Chapter 14 – Internal Consulting Discussion Questions: An economic recession has
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Question
Chapter 14 – Internal Consulting
Discussion Questions:
An economic recession has increased charity care and bad debts from 4% to 6% of net revenues. The Board charges YOU, the CEO, with identifying all possible methods of cost reduction. One Board member questions the allocation of funds for internal consulting.
How would you explain to the Board the roles & functions of Internal Consulting?
How would you convince the Board that the cost of maintaining a strong internal consulting department is worth the budget expenditure?
discuss 3 Key Points from the chapter and why they’re very important to the leaders. each one in a separelate paragraph.
Key point 1: Supporting the Organization as a Whole
Key point 2: Community- Based Epidemiology Planning
Key point 3: Supporting Improvement Projects
Explanation / Answer
How would you explain to the Board the roles & functions of Internal Consulting?
Answer: Internal consulting is done by an individual/group whose purpose is to serve internal clients in an advisory capacity, including:
Moreover, many internal consultants serve in a support role on projects in the organization, developing and delivering change management strategy and plans to internal clients.
Internal Consultants play an important role in managing the people side of change - applying structured change management tools and processes. The role of the Internal Consultant in supporting change management is three-fold:
How would you convince the Board that the cost of maintaining a strong internal consulting department is worth the budget expenditure?
Answer: The efforts are focused on cost cutting during the period of recession, which is designed simply to keep the company in business. Moreover, in the area of consulting, the companies are unable to initiate new efforts, and many that were already underway need to be stopped. However, the plants needing reliability or maintenance process improvements still need their funds. The reason is that the improvements would serve to increase reliability and productivity, both major enablers of additional cost savings for the business. Consulting expertise in areas such as improved maintenance and reliability management is usually the result of experience. This expertise can only be present in case of internal consulting. Their experience is directly related to the business. They know the problems and often the reasons why these problems exist. Quite often, they also know exactly what to do to correct them. Moreover, unlike external consultants, internal consultants don’t leave when the project on which they are working is completed.
Key point 1: Supporting the Organization as a Whole:
Internal consulting can be performed by internal audit that has task related to specific long-term projects or general consulting tasks that are independent of specific projects. In addition to their knowledge and expertise, consultants can provide their analytical and conceptual capabilities to find solutions tailored to the individual project.Depending upon the personal experience and interests, different level of consulting tasks can be assumed. These tasks may range from simply giving expert opinions, input into concepts, and solution implementation through actively designing cooperation models and partnerships.Hence internal consulting is very important.
Key point 2: Community- Based Epidemiology Planning: It helps in forecast of demography planning and disease incidence. It can provide the trend analysis of certain diseases as cancer and also trend of birth. It can also forecast of the supply of doctors.
Key point 3: Supporting Improvement Projects: Implementing implications of proposed work processes like cost benefit analysis. It also helps in designing of pilots and sensitivity analysis.Other examples of improvement projects are mergers, acquisitions, reliability tests and simulation.
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