Management consultants are hired by decision makers for advice on, among others, strategy and organizational matters. They can be asked to develop a new strategic plan to realize more growth, for instance, or commissioned to advise on innovation or cost reduction strategies. Implementing the proposed solutions also features among their tasks, and the execution side of consulting forms the largest market for management consultants in practice. Assignments can vary from improving the efficiency of business processes, the implementation of new IT systems, outsourcing of non-core tasks, or optimizing the supply chain. Management consultants typically remain involved until change transitions are complete and new ways of working have become part of ‘business as usual’ operations.
Clients hire strategy consultants to support them with strategic decision making, which includes the development of strategy and, to an extent, also the execution of strategic plans. As the responsibility for strategic decision-making falls under the mandate of CxO’s and senior management, strategy consultants typically work for executives and high-ranked managers. By doing so, strategic advisors can help companies with the definition of their vision, mission, and strategy, support them with market entry into a new market or with a shift towards a new business model.
The 6 key elements needed to devise good business strategies:
- Leadership Vision: A business strategy should come from the leaders. Having a clear leadership vision is a key starting point. Where are we going and why?
- Culture: Company culture is a key driver to implementing a successful business strategy. Without a supportive culture, you will achieve nothing.
- Strategic Marketing Plan: Of course a marketing concept or marketing concepts are all well and good, but without a clear marketing plan no business strategy can work.
- Management: A strong and inspiring management team is necessary to implement your business strategy.
- Systems: You also need effective and efficient business systems behind you if you are to successfully implement your business strategy.
- Resources: And you’ll need plenty of resources.