What Are The Advantages And Disadvantages Of Internal Consultants

Task 3(b) An internal consultant is, at first glance, just like an external consultant: a professional that is hired to solve an organisational problem and implement the solutions in order to improve the performance of an organisation. Both types of consultants can work within all possible management and organisational areas from strategic planning to mergers and acquisitions, finance, organisation efficiency, process improvement and technology. Similar to external consultants, their sometimes competing internal colleagues can also function as advisors, change agents, execution facilitators, coaches or trainers. The difference lies in the relationship with the client organisation; internal consultants are on the payroll or limit themselves

In comparison with the most expensive (external) consultants in the market – strategy consultants – that claim definitely holds up. According to a study in the US, the cost of internal strategy advisors for a typical project is four to six times lower than the rates of one of the Big-3 strategy consultancy firms (McKinsey & Company, Bain & Company or The Boston Consulting Group). Internal advisors have a better understanding of the organisation they advise – they understand the language and culture of the organisation better. Their deep knowledge of the organisation make internal consultants very valuable, for instance, in the implementation of strategic change trajectories or culture transformations; with managing processes and projects; or integrating initiatives within the organisation. In addition, internal consultants have existing relationships with other employees within the organisation, improving their means and channels of

External consultants are seen as independent players, contrary to internal advisors who literally depend on their own organisation. This could possibly lead to a trust issue between advisor and client, which is also essentially the employer. Research has shown that clients have more confidence in external consultants than internal consultants. The function often demands an inquisitive and firm hand, a role that external advisors frequently fulfill, and one more difficult to fill by internal advisors. They possibly hold just as much expertise, but as an employee at an organisation it is conceivably harder for internal consultants to be independent – or to be considered as independent – than for external