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External vs. Internal Consultant: How to Find the Right Efficiency Consultant

It’s a good idea to hire an efficiency consultant amid everything that is happening in the current business environment. Remember, it takes courage for entrepreneurs to admit they need help to figure out things in their business.

Some entrepreneurs are not even comfortable with the idea of delegating. But your decision to engage a consultant's services is one of the smart business moves you will make this year.

The decision shows that you understand that consultants are professionals with profound knowledge and experience in a particular business situation or industry. Your business will benefit from tapping into the services offered by an efficiency consultant.

Now, it’s time to find out whether to hire an internal or external consultant.

Difference between Internal and External Consultants

An efficiency consultant solves an organizational problem and implements solutions to improve business performance. Internal and external consultants offer similar services; only their terms of service may differ.

If achieving full efficiency in your business processes is a major source of competitive advantage for your business, you’ll need to hire an internal consultant who will offer their expertise and experience from within the organization. The major benefit of hiring such an internal consultant is that they cost less in the long term compared to an external consultant.

On the other hand, you hire an external efficiency consultant under a third-party contract. Usually, the terms of their service agreement include a time frame. During this period, they will provide efficient consultation services and deliver the agreed results.

You may be inclined to hire an external consultant because of their level of hands-on experience. The fact that they have a wealth of experience means they’ll be of great help to your business.

Factors to Keep in Mind When Hiring an Efficiency Consultant

Of course, you want to get it right when hiring your business consultant. Thus, it would help to know one or two things about what it entails to hire a consultant.

Identify Your Business Consulting Needs

The first place to start when deciding to hire an efficiency consultant is determining your consultancy needs. It is not like a fashion trend that you’ll feel obliged to join because other entrepreneurs are doing it.

It has to be because your business has specific needs that will be solved by an efficiency consultant. Understanding your consulting needs will also influence your decision to use an internal or external consultant.

Value Proposition

The fact that you want to hire an efficiency consultant means that you believe that your business can generate more value. That should reflect in the consultancy agreement with your internal or external consultant.

Make sure to include agreed objectives that should be achieved at the end of your relationship. That should be easy if you are already aware of your business consultation needs.

For this reason, the consultancy contract should include an implementation phase. Allow the consultant to spearhead the implementation of the solutions they propose. It’ll make it easy to measure the results.

The Consultant’s Track Record

A track record is important when hiring an external consultant as it contributes to their credibility levels.

The external consultant's experience and expertise should not only be visible in their proposal. It should include tangible results they have achieved from helping other businesses achieve certain efficiency levels.

Your online research on a preferred external consultant will help you determine their level of credibility. You should also be able to confirm their credibility with other business owners in your network.

Determine Whether You Need an Internal or External Consultant

Your specific business needs will help you best determine when you need an internal or external consultant.

In this regard, you are best suited to hire an internal consultant when:

  • You want full support in implementing your strategic plans

  • If you want to maintain oversight in the implementation of your business processes

  • Knowledge of the business is vital

  • You need constant monitoring of your business process's efficiency

  • Cost is a factor

However, you will need to hire an external consultant when:

  • Deep expertise is required

  • Your business is facing an uncertain future

  • You need an external objective professional opinion about your business

  • You’re looking to tap into the industry knowledge and expertise of the external consultant

Learn about Our Efficiency Consulting Services

Your biggest question about whether to hire an internal or external consultant is effectively answered. Now get in touch with our efficiency consultant and learn how we’ll help you scale your business. We’ll show you our proven track record of helping business owners like you navigate through business chaos.

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