theme 15 900x313 - Measuring Consultancy Services

Measuring Consultancy Services

Keeping Tabs on Real Results: The tangible advantages have a noticeable effect on the bottom line. Since many of them can be measured objectively, they are more easily assessed.

  • Boosting Money Made: Increasing revenue, enhancing sales margins, and gaining market share are all ways in which the work you do with a consulting provider can benefit your bottom line.
  • Saving Money: The consulting project includes many potential cost-saving outcomes, such as enhanced productivity, streamlined supply chain operations, and more.
  • Avoiding Cost: This evaluation is more challenging. Increased dependability, heightened concentration, or expanded capacity (assets and personnel) often make it possible to estimate the savings that resulted from those changes.
  • Raising Available Funds or Working Capital: Finally, the success of a consulting project may be measured by improvements in financial indicators like cash and working capital optimisation, inventory consumption and management, payment terms that are both enhanced and optimised, the creation of better financing choices, and improved payment/credit terms.

Identifying the Value of Intangibles
Without a coherent strategy, the impact on the bottom line can be more easily isolated. However, there are further fields where evaluation of intangible qualities is routine.

  • Management of Culture, Diversity, and Employees: A fresh culture may boost creativity, diversity and inclusion can improve decision-making, and an effective talent management system can attract and retain top people, all of which have been documented in the management literature. Even if they are difficult to quantify, all of these outcomes have an impact on the company’s success and the value of the team.
  • Optimisation of Processes and Systems: Streamlining your operations can only benefit your business, leading to happier customers and more revenue. When you gain half a day on a 5-day process, for example, you may serve 10 percent more customers with the same staff, which has a direct impact on your top line while having a negligible impact on your costs.
  • Company Value and the Long-Term Effects of the Transformation Programme: Value creation for a company and its shareholders can be huge if a transformation programme can take it from being a commodity player worth x7 to a specialised player worth x10.
  • Analysing Project Success: After each consulting assignment is complete, it is a good idea to do a thorough evaluation of the results. This assessment could take the form of an interview or a web-based questionnaire. The fundamental objectives, the project’s execution, and a qualitative assessment of the return on investment should all be covered in this performance review. An excellent predictor of investment return is direct feedback and customer satisfaction. If the task is done properly and the client feels that their money was well spent on the assignment, they will be extremely satisfied.

In contrast, a low ROI is more likely if the client is satisfied with the job but thinks the project cost too much. If the consultant would rather not probe into the ROI, they can get a solid proxy by inquiring into whether or not the clients would use the firm again.

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