When your business faces fresh challenges, you may be looking to a third party for some impartial guidance. When it comes to getting some external expertise, two of the most popular options are hiring a management consultant or a business coach. While both of these people want to help you achieve your business goals, how they do it differs significantly. Here’s a quick rundown of their key differences to help you decide which path is right for your company.
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What Does a Management Consultant Do?
A management consultant is a specialist who’s brought in to identify, analyze, and solve challenges within a business. Their goal is to optimize internal processes, improve overall performance, and ultimately increase business revenue. For instance, some responsibilities of a management consultant include:
- Interviewing stakeholders
- Analyzing company data
- Diagnosing areas of improvement in the business
- Developing strategies to effect change
- Implementing changes
- Providing specific expertise in areas like finance, IT, or recruitment
Business management consultants are often called in when a business is facing complex technical challenges or has hit a roadblock in its expansion plans, for example.
What Does a Business Coach Do?
A business coach focuses less on the systems and processes, and more on the individuals running the business. They work closely with C-level executives, entrepreneurs, founders, and business owners to enhance their skills and mindset.
A business coach’s goal is less about overcoming specific business bottlenecks, and more about empowering the client to achieve their full potential, which in turn benefits the business. Some responsibilities of a business coach include:
- Acting as a guide for both personal and professional development
- Enhancing leadership and communication skills
- Helping business owners and executives align their goals with business objectives
- Providing accountability to help achieve long-term, sustainable growth
- Helping business owners find fulfillment in their personal and professional life
- Giving support and counseling during transitional periods like expansion
A business coach is a fantastic investment if you want to improve your leadership capabilities and are looking for personalized, targeted guidance.
Key Differences
Here are the main differences between a business coach and a management consultant.
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- Focus: While a management consultant focuses on systems, processes, and structures, a business coach looks at personal development and team dynamics.
- Approach: A management consultant’s approach is very data-driven and analytical, whereas a coach’s angle is more client-centered, collaborative, and personal.
- Outcome: A consultant will provide clearly defined solutions and pathways, whereas a business coach’s work results in more holistically improved skills and mindset.
- Scope: While a management consultant operates at a macro level (looking at the organization), a business coach operates on a micro level (lasering in on an individual or teams).
Endnote
Both management consultants and business coaches share the same goal: improving your business performance. However, their methods and areas of focus are intensely different. Understanding the nuances of each role will help you decide which professional to work with. Whether you want to optimize operations, need assistance breaking into a new market, or are looking for support to instill the company culture you envisioned, hiring the right expert can help you on your way to success.