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What is Organizational Consulting?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 27 November 2016
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    Conjecture Corporation
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Organizational consulting is a professional service that assists businesses in evaluating and possibly restructuring the current internal layout of the company. A consultant of this type may also work with new business ventures that wish to design and establish a corporate working structure that is likely to support the goals of the company. The idea behind organizational consulting is to make the best use of all resources available by organizing them in the most logical and advantageous structural organization.

The process of organizational consulting can address the overall operations of the company or focus on specific aspects. For example, consultants may address the policies and procedures that govern the customer relations and support functions of the organization. Evaluations of the senior management team and its effectiveness may take place. The organizational consultant may take a close look at the manufacturing process, including how raw materials are moved through the process in order to produce finished goods. In all cases, the consultant will attempt to identify strengths within the system while also uncovering any inherent weaknesses in the current operation of the corporation.

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In order to enhance the internal organization of the company, organizational consulting often relies on a number of tools. Executives and managers may be provided with classes on executive management and team dynamics. Customer support personnel may be provided further training related to interaction with customers, including defusing tense situations, providing solutions to irate customers, and learning how to manage personal emotions in a professional manner, even if the client is not behaving professionally.

Organizational consulting may also address issues other than the proficiency and skill sets of existing employees and other personnel. The consulting effort may include assessing the logistics involved in the creation and delivery of products of services. For example, the consultant may determine that making a few minor changes to the layout of a plant floor will result in saving time between necessary steps. At other times, making a change in the equipment used may be recommended as a way of updating the production process and increasing efficiency.

Ultimately, organizational consulting comes up with a plan to improve the function of the corporation. Owners and management teams can then determine if they wish to implement all or part of the suggestions made by the consultant, and prioritize those suggestions if necessary. When a decision is made on what changes will take place, it is not unusual for the consultant to continue to work with the company in order to implement the changes. For this reason, the overall process of organizational consulting may last for several months or even for a period of years.

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anon963546
Post 3

While organization development consultants may give some expert advice sometimes, their greater benefit to the organizations they consult for is involving the organization's own members to learn how to do the right things well. This ensures that well after the consultant's job is over, the organization could continue to benefit from the investment made in the consultant.

Glasis
Post 2

That is good advice, Certlerant. However, you have to keep in mind that whether or not a new business will be successful usually cannot be determined until about two years into operation.

As a result, spending the money to hire a consultant and then having to continue to pay that person if the plan doesn't seem to be working may be too costly for a new business, especially for a small company.

Certlerant
Post 1

For new businesses, a good start-up plan is key.

If organizational development consulting is sought at the outset and followed throughout the different phases of development, a company should find success.

Many lenders require some sort of business plan to be presented before a decision is made on whether to provide start-up capital.

Since drawing up business plans is essentially the job description of an organizational consultant, a new business will likely benefit from hiring such a consultant to help from the start.

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