Business consultants are in high demand as companies strive to stay competitive in the ever-changing market. To be successful, consultants must have a wide range of skills and tools at their disposal. In this article, we'll explore the six essential tools and techniques that business consultants need to succeed. The GE-McKinsey nine-box matrix is a popular tool used by business consultants to evaluate the relative merits of various opportunities.
It classifies business units or opportunities as “high”, “medium” or “low” within the two axes of the matrix, which are “the attractiveness of the industry” and the “competitive strength” of the business unit. This tool helps consultants make informed decisions about which opportunities to pursue. The BCG Growth and Participation Matrix is another useful tool for consultants. It helps companies evaluate their current position in the market and identify areas for improvement.
This matrix was developed by McKinsey & Company in the 1970s to help General Electric prioritize its investments in its many business units. The matrix is divided into four quadrants: stars, cash cows, question marks, and dogs. Each quadrant represents a different type of investment opportunity and helps consultants determine which investments are most likely to yield a return. Benchmarking is another important technique used by business consultants.
It involves comparing the metrics of your company with the metrics of the competition in your sector or with those of innovative companies outside the industry. This helps companies identify areas where they can improve their performance and stay ahead of their competitors. Benchmarking can also help consultants identify best practices that can be implemented in their clients' businesses. The balanced scorecard is a framework for tracking important aspects of the company's strategy and for facilitating organizational improvement or change.
It measures metrics beyond typical financial metrics to help companies focus on long-term strategic objectives and detect problems before they appear in the financial statements. The balanced scorecard helps consultants assess how well their clients are performing against their goals and objectives, allowing them to make informed recommendations for improvement. Communication is an essential skill for any business consultant. If you can't communicate the value you bring or the results you've created, you'll struggle to market your consulting business.
Demonstrating your observation skills includes all the other skills on this list. Being able to effectively communicate with clients is key to building trust and establishing a successful consulting relationship. Finally, technology plays an important role in helping business consultants succeed. There are a variety of tools available to help manage projects, track finances, analyze data, and more.
Some of the best consulting tools include Trello, Slack, Keap, Capsule, Hootsuite, Xero, and CRM software. Technology can help streamline processes and make it easier for consultants to provide value to their clients. By understanding these six essential tools and techniques, business consultants can better equip themselves to help their clients succeed in today's competitive market.