Why Companies Hire Consultants

I often wonder: Why do companies with experienced staff, having experts with years of background in the intricacies of their business, hire consultants, whose staffs are rife with youngsters just out of school?

After all, companies already have their own experts who know their business intimately. They can study their operations from every and any angle, and do so on an ongoing basis.

My conclusion has always been that these wet-behind-the-ears-consultants have always been a form of business insurance. Even though their so-called :”fresh look” can be amateurish.

Much the way investment bankers are called in for advice. Yet, they, too, are often relatively inexperienced. They may know Wall Street lingo and take down huge income, but have little knowledge of the business in which they poke their fingers.

The business insurance rationale behind all this? When confronted by plaintiff lawyers, you can always say you tried. You have recognized that fact in that you have taken adequate precautions in your duties as a manager. How? By using consultants.