When is the right time to use consulting services?
Business competition is getting tighter, changes are increasingly unpredictable. To deal with uncertain changes, companies often use consulting services to create future business strategies.
In America, every year consulting services companies earn more than $ 2 billion for the consulting services they offer to companies.
The revenue data from consulting services companies shows that there is still a high demand for consulting services for companies.
The question is when is the right time for your company to use consulting services? You will find the answer here.
What are the Objectives of Consulting Services?
In providing consulting services, a consultant who is an expert in the business field will help his clients. According to the Harvard Business Review, there are eight fundamental objectives of a consulting service, namely:
Providing Information to Clients
Consultants are tasked with providing relevant data, analysis, and information to help clients better understand their business situation. This information is the basis for more targeted decision making.
Solving Client Problems
Consultants help design specific solutions to problems faced by clients. The focus is on finding the root cause of the problem and addressing the real obstacles that are interfering with the organization’s performance or growth.
Making a Diagnosis, Including Redefining the Problem If Necessary
The consultant conducts an in-depth analysis to find the root cause of the problem. Often, this diagnosis requires redefining the problem that the client originally identified in order for the solution to be truly effective.
Making Recommendations Based on the Diagnosis
Based on the results of the diagnosis, the consultant develops and delivers concrete recommendations designed to address the problem as a whole, not just treat the symptoms.
Assisting in Implementing the Recommended Solution
The consultant goes beyond providing advice, but also accompanies the client through the implementation process, ensuring that the proposed changes are actually implemented properly.
Building Consensus and Commitment to Corrective Actions
The consultant’s role is to help all parties within the organization agree on the steps for change, creating a shared commitment to support the implementation of the solution.
Facilitating the Client’s Learning Process by Teaching How to Solve Similar Problems in the Future
The consultant aims to enhance the client’s internal capabilities by teaching them problem-solving methods, so that in the future the organization can handle similar challenges independently.
Permanently Improving Organizational Effectiveness
The ultimate goal of consulting services is to build a more effective organization in a sustainable manner, both in terms of structure, culture, and process, so that the company is more resilient to change.
Why Do Companies Need Consulting Services?
Companies already have ideal functions to run their businesses. However, sometimes businesses need an outside perspective to find out the root of the problem or things that cannot be seen by the people running the business.
Here are some reasons why companies need consulting services:
1. Bringing a New, Objective Perspective
Consulting services provide an independent external view of problems, opportunities, and potential risks that may not be visible to the company's internal environment.
In the midst of rapidly changing business dynamics, having an objective perspective helps companies avoid internal bias, sharpen analysis, and make more accurate and bold decisions.
2. Accelerating Change and Transformation
In situations where changes need to be made quickly such as digital transformation, structural reorganization, or business model pivots, consulting services help accelerate the company's operational processes.
They bring proven methodologies, cross-industry experience, and additional resources to ensure change is faster, more structured, and more impactful.
3. Accessing Specific Expertise Not Available Internally
Not all challenges can be addressed by internal resources alone. There is a need for highly specific expertise, for example in energy transition, advanced analytics, ESG (Environmental, Social, and Governance), or crisis management, where consultants already have deep experience.
By using consulting services, companies can access premium expertise without having to build from scratch.
4. Supporting Complex Strategic Decision Making
When facing major strategic decisions, such as expansion, mergers, acquisitions, or major investments, companies need in-depth analysis and simulation of various scenarios.
Consultants help develop a strong business case, estimate risks, and provide external validation for strategic decisions to be taken.
5. Optimizing Operations and Cost Efficiency
Using consulting services can help identify inefficiencies in the company's value chain, production processes, logistics, and financial management.
Consultants offer global benchmarks and the best solutions to reduce costs, increase productivity, and improve company margins without sacrificing quality and operational sustainability.
6. Strengthening Internal Capabilities through Knowledge Transfer
The ideal business consulting service not only works on projects, but also transfers knowledge and builds the internal capabilities of the company's team.
This strengthens long-term competitiveness, because after the project is completed, the company becomes more independent and ready to face similar challenges in the future.
7. Managing Risk and Compliance Amidst Complex Regulations
With the increasing complexity of regulations, both in the energy, financial, and environmental sectors, business consulting services help companies remain compliant while minimizing legal, reputational, and operational risks.
They ensure that companies are not only compliant, but also manage risks proactively.
When and What Conditions Do Businesses Need to Use Consulting Services?
The company's financial situation will influence the decision to use consulting services.
However, in certain conditions that are indeed critical and very much needed to remain competitive amidst market changes, companies do not hesitate to spend a budget to use business consultant services.
What conditions allow companies to use business consultant services. Here are some descriptions and the right time conditions:
When Facing Massive Strategic Transformation
Companies will use consultant services when companies face major transformations, such as Pertamina when there will be an energy transition from fossil to new renewable energy (EBT).
Consultants can help develop an integrated roadmap strategy, manage the risk of change, and ensure that the organization is operationally and culturally ready to transform.
When Carrying Out International Business Expansion
In an effort to expand business abroad, companies can use business consultant services to support market analysis, geopolitical risk management, and compliance with local regulations in the destination country.
This is important so that expansion is carried out strategically, with minimal risk, and in accordance with national interests.
When a Major Crisis Requires a Rapid Response
When a crisis occurs such as a disruption in the global energy supply chain, an environmental disaster, or political instability that impacts operations, companies will engage specialist crisis management consultants to help with scenario planning, risk mitigation, and effective crisis communication.
When Wanting to Optimize Operational Efficiency
Companies will use the services of business consultants when they want to optimize business processes, increase production efficiency, reduce distribution costs, or improve operational cost structures.
Consultants can offer benchmarks, digital tools, and global industry best practices to achieve efficiency targets.
When Carrying Out Business Model Innovation and Digitalization
In order to accelerate operational digitalization and develop new technology-based businesses, companies can collaborate with technology and innovation consultants.
Consultants can help create a digital transformation roadmap, introduce new technologies such as AI or IoT for industry, and build internal digital capabilities.
Is This the Right Time for Your Company to Use Consulting Services?
Based on the conditions explained above, is your company in that situation? If so, it's not wrong to try using consulting services.
Taking steps to work with the right consultant can accelerate positive change, enrich perspectives, and optimize strategic decision-making.
With a collaborative approach and solutions tailored to your needs, consulting services can be a catalyst for your company's growth and transformation.
Working with a consulting services company is like partnering with business leaders who are experts in their fields, such as Prasmul-Eli consulting services.
Prasmul-Eli consultants are business experts who are ready to help companies from business strategy, change management, risk management, to customer experience.
Are you ready to partner with consulting services to increase your company's business growth?
