by Dr. S. Felber
For most SMEs purchasing consulting services can be a risk. Dr. Suzanne Felber of Inkberry Associates believes that the time of the SME is upon us. Her article is a controversial exposition on how management consultants should perform their roles better and help CEO's build capable and sustainable organizations: credible investment vehicles that can be passed on to the next generation.
One of the most common criticisms of management consulting is its overwhelming tendency to focus on the operational performance of organizations without necessarily considering the context in which they operate. Another complaint is that clients are allocated consultants that happen to be "on the bench", rather than the ones that were anticipated during contract negotiation.
This reflects the "body shopping" approach that is prevalent in the larger consulting practices. Their goal is to sell large teams of consultants to undertake complex projects for extended periods of time. In the past engaging with Small to Medium-sized Enterprises (SMEs) has often involved the use of corporate-style practices on unsuspecting and (sometimes) unwilling clients. As a consequence, when SMEs do purchase consulting services, it has been an expensive and risky investment.
Consulting for SMEs ought to be about creating value. As you would expect, this requires innovation in the delivery and content of consulting services but also creativity in how consultants are resourced. Many small consultancies say "We will take experienced Big Five consultants and provide them at a fraction of their usual price." (What they mean by "Big Five" varies). "We don't have marble atriums," they say. This doesn't serve the needs of the SME marketplace because most of the "Big Five" focus on the top 100 FTSE companies, all with completely different issues to SMEs. SME Business leaders deserve a more focused consulting service.
We are all aware that there have been some structural changes in the economy, affecting the way in which SMEs operate. For example, in the past, barriers to entry, economies of scale and the difficulties of accessing foreign markets have all been reasons for the domination of the corporate international conglomerate. However, various factors have combined to create an environment where small really is beautiful: this is the era of the SME!
In its recently published White Paper (Trade and Investment for Growth) the Government recognizes the important role SMEs play in stimulating the economy. As a consequence it has put in place many measures to assist. For instance, the Cabinet Office has removed the need for businesses to prequalify for contracts under
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