Why hire a consultant or advisor?
Business leaders are often faced with several challenges and they no longer know where to turn. Do you have a well-defined problem? Are you lacking resources? You don't know who to hire, a consultant or a business advisor? Here's how to differentiate the role of these two collaborators and how to make the right choice.
The role of the consultant
The consultant is hired for the purpose of accomplishing generally well-defined tasks, such as solving particular problems that have already been previously identified. More specifically, the consultant will develop options to resolve said problems and present them to his client. In other cases, the consultant is used to temporarily fill a management position until a long-term replacement is hired.
The role of the business advisor
A business advisor has in-depth knowledge of multiple disciplines and has work experience in multiple functions. The role of the advisor can be compared to a guide who has a wide range of knowledge on various subjects. Their role differs from that of the consultant in terms of the specific scope of the task. The business advisor develops a long-term relationship with his client and understands the strategic objectives of an organization. He knows the employees, management, partners and stakeholders. The counselor identifies issues before they become a problem. He raises questions and shares his knowledge in order to eliminate the “threat”.
Comparison
In short, the differences between a consultant and a business advisor are:
- The consultant acts retroactively, the business advisor is proactive
- The consultant has a functional role, while the advisor has a role at the leadership level of the organization
- The consultant generally has "hands-on" in problem solving, while the advisor establishes an action plan and defends the need to use it in order to reduce business risks.
- There is no difference in the quality of work for these two roles, they just do different work
Note: The consultant or advisor can be a person internal or external to the organization
Why use a consultant?
Often, business leaders are faced with several challenges and they no longer know where to turn when the time comes to prioritize projects. The consultant is an external specialist who is called upon to resolve a specific problem. When the manager needs specialized expertise and does not have internal skills, for example, the implementation of new technologies, organizational change, the integration of business strategy at the management level supply chain, new product development, and much more.
Why use a business advisor?
The manager needs advice to validate a concept or idea. For example, he needs to define controls and processes before implementing a technology, to evaluate the purchase of a company, to evaluate the establishment of an office abroad, to evaluate specific financial strategies, prepare a market analysis, implement a crisis management policy or cybersecurity strategies, etc. The help of a business advisor becomes a valuable asset for the manager.
About the authors
Christiane Constantineau has a DESS in corporate finance as well as an executive MBA. She is a member of the Order of Chartered Administrators of Quebec. She has more than 20 years of experience in financial strategy both in Canada and abroad. She participated in the financing and start-up of several companies. Jean-François Thibault has an executive MBA and holds PMP, ITIL Foundation v3 and ISO 20000 certifications. He has more than 18 years of experience in IT management.
They are both partners of 6DT Conseil ( www.6dt.ca ), a strategic partner and boutique of seasoned experts who provide valuable advice in strategy, finance and information technology to SMEs in Quebec and various ministries.