Create a new account

It's simple, and free.

Internal Consultants v. External Consultants

External consultants provide a flexible resource of manpower and specialist expertise that an organization often lacks. Internal consulting offers a new model for many highly skilled accountants whose abilities are under-utilized. A common failure of internal auditors becoming internal consultants is that the company and the consultants both expect their job duties to be driven by functional department manager they are assisting. However, successful consulting demands a proactive approach where the relationship is between equals. Consultants often must challenge the d assumptions of their clients, and this is not easy for an internal consultant who remains on the payroll and is therefore subject to internal pressures from department heads and senior executives.

1. Accountants at Marmon act as internal consultants in a variety of ways. For example, they provide cost information to operational and sales personnel in a manner that is appropriate to their audiences. Marmon's internal consultants work with managers to help them recognize and understand the direct relationship between the sale price, internal costs such as the Cost of Goods Sold, and profits.

Equally important, these internal consultants have helped everyone to realize that managing cost is one of the most important functions that can be assigned to management. For this reason, Marmon's internal consultants use various methods and models to determine costs and calculate profits. This way, managers gain additional insights into the way profit and loss are measured, and are able to use different tools and different models to either control or, ideally, to reduce costs.

2. Marmon's internal consultants require a unique set of skills and knowledge to be effective as an internal consultant. For example, they need superior communications skills in order to discuss issues and problems with line managers, non-management employees, and senior executives. They ne...

Page 1 of 2 Next >

More on Internal Consultants v. External Consultants...

Loading...
APA     MLA     Chicago
Internal Consultants v. External Consultants. (1969, December 31). In LotsofEssays.com. Retrieved 04:42, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1696115.html