The two major reasons why companies hire consultants, in general, are: To be able to gain external and objective advice, and to access to consultants’ expertise in that field. They also have relationships with a wide network of people and organizations. Through these, consultants accumulate knowledge on both the best and not-so-good-practices and can transfer this knowledge to their projects.
Benefits of Hiring a Consultant:
* Outside expertise in a specific area (e.g. expanding into a new country, building or improving a compensation plan, developing a training strategy)
* Help with a special need for a determined period of time (e.g. constructing a campaign aiming to increase retention or average order size)
* Fresh, objective eye to see and show the “real” picture (e.g. monitoring the quality of services rendered, seeking areas of improvement)
* Supporting staff in doing a specific task especially if they are overwhelmed with daily routines (e.g. increasing efficiency in order-processing or in complaint-handling, developing a training program content, conducting research on a topic)
Along with those that fall under these headings, there are other benefits a consultant brings in as well. For example, in a project, an outside consultant can wear the hat of a coordinator without being bothered by the internal power or hierarchy-related issues. Also a consultant can ask the right questions, again, because s/he has no fear of such issues.
Steps in Hiring:
1) Do You Need a Consultant?
The first step in the process is determining whether a consultant is actually needed. The question to be answered is, “Can we do it ourselves?” This is as simple as that.
2) Define the Project
The next step is preparing the project definition. This is important for both finding the right consultant for the job and also for avoiding any misunderstandings with the consultant to be hired.
3) Identify Project Sponsor and Leader
The sponsor is the owner of the project within the company, a senior person with an authority to make things happen. Somebody from the company should also be selected as the project’s leader to act as the link between the consultant and the organization.
4) Make a Contract
The final step is to make a formal contract with the consultant specifying all terms and expectations very clearly.
Companies wishing to enter the direct selling industry for the first time, occasionally leave themselves to the hands of a former field leader in their search of advice. Although this can seem to be a sound approach at a first glance, its consequences can be poorer than expected. One should always keep in mind that a field leader might be very good on what s/he has been doing, but usually has little understanding of running a direct selling operation. And the most dangerous case is if that person claims to have just invented the next super powerful compensation plan! There are, of course, exceptions to this generalization, but not too many.
As a last point, it is important to know that hiring a consultant means initiating a process of consultation. The business owner’s job is not finished yet, so s/he cannot just walk away when a consultant comes in.
