Consultancy is the act or the practice of providing expert knowledge while charging a fee for it. This method is mostly opted for when the company is in the need for an outside opinion from an expert regarding business decisions that cannot be internally resolved.
This is a field of study that is taken by a group of people or consultants who regularly engage themselves in these activities after receiving potential training in management, taxation, accountancy, audit and more such services. The optimum fulfillment of a particular task put forth by the clientele generates necessary profits for the company that adds on to the salary of these consultants.
Though somewhat alike however different, here’s why.
There are vastly two main subcategories here, namely management consultancy and strategy consultancy. Both of these fields require a proficient analytical background. However, there are many other differences to consider here.
Management consulting as a field of study involves the use of planning, organization, controlling, and staffing to obtain a desirable goal. Consulting firms that are proficient in this field of work will also receive clients from the human resource department. These firms deal with all the strategies involved with addressing certain management issues that can otherwise hamper the overall efficiency of a company and reduce their profits. The only goal involved here is to improve the performance and efficiency of a firm.
Strategy consulting is said to be a branch of management consulting and focuses mainly on building corporate strategies by employing different tactics. This further can be categorized into two different forms namely marketing strategy and corporate strategy both of which aim at enhancing the portfolio of the company.
Additionally, as mentioned by Sam Ovens strategic consulting is directed mainly towards the CEOs and formal executors of the company who plan on the long-term strategies while management consulting can be addressed by anyone and for any specific problem at hand. These are the chief differences between the two forms of consulting.