The Consulting Dilemma

The Consulting Dilemma

Companies that needed consulting most do not want it. They think it is a waste of time and money. And that they know it all themselves.

Of course, that is not always the case – but from my experience it can be generalized that most economies could do a lot better, if their small and medium sized companies were managed more professionally.

It is true that many small companies are very good, if not excellent, in what they do. Building houses, teaching, training, trading, prodiving services … but they are not necessarily brilliant entrepreneurs, exploiting all attractive options. And even more certainly they are not efficient managers as they could and should be. In consequence we again and again see companies going down that do a pretty good job, but are eventually managed so poorly that the quality of their product won`t help any more.

Then, when they already face going bust, they open up to the idea of seeking external advice. But probably it will be too late then, because then regularly they are not able to afford it anymore.

There is already a psychological label for this – the Dunning-Kruger-effect: the more incompetent people we are, the harder it is for us to detect our shortcomings.

Besides, on the other hand are the big, professional companies. Although they are also far from being perfect, they at least have their staff departments and – more and more often – even inhouse consultants to do get critical advice. In addition to that they are never to shy to take external help, maybe sometimes even too early, too extensively and too costly.

I`d wish smaller the owners and managers of smaller companies would seek external coaching on a regular basis – always controlling to make sure that it pays off. And that big companies would sometimes put more trust in their own (human) resources.