Consultant

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This article is about professional consultants. For medical consultant, see Consultant (medicine). For other uses, see Consultant (disambiguation).
"Consultancy" redirects here. For companies, see Consulting firm.

A consultant (from Latin: consultare "to deliberate")<ref>Lease, Emory B. (May 1906). "Antibarbarus der Lateinischen Sprache". The Classical Review. 20 (4): 218–222. doi:10.1017/s0009840x00994484. ISSN 0009-840X. S2CID 162407962.</ref> is a professional (also known as expert, specialist, see variations of meaning below) who provides advice or services in an area of specialization (generally to medium or large-size corporations).<ref>Verlander, Edward George (2012). The Practice of Professional Consulting (1st ed.). San Francisco: Pfeiffer. ISBN 978-1-118-28605-0. OCLC 789150405.</ref><ref name=":0">Block, Peter (2011). Flawless consulting : a guide to getting your expertise used (3rd ed.). San Francisco: Pfeiffer. ISBN 978-1-118-00087-8. OCLC 706452070.</ref><ref>Wulf, S. A. (2020). "Successful Project Consulting". IEEE Engineering Management Review. 48 (2): 12–14. doi:10.1109/EMR.2020.2978797. ISSN 1937-4178. S2CID 216510693. Archived from the original on 2021-06-23. Retrieved 2021-04-08.</ref><ref name=":1">"Consulting Is More Than Giving Advice". Harvard Business Review. 1982-09-01. ISSN 0017-8012. Archived from the original on 2021-04-13. Retrieved 2021-04-08.</ref><ref>Tordoir, Pieter P. (1995). The professional knowledge economy : the management and integration of professional services in business organizations. Dordrecht: Kluwer Academic Publishers. ISBN 0-7923-3668-2. OCLC 32855907.</ref><ref name=":2">Scheer, August-Wilhelm; Köppen, Alexander, eds. (2001). Consulting. doi:10.1007/978-3-642-56459-8. ISBN 978-3-642-62656-2.</ref><ref>Freedman, Rick (2016), Freedman, Rick (ed.), "The Agile Consultant", The Agile Consultant: Guiding Clients to Enterprise Agility, Berkeley, CA: Apress, pp. 3–17, doi:10.1007/978-1-4302-6053-0_1, ISBN 978-1-4302-6053-0, retrieved 2021-04-11</ref> Consulting services generally fall under the domain of professional services, as contingent work.<ref>"Contingent Workforce". Deloitte. Archived from the original on 15 September 2022. Retrieved 15 September 2022.</ref>

The Harvard Business School defines a consultant as someone who advises on "how to modify, proceed in, or streamline a given process within a specialized field".<ref>"Consulting". www.library.hbs.edu. Archived from the original on 2021-04-16. Retrieved 2021-04-16.</ref>

Subject-matter expert vs. consultant

According to Institute of Management Consultants USA, "The value of a consultant [as compared to a subject-matter expert (SME)]<ref>Hartenstine, Christopher (2017-09-08). "Glenn Subject Matter Expert Connections". NASA. Archived from the original on 2021-09-21. Retrieved 2021-04-12.</ref><ref>"Subject matter expert". IST Project Management Office. 2014-12-09. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref><ref>"Subject Matter Expert Qualification Assessments (SME‑QA)". United States Digital Service. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> is to be able to correctly diagnose and effectively transform an often ill-defined problem and apply information, resources and processes to create a workable and usable solution. Some experts are good consultants and vice versa, some are neither, few are both."<ref>"Difference Between and Expert and a Consultant". 2010-02-12. Archived from the original on 2016-10-20. Retrieved 2021-04-12.</ref> Another differentiation would be that a consultant sells advice, whereas an expert sells their expertise. Other differentiations exist for consultants vs. coaches<ref>"Council Post: Key Differences Between Coaching And Consulting (And How To Decide What Your Business Needs)". Forbes. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> or SMEs vs. team leaders.<ref>Njogu, Tabitha (April 2020). "Difference Between Subject Matter Expert and Team Leader". Archived from the original on 2021-05-18. Retrieved 2021-04-12.</ref>

Consultants do not have to be subject-matter experts as consulting agreements are a form of labor contract - comparable to staffing, which a client procures for more generalized labor, whereas consulting is for more specialized labor. Thus, in contrast to advisory services, which is not a labor contract but an actual service (advisory services never become part of the procuring organization) the market for consulting agreements follows the demand for specialized labor in the form of a consulting procurement, and so while competence and experience is naturally an advantage for when looking to sell consulting services, it is not a prerequisite in the same way that it is for advisory services where the service provider per definition relies on some level of competence and experience for its relevance.<ref>"Legal Aspects of a Professional Consulting Practice" (PDF). Chemical Consultants Network. Archived (PDF) from the original on 20 September 2022. Retrieved 19 September 2022.</ref><ref>Holm, Cyril; Lind, Hans; Vogel, Jonas Anund (December 2019). "Incentivising innovation in the construction sector: the role of consulting contracts". Construction Economics and Building. 19 (2): 181–196. doi:10.5130/AJCEB.v19i2.6613. S2CID 209450111. Retrieved 19 September 2022.</ref><ref>Lovitky, Jeffrey (February 1984). "The Problems of Government Contracting for Consulting Services". Public Contract Law Journal. 14 (2): 332–351. JSTOR 25753996. Archived from the original on 20 September 2022. Retrieved 19 September 2022.</ref>

Contractor vs. consultant

Sometimes, the word consultant applies specifically to someone or organization that provides knowledge, advice or service; whereas the contractor builds something for the client.<ref name=":6" /><ref>Kakabadse, Nada K.; Louchart, Eddy; Kakabadse, Andrew (2006-01-01). Andrew; Kakabadse, Nada (eds.). "Consultant's role: a qualitative inquiry from the consultant's perspective". Journal of Management Development. 25 (5): 416–500. doi:10.1108/02621710610666268. hdl:1826/1911. ISSN 0262-1711.</ref>

Role

The role of a consultant outside the medical sphere (where the term is used specifically for a grade of doctor) can fall under one of two general categories:

Business case for hiring a consultant

By procuring consulting services, clients may acquire access to higher grades of expertise than would be financially feasible for them to retain in-house on a long-term basis.<ref>Orr, Linda M.; Orr, Dave J. (2013). When to Hire—or Not Hire—a Consultant. doi:10.1007/978-1-4302-4735-7. ISBN 978-1-4302-4734-0.</ref><ref>"Rate Yourself as a Client". Harvard Business Review. 1977-07-01. ISSN 0017-8012. Archived from the original on 2021-04-13. Retrieved 2021-04-13.</ref> Moreover, clients can control their expenditures on consulting services by only purchasing as much services from the outside consultant as desired. Additionally, consultants are key persons with specific domain-skills in creating strategies,<ref name=":2" /> leading change<ref>Kotter, John P. (2011). HBR's 10 must reads on change management. Boston, Massachusetts. ISBN 978-1-4221-5800-5. OCLC 606783865.{{cite book}}: CS1 maint: location missing publisher (link)</ref><ref>Lack, Jonathan H. (2013). "How to Hire and Manage Your Turnaround Consultant". Plan to Turn Your Company Around in 90 Days. pp. 163–173. doi:10.1007/978-1-4302-4669-5_11. ISBN 978-1-4302-4668-8. Archived from the original on 2021-06-23. Retrieved 2021-04-11.</ref><ref name=":3">Bergemann, Rosalind (2010), Vaiman, Vlad (ed.), "The Move from Employment to Associate Consulting within the Employment Relationship", Talent Management of Knowledge Workers: Embracing the Non-Traditional Workforce, London: Palgrave Macmillan UK, pp. 33–53, doi:10.1057/9780230277526_3, ISBN 978-0-230-27752-6, retrieved 2021-04-11</ref> (e.g. digitalization<ref>Desai, Falguni. "The Rise Of Digital Consultancies". Forbes. Archived from the original on 2021-01-21. Retrieved 2021-04-08.</ref><ref>"Mastering Digital Transformation: A Case Study (Part 1)". ThoughtWorks. 2020-02-19. Archived from the original on 2021-04-11. Retrieved 2021-04-11.</ref><ref>"Technology means growth: Lessons from SMEs". The Official Microsoft Blog. 2013-10-04. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref>), leadership coaching,<ref>"How to Have a Coaching Conversation | Center for Creative Leadership". CCL. Archived from the original on 2021-05-08. Retrieved 2021-04-08.</ref> interim management<ref>Concordia, Elizabeth E. (1995). "Maximizing the Benefits of Using Consultants". Healthcare Information Management Systems. Computers in Health Care. pp. 327–331. doi:10.1007/978-1-4757-2402-8_27. ISBN 978-1-4757-2404-2. Archived from the original on 2021-06-23. Retrieved 2021-04-11.</ref> (also called consultant manager<ref>Pozzebon, Marlei; Pinsonneault, Alain (2012-03-01). "The dynamics of client–consultant relationships: exploring the interplay of power and knowledge". Journal of Information Technology. 27 (1): 35–56. doi:10.1057/jit.2011.32. ISSN 1466-4437. S2CID 38178821.</ref>), etc.<ref name=":1" />

Another business-case is that a consultant may save the company money: for example, a specialist tax-consultant who saves the company 20% on its taxes, and only charges 10% in fees, enables the company to net a 10% savings. <ref name=":6">Chaplin, Dave (2012). Contractors' handbook : the expert guide for UK contractors and freelancers. ContractorCalculator.co.uk (2nd ed.). Basingstoke: ContractorCalculator. ISBN 978-0-9560745-2-2. OCLC 843787367.</ref> A portion of professional services in demand for clients are simply not necessary to retain in house, as they may be sporadic in nature, at which a consultant offers a reduction in payroll for the client.

In the UK government sector, since 2010 the Cabinet Office has required government departments to implement spending controls which restrict the appointment of consultants and temporary staff in order to regulate consultancy expenditure and ensure that the use of consultants offers value for money.<ref name=nao>National Audit Office, Use of consultants and temporary staff Archived 2021-05-23 at the Wayback Machine, HC 603, published 13 January 2013, accessed 29 June 2021</ref> A National Audit Office report published in 2015 recommended that all UK government departments adopt a "strategic plan" to assess their current skills and expected "skill gaps", so that their future need for consultants and temporary staff could be better predicted.<ref name=nao/>

Delivery of service

Consultants provide their services to their clients in a variety of forms. Reports and presentations are often used.<ref>"What Does a Consultant Do (Non-Cliche Answer)". MConsultingPrep. 2019-06-15. Archived from the original on 2021-04-11. Retrieved 2021-04-11.</ref> Advice can be general (high degree of quality of communication) and also domain-focused.<ref>Ackery, Alun D.; Adams, Jeremy W.; Brooks, Steven C.; Detsky, Allan S. (May 2011). "How to give a consultation and how to get a consultation". Canadian Journal of Emergency Medicine. 13 (3): 169–171. doi:10.2310/8000.2011.110268. ISSN 1481-8035. PMID 21524374.</ref> However, in some specialized fields, the consultant may develop as well as implement customized software or other products for the client.<ref>Kalaimani, Jayaraman (2016). "Enhancing Your Consulting Skills". SAP Project Management Pitfalls. pp. 309–317. doi:10.1007/978-1-4842-1389-6_24. ISBN 978-1-4842-1390-2. Archived from the original on 2021-06-23. Retrieved 2021-04-11.</ref> Depending on the nature (also named mandate or statement of work or assignment) of the consulting services and the wishes of the client, the advice from the consultant may be made public, by placing the report or presentation online, or the advice may be kept confidential (under a Non-disclosure agreement or within the clients-company), and only given to the senior executives of the organization.

Employment status and career distinction

Consultants work for (consulting) firms or as freelance contractors. A consultant differs from a temporary worker insofar as she or he has, as detailed above, a highly specialized career and domain knowledge.<ref>Wallgren, Lars Göran; Hanse, Jan Johansson (2007-01-01). "Job characteristics, motivators and stress among information technology consultants: A structural equation modeling approach". International Journal of Industrial Ergonomics. 37 (1): 51–59. doi:10.1016/j.ergon.2006.10.005. ISSN 0169-8141. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> This could be true for a temporary worker too, however, for example a medical consultant is unlikely to suddenly become a hotel receptionist, whereas a temporary worker might change domains and branches more frequently. Furthermore, a consultant usually signs a service-type employee contract (known as fixed-term, full-time, part-time),<ref>Pries, Kim H. (2019). Project management of complex and embedded systems : ensuring product integrity and program quality. Jon M. Quigley. Boca Raton. ISBN 978-0-367-38662-7. OCLC 1120057017.{{cite book}}: CS1 maint: location missing publisher (link)</ref> whereas a temporary worker will only be offered a temporary (and scope limited) contract or a work-results type contract (e. g. in Germany a specific type of contract called Werksvertrag<ref>Gross, Willi (1990), Gross, Willi; Söhnlein, Walter (eds.), "Werkvertrag", Bürgerliches Recht 3: Fall · Systematik · Lösung · Schuldrecht · Besonderer Teil. Kauf und Tausch · Schenkung · Miete und Pacht · Leihe · Verwahrung · Darlehen · Bürgschaft · Dienst- und Werkvertrag (in Deutsch), Wiesbaden: Gabler Verlag, pp. 127–135, doi:10.1007/978-3-322-99402-8_13, ISBN 978-3-322-99402-8, retrieved 2021-04-11</ref>) to fulfill or create a specific work. Additionally, a temporary worker might be directed and managed by a client, whereas a consultant is employed by a company (or self) and provides services for a client. The consultant may not be provided work-related instruments or tools, but only the necessary infrastructure and accesses the consultant needs to fulfill the statement of work, e. g. access to internal IT networks or client-side laboratory. Moreover, a consultant might engage in multi-project services (matrix organization) for the client or for internal projects/activities at the employer firm.<ref>"Revisiting the matrix organization". McKinsey & Company. Archived from the original on 2021-04-11. Retrieved 2021-04-11.</ref><ref>Turner, Susan G.; Utley, Dawn R.; Westbrook, Jerry D. (1998-09-01). "Project Managers and Functional Managers: A Case Study of Job Satisfaction in a Matrix Organization". Project Management Journal. 29 (3): 11–19. doi:10.1177/875697289802900304. ISSN 8756-9728. S2CID 115355436.</ref><ref>Wellman, Jerry (2007-06-01). "Leadership Behaviors in Matrix Environments". Project Management Journal. 38 (2): 62–74. doi:10.1177/875697280703800207. ISSN 8756-9728. S2CID 116250491.</ref><ref>Pitagorsky, George (1998-12-01). "The Project Manager/Functional Manager Partnership". Project Management Journal. 29 (4): 7–16. doi:10.1177/875697289802900402. ISSN 8756-9728. S2CID 116526026.</ref>

In his book, The Consulting Bible, Alan Weiss defines that "When we [consultants] walk away from a client, the client's conditions should be better than it was before we arrived or we've failed."<ref>Weiss, Alan (2011). The consulting Bible : everything you need to know to create and expand a seven-figure consulting practice. Hoboken, NJ: Wiley. ISBN 978-1-118-02359-4. OCLC 715159619.</ref> There is no legal protection given to the job title 'consultant'.<ref name="cuk">Consultancy.uk, What is a consultant? Archived 2021-07-09 at the Wayback Machine, accessed 29 June 2021</ref>

The consultant's career path is usually not at the client's side,<ref>"Career Path at Top Consulting Firms". MConsultingPrep. 2020-08-26. Archived from the original on 2021-04-11. Retrieved 2021-04-11.</ref> however the consultant will very likely be introduced into the client's organizational program or project structure.

Novel collaborations of expert-contractors or independent consultants especially in ICT sector exist, e.g. ThoughtWorks.

Consulting scope

A consultant's activity can last anywhere from an hourly consultation, to a one-day service, three months, 12 months or more. For complex projects, a longer period is needed for the consultant to analyze, resolve the root cause, get to know the stakeholders and organizational-situation, etc. Usually the engagement has set legal boundaries under given law to avoid (specifically for freelance-contractors) the problem of false self-employment (see also Umbrella company). The person at client location is sometimes called a Resident. By spending time at the client's organization, the consultant is able to observe work processes, interview workers, managers, executives, board members, or other individuals, and study how the organization operates to provide hers or his services.

In some settings, a consultant is signing a specific contract and is hired as an interim manager or executive with advanced authority or shared responsibility or decision making of client-side activities, filling a vacant position which could and cannot be filled with an internal candidate. This is often the case by the client-organization due to other constraints, such as corporate compliance and HR-processes, which lead to prolonged hiring paths beyond six months, which is often inacceptable for leadership roles.<ref>Buchenau, Peter, ed. (2019). Chefsache Interim Management: Praxisbeispiele für den erfolgreichen Einsatz in Unternehmen (in Deutsch). Gabler Verlag. doi:10.1007/978-3-658-18051-5. ISBN 978-3-658-18050-8. S2CID 239378708. Archived from the original on 2021-06-23. Retrieved 2021-04-08.</ref><ref>"Second in Command - The Misunderstood Role of the Chief Operating Officer". Harvard Business Review. 2006-05-01. ISSN 0017-8012. Archived from the original on 2021-04-22. Retrieved 2021-04-08.</ref>

Work location

Research and analysis can occur at the consultants' offices (sometimes called back office) or home-offices or via remote work. In the case of smaller consulting firms, consultants typically work at the site of the client for at least some of the time. The governing factor on where a consultant works tends to be the amount of interaction required with other employees of the client. If a management consultant is providing advice to a software firm that is struggling with employee morale, absenteeism and issues with resignation by managers and senior engineers, the consultant will probably spend a good deal of time at the client's office, interviewing staff, engineers, managers and executives, and observing work processes. On the other hand, a legal consultant asked to provide advice on a specific property law issue might only have a few meetings at the client's office, and conduct the majority of his work at the consultant's office and in legal libraries.

Similarly, the growth of online, highly skilled consultant freelance marketplaces has begun to grow.<ref>"Bosses have given in to demands for more a more flexible workplace". Financial Review. 22 December 2015. Archived from the original on 2016-03-15. Retrieved 2016-03-15.</ref>

Additionally, the COVID-19 pandemic has resulted in an increase in remote work and demand for online-work skills to continue business or operations.<ref>Oliveira, Luciana; Mesquita, Anabela; Oliveira, Adriana; Sequeira, Arminda (2021). "Emergency Remote Work in Portugal: Evaluation, Effects, and Recommendations". In Abreu, António; Liberato, Dália; González, Elisa Alén; Garcia Ojeda, Juan Carlos (eds.). Advances in Tourism, Technology and Systems. Smart Innovation, Systems and Technologies. Vol. 209. Singapore: Springer. pp. 304–313. doi:10.1007/978-981-33-4260-6_27. ISBN 978-981-334-260-6. PMC 7980880.</ref><ref>Landes, Miriam; Steiner, Eberhard; Utz, Tatjana; Wittmann, Ralf (2021). "Erfolgreich und gesund im Homeoffice arbeiten". Essentials. doi:10.1007/978-3-658-32633-3. ISBN 978-3-658-32632-6. ISSN 2197-6708. S2CID 230570718. Archived from the original on 2021-06-23. Retrieved 2021-04-11.</ref>

In-house consulting

Also known as ICUs - Internal Consulting Units, which are departments or specialists groups created by or maintained by usually larger companies for their own consulting service needs along the business chain. ICUs might be internal or own-run businesses.<ref>"Why and How to Build an In-House Consulting Team". Harvard Business Review. 2015-09-11. ISSN 0017-8012. Archived from the original on 2021-04-21. Retrieved 2021-04-21.</ref><ref>"Volkswagen Consulting". www.volkswagen-consulting.de. Archived from the original on 2021-04-21. Retrieved 2021-04-21.</ref>

Success factors of consulting

The following qualities are found to be helpful for a successful consulting career.

Accenture success factors

From Accenture blog, one of the main IT consultancies in the world, the following factors play an important role:<ref>"Successful consulting career ǀ Accenture". WordPressBlog. Archived from the original on 2021-05-09. Retrieved 2021-04-16.</ref>

  • A service-oriented mindset
  • Sharing of great work
  • Seizing of opportunities
  • Setting of goals, seeking of advice and taking time to reflect

Bronnenmayer's success factors

Bronnenmayer et al. investigated, by applying a structural equation model, and due to little empirical research, the management consulting's success factors from a client perspective. It is found that Consultant Expertise, Intensity of Collaboration and Common Vision have strongest performance impact on success.<ref>Bronnenmayer, Matias; Wirtz, Bernd W.; Göttel, Vincent (2016-01-01). "Success factors of management consulting". Review of Managerial Science. 10 (1): 1–34. doi:10.1007/s11846-014-0137-5. ISSN 1863-6691. S2CID 155053546.</ref>

  1. Common vision
  2. Intensity of collaboration
  3. Trust
  4. Project management
  5. Consultant expertise
  6. Provided resources
  7. Top management support

Sindermann and Sawyer success factors

Sindermann and Sawyer conclude in their book The Scientist as Consultant, that a [scientific] consultant is successful, if she or he has "achieved a viable mix of technical proficiency and business skills" with "technical proficiency" meaning excellence in competence, credibility, effective networking with colleagues, and ability to negotiate.<ref>Sindermann, Carl J.; Sawyer, Thomas K., eds. (1997), "Conclusion", The Scientist as Consultant: Building New Career Opportunities, Boston, MA: Springer US, pp. 293–298, doi:10.1007/978-1-4899-5992-8_21, ISBN 978-1-4899-5992-8, archived from the original on 2022-04-01, retrieved 2021-04-11</ref>

Hartel's 10 Golden Rules

According to management consultant Dirk Hartel, the following ten objectives or rules are key to a successful consulting career:<ref>Hartel, Dirk H. (2014-08-07). Consultant-Knigge (in Deutsch). Walter de Gruyter GmbH & Co KG. ISBN 978-3-486-76728-5.</ref>

  1. Customer first - Especially the meaning of being available (time) for customer needs
  2. Appearance - Understanding of self-image and dress for the job
  3. Determined friendliness - Having concrete mindset and goals, but being diplomatic too
  4. Punctuality - Leading time management, starting and finishing on time, being prepared
  5. Engagement and productivity - Supporting, being pro-active, etc.
  6. Critical questioning - Nobody is born a consultant; asking the right questions is a key skill
  7. Feedback - Request regular feedback, asking for critique rather than waiting for it
  8. Acceptance of hierarchies - Professional navigation in client organization, knowing authority-levels, being respectful and being confidential with customer information
  9. Stakeholder behavior - Study and understanding of client behavior and culture; inspiring stakeholders with presentations, etc.
  10. Being courageous - Consulting-life is challenging, never lose trust in yourself, but also reflect and lead a positive and good life

Consulting challenges

Distinctness

Consultants are often outsiders to the client organization. On one hand, this means their work methods, expertise, behaviors, etc. differ from the client-employees and organizational, and is exactly what the client needs, however it can also be a considerable disadvantage for a successful engagement and may lead to a less intimate cooperation with the client's business.<ref>Armbruester, Thomas; Kipping, Matthias (2001-08-01). "Strategic change in top management consulting: market evolution and current challenges in a knowledge-based perspective". Academy of Management Proceedings. 2001 (1): A1–A6. doi:10.5465/apbpp.2001.6133463. ISSN 0065-0668. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref><ref>Nikolova, Natalia, ed. (2007), "Established models of the client-consultant interaction", The Client-Consultant Relationship in Professional Business Service Firms, Edition KWV, Wiesbaden: Springer Fachmedien, pp. 94–148, doi:10.1007/978-3-658-24376-0_3, ISBN 978-3-658-24376-0, retrieved 2021-04-12</ref>

Domain

Next to general challenges, domain-specific challenges for consultants exist.<ref>Caplan, R. (1996-06-08). "Stress in hospital consultants". Lancet. 347 (9015): 1630. doi:10.1016/s0140-6736(96)91118-6. ISSN 0140-6736. PMID 8667901. S2CID 35785296. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> In palliative medicine consulting, emotions, beliefs, sensitive topics, difficulty communicating and prognosis interpretation, or patients expectations despite critical illness are some of the challenges faced by the consultant.<ref>Partain, Daniel K.; Strand, Jacob J. (2018), Robinson, Maisha T. (ed.), "Common Challenges in a Palliative Medicine Consultation", Case Studies in Neuropalliative Care, Case Studies in Neurology, Cambridge: Cambridge University Press, pp. 8–12, doi:10.1017/9781108277365.002, ISBN 978-1-108-40491-4, archived from the original on 2021-04-12, retrieved 2021-04-12</ref>

Ethical conflict (manipulation)

According to Kelman,<ref>Kelman, Herbert C. (1965). "Manipulation of Human Behavior: An Ethical Dilemma for the Social Scientist*". Journal of Social Issues. 21 (2): 31–46. doi:10.1111/j.1540-4560.1965.tb00494.x. ISSN 1540-4560. Archived from the original on 2021-06-23. Retrieved 2021-05-10.</ref> "One danger is that [the counselor] does not recognize the control that he is exercising over the client's behavior. The other is that he is so convinced that he is doing good for the client that he does not realize the double-edged nature of the control he is exercising."<ref name=":7">Lippitt, Gordon; Lippitt, Ronald (2015). Beratung als Prozess (in Deutsch). Wiesbaden: Springer Fachmedien Wiesbaden. doi:10.1007/978-3-658-07850-8. ISBN 978-3-658-07849-2.</ref> A consultant therefore needs to be aware and in control of her or his manipulative influences in particular counseling settings.

Expectations (customer)

Hartel mentions several challenges that are based on the types of consultants, including a consultant in a short-term role, as integrator, as driver, as project manager or methodology guru, know-how expert, or as scapegoat.<ref name=":8">Hartel, Dirk H. (2013). Consultant-Knigge. Thomas Ammon. Munich, Germany: Oldenbourg Verlag. ISBN 978-3-486-76728-5. OCLC 903966344.</ref>

In case of consultant as integrator, the consultant has the challenging task to resolve, negotiate, facilitate, mediate political situations in companies to move forward, such as different opinions, critical characters (persons), difficult relationships or interfaces, goal conflicts, power games, etc.

In case of consultant as scapegoat, the consultant, who is external to the company, is the one to announce difficult company decisions such as layoffs or reorganizations, but it is important that the consultant acts professional and competent, not just as "Rambo in suit".<ref name=":8" />

Organizational

Consultants may face several organizational challenges, e. g. internal consultants are faced with the paradoxes to maintain a good balance between knowing the internal company structure and at the same time staying neutral and objective, keeping a marginal position between the client and the provided service.<ref name=":5" /> Further, depending on the hiring company's understanding how to work with a consultant, the consultant might be seen as disruption to the inhouse employees status.<ref>Osborn, Matthew (December 3, 2002). "Five tips on managing consultants". TechRepublic. Archived from the original on 2021-04-21. Retrieved 2021-04-21.</ref>

Rates of pay

Harrington notes that some people transferring from an employee role to working as a consultant are uncertain about how to price their services.<ref>Harrington, S. (5 April 2019). "Should I become a consultant?". Supply Management. CIPS. "6. What are you worth?". Archived from the original on 2023-06-02. Retrieved 3 June 2023.</ref>

Other general challenges

General issues faced by a consultant can be stress,<ref>Ramirez, A. J.; Graham, J.; Richards, M. A.; Cull, A.; Gregory, W. M. (1996). "Mental Health of Hospital Consultants: the Effect of Stress and Satisfaction at Work". European Psychiatry. 11 (S4): 395s. doi:10.1016/0924-9338(96)89287-X. ISSN 0924-9338. S2CID 70661681. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> productivity issues with meetings,<ref>Norton, Ken (25 November 2015). "Meetings That Don't Suck | Ken Norton". www.bringthedonuts.com. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> general "technostresses",<ref>Ferziani, A.; Rajagukguk, R. O.; Analya, P. (October 2018). "Types of Technostress on Employees of IT Consulting Company". 2018 International Conference on Orange Technologies (ICOT). pp. 1–5. doi:10.1109/ICOT.2018.8705838. ISBN 978-1-5386-7319-5. S2CID 146118552. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> high-paced and changing business environments and situations,<ref>Jerónimo, C.; Pereira, L.; Sousa, H. (June 2019). "Management Consulting Business Models: Operations through and for Digital Transformation". 2019 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC). pp. 1–6. doi:10.1109/ICE.2019.8792592. hdl:10071/18644. ISBN 978-1-7281-3401-7. S2CID 199541145. Archived from the original on 2021-04-12. Retrieved 2021-04-12.</ref> etc.

Stakeholder management

In case of corporate and industrial consultants, the role is further challenged to act and become the "translator of information" from various different client-company cultures and procedures (processes) and between her or his employer-side team, managers and leadership team. What is an important goal to the current client is usually not similar for any other client due to multiple variations in company size, history, product, program, organizational structure, leadership, etc. Hence the consultant must be excellent in sensing and communicating between different layers in the organization and further across it, while maintaining authenticity, integrity and trustworthiness with all parties involved.<ref>Hartley, Stephen (2020-07-25), Hartley, Stephen (ed.), "Stakeholder management", Project Management (4 ed.), Routledge, pp. 107–134, doi:10.4324/9781003116882-3, ISBN 978-1-003-11688-2, S2CID 234666858, retrieved 2021-05-21</ref><ref>Mabelo, Pascal Bohulu (2020). "Failed Stakeholder Management". Failed Stakeholder Management | Taylor & Francis Group. Taylor & Francis. pp. 8–14. doi:10.4324/9781003023791-2. ISBN 9781003023791. S2CID 218817396. Archived from the original on 2021-05-21. Retrieved 2021-05-21.</ref>

Taxation and legal status

Independent consultants (contractors or freelancer) usually need to fulfil taxation requirements given by laws, specifically challenging employment status to avoid 'disguised' employment.<ref>Camden, Chip} (March 5, 2010). "Consultants, know how the IRS determines employee status". TechRepublic. Retrieved 2021-04-21.</ref>

Compared to contracting, consulting can be seen as being "in business in your own right", not controlled by your client, etc. placing a consultant "well outside" of e. g. IR35.<ref name=":6" />

Alan Weiss provides 20 "factors" for consultants in the US (IRS), which are similar in other countries, to avoid or understand in terms of their business activity. Amongst those, the consultant is not supposed to be instructed by the client, should not receive similar training as employees, has the right to sub-contract, should not be integrated into the organizational structure, etc. to avoid legal-status and taxation issues.<ref>"Avoiding Trouble with the IRS". Alan Weiss, PhD. Archived from the original on 2021-04-28. Retrieved 2021-04-28.</ref>

Qualifications

There is no single qualification to becoming a consultant, other than those laid down in relation to medical, psychological and engineering personnel who have attained this level-degree in it or professional licenses, such as Chartered Engineer.<ref name=":4">Sindermann, Carl J.; Sawyer, Thomas K. (1997). The Scientist as Consultant. doi:10.1007/978-1-4899-5992-8. ISBN 978-0-306-45637-4. Archived from the original on 2021-06-23. Retrieved 2021-04-11.</ref>

Consultants may hold undergraduate degrees, graduate degrees, professional degrees or professional designations pertaining to their field(s) of expertise.<ref name=":4" /> In some fields, a consultant may be required to hold certain professional licenses (e.g., a civil engineer providing consulting on a bridge project may have to be a professional engineer).<ref name=":4" /> In other types of consulting, there may be no specific qualification requirements. A legal consultant may have to be a member of the bar or hold a law degree. An accounting consultant may have to have an accounting designation, such as Chartered Accountant status. Some individuals become consultants after a lengthy and distinguished career as an executive or political leader or employee, so their lengthy and exposed experience may be their main asset.<ref name=":3" /><ref>Sindermann, Carl J.; Sawyer, Thomas K., eds. (1997), "Retirees as Scientific Consultants", The Scientist as Consultant: Building New Career Opportunities, Boston, MA: Springer US, pp. 263–278, doi:10.1007/978-1-4899-5992-8_19, ISBN 978-1-4899-5992-8, retrieved 2021-04-11</ref><ref>"What is consulting?". consultancy.uk. Archived from the original on 15 September 2022. Retrieved 15 September 2022.</ref>

Accreditation

Various accreditation bodies for consultants exist:

  • The Chartered Institute of Legal Executives - (CILEX), UK.
  • The Institute of Commercial Management - (ICM), UK.

Code of Ethics

Accredited practitioners in all fields (incl. medical) can be bound by a Code of Ethics or Code of Conduct.<ref>Tarzian, Anita J.; Wocial, Lucia D. (2015). "A code of ethics for health care ethics consultants: journey to the present and implications for the field". The American Journal of Bioethics. 15 (5): 38–51. doi:10.1080/15265161.2015.1021966. hdl:1805/6743. ISSN 1536-0075. PMID 25970392. S2CID 205861602. Archived from the original on 2021-06-23. Retrieved 2021-04-08.</ref><ref>"Consultant Code of Conduct". NIST. 2018-04-07. Archived from the original on 2021-03-18. Retrieved 2021-04-08.</ref><ref>Sindermann, Carl J.; Sawyer, Thomas K., eds. (1997), "Ethics for Scientific Consultants", The Scientist as Consultant: Building New Career Opportunities, Boston, MA: Springer US, pp. 123–133, doi:10.1007/978-1-4899-5992-8_8, ISBN 978-1-4899-5992-8, retrieved 2021-04-11</ref>

Ethics in the field of business consulting and organizations is still a subject under research.<ref>White, Louis P.; Rhodeback, Melanie J. (1992-09-01). "Ethical dilemmas in organization development: A cross-cultural analysis". Journal of Business Ethics. 11 (9): 663–670. doi:10.1007/BF01686346. ISSN 1573-0697. S2CID 143345368.</ref><ref>Poulfelt, Flemming (1997). "Ethics for Management Consultants". Business Ethics: A European Review. 6 (2): 65–70. doi:10.1111/1467-8608.00050. ISSN 1467-8608. S2CID 55793513. Archived from the original on 2021-06-23. Retrieved 2021-05-10.</ref>

A thorough discussion of ethics in the field of consultation is given in Lippitt & Lippitt<ref name=":7" /> (see also 2nd edition in English<ref>Lippitt, Gordon L. (1986). The consulting process in action. Ronald Lippitt (2nd ed.). San Diego, Calif.: University Associates. ISBN 0-88390-201-X. OCLC 14099051.</ref>). Here the authors mention several guidelines and definitions including Shay,<ref>Mosley, Donald C. (April 1970). "Professional Ethics and Competence in Management Consulting". California Management Review. 12 (3): 44–48. doi:10.2307/41164233. ISSN 0008-1256. JSTOR 41164233. S2CID 154425423.</ref> the Association of Consulting Management Engineers (1966), American Society for Training and Development (1977), Academy of Management (1976) and conclude their own codex with the following attributes (see below). Additionally, the authors mention the difficulty in applying the codex and scenarios of how to track adherence and how to judge violations in accordance with other bodies, such as APA (American Psychological Association) and CSPEC (or CSCE) (Committee on Scientific and Professional Ethics)<ref>"Committee on Scientific Conduct and Ethics (CSCE) | NIH Office of Intramural Research". oir.nih.gov. Archived from the original on 2021-05-10. Retrieved 2021-05-10.</ref> and conclude that "The most important aspect in the formulation of a code of conduct however, is the recognition of a fundamental moral standard. Only then is compliance with the rules guaranteed."<ref name=":7" />

Consulting domains

There exist various forms, types and areas or industries of consultants. The following list provides some examples:

Business (general)

Technology

Construction

Entertainment

Health

Law and politics

Education

  • Educational consultants - Assist students or parents in making educational decisions and giving advice in various issues, such as tuition, fees, visas, and enrolling in higher education.
  • Faculty consultant

List of notable (management) consultants

Further prominent thinkers are also listed in the Strategy portal.

See also

References

<references />

Further reading

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