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Advantages of internal consultants in business
Internal and external consultants
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The Role of the External Consultant
Many organizations utilize consultants to address problems and improve business practices. A consultant is hired to advise organizations based upon their professionalism and expertise (“Consultant”, 2017). External and internal consultants work with a client organization to achieve the client’s objectives. External consultants are non-members of the organization and have the responsibility of advisement from a neutral perspective (Stryker, 2012). Internal consultants are members of the organization and have a great understanding of the internal operations of the organization (Miller & Subbiah, 2012). While organizations may use consultants internally and externally, the both types of consultants differ
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52). This objectivity allows the external consultant to view the company fully with a bird’s eye view (Cerisano, 2014). An external consultant’s past experiences working with other clients is advantageous in overcoming challenges (Cerisano, 2014). Therefore, external consultants can share their experiences of problems they have worked through with previous clients. Additionally, these consultants bring with them ideas that are fresh, creative and insightful (Miller & Subbiah, 2012). Often hired for their specialized expertise, external consultants have the ability to use this status for influence and to promote change for a client’s specific issue or problem (Cerisano, …show more content…
53). A principal advantage that internal consultants have is their thorough knowledge and understanding of the organization’s business practices (Miller & Subbiah, 2012). Since internal consultants have regular interaction with the stakeholders, they understand what will work in the present environment (Miller & Subbiah, 2012). The strengthened channel of communication is the result of the internal consultant’s existing relationship with employees in the organization (Morris, 2016). In comparison to the external consultant, internal consultants are more cost effective. Additionally, internal consultants assist organization members in relating to other organizations, aiding in conflict resolution and validating activities of change within the organizations (Cummings & Worley,
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
External partners will build the IT infrastructure for those with weak IT, while a weak Business acumen will benefit from consultants who can provide the Business insights needed.
The proponents of contracting out assume that outsourcing in the IT sector is useful in strategic, technological, and economic reasons. (Gonzalez, Gasco & Llopis, 2009) They believe that outsourcing enables an organization to get the same or better services with lower cost. First, strategic advantages enable organizations to refocus on strategic and core functions, and provide flexibility for organizations because organizations need not to concern about routine tasks (Gonzalez, Gasco & Llopis, 2009). OPPGA (1998) also support these strategic advantages. It asserts that outsourcing can provide organizations with great flexibility in personnel and facilities in short-term projects. Outsourcing providers can provide better services for clients since they usually use new and developed technologies. Second, proponents think that outsourcing gives organizations opportunities to access to technology and reduce technological obsolescence without large investments (Gonzalez, Gasco & Llopis, 2009). Lastly, Pros assume that contracting out can save s...
This part of the book shows how the business or organization, and the individual managing it can be involved and can contribute to the external environment. Peter Drucker named this compilation The Essential Drucker because he chose and incorporated the most vital concepts from his works which would add value to the reader when it comes to managing the business or organization, managing one’s self, managing other managers, and managing subordinates.
Organizational Change "The effectiveness of organizational change is greatest when a firm’s strategy is consistent with environmental conditions and there is internal consistency." (D A Nadler, 2003:204) The only thing that is constant in this world is change and this is widely acknowledged by many in the world, may it be a corporation or a social forum or a governmental body. What comes in this world has to experience change in the light of environmental elements and pressures and influences, internal or external. The study of organizational behavior gives that environmental factors are the political, legal, economic, demographic, technological, social and societal. While these are the external environmental factors that are and cannot be counted among the controllable factors for an organization, they do in fact influence organizational structure, policies and strategies. In turn, the internal environment of the organization, that is very much controlled by the management of the organization and comprises of the top to bottom managerial levels, the staff, the employees, the board of directors, the owners etc. this internal environment, is to a great extent the result of external environmental factors, the change of which results in the direct impact on the internal environment of the organization. As such in lieu of external environmental factors; change agents with in the organization tend to accept the change in their external factors and tries to bring about a compatible change within the internal environment of the organization. The effectiveness of the change that is being brought about with in the organization as a result of the changing external environmental forces is best when, as described by Nadler, the internal facto...
...ancy as “demons”, “thieves”, destructive to organizations. Consultants that make claims of being experts or promising the ultimate solution and do not deliver deteriorate the creditability and trust of consultancy in general. The out-of –the-box solution does not work for every situation and when it does not work the consultant lacks the external resources (or knowledge) to support the need. A clear and concise process with the necessary resources to support the consultant’s claim is essential to being successful for the client and themselves. Building a relationship based on trust and creditability is as equally important as follow thorough and honesty (Zipursky, 2014). Until organizations hiring consultants spend more time validating the creditability before hiring (to weed out the weak) and the consulting industry sets standards, anecdotes will continue to exist.
As professionals, we: 1) Put the client’s interest ahead of our own. We focus on making our clients successful, because our success is measured by theirs 2) Uphold absolute integrity 3) Tell the truth as we see it. We remain independent and able to disagree, regardless of the popularity of our views or their effect on our fees. 4) Operate as “One Firm.” No matter what office in what country, our consultants maintain the same standards of quality and ethics. 4) Deliver the best of our Firm to every client cost-effectively.
Söderlund, Jonas, Christian Berggren, and Christian Anderson, 2001, “Clients, Contractors, and Consultants: The Consequences of Organizational Fragmentation in
Internal stakeholders are described as “the managers and employees of a company.” Connected stakeholders are those that are beyond the immediate boundaries of the firm. External stakeholders are those who are outside the firm.
Information Security (INFOSEC) consultants help client companies through strategic partnerships (Ghodeswar & Vaidyanathan, 2008). A short review of United States outsourcing creates a prospective baseline for outsourcing endeavors of private institutions (Ghodeswar & Vaidyanathan, 2008). Despite the fact that the vendor has accountability and duties (detailed in the statement of work), the client is predominantly in charge of supervising strategic partnerships (Ghodeswar & Vaidyanathan, 2008).
In organisations, clients look to consultants for advice to solve problems and improve the company. From the survey in 2006 by management consultancy Association 66 per cent of the c...
Thus institutional influences induce a certain degree of resemblance in structures and practices across organizations. Opposite to that is the resource-based view, which emphasizes an individual company’s capability to capitalize on its own internal resources and know-hows to differentiate itself from competitors in the same environment and build competitive advantage (Barney, 1991; Carmeli & Tishler, 2004; Collis & Montgomery, 1998; Wernerfelt,
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company in the world. In order to maintain and increase the independence of external auditors, some activities should be undertake to avoid the overdue market competition in professional accounting industry and enhance the supervising ability of the regulators. .What follow is a detailed analysis of the association between external auditors and companies.
The business environment that firms operate in can be divided into the internal environment and the external environment.