Will the real consultants please stand up?<\/p>\n
By K. Basrie<\/p>\n
Forecasting the future of this country, which in the midst of
\nan economic and political crisis is not easy. What more
\nforecasting the future of its business sector. Many
\ndecisionmakers are knocking desperately on the doors of
\nconsultants, whose numbers have been increasing in the past few
\nyears. Sometimes the predictions of these consultants are fairly
\naccurate. But more often, clients find them too good to be true.<\/p>\n
JAKARTA (JP): Many might agree that consultancy services,
\nparticularly those on legal and business matters, are today
\nexperiencing a booming business.<\/p>\n
Companies are seeking their much respected advice on how to
\navoid bankruptcy. Some businesspeople are even struggling to pay
\ntheir debts, lest they be thrown behind bars. Others, to survive,
\nare seeking the opinion of consultants on specific issues, such
\nas strategy, marketing, product development, management or
\nrecruiting qualified staff.<\/p>\n
Under such dire conditions, it is also very important for
\nentrepreneurs to be aware of the latest developments in the
\npolitics and security of the country.<\/p>\n
According to Pri Notowidigdo, an executive search consultant
\nfor Amrop International, there is a growing number of
\nmultinational consulting firms operating in Indonesia.<\/p>\n
\"These include world-class companies,\" he said.<\/p>\n
Pri said the country's protracted crisis has indeed played a
\nlarge part in prompting international firms to set up business
\nhere.<\/p>\n
But the presence of foreign consultancy firms should not be
\nconsidered a threat to the local players.<\/p>\n
The international companies, Pri explained, tended to go for
\ncontracts worth between US$500,000 and $2 million each.<\/p>\n
Currently, the leading names in the international boutique
\nconsultancy firms include Accenture, McKinsey, A.T. Kearney, KPMG
\nConsulting Inc. and the Barents Group.<\/p>\n
In management consulting firms, the big players are
\nAccenture, PriceWater House, McKinsey, Ernst and Young, KPMG and
\nDeloitte.<\/p>\n
\"The main clients of these big firms are mostly multinational
\ncompanies or big Indonesian companies, including state firms and
\nthose which have international affiliation,\" added Pri, whose
\ncompany helps consulting firms seek top executives.<\/p>\n
Business consultancies here usually cover, for example,
\nprivatization, debt restructuring, human resources and
\norganizational development with an average fee of between $2
\nmillion and $3 million for each assignment (for leading firms)
\nand between Rp 250,000 and Rp 500,000 for smaller companies.<\/p>\n
\"But it depends. A local consultancy firm, for example, was
\npaid Rp 500 million for a project which was to be completed in
\none year,\" Pri said.<\/p>\n
Not only businesses facing difficult times require consultancy
\nservices. With globalization and free trade, business players,
\nwhether they are veterans or \"new kids on the block\", need the
\nhelp of reliable consultants to win the market and acquire a
\ncomprehensive knowledge of related matters, including the latest
\nstrategies employed by competitors.<\/p>\n
Noted consultant Rhenald Kasali said many consultancy firms
\nhad turned to the IT sector in line with the strong demand for IT
\napplications in many big companies here.<\/p>\n
\"The market for IT business consultancy is still wide open as
\nmore and more companies and people are entering the IT world,\" he
\nsaid.<\/p>\n
The need for IT consulting, Rhenald said, did not only cover
\nthe Internet and computer software, but also e-business and B2B
\namong others.<\/p>\n
Generally, consultants from renowned consultancy firms can
\nexpertly guide clients to matters that should be addressed
\nimmediately.<\/p>\n
\"Consultants may offer their advice and suggestions, but the
\nfinal decision rests with our management,\" said Bina Suhendra,
\npresident director of a big company.<\/p>\n
According to him, the advice from consultants is just a second
\nopinion. He reminded that companies should not totally rely on
\nthe advice of hired consultants.<\/p>\n
Early this year, his company hired consultant Hermawan
\nKertajaya to help design a blueprint for the firm's corporate
\nstrategy.<\/p>\n
For the five-month contract, Hermawan was paid Rp 1 billion.<\/p>\n
In Indonesia, many local consultancy firms are sought after
\nbecause of the reputation of their founders or top executives,
\nwhile in the case of multinational or international companies, it
\nis the big names of their foreign partners that draw the clients.<\/p>\n
\"Our approach and is based on tried and tested research and
\nanalysis methodologies applicable to consumer, commercial and
\nindustrial products and services,\" wrote AMI (Asia Market
\nIntelligence) Business Consulting, which focuses on market
\nanalysis and strategy solutions, in its brochure.<\/p>\n
Whatever the combination of methodologies, it added, \"AMI
\ndirectors and project managers work closely with clients to
\nprovide seamless information and consulting service.\"<\/p>\n
Rhenald Kasali, a senior lecturer at the University of
\nIndonesia, for example, has been hired, on a success-based fee
\nscheme, by the national flag carrier Garuda Indonesia to make
\nmassive improvements in its marketing strategy.<\/p>\n
But a big name in consultancy, whether local or foreign, is
\nnot always a guarantee of success.<\/p>\n
Companies badly needing consultancy services should be careful
\nwhen selecting consultants as some \"big names\" only provide
\nstandard solutions.<\/p>\n
\"Like a patient visiting the doctor, the company should first
\nknow the cause of its illness and have a strong desire to
\nrecover,\" reminded Soekono Subekti, a management observer from
\nthe Institute for Management Education and Development (IPPM).<\/p>\n
Other than that, looking at the consultancy firm's track
\nrecord will be helpful.<\/p>\n
The other important point is to make sure the strategy
\nsuggested is applicable to your company.<\/p>\n
Are you still in doubt or is this all too good to be true?<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/will-the-real-consultants-please-stand-up-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }