Fostering Innovation

19Using Mercenaries—I Mean, Consultants

Consultants are people too, and there is value in using external resources strategically in an organization. When used wisely, external resources provide knowledge, skills, and perspectives that your internal team doesn't have. Want to implement a new payroll system? Hire a partner who's already successfully implemented the same system multiple times. Adding experts to a project is a smart business practice. When considering external resources, you should always weigh the cost-benefit like any other investment. All consultants are expensive, and some are ridiculously expensive. However, like a fine wine, sometimes they're worth it.

Management Consultants

Management consultants are high-dollar firms that provide broad business strategies. These firms are commonly hired at the CEO or board level when a complete change in direction is desired or required. These engagements cost millions or tens of millions of dollars. If the counsel provided is the difference between a successful transformation or Chapter 11 bankruptcy, then the money will be well spent. Management consulting firms hire the best and brightest, and they have mad PowerPoint skills. These companies are thriving. Bain and McKinsey have annual revenues of over $4 billion and $10 billion, respectively.

We've all heard the quip that management consultants will ask to borrow your watch, tell you what time it is, and then sell the watch back to you. Extracting and exploring existing ...