Are you in the business of Consulting? Are you looking for a Business Consultant to scale your SME business? If you are an SME, the framework below gives you an insight into what are the non-business challenge that a consulting company would face when they come on board. Be aware and don't let these affect your consultant. Your results will come faster. If you are a consulting firm, expect these challenges depending upon what kind of SME is your client. SME in India contribute to 45% of Industrial output and 40% of India's exports. As India marches to the $5 trillion economy by 2025, major impetus is given to SME sector in India. So SME are likely to create more employment opportunities and business opportunities.
Enterprise
Evolution / Management / Proof of Concept (P0C)
|
Promoter’s
problem in scaling up
|
Promoter’s
mindset in engaging a Management Consultancy(MC)
|
Challenges
faced by the MC during the engagement.
|
Start Up by
an Individual / PoC Under Development
|
Start Up / A
Group that share the passion / PoC Under Development
|
|
Priority is
to get the PoC right
|
Priority is
to get the PoC right
|
|
Let’s do it
ourselves
|
Let’s do it
ourselves
|
|
Hiring under PoC untested decisions,
Valuation focus, Raising funds, No Review, Adhoc Decisions,
|
|
MSME / Entrepreneur
Managed / PoC – Tested and Deployed
|
MSME / Partnership
firm / PoC – Tested and Deployed
|
|
How to
scale up?
|
Knowledge
of how to scale up?
|
|
Skeptical
of the role and delivery of MC owing to (m)any of the below said reasons.
Lack of vision, Negative Experience of friends working with a MC,
Averse to seek external perspective, intimidating perceptions about MC,
Business affordability etc.
|
(M)any of
the above reasons and in addition the following.
Partner’s alignment to the decision, perspective and approach
difference, lack of trust among partners etc.
|
|
Convert the MC into the client,
Expect the MC to do everything, Willingness to invest in basics of scaling
the business, inconsistent focus, commitment to scale up, time for the
business, Unable to attract talent, Business knowledge rests with the
Promoter, Technology orientation
|
Many of the above and multiple views
|
|
SME /
Entrepreneur Managed / PoC – Tested and Deployed
|
SME / Partnership
firm / PoC – Tested and Deployed
|
SME / Professionally
Managed / PoC – Tested and Deployed
|
|
Knowledge
on how to scale up?
|
Knowledge
on how to scale up?
|
Scaling up
Professionally
|
|
(M)any of
the above reasons and in addition the following.
I know it all mindset, MC engagement may be counter-productive, Consulting
seen as an expenditure than as an investment.
|
Partner’s alignment to the decision, perspective and approach
difference, lack of trust among themselves etc.
|
Relatively lesser challenges, they
are open to engagement and resolve their challenges, Keen to gain insights
from other industry than a MC would bring, Objectives of Engagement Vs MC's
relevant experience.
|
|
Willingness to let go, Decision
making controls, Ability to attract Talent, Talent Vs Affordability
challenge, Lack of De-centralized decision making, Lack of time to engage
the new hire, Technology averse, Culture, Lacks knowledge and merits of
Brand Building
|
Availability of partners, joint
decision making, conflict of views and approach among partners, Culture
issues and many of the challenges listed above
|
Process Orientation compromised by
pace of growth, Linear embracing of Technology, Manpower Quality,
Change management resistance by the
Leadership team, Lack of Review Culture, Inter-Dept politics
|
|
As a consultant, being empathetic to these challenges will keep your morale up and develop a mindset to accept these challenges as you have prepared yourself.
As a consultant it is useful to be prepared to expect these challenges from SME. As a SME, be aware of your limitations that could hinder a fruitful outcome of engaging a business consultant.
K. Subramanian.
08/06/2018
(The author is the founder of Drawing Board Advisory and Consulting Services, based at Bengaluru. Views expressed are personal. He can be reached at subbu@drawing-board.in)
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