Consulting - what is it? What is management and financial consulting?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Modern market relations and technologies are rapidly developing. In an environment of high competition and growing consumer demands, it is very difficult to adapt in a timely and productive manner, to change a business strategy.

Therefore, not only international companies, but also medium and small businesses, government organizations turn to consulting centers. Consulting - what is it? Why are tens of billions of dollars spent annually on it?

Consulting is an ancient profession

Translated from English "consulting" means - consulting. It has roots that go back to the distant past, remember the seven sages of ancient Greece or Confucius. But as an independent profession, counseling began to take shape only at the beginning of our century.

The 20th century was marked by the emergence of professional pioneer consultants such as F. Taylor, A. Little. The first consulting services organizations were opened by T. Parrin and G. Emerson.

Later, in 1914, E. Booz founded a business research serviceBooz Allen & Hamilton. The first consulting enterprises focused on resolving problematic situations in production, organizing work processes, and reducing costs.

Consulting. What does it mean today?

Modern consulting provides advice, advice and assistance in management matters. This is an assessment of difficult situations and opportunities, preparation of measures for their implementation.

Consultants are divided into external and internal specialists. External organizations are independent organizations or entrepreneurs that provide consulting services under a contract. Internal are full-time specialists, analysts.

Consulting specialists have a number of strengths that are not always present in corporate managers: independence, unbiased, “unblurred” look; a wide range of interests, the ability to access an extensive information base. They are less loaded with turnover and management problems. A significant advantage of such specialists (external) is the experience of working in different organizations.

Consulting business

Consulting as a line of business is relevant and promising. It is a professional assistance provided by qualified specialists in the analysis of management problems and the implementation of measures to optimize the organization's performance. Its feature is an objective view of a professional from the outside, which is so appreciated by top managers.

Consulting is the provision oforganizations of various services by functions such as:

• financial and economic activities of the company, taking into account all factors;
• management and investment;
• strategy planning;
• market analysis and forecasting;
• marketing programs;
• anti-crisis measures;
• assessment of objects and much more.

All areas of consulting are closely related. Thus, the main goal of consulting is to improve the quality of management and the efficiency of the enterprise, to increase the productivity of each employee.

3 stages of consulting

1. Problem Diagnosis	2. Problem solving	3. Application of innovation, know-how
Business process analysis	Developing plans and determining the prospects for the development of the organization	Innovations in the economy, management, production technology, taking into account the characteristics of the organization

3 styles of counseling

Counseling	Consultant Activities
1. Expert style	Specialist proposes a solution, but does not comment or explain. The consultation reflects only the essence and content of the problem
2. Teaching style	The specialist communicates the decision along with the necessary explanations and comments. Consultationreflects the content of the problem situation, including client training
3. Process style	The specialist assists in resolving the organization's problems. During the consultation, the client receives assistance in identifying the problem, its essence and organizing a solution. The client independently chooses the course of action and uses knowledge in practice. Through process consultations, he develops the ability to work with specific problems

Financial consulting. What is it?

Studying the financial position of an organization involves assessing the solvency, capital mobility and asset exploitation.

Consulting is a set of analytical and advisory services. In the field of finance, it aims to create a stable financial management system for the company. Professional financial consulting. What is it, and what directions can it include?

1. qualified analysis and audit of all activities, production and investments;
2. recommendations on financial planning, budgeting;
3. developing methodologies for developing and strengthening the financial system.

Investment consulting is associated with the design, creation of business plans and programs for investment activities. Strategic financial consulting is advice on developing a strategy, choosing the optimal composition of capital and increasing its value.

Destination associated withmanagement accounting, implies the creation of a structure for managing finance, budget, investments and an economic evaluation department.

Management consulting

Management consulting is a process aimed at creating new forms and mechanisms of management, setting up and optimizing all processes within an enterprise.

The objectives of management consulting are:

• strategic management consulting, staff training;
• solving management problems;
• search for and use of untapped opportunities;
• achieving corporate goals;
• introduction of the proposed innovations into the work of the enterprise.

Management consulting areas

1. Strategy	Analysis of the state of the enterprise, setting goals, programs to achieve them, developing a strategy
2. Program	The main processes of the company's business are improved taking into account the specifics of the organization and are included in the action program. Business Process Engineering
3. Structure	The optimal organizational structure is chosen for the implementation of business processes
4. Accounting	Based on the structure, a management accounting and budgeting system is formed
5. Staff	Business processes determine the content of the staffing table andlist of employee competencies. Motivation

Thus, management consulting is assistance in the development of strategic plans, management methods, standards, motivation programs, structure improvement and coaching.

Marketing Consulting

Marketing consulting is consulting on marketing, organizing promotions and campaigns, building business communications.

Advertising is an investment in product promotion for maximum profit. A marketing company needs to be weighed and calculated. In fact, many organizations overpay up to half of their total advertising budget.

The main goal of consulting in this area is to increase sales and reduce the cost of self-promotion of the organization.

The tasks of marketing consulting include:

1. evaluation of the advertising company;
2. optimization and minimization of the budget;
3. search for effective media channels.

The work of a consulting firm begins with a marketing audit of the organization. This is followed by the development of a strategy, tactics and positioning of the product, service in the market. Consulting also involves regular counseling, assistance in achieving your goals.

Investment consulting

Investment activity is to justify and implement effective areas of capital investment. Its basis is a thoughtful investment policy.

For managers, investors when choosing schemesinvesting and raising capital, it is beneficial to rely on professional recommendations provided by investment consulting. What is it?

Investment consulting is a professional help in choosing:

• options for more efficient use of property;
• capital flow schemes for the development of an organization or the implementation of a project.

Investment consulting is:

• introduction of mechanisms for protecting the interests of the enterprise, providing guarantees;
• negotiation services with banks, insurance companies and authorities;
• development of investment projects and financing schemes;
• forecast of directions of capital flow;
• assessment of the effectiveness of investment areas and recommendations on financing methods.

In addition, investment consulting includes activities to find and attract investors (corporate financing), management and legal support for investments.

HR consulting

Human resource management, office work, document management, labor relations and the application of labor laws are areas of activity that directly affect the efficiency of any organization.

Professional HR consulting is on the rise. HR consulting is a wide range of services: from diagnostics and analysis to the development and implementation of personnel policy.

• Recruiting, outsourcingstaff.
• Attestation and rotation.
• Formation of personnel policy, corporate culture.
• Personnel accounting, audit, workflow from scratch.
• Registration of labor relations in accordance with the law.

IT – consulting

The activity of project planning in the field of information systems, the creation of a system project and applications is called IT consulting. There are quite a few areas of activity. Its main goal: a high-quality IT infrastructure that meets all the needs of modern business.

Professional IT consulting, what is it and what are its tasks?

Firstly, the creation of an IT strategy, a plan for the development and maintenance of information technology at the required level, taking into account the needs of the business.

Secondly, the definition of requirements for providing the organization's IT infrastructure and identifying problems. Thirdly, the search for IT solutions that meet all the objectives of the organization. And finally, the development of a company information system model.

10 difference between a successful consultant and a non-professional

Professional Consultant

Unprofessional consultant

Studies information on the client's activities in advance. Offers are specially prepared for the client and take into account the characteristics of the organization. In cooperation, he immediately helps the client with new ideas, gives advice. New thoughts and solutions communicate confidently. When communicating, showsknowledge of terms, data or production situations for the enterprise client.a Speak up and ask questions, paying attention to the client's opinion. He is able to listen. Organizes different areas of work, informs about their features. Willingly agrees to personal meetings. Demonstrates knowledge of the situation and problem. Always answers additional questions. Takes into account and remembers the opinion of the client, does not disregard his objections.

Does not prepare in advance, but learns from clients about the situation in the organization and facts. The proposals he has developed are generic, standard, as in an advertisement for a consulting firm. Emphasizes achievements and does not act like a partner. Reluctant to express new thoughts. Demonstrates experience in an organization in the same industry. Speaks peremptorily. Talks a lot but listens little. Consulting work is carried out only in one version, communicating more with the client in writing. Speaks with prepared text without interruption. Does not take into account the client's statements, ignores objections.

Regulatory bodies and consulting standards

Market structure
Regulatory acts at the state level that directly or indirectly regulate the market	Unions of consultants and managers (active in more than 40states)	General rules for the provision of consulting services in force in many states. ISO - 9000 (for European Union) and others
Internal rules for hiring consultants adopted by the EU, World Bank, EBRD, etc.	Internal rules of consulting firms	Internal rules of client organizations