Conversely, an increase in budget in your area could deliver an overall benefit to the business in some way, if that is what is required. Instead, engage personnel who are based near your client location to handle the activities that require physical presence.Ĭonsider what cuts are possible and be transparent about the budget required to see you through the end of your engagement. If your client is facing budget cuts, limit travel expenses for your team.
But, doing so signals that you’re committed to the client’s long-term success.įor example, travel is a huge cost item on most consulting engagements. Your client may not expect you to undertake this endeavor. You should proactively evaluate your engagement cost drivers and eliminate any unnecessary expenses. Similarly, highlight the costs and compromises that might potentially arise, if you did not have that budget. If budget cuts are absolutely necessary, then you will have provided clarity as to their impact. It may be that by disinvesting in your team’s work, your client will be disinvesting in the very things they need to do to succeed. You should have a crystal-clear understanding how your engagement enables the business to deliver its goals. You will always have key performance indicators to measure the impact your engagement is having on the overall business performance. Focus on performanceĪs a consultant, you were engaged to deliver a specific business outcome. Hence, it’s better to react with a modicum of grace and an unwavering determination to do more with less. Budget cuts are a necessary evil in the business world. Unless that work is quantified and the business impact communicated, there will always be a high risk of budget cuts, especially those of consulting teams.
However, we should! After all, we are responsible for tangible results for our work. As a consultant, what is your approach when you are face such budget cuts?Ĭonsultants are not always comfortable standing on their own soap boxes or evangelizing a recent win. Even in those organizations that not making cuts, there is an atmosphere that discourages additional budget – a culture of austerity. Many have also frozen hiring new employees or filling up existing open positions. The Senior Management is is tasked with saving 5%, 10%, or even more from their budget. Across industries, the Leadership is asking their employees to do more with less. In plain text, they are cutting their operating budgets. With the pressures of COVID-19, along with other economic and demographic changes, many businesses are looking to streamline their operations.
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