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Related Experiment Videos

Should you have an internal consultant?

R E Kelley

    Harvard Business Review
    |October 9, 1979
    PubMed
    Summary
    This summary is machine-generated.

    Organizations increasingly use internal consultants for rapid problem-solving and CEO advisory roles. However, external consultants remain vital for politically sensitive issues where internal credibility may be compromised.

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    Area of Science:

    • Organizational Behavior
    • Management Consulting
    • In-house Consulting

    Background:

    • A growing trend over the past decade has seen 250-500 organizations establish internal consultant functions.
    • These internal roles often mirror traditional external consulting responsibilities, including troubleshooting and strategic advising.

    Purpose of the Study:

    • To analyze the effectiveness and limitations of internal consultant functions within organizations.
    • To compare the advantages of internal versus external consultants in various organizational contexts.

    Main Methods:

    • Survey of 200 internal consultants.
    • Personal interviews with numerous internal consultants.

    Main Results:

    • Internal consultants demonstrate success due to rapid response and direct accountability to the CEO.

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  • External consultants are preferred in politically sensitive situations where internal credibility is at risk.
  • The study highlights challenges and controversies surrounding the 'insider vs. outsider' debate in consulting.

    • Conclusions:

    • Internal consulting functions offer significant benefits but have limitations, particularly in high-stakes political environments.
    • Guidelines for developing effective in-house consulting functions are provided.