Reasons why managers suspect free consulting projects
Management consulting refers to the process of providing business executives with advice from a third party. It is focused on improving productivity of a business. Managers prefer consulting for a fee, but not for free. There are several reasons that make managers suspicious of consulting projects offered for free. Most of the projects offered for free are not efficient in improving the performance of organizations (Block, 2011).
Managers know that there are a lot of people, groups, and organizations who seek free consultations so as to benefit from their expertise. Most of them have no intentions of hiring these professionals. This makes managers suspicious that the consultants may offer advice that is not helpful to managers.
Another reason why managers suspect consultants who offer services for free is that they are strangers to organizations, and one cannot tell whether they can hinder or improve their projects. In most cases, consultants choose to work independently at their own time and way from the organization.
They lack transparency that good consultancy requires. Managers also feel that project consultants offering advice for free may not be committed to their projects compared to paid consultants (David, 2013). They are likely to provide scanty information or advice to managers, which may be unhelpful. Therefore, they view them as unnecessary in the projects.
Different types of projects and their selling strategy for thorn on a no-fee basis
The first project is the 3-year research funded by the CIPD (Richard, 2003). Without charging any fee, the first step is to advise the management of the business to set SMART objectives and goals for the project, with an aim of being hired by the company.
The next step is to help those seeking consultancy to identify policies by advising companies to integrate new, or improve the existing policies in order to make changes. A lot of attention will not be needed in this case considering that consultation will not be charged. Since the selling strategy for Thorn is of no-fee basis, it is more likely that appraisals will be run poorly, and hence this will affect the morale of the staff. This can lead to a decrease in performance in the workplace.
The second project is about a supermarket chain store called Tesco. Tesco has four stores (Richard, 2003). Each of these stores performs differently. Without consultation fee charges, the HRM can be advised on training its employees, setting goals, and promoting good relationships at the workplace. The company can also be advised to increase the morale of workers by promoting or rewarding them. The advice will be followed with a request of being hired.
The other project is about Selfridges. Without any charges for consultation, the human resource management should seek advice which concerns using a central role to control and manage different stores from a centralized region. It should also seek advice concerning training and branding from consultants to gain a competitive advantage. The advice given in this case should not be detailed, considering that there is no pay in return.
How the selling strategy changes it is offered on a full-fee basis
When offering consultation on a full-fee basis, the selling strategy will change in several ways. A full fee basis consultancy requires commitment and dedication to ensuring that the results are met as planned. In the first project, a follow-up will be required to ensure that policies get aligned. They should be streamlined with the objectives and goals of the organization. In the second project, SWOT analysis will be required to analyze the internal environment.
This will include the supermarket’s strengths, weaknesses, opportunities, and threats (Barrows, Powers & Powers, 2009). Any advice about the distribution networks of the supermarket will also be provided if a full consultancy fee is paid. This will lead to increased sales, profits, and revenues. In the third project, the consultants will get committed to providing relevant selling strategies for the business. This includes relevant advice on branding and training to provide customers with quality products and services.
References
Richard, D. (2003) .Types of management consulting project: Positive prognosis from HR health check. Boston: Pearson.
Barrows, C. W., Powers, T. F., & Powers, T. F. (2009). Introduction to management in the hospitality industry. Hoboken, N.J: John Wiley & Sons.
David, F. R. (2013). Strategic management concepts and cases: A competitive advantage approach. Boston: Pearson.
Block, P. (2011). Flawless consulting: A guide to getting your expertise used. San Francisco: Pfeiffer.