Performance Consulting - Trends - Rise of Internal Corporate Consulting Groups - Advantages

Advantages

There are several potential benefits to employing internal consultants:

• If properly managed and empowered, internal consulting groups evaluate engagement on projects in light of the corporation's strategic and tactical objectives.
• Often, the internal consultant requires less ramp up time on a project due to familiarity with the corporation, and is able to guide a project through to implementation — a step that would often be too costly if an external consultant were used.
• Internal relationship provides opportunities to keep certain corporate information private.
• It is likely that the time and materials cost of internal consultants is significantly less than external consultants operating in the same capacity.
• Internal consulting positions can be used to recruit and develop potential senior managers of the organization.

Note: Corporations need to be conscious of and consistent with how internal consultant costs are accounted for on both a project and organizational level to evaluate cost effectiveness.

• Internal consultants may be specifically suited to either:

1. Lead external consulting project teams, or
2. Act as organizational subject matter experts ‘embedded’ with external consulting teams under the direction of organizational management.

A group of internal consultants can closely monitor and work with external consulting firms. This would ensure better delivery, quality, and overall operating relationships.

External firms providing consulting services have a dichotomy in priority. The health of the external firm is in aggregate more important than that of their client (though of course the health of their client can have a direct impact on their own health).