Consulting in management
Consulting services is broadly defined as expert advice on matters relating to economic activity.
Among the world's most famous consulting companies are: The Boston Consulting Group, McKinsey & Company, Bain & Company and Booz & Company.
Consulting is a consultancy contract characterized by:
Neutrality of consulting agreement means that the service provider should be independent in relation to the customer and should have appropriate qualifications.
Consulting is significantly gaining importance, due to the fact that many companies face complex business processes, which often requires a very sophisticated methods and procedures. This in turn intensifies the need for external assistance offered by the entities that specialize in the field.
Subject matter of the consulting agreement
Subject of agreement is usually defined by client and it has a universal character.
Consulting Agreement is concluded between the consultant (or a person independent, qualified and competent to identify, study and create solution of issues concerning the organization, policies, processes, procedures and methods of doing business) and the customer, or an entity which needs an advisory service.
Consulting Agreement is binding on both sides, but it should be stressed that the responsibility of the consultant is only to suggest the appropriate solution - customer retains all decision-making power.
Consulting services are often provided on the basis of a civil contract, which usually contains a number of loyalty clauses that prohibit sharing any client provided information by a consultant. This follows from the fact that both clients and consultants carefully guard their trade secrets.
There are different types of consulting. This is due to the individual character of such contracts, as each item of agreement is individually negotiated during meetings with the client.
Consulting and advisory services
In the both legal and colloquial language word consulting is understood as a synonym for advice.
- Canback, S. (1999). The logic of management consulting: Part 2. Consulting to Management, 10(3), 3.