If you're new to the world of business, you might have heard the terms "consulting" and "advisory" thrown around interchangeably. While the two might sound similar, there are some key differences between the two.
Consulting typically involves working with clients to solve specific business problems or challenges. Consultants are often experts in a specific area, such as finance, marketing, or technology, and are hired to provide guidance and expertise on a particular issue. For example, if a company is struggling with its marketing strategy, they might hire a marketing consultant to help them develop a new plan and maybe even follow up that work to implement the plan.
On the other hand, advisory services are more broad and encompass a wider range of services. While consulting may be a part of advisory services, it can also include guidance and recommendations on broader business issues such as risk management, governance, and compliance. Advisory services are often ongoing or periodic and can involve providing guidance to clients on a wide range of issues related to their business. That said, the most productive client advisory relationships are often long-term, goal-oriented, tailored/adaptive, and most importantly, on the basis of trust and honest communication.
To put it simply, consulting is typically focused on solving specific business problems, while advisory is more focused on providing guidance and recommendations on broader business issues.
For example, a consulting firm might be hired to help a company improve its supply chain efficiency. The consulting firm would work with the company to identify areas of inefficiency and develop a plan to streamline the supply chain. Once the project is completed, the consulting firm's involvement would end. On the other hand, an advisory firm might be hired to provide guidance on risk management. The firm would work with the company on an ongoing basis to identify potential risks to the business and develop strategies to mitigate those risks.
Of course, these are just examples, and the specific services provided by consulting and advisory firms can vary widely depending on the needs of the client, the capabilities of the firm, and the existing village of trusted professionals of the client.
So, which is right for your business or organization? It depends on the specific issues you're facing. If you're dealing with a specific problem or challenge, consulting may be the way to go. If you're looking for ongoing guidance and support on a range of issues, advisory services may be more appropriate.
Ultimately, the key is to find a firm that can provide the expertise and support you need to achieve your business goals and with whom you find good chemistry.