Unleashing the Power of Effective Advisor Management

Share this article

In a business world that rapidly evolves, more than internal resources are needed for businesses to make critical changes and adapt.

With their expert advice and high level of independence, external talent can play a crucial role in helping firms accelerate growth and cope with uncertainty.

A survey of UK industry decision-makers in both public and private sectors showed that 84% of mid-sized to large businesses polled use consulting services. The consultants work mostly in business transformation, digital and technology advisory, project management, strategy advice, financial advice, change management, quality management, and process improvement, among others.

While many elements need to be considered to ensure the effectiveness of the consultation, advisor management practices are one of the first things a firm should consider before hiring a consultant.

These practices determine how the firm works with the consultant and nurtures the relationship to augment their expertise and maximize benefits for the firm.

In this blog post, Consultport shares our insights into the advisor management processes and tips to work with consultants to maximize the benefits they bring to a client company.

When firms need consultation?

Firms often call for consultants or advisors when there is a change. The consultants are important in supporting the firm to develop and execute strategies to adapt to changes. They can help the firm in various departments - business planning, marketing, finances, and business development.

A firm would need the support of a consultant or advisor in one of the following scenarios:

It has clearly identified a problem that needs to be solved and does not have suitable skills and expertise in-house. The problems can range from emerging trends and the rapid development of new technologies to marketing talents.
It needs a professional with specialized expertise who can help it cross the finish line. For example, a company would need to hire a consultant when it experiences a stagnant sales strategy and its revenues do not grow. The consultant is likely to have a more objective perspective and help the firm solve the problem.
It has worked on a problem for so long and has a tunnel vision and thus wants to have a consultant to create transformation to the business. According to Forbes, many consultants are experienced leaders who shifted to the consulting sector to share their expertise. They can give firms a fresh set of eyes on the problem whether it’s a high employee turnover rate or pricing strategy.

KEY TAKEAWAYS

Finding competent consultants, identifying clear types of consultations needed and maintaining advisor-client relationship are among best practices for advisor management.
Both work experience and expertise are crucial elements that companies need to consider when hiring a consultant. However there is a tendency that advisors with experience executing real projects are preferred to someone who only has knowledge.
Effective advisor management processes help firms find the right consultants as well as facilitate open communication, and effective collaboration between the two sides.

Best practices for advisor management

There are many things that a firm needs to take into account before, during, and after working with advisors. It can range from

1. Right fit selection

There are many ways a business can find advisors: through recommendations, existing contacts, or consulting services.

Whichever way a firm chooses, it is important to consider the following key elements to make sure the advisors and consultants meet their requirements:

A consultant with strong critical thinking and creativity is essential to help firms analyze sophisticated issues and come up with innovative solutions. A study on the importance of critical thinking noted that 92% of business leaders believe that this is the most significant skill a person needs to have in order to be successful both at work and academically. A consultant with a strong ability to think critically is a valuable asset to the firm.
Consultants’ work experience and expertise in particular issues the company needs to handle are also crucial. When it comes to consulting, experience does matter. Forbes noted the importance of finding advisors with experience executing rather than someone who only has knowledge. A person who has built products and companies from scratch, for example, is “extremely valuable”, the magazine said. This is especially true as problem-solving and efficiency improvement are part of the job of consultants. And problem solving requires not only knowledge but also experience and intuition.

the size of the global consulting market from consultancy.uk

Source: consultancy.uk

2. Clear types of counsel needed and success definition

An effective advisor management practice also involves clear identification of the types of counsel and success definition. To alleviate misunderstanding, a firm must be very clear about what it is looking for in an advisor and if they can offer the insights and value in the aspect that it needs.

Firms must work carefully on how the project is managed, the details of deliverables as well as how the successful outcomes would be. Doing so helps businesses have a “successful and mutually positive engagement” with a business advisor, according to an article by Forbes on how to seek the right advisor.

3. Advisor-client relationship maintenance

To ensure the highest level of effectiveness, a firm needs to ensure a two-way relationship with advisors. Open and honest communication and exchange are vital to deliver quality service and ensure smooth collaboration between the two sides. This can be done via regular meetings to review and discuss progress as well as solve problems in a prompt manner.

Firms also need to watch for possible issues and challenges when working with consultants and advisors such as their commitment to targets, meeting the deadline, feasibility of the advice, and expectations/commitments versus reality.

The issues can also be from the client side such as lack of coordination from the firm’s staff, time pressure, or lack of full understanding of their own businesses.

It is also worth noting that when a project is completed, it’s not the end of the process yet. Firms should take this opportunity to review the performance and the collaboration between the two sides. They need to identify the shortcomings as well as the areas of work that have been done very well in order to learn for the future.

Upon completing a project, the firm may also need to consider and assess whether it can continue to work with the existing advisor who has an understanding of their business or find a new one as the circumstances have changed.

Benefits of effective advisor management

With sound advisor management practices, a firm can maximize the effectiveness of the consulting services, thus augmenting the benefits they bring and realizing the goals set.

With a good selection method, firms can find a trusted advisor who can help them see the problems clearly with the objectivity and independence needed. The right advisor will also bring fresh ideas and best practices to the table as well as ensure the projects are implemented swiftly and effectively.

In addition, a good advisor management practice with open and honest communication also helps the collaboration between the consultant and client be smooth, organized, and efficient.

Like in talent management, effective advisor management also contributes to other strategic objectives of the firm including building a high-performance workplace and increasing productivity.

Conclusion

Advisors and consultants play an important role in leveraging the resources of a business to realize its goals and cope with changes.

As noted by Consultancy.uk, the global consulting market continues to grow and has become one of the “largest and most mature” markets in the professional services industry. Businesses now have a variety of options to choose the right advisor or consultant for their specific needs and preferences.

A competent professional with strong expertise along with effective advisor management practices from the client company will help both sides ace successful strategies and reap positive results.

If your company is facing a problem, whether it’s about a stagnant strategy or how to cope with changes in technologies, don’t hesitate to contact Consultport to get world-class consulting services.

Share this article