Enhancing the Benefits of the Consulting Investment
Frequently, Consulting firms are engaged as advisors to review business processes and assist the business in attaining common goals of reducing costs, improving productivity, increasing Customer Satisfaction scores or enhancing patient safety.
Consulting Firms are selected based on their past performance and/or expertise in providing recommendations for the specific business need. Consulting can be an expensive industry resulting in substantial cost to the business for these services.
Unfortunately, far too often the business faces challenges in the successful implementation and therefore does not gain the full benefits of the consulting dollars expended. When this is the case, the targeted processes remain largely unchanged as a result.
Consulting can be an important step in identifying process improvement opportunities. The consultants observe the current “As Is” process to identify and document the opportunities for improvement. They will provide a “To Be” or “Future State” process which describes what the improved process should look like when proposed solutions have been implemented. The consultants will provide their recommendations of specific improvements to be implemented and the targeted results. Finally, they will provide an estimate of the impact and benefits of implementing their suggestions as a Return on Investment.
Dependent upon the process observed, the recommendations may incorporate investing in new software or hardware. In addition, there will likely be solutions to modify the way work is performed with the intent to streamline the process and/or realize a reduction in errors/defects. These recommendations will likely be validated with data substantiating and forecasting the impact and improvement of the current process based on Case Studies and the Consulting Group’s previous experience.
Having presented their documentation, the consulting firm has completed their contractual obligation. Normally they are not accountable for implementing proposed solutions and attaining the targeted goals. Their obligation ends with formulating educated and professional recommendations.
The major weakness in the engagement of Consulting Firms is not in the consulting portion, but in the implementation of the recommendations. If software and equipment recommendations are determined to be cost effective and within the business budget – it is likely they will be implemented by following the business process for purchasing. Although the purchasing process can be lengthy it is a well defined process for most businesses. It is for this reason that solutions simply requiring a corporate expenditure are often executed. Software and Hardware purchases normally include training and an implementation plan provided by the supplier. This too is a well defined process and the responsibility of the supplier to guide success.
The shortfall in gaining the benefits of those Consultant Firm’s solutions that require altering processes is that there is not a well defined internal implementation plan. Also, it is common that the departments and groups that are most affected by the solutions lack skills and time to implement change management. A common barrier is that many have not fully embraced the proposed change and will be reluctant to be involved. As a result, the proposed changes meet significant resistance. Without a change management plan in place to overcome these obstacles the proposed improvements often fail to be implemented. Those solutions that are implemented are too often short term changes that revert to the previous process over time.
As mentioned, the process for implementing software and equipment improvements is well defined and is generally well accepted by the departments that use these tools. Solutions that require the organization’s staff to adopt new processes would benefit most from an alternative strategy.
It is proposed that the organization create a Change Management Plan utilizing proven techniques and implement existing solutions that have been shelved or have reverted back to the previous process. Previously recommended solutions should be validated to assure current circumstances have not changed which make the proposed solutions now obsolete. Any embraced solution which requires that staff perform their functions differently will benefit from a Change Management plan that is well defined and designed to encourage participation at all levels. Through effective change management, the staff will not only become more accepting of change – they will begin to contribute to the solution process and further enhance the original solution. Through their expertise and enthusiasm the goals will be met and the achieved gains will remain in place over time.
It is further recommended that the organization utilize a Change Agent to create and implement the Change Management Plan. The organization will gain the most benefit if the Change Agent is also experienced in Continuous Improvement Methodologies. Such an individual should be responsible for validating process solutions as mentioned previously. While validating the solution, this individual should simultaneously begin engaging staff members through applied Change Management skills in preparation for the specific solution implementation. The resulting culture of change will drive toward a desirable goal of Continuous Improvements and will spread throughout the organization if properly nurtured.
The cost to implement the proposed alternative strategy will be dependent upon the change management methodology that is incorporated. An individual can be hired to be accountable for these joint responsibilities. This option will be the quickest means to begin closing the gap in expenditures already invested and future investments in Consulting solutions.
A second option is to train and utilize an individual or key personnel already on staff to assume the additional responsibilities of the Change Agent role. If the organization does not have trainers on staff that are well versed in Change Management and Continuous Improvement methodologies, this option will require utilizing an outside group / consultants to conduct the training and mentoring. Cost for this option is variable and will be based on class size and the depth of training and support that is purchased. There are numerous hard and soft dollar savings that will result in implementing this strategy and there are Business cases available to address the potential.
Process improvement projects typically result in reducing cost by 10 – 20% as a minimum. Much higher percentage gains are common when process improvement projects specific to the targeted area have not already been a focus of the organization. If solutions that were previously proposed by consulting firms are revisited, the potential exists to jump-start the benefits based on the consultant’s previous estimates.
The financial gain through enhanced Customer Satisfaction is challenging to calculate in soft dollars. Clearly any streamlined and/or improved process will enhance Customer satisfaction scores.
In conclusion, the organization has invested substantial revenue to improve processes, improve Customer safety and satisfaction among other targeted gains. The suggested alternative strategy will increase the ROI of this business expense initially as a supplement. By implementing a Change Management Plan and following Continuous Improvement methodologies it is most likely that the organization will no longer require substantial outside sources to assist as consultants on many projects. At a minimum, consulting dollars will show a substantially improved return for the investment.