Consulting — the kind of intellectual activity aimed at strategic project planning, analysis and substantiation of prospects of development and use of scientific and technical, organizational and economic innovations with regard to the subject area and customer problems.
Consulting addresses issues of administrative, economic, financial and investment activity of organizations, strategic planning, optimization of the overall functioning of the company, business, research and forecasting of markets, price movements, etc. In other words, the consulting is any assistance provided by external consultants to solve a particular problem. The ultimate goal of consulting always comes down to one thing: improving the effectiveness of the company as a whole and individual units or each employee individually.
There is a perception that the company’s external consultants, we are in a critical condition, but consulting is not limited to crisis management. Undoubtedly, one of the directions of this activity is called crisis management. This service is required when the company, being in a critical situation, unable to get out of it on their own due to lack of experience and internal resources. But there are several other reasons why companies are turning to consultants.
So, for example, is quite trustworthy and sustainable enterprise often requires the services of a consulting company in the event of a reorganization of the financial system or control system associated with the extension or change of ownership.
Changes related to the change in the spectrum of activity of the enterprise or refocusing on new areas of business also require advice and support from external consultants.
Another reason for the use of consulting services – their popularization. It’s not a fad, but a desire to establish themselves on the market in the eyes of customers, partners and competitors. Successful company uses services of consultants, for example, auditors, audits of its activities, the audit, and then announce the results. Thus, the reliability and future prospects of the company can be judged not only from the unfounded statements of the leadership, and relying on the opinion of independent experts.
As mentioned above, the consultants help in addressing both financial and management systems. Therefore, we can distinguish two main types of consulting: financial and managerial.
Financial consulting – range of services, thanks to which built an effective and reliable financial management system.
Management consulting – this is the solution to the interrelated problems aimed at optimizing and increasing the efficiency of the business. The team of consultants involved professional valuers, auditors, lawyers, joint knowledge and experience which allow to achieve the required result.
Management and financial consulting also includes:
• evaluating the company position on the market;
• definition of the marketing strategy of the company;
• economic planning and budgeting;
• financial management;
• strategic planning of the company’s personnel management.
