In order for a management consultant to uncover insights, join the dots, calculate ratios and make recommendations, they need access. This critical access to data and information for analysis allows consultants to do their jobs. Reducing inefficiency, spotting opportunities and improving business intelligence for performance monitoring needs access to data, systems and processes. So, why are businesses not always open to allowing this analysis? Why do some teams hoard data? Why do some managers fiercely guard access to their data? How can a management consultant generate benefit without this critical access? Let’s discuss the permutations.
Giving critical access
Assuming that the data is not customer confidential, commercially sensitive or protected by regulation, it should generally be accessible. Without breaching data protection legislation, leaking trade secrets or breaking regulatory rules, much can be gleaned about a business. The types of data to which a business may provide access may include:
- Financial information;
- Operational data;
- Sales and marketing data;
- KPIs and dashboards;
- Process documentation;
- System manuals;
- Reporting databases;
- Observational data;
- Strategic plans;
- QBR/BUR/OR slide decks;
- Board minutes, etc.
Though this list is not exhaustive, consultants can also conduct research and observation for data collection – as long as they have access to people and operations. Unfortunately, this is not always a given and much information is either filtered or delivered third-hand. Let’s look at the impact.
Opaque data and information
Sadly, not every Board is comfortable with complete transparency. This is not surprising given the general level of politicking and manoeuvring around the table. Similarly, not all members of a leadership team are transparent operators. Here are 10 lived and opaque approaches to sharing data and information with consultants:
- Data is ‘sanitised’ prior to passing on;
- Reports are redacted or summarised;
- KPIs that look good are shared and others hidden;
- Messages are filtered and ‘cherry-picked’;
- Observation is denied or ‘rushed’ due to busyness;
- Plans are not shared but strategy is;
- Restricted access to functions, teams or people;
- Opinions openly given but data and information not;
- Keeping meetings off-site or virtual;
- Closed team meetings or pre-consultant briefings.
This is not exhaustive but does hint at an underlying caution, concern or anxiety around the arrival of consultants. Unfortunately, despite the best intentions of many leaders and business owners, not everyone is keen to share. Similarly, since turkeys don’t vote for Christmas, it isn’t unreasonable to assume that guarded, political and/or secretive employees are trying to hide something.
Data and information analysis
Once the management consultants gain access to data and information, they may go through several stages. These may include:
- Auditing accuracy and sources;
- Analysing for patterns, trends and insights;
- Benchmarking within industry or versus competitors;
- Building business intelligence;
- Calculation of ratios, KPIs and metrics;
- Calculation of costs, benefits and ROI;
- Charting to spot patterns and highlights;
- Comparison with other data sources;
- Modelling of scenarios;
- Presentations to guide decision-making;
- Reporting on performance and compliance;
- Strategy selection.
Though there are many uses, consultants often look for ways to improve performance, increase efficiency and tease out strategic choices. There are many ways that business data and information can be used. The trouble is that many businesses do not benefit sufficiently from the vast repositories of data that they have. Data overload is nothing new and consultants can bring a fresh perspective and metrics that you may not be using today. So, let’s enable this analysis.
Enabling critical access to data
The CEO or business owner is a crucial stakeholder in facilitating access to critical data and information. When a business faces challenges or performance needs to improve, the leader must ensure that consultants can see what is going on. Unfortunately, though the Board or management team may appear supportive, the reality is often not so clear-cut. Some functions deter access. Some teams misdirect and appear unhelpful. Individuals can also obstruct or hold back data and information that doesn’t cast them in a good light.
It may seem bizarre to some people reading this article that such access is not a given. After all, why would you invest in management consultants to analyse your business to then not give them the access that they need? The short answer is somewhere between politics and self-interest. It may be worth reading our related article about consultants in your business. There is also some hesitance by CEOs or business owners about the message it sends when you push consultants into certain areas. Will my team member feel under-fire? Will they feel supported? Are they already heavily-laden with deliverables? Are they going through a tough time in their personal lives? In summary, this is the complexity of human relationships.
Consultants escalating lack of access to data
The best consulting engagements provide the consultants with an escalation route to report when they are not getting the information they need. To work effectively, this needs to be a senior stakeholder or committee that has a clear understanding or agenda for what they want the consultants to achieve. Consultants do not throw people under the bus for fun – they have a job to do that they are prevented from doing so. Establishing a formal escalation process benefits both the client and the consultants. It also acts as a deterrent to the functions and individuals impeding access to data without a solid reason. Additionally, the engagement partner or head of the on-site team(s) can also act as an escalation route. They can sensitively and constructively raise concerns with senior leaders to ‘have a word’.
Finally, the last piece of the puzzle is the relationship with the CTO/CIO managing the IT function. In some engagements, access to key data repositories and data lakes comes from those with administrator access. This at least avoids the need for arm-wringing with local managers, when they can get the data already. However, this does not prevent attempts to withhold, manipulate or redact reports, presentations, process documents, KPIs and more. Businesses with efficient cloud-based web storage platforms or collaboration tools have a way around this. Those that hold files in inboxes, e-mail archives, shared drives and even on removable media are much harder to corral. Ultimately, leadership must help the consultants to remove obstacles and gain access to critical data and information for analysis to achieve maximum benefit.
Thinking about the next engagement
If you would like to speak to a management consultant about resolving challenges, improving performance or finding growth, why not reach out to us for an initial chat.
Alternatively, why not read about the challenges of organisational change and the different types of change programmes.
Finally, also read why and how we do what we do and what we can do for your business.