Strategic consulting is not about answers
Here is an example of my typical conversation with a prospect.
– So, you are a strategic consultant, right? — they ask.
– Yes, I am, — I reply.
– And you affirm that you can help our company with a new strategy, don’t you?
– I believe I do, — I answer.
– We are in an IT (building, manufacturing, dog grooming — you name it) business. Have you ever coded (built a house, manufactured a piece of plastic, trimmed a dog’s nails)?
– No, I haven’t. But I used to be a CEO in some different domains for many years, then I helped many companies with strategic issues, so I believe I am qualified for this job.
– But how will you tell us what to do if you don’t have industrial experience?
Some major consulting companies see their job as finding all the strategic answers for a customer. A large team of analysts, industry experts, and strategic thinkers try to dive into the market and internal company’s situation and find the best way for it to succeed. I am not going to criticize this approach (even though I have witnessed many unsuccessful cases), but I believe in another one.
I believe that a strategy must be devised and formulated by the same people who will implement it. So, as a strategic consultant, I see my role as a methodologist, organizer, and “question asker.” I ask many questions and help find answers as much as possible, considering I rarely have industrial experience. But all the decisions must be made by the team members.
I don’t believe that somebody outside a business knows “what to do.” Success is a unique combination of market conditions, internal competence, and beliefs. And sometimes the latter is the most important — however wise advice a consultant may give, the team must buy it. And I don’t think that belief and motivation can be created from the outside.
I guide my customers’ teams through the strategy formulating process by asking the right questions. For example, who will be our core customers, and why? What do they need? What distinctive customer values will we offer them? What assets do we need to create and improve to do it? What processes do we need to change, and how exactly, to receive the desirable results?
I may have my opinion, and I am happy to share it, but all the final decisions should be made by those who will be responsible for the company’s future. Business consultants and their advice can be very helpful regarding a “helicopter view” and seeing the business issue from a different perspective. But at the end of the day, business is run by employees, who are the only authors of a firm’s strategy.
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