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Best Practices for Valuing Internal Consulting Organizations
Best Practices LLC, Dec 2008, Pages: 54
Many leading companies have developed and staffed an internal consulting organization for various reasons, but in times of economic adversity, as costs are scrutinized, the value of all functions within companies are being questioned. Although internal consulting organizations are typically created with a clear purpose, often these organizations grow and take on additional responsibilities supporting important executive issues in a rather amorphous manner, lacking the clear measures of other functions within companies.
This benchmark research study examines and shares the best practices that internal consulting groups can use to effectively measure performance and communicate the value of their function.
Among these areas studies in this research are:
- Effective value indicators
- Methods for qualifying value
- Project evaluation approaches
- Evaluation frequency
- Effective methods for communicating value
- Communication frequency
- Methods for aligning strategy with corporate goals
- Key internal consulting skills
- Success factors and best practices for measuring and communicating value
This research was undertaken to identify practices internal consulting groups can use effectively to measure their performance and to communicate their value to senior leadership.
The research involved an online survey of 31 internal consulting leaders at 24 companies, as well as in-depth follow-up interviews with participants who demonstrated innovative methods for capturing or communicating group value.
Key metrics collected for this research include:
- Internal Consulting Function Represented
- Longevity of Internal Consulting Function and Respondents’ Years of Experience
- Funding Source for Internal Consulting Group
- Initiatives of Internal Consulting Group in Last Two Years
- FTEs Dedicated to Internal Consulting
- Indicators Used to Determine Overall value of Internal Consulting Group
- Effectiveness of Value Indicators
- Approaches for Evaluating Success of Internal Consulting Projects
- Ranking of Approaches for Evaluating Success of Internal Consulting Projects
- Methods for Communicating Value of Internal Consulting Services
- Effectiveness Rating for Communication Methods
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