accountant or perhaps through the business link website http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1081863332&type=RESOURCES

They would advise on appropriate actions.

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Business Growth Clubs – a mini dragons’ den?

In the mid 90s WLP ran a series of growth clubs with some really great results for club members.  Working in groups of 8-10, owner managers and senior managers in a range of SMEs came together once a fortnight to work through a structured development programme to produce robust and viable growth plans.

The clubs have just been re-launched with tremendous support and encouragement from past club members many of whom are still reaping the rewards of the investments they made over 15 years ago.

These clubs have proved to be popular because owner managers often find that the discipline of rigorous growth planning is just something that kind of never gets done without the impetus of working with other businesses and expert business advisors.  Greater control, increased sales activity, efficiency improvements and more business confidence are just a few of the major benefits past participants have reported.

The clubs work because the members are working with a group of peers many of whom face the same challenges and opportunities.  Strong working bonds are formed amongst members and a lively rapport develops within the groups.  The sessions bolster business management skills in critical areas and lead to increased confidence in dealing with marketing analysis, financial planning and operational management.

Banks and other financial institutions are big supporters of our clubs because they all too often are presented with inadequate business propositions.  Facing the financiers can be as daunting as entering the dragons’ den.  Plans produced through membership of a growth club are much more likely to get a good hearing at the bank as they are based on thorough analysis.

Consider joining a growth club to make the growth planning process an altogether more rewarding experience. Look further at http://w-l-p.co.uk/private_sector/business_growth_club.html

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World Class Customer Service – an absolute necessity going into 2012.

In these challenging times, how do you know that your customer service standards are fit for purpose?

You will know you have world class standards if your staff:

  • • Challenge themselves to manage service personally to ensure satisfaction;
  • • Understand and learn about customer needs; • Satisfy customer needs with innovative solutions;
  • • Treat customers as individuals;
  • • Own customer problems and solve them;
  • • Make themselves the customer’s advocate;
  • • Educate customers where necessary;
  • • Recommend appropriate products and solutions.

Going the extra mile has probably been never more important as customers have so many choices available to them especially through the Internet.

  • As customers rely more and more on information from the Internet, are you well positioned to take advantage?
  • What training have you given your staff to go the extra mile? What investment have you made to ensure that staff are equipped to deliver world class service?
  • What do you do to ensure that staff can offer the best solutions for customers – do they know about all the organisation’s products and services?

If customers cannot get what they want from you, there is a set of global alternatives waiting for them on the Internet.

The economic crisis has made customers even more demanding, are you in a position to respond to their needs?

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Workplace deaths increase amid concerns over “belt-tightening”.

Workplace deaths increase amid concerns over “belt-tightening”

The number of people killed at work increased by 24 in the past year.

There were 171 fatal injuries in the year up to March 2011, up from 147 in the previous 12 months.

The Health and Safety Executive compiles these figures each year and has identified that the construction and agricultural industries continue to report the highest levels of work related injuries.

Although Britain continues to have the lowest rate of workplace deaths compared to the rest of Europe, the figures show that we must never let up in our commitment to addressing the serious risks that continue to cause deaths in the workplace.

Experts have been saying for some time that the effects of companies cutting back on training and maintenance in times of recession will have negative effects on safety in the workplace and the Institution of Occupational Safety and Health (IOSH) have warned that on-going “belt-tightening” could be causing the rise in deaths at work.

Whatever the situation where you work, keeping people safe must be a top priority for all employers. The cost of a fatal accident in financial, moral and commercial terms is one that nobody wants – ask anyone who works for a company that has had a fatal accident.

Good, practical safety is not difficult. Good practical safety is cost effective. Good practical safety keeps people alive.

 

Key Facts in the year up to March 2011

  • 171 fatal injuries
  • 200,000 reportable injuries (over 3 day absence)
  • 115,000 serious injuries were reported
  • 1.2 million working people suffered from a work-related illness
  • 26.4 million working days were lost due to work related illness and workplace injury

If health and safety is not a priority in your company, don’t you think it should be!

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Would your strategy survive the Harvard stress tests?

With sluggish growth and the threat of a double dip, now would be a good time to assess the effectiveness of your strategy to weed out inefficiencies.  Robert Simons suggests you ask seven questions:

  1. Primary customers.  Have you identified them and are your resources lined up to deliver high quality service and products?  If you are trying to serve too many customers, you may be overreaching the capabilities of your business.
  2. Priority stakeholder.  When it comes to crunch, make or break decisions, whose needs come first – customers, shareholders or staff?  If this is unclear are you in danger of making decision making more difficult for staff?
  3. Performance measures.  What would kill your business off?  Do your performance measures highlight the likelihood of this happening?  Are you measuring too many variables and losing sight of what really makes the difference?
  4. Critical boundaries.  Are these clearly understood within your business?  Is a lack of clarity stifling creativity and innovation?
  5. Creative tension.  This is about helping employees focus on issues that need to be solved.  Are you setting stretch goals for example?
  6. Employee coordination and cooperation.  Is there a sense of common shared purpose?  Are you encouraging team work and sharing?
  7. Business nightmares.  What keeps you awake at night?  What assumptions are you making about your business and are they relevant?

Asking these questions and then addressing the issues that emerge is essential if you plan to survive for the long term.  Too many businesses can be lulled into a false sense of comfort as the last four years has shown only too well.

At WLP we can help see examples at http://w-l-p.co.uk/private_sector/index.html

Reference: Simons, R., (2010), Stress-test your strategy: The 7 questions to ask, Harvard Business Review, November 2010  http://hbr.org/product/stress-test-your-strategy-the-7-questions-to-ask/an/R1011G-PDF-ENG

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