ERA’s latest whitepaper, Driving Enterprise Value Through Cost Management, found that a large majority of executives – 81%– acknowledge that having outside input on cost reduction would be valuable. Furthermore, the survey found that outsourcing some of the finance functions duties, like reducing costs, freed up finance executives to focus on more long-term strategic thinking and aided the organization in experiencing more rapid growth and building business resiliency.
So, this begs the question, when looking to engage an outside cost consultant, what are some key questions you should ask before agreeing to work with them?
10 Considerations When Engaging A Cost Consultant
- What is the level of talent and expertise offered by the consultant?
- Does the consultant offer cost benchmarking to industry peers and revenue peers?
- Does the consultant have the expertise to negotiate with vendors and suppliers on behalf of the company?
- Do they offer a “plug-and-play” engagement with little or no disruption of the day-to-day finance function?
- Does the consultant under consideration offer a contingency-based payment model, where they are paid based only on savings found?
- How engaged is the consultant in the implementation of new solutions?
- Will the consultant play an active role in implementing the chosen cost?
- Will the consultant stay on to monitor and inspect the implementation results?
- How long will the engagement last?
- Will the company benefit from a knowledge transfer during the engagement?
The answer to these questions will provide a solid foundation in deciding if the consultant is the best fit for your company and its needs.
In 2021, with the help of CFO Research, ERA surveyed 166 c-suite executives across the United States to gain an inside look at how they were utilizing their finance function for growth at their organization. Read more about this survey and its results in our Driving Enterprise Value Through Cost Management whitepaper.