Why do we need others' expertise?

Nia Sarinastiti Atmojo, Contributor, Jakarta

Why do we need consultants? It is a question often brought to the table at board meetings when deciding whether a consultant is necessary for their business. The arguments are quite classic: "We can do this on our own and save money" or "how do we get returns for our money?"

To understand the process, let us compare restructuring a business to renovating a house.

When renovating a house, we need expert advice on how best to accommodate the needs of our household.

We can seek expertise from someone close, maybe family, to save on costs. You may be lucky if your spouse or a close relative is an architect or interior designer who understands your needs. If no one around you has the capability redesign a home, then you need to seek outside advice.

It is the same in a company -- if the board of directors sees the need for a bit of fixing up, it is certainly wise to consider an internal source to lead the project. But if no one is available, or human resources are already occupied with current tasks, then relying on outside help becomes necessary.

Once you've decided that you need someone outside your inner circle to help, this means you've decided to bring in a consultant. In doing so, you may want to know about their capabilities and credentials. In the case of home renovations, you will inquire as to their past experiences and their ideas based on your requirements.

In a company, the process is similar -- a company provides terms of reference for consultants to review and upon which they will develop advice.

In such cases, whether home renovations or company restructuring, a budget is usually set. Without a general reference to the task at hand and a budget, it will be hard for consultants to determine the scope of work. Of course, being a consultant, they may have other factors to consider. But the final call is in the hands of the owner, the head of the household or company. Once again, it is crucial that you know what you need -- not just want -- and that it is relative to your specific situation, not merely for the sake of following the current trend. This applies to both designing homes and management systems.

Another important factor in deciding to employ a consultant is the extent of involvement you require from them. In renovating a house, would you like your consultant to provide only a blueprint of the design and you will find the builders? Or would you also want your consultant to handle all the builders, carpenters and painters, as well as the purchase of materials? Again, this is dependent on your available time and you and your household's capacity to be part of the renovation team.

For companies, the same considerations apply, and a management consultant usually provides varying levels of services.

The basic level of service is strictly in an advisory capacity, providing a set of options on what to do and how to generate results. Second is also assisting in implementation, in which a team of experts will be assigned to work side by side with you and your people to ensure success. Finally, the consultant team is relied upon to run the management project -- perhaps an area that is not your main area of competence -- but a necessary restructuring to sustain the business.

Before deciding to recruit a consultant, first see whether your own people have the capability to attend to the task internally -- do they only need directions or do they need another party to handle the whole works? This way, it will be easier to understand the overall investment a company must put in to external expertise.

As a final note, it is worthwhile to understand that employing consultants is a long-term investment. Consultants should not be hired if your company seeks only window dressing, such as painting the outside walls to look different. Relying on a consultant takes a collaborative effort, which will certainly add value to a company.

The writer is a marketing & communications advisor for Accenture.