Maximizing the Value of Consulting

Chapter 4Controlling Costs and Enhancing Value

The full benefit of developing consulting capabilities is realized when it is used to not only provide internal services, but also to help maximize the value of the organization's overall consulting investment—by controlling costs and helping to ensure high-quality consulting services. Key factors in achieving success in this area are the planning and budgeting process, monitoring and controlling costs, managing suppliers for value, and pursuing avenues to achieve the “maximum value state” for internal consulting.

The Planning and Budgeting Process

The Planning Process

First, one of the key factors in the proper positioning and long-term sustainability of internal consulting groups is the development of an effective strategic planning process for their organization—and to properly align it with the enterprise planning process.

This starts with developing an explicit strategic plan that is linked with and positioned to support and enable the overall strategic direction and goals.

As further detailed in the book, Internal Consulting Excellence,¹ key components of the strategic plan include the following four major components:

• Situation Analysis

  This summarizes the internal consulting group's positioning within the enterprise and relative to external trends.

  The internal situation assessment reviews the current positioning of the group with sponsors and client groups, state of its consulting processes, and consultant capabilities. ...