Why it’s better to preemptively improve than wait for a “Chief Restructuring Officer”
In the world of business, it’s often said that “an ounce of prevention is worth a pound of cure.” This is especially true when it comes to optimizing your business operations and processes. By addressing your current operations before things go wrong, you can proactively better your business. In turn, you can save your company time, money, and potentially much more in the long run.
An effective way to do this is to do just that: Bring in an outside consultant. Consultants can provide a fresh perspective on your business and identify areas for improvement that you may have overlooked. They can also help you implement changes and ensure that they are successful.
The Benefits of Bringing in an Outside Consultant
There are many benefits to bringing in an outside consultant to help you optimize your operations or streamline your processes. Some of the most important include:
- Objectivity: Consultants are not invested in the way your company currently does things. This allows them to be objective and identify areas for improvement that you may be too close to see. Think of the old adage of the forest and the trees. What you are missing, a second set of eyes may very well see.
- Expertise: Consultants have a wealth of experience in their field. They can provide you with valuable insights and recommendations based on their expertise. This is especially useful for start-ups and smaller businesses where you sometimes don’t even know what you don’t know. The right consultant likely does.
- Efficiency: Consultants can help you get things done quickly and efficiently. They have the resources and experience to streamline your processes and get you back on track. Like a fire crew dropped into a forest fire, they get in, use their tools and expertise to get things under control, and can just as easily leave. See “cost-effectiveness” next for more on why this is excellent.
- Cost-effectiveness: In the long run, bringing in a consultant can actually save you money. By preventing problems and improving your efficiency, you can avoid costly downtime and lost revenue. You can also avoid increasing permanent headcount and the cost of hiring someone and having to let them go. Consultants understand why they are brought in and don’t get their feelings hurt when the project is complete and it’s time to go. They move onto the next project, better for the experience—just like your business is.
Don’t Good Things Come to Those Who Wait?
A Case Study: John Ray and FTX
I recently came across an episode of Freakonomics Radio with John Ray as a guest. Ray is billed as an “emergency CEO” or, in his words, a “chief restructuring officer.” The episode discussed the then recent collapse of the FTX cryptocurrency exchange. This was a stark reminder of the importance of proactive business optimization. In the wake of the scandal, Ray was brought in as CEO to clean up the mess. He is a well-known bankruptcy expert who has worked on several high-profile cases, including Enron and Nortel Networks.
Ray’s experience in dealing with failing companies has taught him that it is often better to preemptively improve than to wait for a crisis to occur. As he notes in the episode, he “likes to do things quick.” He believes that by taking a proactive approach to business optimization, companies can avoid the costly and disruptive consequences of a crisis. Of course, if every business did that, he’d be out of work. Based on that short episode, though, I get the feeling that he’d be okay with that.
How to Find the Right Consultant
If you’re serious about finding ways to proactively better your business, there are a few things you should keep in mind:
- Define your needs: What are your specific goals for the engagement?
- Do your research: Look for consultants who have experience in your industry and who have a good track record.
- Get referrals: Ask your colleagues, friends, and business partners for recommendations.
- Interview candidates: Meet with several consultants to discuss your needs and see if they are a good fit for your company. A good rule of thumb is the “Rule of 3.” Get three options you consider viable and talk to each of them. You would probably interview at least three serious candidates for an open job posting. Why would you not at least do the same with a consultant?
Proactivity Works
Bringing in an outside consultant can be a valuable investment for your business. By proactively addressing potential problems and improving your efficiency, you can save time, money, and headaches in the long run. So don’t wait until it’s too late. NVSI has various levels of expertise among its experience. Whether you’re a start-up just getting things going or a 90-year-old technology manufacturer, NVSI can help you. We specialize in sales infrastructure development and enablement and have successfully implemented hiring and personnel processes in businesses of all sizes. Reach out today and add us to your list of three consultants you’re considering.
