Strategic consulting. This industry projects the company’s work and directions of development for the long term. Such a decoding does not give an understanding of the full picture of the processes taking place. Strategic consulting includes the development and promotion of a fundamentally new product, changes in the structure of the enterprise, allocation of investments, planning of financing, organization, and management strategies.
Companies are starting to order consulting for their enterprises, but the clients are mostly large-scale businesses and highly competitive industries.
Operational management consulting aims to improve the company’s performance. We study the production, sale, distribution of products, reserve management systems, raw material orders, and analyze all areas of business at a particular enterprise. Based on the data collected, we outline options for the development of the company’s activities: reducing current costs, improving product quality, selling and distributing goods, and correctly allocating reserves.
Often, positive changes are possible only through a global redesign of the company’s operations. This process is called reengineering, and it is beginning to gain popularity in the business environment. The author of the concept, M. Hammer, defined it as “a fundamental rethinking and radical redesign of business processes aimed at achieving significant improvements in the most important indicators of a company’s performance, such as the quality of goods and services provided, operational efficiency, the length of the financial cycle, etc.”.
An important stage is budget planning and management accounting.
Changes may include:
- replacing several processes with one (horizontal narrowing);
- Reducing the number of management bodies (vertical downsizing);
- revision of responsibilities;
- improving performance;
- quick and efficient resolution of production issues.
One of the most popular areas of consulting is the financial sector – budget planning and management accounting. Outsourcing has become widespread in the market. Many business representatives have recognized the undeniable advantage of delegating some tedious processes to consulting specialists and have focused on key strategic tasks and important issues.
Today, accounting outsourcing has become the most popular. However, HR specialists, tax specialists, and even a temporary deputy director are still in the lead. Often, processes are not outsourced in their entirety, but only a part of them.
Outsourcing is often used to calculate payroll. This not only facilitates the accounting activities of the company, but also keeps the information about the amount of salary confidential.