3 Effective Techniques Operations Consulting Firms Are Using Today
27 September 2019
There is no such thing as a perfect company; it's part of business to always try to do better. Yet, not all companies know how to improve themselves, and recognizing your flaws can prove to be challenging. Few people are good at seeing what's wrong with themselves, and even fewer can take the steps to improve themselves alone.
That's the value of operations consulting firms: they tell your company where it can improve. Then, after consultants explain their reasoning for making recommendations for improvement, they work with your company to see them through. Consultants will never leave your company in worse shape than they found it.
They exist to make sure it gets better; by hiring consultants, you're paying skilled people to get invested in your company's growth. And to make sure your company thrives, consultants usually use a set of effective techniques to change the company. They are time-tested methods to guarantee that companies get better.
And to learn more about them, and to learn how hiring an operation consulting firm can help you, keep reading below!
1. First, They Research Your Company and Its Industry
The first step for any kind of consulting firm is to research your company. Research can consist of many different things, from market research to interpersonal interviews with employees. No matter how consultants research your company though, they're trying to achieve a simple goal.
They're trying to learn how robust your company is and to get a sense for its place in its industry. Research is fundamentally about collecting information, and when it comes to business, information is power. With the right information, operations consulting firms can achieve almost anything.
And to learn more about some of the techniques operations consulting firms collect information on your company, keep reading below!
Qualitative and Quantitative Research Has a Place in Business
There are two types of research: qualitative and quantitative research. They handle different kinds of data, and each kind of research is usually found in different fields. Sociological and psychological papers usually rely on qualitative research, while quantitative research is found in business or engineering papers.
Qualitative research is about collecting data on people's unique experiences on things. Most of the time, this kind of research may involve massive groups of people taking questionnaires or swaths of interviews. Consultants that conduct qualitative research are usually trying to learn what people think about your company, and how it may affect your business.
Quantitative research is the exact opposite. Instead of being concerned with people's unique experiences, quantitative is concerned with hard measurements of physical things. Consultants would conduct this kind of research when trying to learn how effective your manufacturing process is, or when looking at your profitability.
The Porter Analysis Can Provide Industry Guidance
All that research is meant to build something called a Porter Analysis. This analysis lays the foundation that consultants will use to implement specific techniques to improve your business. It explains companies' capability to face five crucial challenges:
- The threat of new entrants
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of substitute products and services
- Competition among industry
After conducting thorough research, consultants can prepare a Porter Analysis that will identify your company's strengths and weaknesses. This analysis will then guide their decision-making on how to improve your company.
2. Operations Consulting Firms Supply Better Supply Chains
One of the most significant and subtle parts of any company is its supply chain. The way you source the materials and labor illustrates your role in a market and the impact you have with people. Your supply chain impacts your marketing, and it can determine how much revenue is feasible for your company.
Your supply chain is a careful balancing game where you try to find the cheapest possible source for materials. Yet, the cheaper your materials may get, the more you pay with damage to your brand or in their quality. You want the best possible quality to price ratio, and consultants will help you find it.
They may have in-network suppliers to connect you with. They may also use a variety of negotiating techniques to bring down the price you're paying for your materials. Either way, they may change your supply chain so that you can manage it better.
3. Outsourcing Is In, For Most Companies
One of the top suggestions consultants usually make to companies is for them to outsource their labor. The cost of domestic labor can rise to exorbitant prices, and companies may wonder if it's worth the price. Plus, almost all kinds of labor can be outsourced now.
It's cheaper than hiring employees to work in-house at your company, and you don't sacrifice skill for it. Most outsourcing agencies are as concerned with their reputation as you are with yours. They work to make sure that you're satisfied with the services you get and save money in the process.
And with all that saved money, you can invest in your in-house teams to improve their performances.
Firms Can Have a Network of Freelancers for Hire
If you have any creative work that needs to be done, it may be best to hire a freelancer. Hiring designers, videographers, or writers to accomplish simple projects won't pay off in the longterm. You can never be truly certain how long you'll need their services for, and so there's no point hiring them in-house.
Most consultants will recommend that you hire freelancers for any of your creative needs. And the advantage of hiring a consulting firm is that most have a network of reliable freelancers to choose from. Hiring from a network of freelancers will save you more money than you would by outright hiring someone.
Consultants Can Redefine Your Company
By hiring operations consulting firms, you're investing in the future of your company. It's a wise decision that almost every business leader needs to make at some point. By choosing to hire consultants to help improve your business, you're not admitting weakness.
In fact, it shows strength to demonstrate that know your company has flaws. It shows that you're willing to put in the effort to fix them, and that is a vital step towards success. Hiring an operations consulting firm isn't a weakness — it's a strength.
Get started with one by contacting us. We will work with you to make sure your company thrives, and we'll put you on the path towards success!