Advantages of hiring Consulting services during the economic crisis

Posted by Mereo
at Monday July 25th, 2016.

Since the 1930s the Brazilian GDP did not retreated for two consecutive years. Amid the political and economic crisis faced by the country, factors such as higher taxes and inflation somehow affect all the economy’s sectors and consequently the health of small and large businesses.

When the country’s economy goes bad it is common that many companies cease to exist, on the other hand, what a few people notice is that the crisis may also represent the rise of opportunities. And for this to happen it’s necessary that organizations and managers pursue together creative solutions, such as the release of economic version of an existing product line or a participation in a new market.

In the same way, we observed the rise of new consumption patterns such as the so called “shared economy”. This model encourages transactions without the presence of intermediaries and offers not only extra income to the service providers as it also ensures more affordable prices to its users. Some examples of this trend are Uber and Airbnb.

Change-Ahead

But, how to have better results in this scenario of uncertainties?

It is true that executives have a clear vision of the challenges the company faces, as well as its goals. However, it is in times like this that the “scale” composed of the gains of the organization on one side and its losses on the other one, gets unbalanced.

Through an accurate diagnosis and the identification of the organization’s needs, the consulting team initially performs a diagnosis of the company’s situation and, from that, the action plans containing measures that aim to mitigate the effects of the crisis and to structure an sustainable business model.

The benefits from a outside vision

There is no “cake recipe” when it comes to management consultancy, once each company operates in a specific context defined by: location, marketing, billing, among others. Thus, a specific Project – developed according to the reality of the organization, will be run by a team of experienced and qualified consultants in partnership with its employees.

For some cases in which the crisis has not had a profound effect, a traditional consulting Project is developed to generate short-term results through projects focused on cost reduction and cash generation. In other cases there is a need for greater impact solutions, which involves the performance of increased consulting strategic actions, such as the separation between the healthy assets and the unrecoverable ones.

With a view of the organizational scenario, consultancy helps managers to identify areas where there is waste of different types of resources and inefficient processes. One of its advantages is neutrality, experts hired in addition to having experience in similar projects do not compete for positions in the company. This makes decision making process much more clear and objective.

Among the most requested projects are:

  • Cost-cutting
  • Maximization of cash generation
  • Fiscal and tax planning 
  • Process redesign 
  • Strategic planning review

Consulting as an investment

Only some kinds of project express the return on investment (ROI) in consulting through quantitative values. For projects of a qualitative nature, such as those related to people’s strategic management the results are seen in different ways, such as the increase of employee satisfaction and commitment to the shared goals.

Mereo’s financial management consultancy for example works with a return of 5 to 10 times the initial investment: ie, for each real invested the customer will have a return of R $ 5.00. In addition to direct gains in income there are gains from the knowledge transfer through methodologies and practices with proven efficiency.

Defined processes, improvements in productivity

Surviving the crisis requires planning routes and creating paths in which outputs are to be found. Even if the period apparently is not the most conducive to shell out more resources in consultancy, this investments is helps generate answers that will lead companies get through this period of turbulence.

Previous Post
Next Post

Related Posts

Share

LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep updated!

Get our news