Roles of External Business Consultant and Internal Manager in Business Projects
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This essay compares and contrasts the roles of external business consultants and internal managers in business projects, discussing their similarities, differences, and benefits to organizations.
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Running head: BUSINESS PROJECT1 Business project Student’s name Professor’s name Institutional affiliation Date
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BUSINESS PROJECT2 Business organization practitioners like the internal manager and external consultants are instrumental in business projects. They offer a different perspective that enables the management to understand the critical aspects of organizational development (uck & Welch, 2012). In every business project, there can be an external consultant and internal manager whose central role is to offer professional guidance to the various functional groups and departments involved in the business project. Business consultants and managers might have the same skills, training, and experiences based on the social structure of the enterprise. According to (Beringer, Jonas & Kock, 2013) management practitioners have expanded their skills and values to improve the competitiveness, effectiveness, and quality of services in strategic areas of business organization. Therefore, comprehending the roles of both the external consultant and internal manager will help both external and domestic consulting firms will help with appropriate guidelines in consultations. The principal objective of this essay is to compare and contrast the roles of the external business consultant to those of an internal manager. In this case, an external consultant is an individual regarded not within the management of the business organization. The link between the external consultant depends on business project's agreement or letter of the contract. Payments made to the External consultant are based on a specific project with the particular deliverable and desired outcome. On the other hand, an internal manager is a person within the management team of the business organization. The salary of an Internal manager is made based on the roles he or she play in the business organization. An individualregarded asan internalmanagerissimilar to an externalbusiness consultantbecausebotharehiredwiththeobjectiveofsolvingissuesinbusinessand implementing solutions to improve business operations. Concerning (Volberda, Van & Heij,
BUSINESS PROJECT3 2013) internal manager and external consultant can operate in all possible areas of management overwhelming acquisitions, strategic planning, finance, enterprise efficiency, technology and in improving the operational processes in the organization. That means both of them can play the roles of training, execution of duties and as the vital advisory to the management. Thirdly the internal manager and the constant external acts like a catalyst in initiating the changes within the business projects. This is one of the prestigious assets of managers and external business consultants. Both internal business managers and external consultants offer impartial facilitation when disputes and negotiations are required in a particular organization. Excellence outcome with the internal or external consultant is met when the requirement for a specific issue is established through appropriate skills (Hazarika, Karpoff & Nahata, 2012). Thus, the skills and abilities from the managers and external consultants are vital in analyzing the weight of the matter and at the same time determine the scope of the problem. Business consultant and internal manager are therefore required to have sought of financial commitment to deliver and measure various parameters to come up with the final solution. Fourthly, the external business consultants and internal managers are drawn from various groups of management practitioners who offer services like finance, human resource with good experience in solving client's issues. Some authors (Vaccaro, Jansen, Van & Volberda, 2012) claim the role played by the internal managers and external business consultants are to influence reforms through encouraging the workers to apply and learn more skills. Foss, Lyngsie & Zahra (2013) developing good internal management and external consultancy roles can yield a wide range of mutual advantages to the business projects. Thus, business organizations that maximize the skills and knowledge of their managers and that of external consultants have an added benefit.
BUSINESS PROJECT4 Fifthly, both the external business consultant and internal manager can provide various benefits to the organization. The first benefit is increasing the trust among the workers which offer more acceptable feedback since they understand whatever the issue they handle will never be associated with them during the random surveys. Thus, they are in the position of giving a favorable surrounding through impacting the culture and politics within the company for a business to run its projects (Lewin, Massini & Peeters, 2011). They also increase the trust of the company by bringing in a comprehensive knowledge gathered from various experiences and the problems they have handled in the past. Therefore, giving the other employees a great idea in overcoming any question they may experience when running the business projects. Lastly, internal managers and external business consultant are faced with the challenge of establishingthelinkwithinthetimeneededtoimplementvariouschanges.Secondly, comprehending and acquiring the knowledge of particular organization especially the values, procedures, behavior, and culture take time. Taking a more extended period to understand an organization creates difficulties for the traditions and status quo of the institution (Preece, Iles & Chuai, 2011). The second part of this piece is based on the differences that exist between the internal manager and external business consultant. Differences in two business personnel depend on the kind of services being provided to the business organization and the way each chooses to execute their duties. For instance, technical experts are usually highly skilled which is seldom questioned by the management of the organization. On the other hand, the outcome of the services offered by the internal manager can be determined immediately; hence the team in the organization could perceive little in their differences. This section will analyze the variations of the internal
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BUSINESS PROJECT5 managers and external business consultant concerning the advantages they have on business projects. Based on the cost of their services, internal managers are less costly when compared to external business consultants. One of the research conducted in the United States showed that the expense of one typical internal manager in a single business project was four times less when compared to hiring an expert from the consultancy organizations (Messier, Reynolds, Simon & Wood, 2011). Secondly, internal managers have good knowledge with the business organization they are heading in terms of culture and language better than the external consultants. Thus, making the internal managers more critical especially in implementing strategic changes in specific business projects and operations (Prajogo, 2011). Additionally, the relationship of internal managers with the employees is stronger which facilitatessignificantlyincommunication.Thirdly,inmostinstances,externalbusiness organizations will only offer to the organization with no participation in the business project. An internal manager often takes part in the project and may continue to play a crucial role after implementing the plan. Lastly, internal managers will maintain his or her focus on the running of the organization's project to improve its efficiency. This will help in equipping the other members of the organization with skills and knowledge to increase the effectiveness of the projects. Sardeshmukh & Corbett (2011). Many successful business institutions like shell emerged from intimate settings with no external consultancy and today they are well known globally. That means internal managers can be useful in suitably organizing a company when compared to external business consultants. The last part of this section focuses on various benefits that can be accrued when an organization decides to choose the external business consultants to take part in their projects. An
BUSINESS PROJECT6 external business consultant is regarded as an independent which is contrary to internal business managers who mostly depend on the business institution in making a confident decision. Various studies have shown that many clients have high confidence with external business consultants than their internal managers. The role of consultation usually demands a firm and an inquisitive hand, an aspect frequently seen with external business project advisors and challenging in finding such an element with internal managers (Kylander & Stone, 2012). The external consultants are highly expertise due to experiences gained from various organizations but internal managers being employees is conceivably hard to be regarded as independent. Secondly, internal managers are busy with projects that involve their business institutions while external business consultants will gain from a broad perspective from a wide range of experienceswithdifferentsectors,clientsandmarkets.Forexample,thecapabilityof benchmarking with regards to other entities is an added benefit to external business consultants. Thirdly, external business advisors work for the highly competitive companies, and becauseofthemoreprominentnames,suchconsultantsareconsideredtobeplausible consultants. Internal business managers probably miss specialized business knowledge and skills in handling various issues within the project which an external business advisor might have faced with previous projects (Zerfass & Franke, 2013). Finally, business organizations that need decisions in building a private consultation or acquiring the external business advisors must look keenly into the advantages of either. External business advisors may be utilized when high expertise is required within a particular project. This is concerning insufficient in tackling specific issues internally or either the management need external expertise in assessing various risks in the plans. Internal business managers, on the other hand, have good knowledge of the organization and can as well be involved examining
BUSINESS PROJECT7 multiple risks in the project especially when the company wants to cut-off the cost to maximize the profits. References Beringer, C., Jonas, D., & Kock, A. (2013). Behavior of internal stakeholders in project portfolio management and its impact on success.International Journal of Project Management, VOL.31(6), 830-846. Foss, N. J., Lyngsie, J., & Zahra, S. A. (2013). The role of external knowledge sources and organizational design in the process of opportunity exploitation.Strategic Management Journal, VOL.34(12), 1453-1471. Hazarika, S., Karpoff, J. M., & Nahata, R. (2012). Internal corporate governance, CEO turnover, and earnings management.Journal of Financial Economics, VOL.104(1), 44-69. Kylander, N., & Stone, C. (2012). The role of brand in the nonprofit sector.Stanford Social Innovation Review, VOL.10(2), 35-41. Lewin, A. Y., Massini, S., & Peeters, C. (2011). Microfoundations of internal and external absorptive capacity routines.Organization science, VOL.22(1), 81-98. Messier Jr, W. F., Reynolds, J. K., Simon, C. A., & Wood, D. A. (2011). The effect of using the internal audit function as a management training ground on the external auditor's reliance decision.The Accounting Review, VOL.86(6), 2131-2154. Prajogo, D. I. (2011). The roles of firms' motives in affecting the outcomes of ISO 9000 adoption.International Journal of Operations & Production Management, VOL.31(1), 78-100.
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BUSINESS PROJECT8 Preece, D., Iles, P., & Chuai, X. (2011). Talent management and management fashion in Chinese enterprises: exploring case studies in Beijing.The International Journal of Human Resource Management, VOL.22(16), 3413-3428. Ruck, K., & Welch, M. (2012). Valuing internal communication; management and employee perspectives.Public Relations Review, VOL.38(2), 294-302. Sardeshmukh, S. R., & Corbett, A. C. (2011). The duality of internal and external development ofsuccessors:opportunityrecognitioninfamilyfirms.FamilyBusinessReview, VOL.24(2), 111-125. Vaccaro, I. G., Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2012). Management innovation and leadership: The moderating role of organizational size.Journal of management studies, VOL.49(1), 28-51. Volberda, H. W., Van Den Bosch, F. A., & Heij, C. V. (2013). Management innovation: Managementasfertilegroundforinnovation.EuropeanManagementReview, VOL.10(1), 1-15. Zerfass, A., & Franke, N. (2013). Enabling, advising, supporting, executing: A theoretical framework for internal communication consulting within organizations.International Journal of Strategic Communication, VOL.7(2), 118-135.