The rise of consultancy in Australia has provided value to a range of organisations and enterprises across the country. From government agencies to NGOs and even large corporations, management, operational, sales, marketing, ICT, and other types of consultants assist decision-makers in finding the best business growth strategies and solutions for their unique organisation.
But like most emerging industries, consulting firms do come with their fair share of contingencies. For starters, service costs can differ from firm to firm, so business owners who are seeking consulting services are also advised to shop around. Similarly, consultants can possess a variety of different qualifications and professional experiences, so it pays to find a consultant with an industry background that aligns with your own enterprise.
So, how can Australian business owners secure consulting services that offer the value they’re looking for? We’ll be answering just that question today by outlining some of the top questions you should ask yourself when connecting with professional consultants.
What insurance infrastructure do consulting firms need?
As consultants provide advice that can directly impact the operations and profitability of your business, it’s vital to ensure that your consulting specialists have the right business insurance cover in place to provide you with financial compensation in the event that their services hinder more than they help.
This is why any consulting firm you do business with should have professional indemnity cover at a minimum. This insurance cover helps ensure that consulting firms are covered in the event they’re found liable for breach of privacy or breach of duty claims. If a firm that you do business with doesn’t have indemnity cover, you run the risk of not receiving financial compensation in the event that your consulting firm is found to be negligent, loses or mishandles your sensitive business information or documentation, or performs any other action that directly results in financial loss to you or the damage to your business’ reputation.
What security infrastructure do consulting firms need?
On a similar note, consulting firms typically receive large amounts of sensitive business data on a daily basis. As a result, you should expect all consulting firms that you do business with to maintain robust cybersecurity protocols and operational procedures. This includes maintaining secure user credentials for all members of their staff to better identify the sources of data breaches if they do occur, as well as investing in and maintaining security infrastructure like firewalls, antivirus software, staff training, and even security accreditations like ISO 27001 certification to demonstrate compliance with international standards for information security management systems.
Business owners should take the time to understand cybersecurity and cybersecurity best practices for themselves before asking prospective consultants about their own digital security practices. That way, you can properly do your due diligence when ascertaining which consulting firms will be most protective and responsible when handling your company’s sensitive data and documentation.
What qualifications are required to become a consultant?
One question that you’re likely to ask any prospective consultant from the get-go is what their own qualifications may be. Even if employees from consulting firms list their qualifications on LinkedIn, it’s another thing entirely to be able to speak on the value of those qualifications and how they’ve supported your consultant’s lived professional experiences. After all, businesses ultimately hire consultants for their experience in particular industries or handling unique industry phenomena.
If you feel at all like your consultant’s academic and professional backgrounds don’t align with the value you’re looking for, then it’s in your best interests to voice these concerns and see if your consulting firm can connect you with a more suitable consultant. If they can’t, look elsewhere for the expert insights you’re after. After all, business owners deserve to get the best value for their money when working with consultants.
Is the consulting industry regulated?
As we’ve mentioned, consulting can still be classified as an emerging industry in Australia. As a result, policymakers are working fast to pass laws that establish regulatory frameworks for the consulting industry. Currently, the industry is still largely unregulated, which is why consulting firms are mostly free to price their services however they see fit – a level of independence that results in business owners paying grossly disparate rates from firm to firm.
There are also calls for lawmakers to introduce policies that separate external auditing from consulting services. Not only will this separation aid in maintaining the integrity of auditing as a service that’s critical to the Australian economy, but it will also provide vital distinctions that aid in better regulating the use of consulting services by government agencies and offices.
The use of consulting services by federal government offices has been a hot topic in recent months following an investigation into government expenditures led by the Senate’s Finance and Public Administration References Committee. Investigators suspected that government agencies were hiring external consultants to use up budget surpluses, as Australian government offices were found to spend ‘proportionately more’ on these consulting services than other international government agencies.
Whilst regulatory frameworks are still being developed, businesses operating in the private sector can still maintain a certain level of care when vetting consulting firms. Review pricing models and cross-reference employee credentials and qualifications wherever possible to ensure that you’re getting the best value for your consulting expenditure.
Investing in consultants vs. growing in-house teams
Ultimately, consultants do fill skill and experience gaps in enterprises that can aid business owners in maintaining well-informed business growth and development plans. But as is the case with any business investment, business owners are tasked with determining whether consulting services are the best fit for the unique needs of their organisation.
If you’re looking to scale up your enterprise by investing in in-house talent, it could be more cost-effective to hire experts rather than partnering with consultants. For some services (like financial planning and management), having in-house experts who have professional stakes in your business’s success may provide stronger insights and result in more efficient strategising than partnering with external consultants.
At the end of the day, the decision to work with consultants should be made in accordance with your company’s goals and resources. Asking these questions can also help business owners maintain robust processes when working with external consultants.