Difference between revisions of "External v/s internal consulting. growth of internal consulting"
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and its industry. In addition, having a dedicated internal consulting unit is a smart | and its industry. In addition, having a dedicated internal consulting unit is a smart | ||
way for corporations to market themselves and attract top talent from the outside | way for corporations to market themselves and attract top talent from the outside | ||
consulting ranks. (from Vault Career Guide to Consulting) | consulting ranks. ('''from Vault Career Guide to Consulting''') | ||
Rise of Internal Corporate Consulting Groups | Rise of Internal Corporate Consulting Groups <br> | ||
... Added to these approaches are corporations that set up their own internal consulting groups, hiring internal management consultants either from within the corporation or from external firms employees. Many corporations have internal groups of as many as 25 to 30 full-time consultants. | ... Added to these approaches are corporations that set up their own internal consulting groups, hiring internal management consultants either from within the corporation or from external firms employees. Many corporations have internal groups of as many as 25 to 30 full-time consultants. <br> | ||
Internal consulting groups are often formed around a number of practice areas, commonly including: organizational development, process management, information technology, design services, training, and development. | Internal consulting groups are often formed around a number of practice areas, commonly including: organizational development, process management, information technology, design services, training, and development.<br> | ||
Advantages | Advantages <br> | ||
There are several potential benefits of internal consultants to those who employ them: | There are several potential benefits of internal consultants to those who employ them: <br> | ||
If properly managed and empowered, internal consulting groups evaluate engagement on projects in light of the corporation's strategic and tactical objectives. | If properly managed and empowered, internal consulting groups evaluate engagement on projects in light of the corporation's strategic and tactical objectives. <br> | ||
<br> | |||
Internal relationship provides opportunities to keep certain corporate information private. | Internal relationship provides opportunities to keep certain corporate information private. <br> | ||
It is likely that the time and materials cost of internal consultants is significantly less than external consultants operating in the same capacity. | It is likely that the time and materials cost of internal consultants is significantly less than external consultants operating in the same capacity. <br> | ||
Internal consulting positions can be used to recruit and develop potential senior managers of the organization. | Internal consulting positions can be used to recruit and develop potential senior managers of the organization. <br> | ||
Note: Corporations need to be conscious of and consistent with how internal consultant costs are accounted for on both a project and organizational level to evaluate cost effectiveness. | Note: Corporations need to be conscious of and consistent with how internal consultant costs are accounted for on both a project and organizational level to evaluate cost effectiveness. <br> | ||
Internal consultants are often uniquely suited to | Internal consultants are often uniquely suited to <br> | ||
1.Lead external consulting project teams, or | 1.Lead external consulting project teams, or <br> | ||
A group of internal consultants can closely monitor and work with external consulting firm. This would ensure better delivery, quality, and overall operating relationship. | A group of internal consultants can closely monitor and work with external consulting firm. This would ensure better delivery, quality, and overall operating relationship. <br> | ||
External firms providing consulting services have a dichotomy in priority. | External firms providing consulting services have a dichotomy in priority. <br> | ||
Disadvantages | Disadvantages <br> | ||
The internal consultant may not bring the objectivity to the consulting relationship that an external firm can. | The internal consultant may not bring the objectivity to the consulting relationship that an external firm can. | ||
An internal consultant also may not bring to the table best practices from other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively provide diverse training to internal consultants. | An internal consultant also may not bring to the table best practices from other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively provide diverse training to internal consultants. | ||
Where the consulting industry is strong and consulting compensation high, it can be difficult to recruit candidates. | Where the consulting industry is strong and consulting compensation high, it can be difficult to recruit candidates. | ||
It is often difficult to accurately measure the true costs and benefits of an internal consulting group. | It is often difficult to accurately measure the true costs and benefits of an internal consulting group. | ||
When financial times get tough, internal consulting groups that have not effectively demonstrated economic value (costs vs. benefits) are likely to face size reductions or reassignment. (from Wikipedia) <br> | When financial times get tough, internal consulting groups that have not effectively demonstrated economic value (costs vs. benefits) are likely to face size reductions or reassignment. ('''from Wikipedia''', http://en.wikipedia.org/wiki/Management_consulting) <br> | ||
'''Additional sources''': <br> | |||
[1] http://www.change-management.com/tutorial-internal-consultants.htm <br> | |||
[2] Association of Internal Management Consultants http://www.aimc.org/ <br> | |||
[3] http://www.rommil.com/blog/2010/03/13/the-joys-and-pains-of-internal-consulting/ <br> | |||
[4] http://news.top-consultant.com/US/news_story.asp?ID=3119 <br> | |||