This document discusses the value that consultants can provide to organizations through strategic consultation at various levels. It distinguishes between generalist consultants, who take an interdisciplinary approach and provide guidance across multiple areas, and specialist consultants, who focus on a specific field or area of expertise. The key benefits of generalist consultants highlighted are their ability to take a holistic view, provide objective feedback, and reduce the need for multiple specialist consultants. Both internal and external consultants each have advantages, with the optimal approach depending on an organization's unique needs and goals. Overall, the document argues that consultation can significantly increase an organization's ability to achieve its objectives in an effective and timely manner.

1. Consultation Increases Value
Substantial Reinforcement
Steve C. Finney, Jr.
2009 Ed.
This is an informational publication to provide and assist organizations and their principals in
successfully achieving their goals and objectives in a proven, timely and cost effective
approach by receiving reinforcement at strategic, tactical and operational levels.
© 1998-2009 Steve Finney, Jr.
All rights reserved. No portion of this publication may be reproduced- mechanically, electronically, or by any other means, including photocopying-
without written permission of the author.

2. Substantial Reinforcement
Nine Questions You Need to Ask Yourself:
1. Are you a leader, principal or owner of an organization?
2. Do you believe your organization fails to operate at its highest levels of efficiency and
effectiveness?
3. Is your organization challenged with too many critical objectives and insufficient knowledge or
support to achieve those objectives?
4. Is your organization in its infancy?
5. Is your established organization faced with a transition in a particular area of operations?
6. Do you or other leaders in your organization find yourself a servant of many and master of
few?
7. Is your ability to focus on the most critical objectives of your organization compromised because
of the unmanageable number overwhelming and competing objectives (pulled in too many
equally important directions at once)?
8. Are your decision making processes restricted, over simplified and based upon limited
knowledge, hope and luck?
9. Are your problem solving processes limited by only a few disciplines or areas of experience?
If you’ve answered yes to any of these questions take a few
minutes now and read forward to find your solutions.
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3. The Added Value of Consulting
Strategic Versus Field Consultants
Areas of consultation range from the general or strategic to the specific or technical. Both are of
equal importance. However, macro-level or general consultation at the strategic and management
levels offer in addition to a broad scope and depth of disciplines, a substantial feedback loop of
counsel, advice, critical thinking and analysis. A strategic consultant, sometimes referred to as a
generalist, provides guidance and quality assurance to the principal(s) or client(s) in the decision
making and problem solving processes that might occur at any level of the organization.
Specifically, the generalist adds value to the organization through contributing and assisting clients
with issues and systems at the strategic, tactical and operational levels.
Generalists utilize an interdisciplinary approach to assist with issues and systems; the general
consultant provides feedback and a significantly higher level of objectivity in regard to the decision
making and/or problem solving process. They also act as a facilitator throughout the process.
In contrast, micro-level or specific field consultation offers counsel and advice in various technical
areas within the organization. In other words, deployment of a new technology platform might
require the specific consultation of a technical expert in the technology field to provide counsel and
expertise in their specific discipline or professional field.
Another example might be legal counsel. When seeking feedback, guidance and counsel regarding
legal decisions, an attorney would be very appropriate to act as a micro-level consultant. They are
generally concerned with the operational level of business, although in some instances it may also be
appropriate for their concern to be at the strategic and organizational levels of business decisions.
Generalist Specialist
Roles of Consultants
Roles of consultants vary widely and operate within the needs of the organization and/or parameters
established by the client; however, one constant is they do not necessarily function as the final
decision maker. Rather they function as a sounding board and development and feedback loop.
More importantly however, consultants should not advise clients to take certain actions simply
because the client may prefer that action.
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4. The consultant encounters challenges where s/he must advise the client of information or data
contrary to what the client wants to learn and that may make the client uncomfortable. The purpose
is for the consultant as a collaborator to assist the organization in successfully realizing its objectives.
Delegated decision making authority may be appropriate for either micro or macro level advisors;
however the final decision remains with the principal(s).
The generalist approach to consulting is not a specific subject matter as found at the micro-level.
Conversely, the generalist is concerned with organizational systems and operations.
Functions of Consultants
Consultants function as developers, designers, and/or critical and creative thinkers. Although it may
be appropriate for them to assist with implementation or execution, they generally are not the
implementers of the decisions. The responsibility of implementation and execution of decisions and
the subsequent follow-through or the nuts and bolts of the business operations rests upon the
business itself, namely the client(s)/principal(s) and their staff.
A generalist at the infancy stage of an organization also provides counsel related to the necessary
incorporation of micro-level consultants. A generalist should also consider the strategic scope of the
organization and provide necessary counsel as the organization develops and grows. By doing so,
the principal(s) are free to more closely focus on other more critical areas of the organization.
An example might be, two principals in a for-profit business venture. The start-up begins with two
operational employees. The business steadily grows and a need develops to increase to six
operational employees. Now administrative functions such as payroll, benefits, etc. begin to
consume more and more of the principals‟ time. Because the time and energy of the principals‟ is
now diluted or redirected, the potential of continued growth becomes lessened.
However, through continued hard work and dedication the principals manage for another two years.
By this time the number of employees has risen to 21. Therefore, additional business and legal
considerations, burdens and requirements may be triggered. These might include compliance with
the Americans With Disabilities Act, Family Medical Leave Act and Fair Labor Standards Act,
among others. If the principals and the operational employees are busy diligently working to grow
the business, who provides strategic thinking and critical analysis looking forward?
A strategic management consultant in this example should fulfill the role of thinking ahead and offer
counsel how to proceed prior to reaching that point in time. Seeing the trees or seeing the forest is a
false choice. Both the trees and forest must be seen to maximize success.
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5. Let‟s continue with the example. At the 15 employee threshold the principals begin to discuss
further the need for expansion and how to increase demand and market share. The generalist,
understanding the principals‟ goals may offer advice to hire contracted employees so as not to reach
the 21 employee threshold. The generalist may also provide counsel that the aggregate cost of 21
employees may far exceed the benefit of growth at this point in time.
Again, it is important to clearly understand the functional distinctions between strategic general
consultants and field consultants. The strategic consultant provides more thoughtful
interdisciplinary analysis and general counsel whereas the field consultant provides specific analysis
and counsel in their respective field or area of expertise. Assuming the generalist is performing
his/her proper function, the benefits of a generalist cannot be underestimated!
Both strategic management and specific field consultants serve the function of providing thoughtful
counsel through critical analysis and field expertise thereby allowing the principal(s) and staff to
focus and marshal energy and purpose on the actual organization and operations of the business.
This maximizes potential to achieve organizational goals.
Consultants Add Value
Variables such as organizational size, budgetary requirements and business purpose(s) determine the
level and scope of consultation. However, if a Executive Chef for example decides to open a
restaurant, the overall strategy, organization and specific operations of the business will most likely
require general or field consultation in micro-level areas such as employment and tax law, health and
safety compliance, accounting, human resources, and marketing just to name a few.
To illustrate, the larger gear is the client and the business which encompasses all levels of the
organization related to decision making and problem solving. In the first illustration
everything falls upon the principal. However, in the second illustration
additional gears assist the principal and contribute the increased
likelihood of successful outcomes and therefore resulting in
added value.
Accordingly, the Executive Chef (owner/principal) must decide which areas are most important and
required while remaining areas may necessitate on-the-job training for the owner. It may also
require contract consulting until the specific field area is off the ground and self-sustaining. That is,
each area that the principal(s) is deeply involved competes for the principal(s) involvement in other
equally important areas. In other words, the principal should always remain focused and
concentrated on only those tasks that the principal(s) and only the principal must handle.
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6. The addition of a formal consultant or advisor must be contrasted with having dinner with a friend
and running an idea past them for their feedback or analysis. Rather, the professional consultation
provided is based upon interdisciplinary or subject matter expertise and is formulated on established
logical and analytical methodologies.
Whereas the dinner friend or family member, (minus any specific subject matter expertise or
experience they may have in a particular field) is most likely to offer feedback based on abductive
reasoning (hunches, feelings, etc.)
Furthermore, there is higher risk of actual disengagement, personal bias, sympathy, conformity, and
relationship maintenance just to name a few. These factors have potential significant influence in
outcomes thereby placing objective, rational and logical advice at risk. However, this should not be
interpreted that such a dinner friend cannot offer sound and/or valuable feedback or advice.
The common denominator of the decision making process must be to achieve the best decision
within the allotted time, scope, space and other constraints. Ego and personal feelings, although
they can play important constructive roles at certain times, they may equally play a significant
destructive role and often times, although unintentionally, will do so.
The strategy and the decision making process utilized to development and implement must always
account for the best interests of the organization rather than individual members of the
organization. This is not to say there are not times when rational decisions may not fully align with
organizational goals, however this approach must be minimized, limited and must not fully oppose
such goals.
Consider primary and secondary benefits and give appropriate weight in the decision making
process. In other words, a decision that may not fully benefit the organization at a primary level
may not oppose organizational goals and may still result in some secondary or peripheral benefit.
An example might be an informational or advocacy campaign where the director needs an
immediate and cost effective assistant and coincidently the director‟s spouse is unemployed.
Accordingly, although the spouse may not be fully qualified for the assistant position, the director
hires the spouse. This could be construed to conflict with the primary goal of the organization.
However, the secondary benefit, (assuming the spouse is actually performing the assistant function),
is 1) the position is filled and work is performed, 2) higher likelihood of loyalty and dedication and
3) cost savings because a more qualified person would require higher salary. Obviously this decision
may be based more on necessity than preference.
Caution should exercised to avoid the expense, confusion and potential to reach a decision by
employing too many or unnecessary consultants, specifically at the macro-level. If a generalist is not
providing the service or contribution that is aligned with the organizational goal s/he should be
replaced. Additionally, the same applies to employing micro-level field consultants.
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7. One major benefit of a strategic and management general consultant is the reduced need for field
consultants. This should be assessed on actual needs versus preferences as well as organizational
limitations (budgets, etc.). Significant added value results from the interdisciplinary and
collaborative approach used by generalists. Whereas a field consultant provides support or project
management in one or two narrow areas (stove-pipe), the generalist provides support in a much
wider number of areas.
Generalists may utilize and incorporate Generalists may provide organizational
multiple disciplines and branches such as: support and service in areas such as:
 Management Science  Decision Making: All process aspects
 Organizational Psychology  Problem Solving: All process aspects
 Political Science  Risk Management: All process aspects
 Social Psychology  Public Relations: All process aspects
 Philosophy  Strategic and Tactical Planning:
 History System and Process Development
 Business Administration  Professional Training: Research,
 Law Development and Delivery
 Sociology  Marketing Systems: Design, Research,
Branding, Advertising, and
 Economics
Paid/Earned Media
 Training and Educational Psychology
 Human Resources: Hiring,
 Human Resources Management
Employment, Diversity and Research
 Public Administration  Financial: Budget Development,
 Statistics Analysis and Loss Mitigation
 Industrial Organization  Internal Compliance: Quality
 Systems Science and Operations Assurance, Process Improvement,
Research Audits
 Project Management  External Compliance: Legal,
 Public Affairs and Policy Regulatory
 Research and Methods  Operations: Management,
 Communications Implementation and Execution
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8. Conversely, a specialist or field or technical consultant utilizes their knowledge from and within a
specific discipline or branch and provide organizational support and service in only that specific or
specialized field or area.
Field Consultants may utilize a specific Field Consultants may provide operational
discipline and branch such as: support and service in areas such as:
 Information Resources Management  Website development
 Business to Consumer Marketing  Payroll Services
 Marketing Analysis  Investment Counseling
 Financial Advising  Real Estate Law
 Legal Services  Risk Analysis
 Supply Chain Management  Systems Analysis
 Business to Business Marketing  Graphics Design
 Professional Development  Information Security
 Risk Management  Hiring and Staffing
 Advertising  Accounting
 Human Resources  Compliance Training
Both general and field consultants provide significant support and add value.
Internal Versus External Consultants
Simply stated an internal consultant is in-house; while and external consultant is not. Either could
be contracted, but only the internal would be an employee. If contracted, the external consultant
may be in-house for a finite period of time or for the duration of a specific task or project.
Externals may be remote and may also be firms or agencies. Think of it as a family member versus a
family friend.
An internal example in the public sector might be an Inspector General or Solicitor. In private
industry an internal example might be in-house legal counsel, Internal Audits or Compliance or
perhaps a Campaign Manager/Director when dealing with non-profit organizations.
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9. An external example in the public sector might be an independent commission, internal affairs
bureau or other entity. While in private industry it could be an accounting or rating firm or a pay-
for-service attorney, staffing agency or contract graphic designer.
Although internal consulting has been long established in government and non-profits, current
trends in for-profit organizations because of cost savings, institutional memory, dedication, loyalty
and increased added value have resulted in a significant rise of internal consulting.
Contemporary corporate trends demonstrate approaches where corporations set up their own
internal consulting groups, hiring internal management consultants either from inside or outside the
organization. Internal consulting is often formed around a number of practice areas, commonly
including: strategic management, organizational development, process management, information
technology, design services, training, and development.
Internal External
Larger firms may have greater resources to utilize consultants or groups in a number of areas, while
smaller firms may be limited to a number of areas and thereby may also be required to retain
external field or specialist consultation when required on an as needed basis.
For instance, a small firm that may not have the budget or the business need for internal legal
counsel, may therefore utilize external legal counsel when needed at specific times.
Characteristics of Consultants
Below are some of the common characteristics of internal and external generalists and specialists. It
is worth mentioning again, that the needs of the principal(s) or client(s) and the organization will
determine what characteristics are required in order to achieve the desired outcomes of the
organization or business.
The functional structure of a generalist or field consultant will usually be negotiated and determined
by the retention of an individual versus a firm or internal versus external consultant(s). This
decision is based on the organization‟s needs. Is the organization in need of cross-functional
support or support of specific function or project?
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10. Because of the various characteristics of consulting, the desired outcomes may be general or specific
objectives and may change over time based on conditions such as organizational growth and
progress, changes in law, markets and social trends, among others.
Generalist Specialist
Internal Contractor Status Contractor Status
Employee Status Employee Status
Individual Consultant Individual Consultant
Interdisciplinary Specific Discipline(s)
Cross Functional Narrow Function(s)
Single Client Loyalty Single Client Loyalty
External Contractor Contractor
Individual Consultant Individual Consultant
Firm/Agency Firm/Agency
Interdisciplinary Specific Discipline(s)
Cross Functional Narrow Function(s)
Multi-Client Loyalty Multi-Client Loyalty
Regardless of the function, status and level of incorporation of the consultant(s), the primary
responsibility of the consultant(s) is to offer professional, critical, analytical and straightforward
counsel, advice and service thereby adding value and assisting the organization achieve its goals.
Benefits offered by General Consultants
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11. Costs of Consulting
Costs and related expenses vary widely depending on the services or extent of consultation required.
However, the budget of the principal(s) and organization may dictate what type of consultation is
obtained. The concept of the more you pay, the more you receive does not apply. A case by case
assessment should be made to determine the organization‟s need for an individual or firm as a
generalist or specialist in an internal or external capacity in either contractor or employee status.
Consultants directly help the principal(s) or client “keep the main thing… about the main thing…
the main thing.” By offering service and support, the principal(s) are assured to receive up to date
information, critical analysis and facilitation of decision making and problem solving. In doing so,
the organization realizes potential increased profit or greater success in achieving its objectives.
Consultant expenses may range from a simple hourly rate to a one-time expense for developing or
managing a project to recurring costs associated with bringing on a full or part-time employee.
Expenses may also include associated travel and per diem expenses, or benefit packages, all of which
are determined by the organization and agreed to by all parties.
Internal Consultant Advantages
There are several potential benefits of internal consultants to those who make use of their services:
 If properly managed and empowered, internal consultants can better evaluate
engagement on projects in light of the organization's strategic and tactical objectives.
 Often, the internal consultant requires less ramp up time on a project due to familiarity
with the organization, and is better able to understand and guide a course or project
through to implementation—-a step that would be extremely costly if an external
consultant was used.
 Internal relationship provides opportunities to keep certain sensitive information private.
 It is likely that the time and material cost of internal consultants is significantly less than
external consultants operating in the same capacity.
 Internal consultants provide dedicated focus to the organization and do not experience
competing priorities.
 Internal consultants do not experience conflicts of interest and competing loyalties.
 Internal consultants are often uniquely suited to:
o Lead external consulting projects or teams, or
o Act as organizational subject matter experts „embedded‟ with external consulting
teams under the direction of organizational management.
o Liaison with external consulting teams
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12. An internal consultant is better situated to closely monitor and work with external consultants and
provide greater assurance of organizational alignment. This ensures better delivery, higher quality,
and seamless overall operating relationships.
On the contrary, external consultants have a dichotomy in priority. The health of the external firm is
in aggregate more important than the health of the client organization. (client objectives are
ultimately secondary to that of the strategic goals of the external firm). Furthermore, external
consultants usually have numerous clients all of whom compete for service.
Again assuming proper management, internal consultants are less likely to have a dichotomy in
priority. The health of the client organization is in aggregate more important than the health of the
internal consultant(s) or consulting group. (Put the company objectives first)
Internal Consultant Disadvantages
 The internal consultant could risk providing the necessary objectivity to the consulting
relationship that an external firm can.
 An internal consultant also may not bring to the table as many best practices from other
corporations. A way to mitigate this issue is to recruit experience into the group and/or
proactively provide diverse training to internal consultants.
 Where the consulting industry is strong and consulting compensation high, it can be difficult
to recruit internal candidates.
 It is often difficult to accurately measure the true costs and benefits of an internal consultant
or group.
 When financial times get tough, internal consulting groups that have not effectively
demonstrated economic value (costs vs. benefits) are likely to face size reductions or
reassignment.
It should be noted that determining the need for internal versus external consulting should be based
on the role and function of the consultant and the needs of the organization. Very specialized areas,
one-time projects or part-time functions or periodic maintenance of projects would certainly not
necessitate an internal field consultant. A firm with 10 employees might only require a part-time
accountant to handle payroll and book-keeping, while a larger firm may employ a Human Resource
Payroll Specialist.
Moreover, it is important to again contrast a strategic/organizational general consultant with a field
consultant. Strategic knowledge versus technical knowledge is a reasonable metric to determine
what consultation type and function is needed.
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13. Summary
Illustration without consulting Illustration with consulting support
support shows the principal’s shows greater and more sufficient
attention and energy is divided attention to selected segments,
between numerous segments all thereby permitting the principal
competing for attention. Because freedom to provide sufficient and
each segment is of equal more concentrated attention to critical
importance, the result is insufficient areas, while still involved in all
attention in multiple areas, often segments. This is a more holistic
resulting in a crisis management approach resulting in a strategic
style of operations. management style of operations.
Although there are certainly needs and situations where a specialist or field consultant is required, a
generalist or strategic consultant who demonstrates an interdisciplinary approach to their service
provides the most return on investment across the entire scope of the organization and adds value
to all levels of the organization. Strategic consultants also focus on providing recommendations
based on research and information that allow the principal(s) to render decisions in a timelier
manner as well as allowing principals to more effectively devote their energy in areas where only the
principal(s) can reach or handle desired organizational outcomes most effectively and efficiently.
Often, organizations fail to distinguish between the purpose of an organization (why the
organization exists) and constraints (what the organization must do in order to survive). For
example, satisfying stakeholders is constraint; it is not the purpose or reason the organization exists.
Below are some of the outcomes a generalist provides from a strategic consulting perspective:
 Determines and reveals the organization's purpose in terms of its long-term objectives,
action programs, and resource allocation priorities.
 Selects the businesses the organization is in or is considering entering.
 Attempts by responding properly to both the environmental opportunities and threats and
the strengths and weaknesses of the organization.
 Engages all the hierarchical levels of the organization - corporate, business, and functional or
strategic, tactical and operational.
 Defines the nature of the economic and non-economic contributions the firm intends to
make to its stakeholders.
 Provides a coherent, unifying, interdisciplinary and integrative pattern of decisions a firm is
making.
A strategic consultant provides and assists with strategic thinking: Successful strategies are usually
developed as a result of strategic thinking, not as a result of a formal specific planning process. They
most effectively begin at the core of the organization and work outwards. Why? Strategy is not
about plans but about insights into how to create value; the process of developing insights should
not be confused with planning, which is about turning insights into action.
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