The Role of the Internal Consultant

Description

Internal consultants are typically looked down upon because they are no effectively used. The most common application is under utilization followed by a disbandment. However, the original idea behind the internal consultant is has merit. Internal consultants know the system reducing the lead up time and there is a greater ability to control the situation in regards to security. However, there seems to be a small but growing trend of hybrid internal consultants that may be more effective in the long run.

Such hybrids can take the form of three different internal consultants. The first is called a centre of excellence. While technically an internal consultant this centre would essentially attempt to solve issues before they arise by using scenario thinking and seeking out potential missteps in the future. The second hybrid would focus on innovation by incentivizing employees to spend 10-20% of their time on thinking of new ways to improve the company. The final hybrid is technically an external consultant, but a external consultant that only has about 3-7 lifetime clients.

A rise in any of these hybrid internal consultants will have a profound impact on the necessity of traditional external consultants.

Enablers

1. Proprietary information and intellectual property rights
2. Openness of Information
3. Focus on internal security
4. Desire for more long-term committed relationships with consultants
5. Move towards specialized client-consultant relationship

Inhibtors

1. The growing trend and acceptance of outsourcing
2. Rising intellectual power of emerging markets
3. Availability of human capital from emerging market
4. Increasing gap in intellectual capital base of clients

Paradigms

If internal consultants become the norm because of security and IP rights, and a desire for more specialized long-term relationships, the need for external consultants and short-term assignments will be few and far between. External consultants will still be valid for certain necessities, such as validation or capacity issues, but external consultants as a "hired-gun" for short-term projects will no longer be desired as a first option.

Timing

1950 - 3M introduces first known internal innovation programme with a "15% rule" creating innovating products such as masking tape and Post-it notes
2005 - Google brings internal innovation programmes into the spotlight by generating approximately 50% of revenue through the programme and releasing products such as gmail

Web Resources

http://www.scottberkun.com/blog/2008/thoughts-on-googles-20-time/
http://www.youtube.com/watch?v=soYKFWqVVzg