Strategic capabilities for successful consulting to product organizations

Abstract

The use of consultants by product organizations is an established practice. At the same time, the type of consultant and consulting required depends on the stage in the product life cycle. The nature of consultants employed varies from stand alone consultants to established consulting companies. The ability of an organization to work with and make use of consultants depends on its ability to maneuver the client-consultant relationship. The size, need and the stage in the PLC of the product team/organization dictates the nature and type of consultant it requires. The current study attempts to understand why the product organization expects to engage consultants, the characteristics expected, and the parameters to measure effectiveness of the engagement. The studies indicate that consultants are required for technical expertise, industry expertise, management and strategic guidance, marketing and sales beachhead among others. The effectiveness of the engagement is measured both in quantitative and qualitative terms. It is indicated that the initial engagement purpose and goals need to be clearly articulated. But, the effectiveness is measured not just on achieving preset goals, but also how they were achieved, i.e. the process of consulting engagement has a profound effect on the outcome. Based on the interviews and surveys conducted as part of the study the strategic capabilities required by consultants during various phases have been mapped to the success indicators.