Enterprise strategy: the value of an external adviser
There’s an old business adage: you have to speculate to accumulate. The information age has transformed the modern business environment and investment is paramount for businesses that want to extend beyond mere survival and actually thrive.
Investment comes in many forms: time, money and skills. Once such form of positive business speculation is seeking the council of an external adviser – something many businesses dismiss because they see it as money leaving the company circle and aren’t looking at the wider picture.
The value of external advisers becomes increasingly clear when you examine the reasons many businesses fail in the modern landscape. Most often, a failure to adapt to external pressures and a reluctance to embrace internal change is the root cause of the struggle.
There are a huge number of reasons for employing the services of an external adviser to help add or improve a dynamic, agile approach to modern business.
5 reasons for employing the service of an external adviser:
- Innovation
- Perspective
- Capabilities
- Experience
- Change management
Over time, businesses can become overly insular or indulged in naval gazing. They fail to appreciate the true value of new innovative technologies employed by other businesses – often because those businesses aren’t competitors or even in the same industry.
An outsider – a valuable adviser with the ability to recognise opportunities from other industries, is required to see the value in applying those technologies to yours.
Despite what many directors and managers believe, it can be incredibly difficult to obtain true objective perspective when you’re in the trenches every day where it’s easy to lose sight of the bigger picture.
Strategic and operational advisers can assist a business by providing an outside perspective, often informed by their experience with other businesses.
Bringing an unbiased, uninvested adviser on board can provide a whole new outlook and assist managers to discover previously unknown potential or institute changes that were never considered.
Sometimes, you simply don’t have the internal capabilities to service a particular area of operations. In that case, an external adviser is an absolute necessity. A perfect example is expansion into new markets, particularly internationally.
An adviser with knowledge of both expansion strategy and the new market itself will add significant value, and potentially prevent costly mistakes.
Even in long-term situations, external advisers can be an effective method of bridging capability gaps within an organisation. The cost of developing those capabilities internally, and potentially making errors, often far outweighs the cost of consulting an expert.
Possibly the most valuable aspect of an external adviser is the immense experience that they bring to the table. Good advisers have an excellent grasp of the industry or management areas in which they operate.
It is difficult to overstate the value of a highly experienced external adviser. From new ideas to an informed fresh set of eyes, the added weight of some solid experience can make all the difference to business sustainability.
One of the most common reasons for bringing in an external adviser is change management. Attempts at organisational change often experience significant pushback from internal stakeholders, including both managers and employees.
An external adviser can help develop a plan for effective change management, and their experience can assist in overcoming barriers to change and ensure a less disruptive transition.
Don’t delay
There are a number of common arguments against the use of external advisers. These include the cost, the risk of them not understanding the business, and a fear of failure to achieve outcomes.
However, all of these concerns are easily addressed through effective management of the adviser process.
A few simple steps can be taken to ensure you get the most value out of your adviser:
- Agree on a timeframe for change, divided into several stages.
- Have clear outcomes and deliverables from the outset.
- Ensure your adviser has experience with your industry or the processes you want to improve.
- Clearly define the scope of changes you expect.
Failure to invest in an external adviser can be detrimental to the profitability and sustainability of your business. Take advantage of the experience and skills that are out there, and explore your options for an external adviser today.