Why Would Anyone Hire A Management Consultant? – Part 2

In my last post I talked about how owners of companies can find themselves faced with situations they haven’t encountered before – and not realize what’s happening.

After all, that happens in our personal lives. Remember the first time you fell in love?

We’re caught up in the symptoms – the tune playing endlessly in our head, the face we can’t get out of our mind and the grin we can’t wipe off, no matter what else is going on. How many of us simply didn’t understand what was happening? I don’t know about the ladies but believe me, none of the men did!

Sometimes it takes someone who has already had the experience, to alert us to the situation.

Think for a moment about a company with between $3 and $5 million in annual revenues and which has been in business for anything from 5 to 20 years. The owner is successful by any measure. They’ve grown their businesses to a respectable size, provided employment for others and beaten the odds of failure.

But then things start happening that many of them have never encountered before.

I’m So Frustrated

For example, in companies of this size the owners are typically directly involved in everything that happens. That may work well for a time, but eventually either the volume or the complexity of the business reaches a point at which no human being can sustain the effort required.

That’s when we hear them say things like “I’m just so frustrated!” When we ask why, typical responses are “I’m working 16 hours a day, 6 or 7 days a week – but sales aren’t going up.” Or he or she often feels that they’re not paid enough for hours they work. They only want to work 4 days a week in the summer and take more vacations with their families.

Because they’ve been successful up to this point, they believe they can figure it out for themselves – overlooking the fact that this is a situation they haven’t encountered before.

Some may try developing (or hiring) supervisors or managers to take work off their shoulders. But it isn’t successful and they feel it isn’t worth trying again.

But a consultant, who has had experience delegating and working with a management team, knows that it isn’t something that comes easily or naturally to most people. He or she can help the owner select competent team members and get them working together effectively.

A Victim of Their Own Success

Business owners can also be a victim of their own success. For example, adding a new distributor can result in sales growing so quickly the company can’t cope.

This leads to a dramatic increase in customer complaints – about customer service, quality, delivery or all three. And the owner is caught in an endless cycle of dealing with urgent, day-to-day issues and juggling operational balls.

An experienced consultant can see beyond the symptoms, help the business owner break out of the cycle and put processes in place to maintain control of key functions.

I don’t want to take the romantic analogy too far and suggest that a management consultant could be a business owner’s best man (or woman). Even I realize that may be stretching things a bit!

But there are times when getting an objective, third party opinion could be the best thing to do – no matter how difficult or unlikely a solution it seems.

 
If you enjoyed this post you’ll also enjoy 3 Reasons Why Consulting Assignments Fail Part 1 and Part 2
 

 

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Tags: business, company, Jim Stewart, management consultant, marketing, owner, ProfitPATH, revenue, sales

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