A money leak is simply any amount of money that you spend and unable to identify what you spent that money on. Money leaks are absolutely disastrous to your financial state. Here we are talking about a more serious leakage, corporates whether big or small are cautious about their finance to the extent that they are reluctant to hire external consultants.
Companies used to hire legal accounting offices to follow on their financial statement and tax relationship with government. Mid and large size organizations are more used to hiring external auditing offices to help them meet their financial and accounting regulations and compliances.
Consultancy firms offer their support in many business functions and clients – whether they were big or small- are always used to ask for eternal professional consultation in all business functions, but when it comes to finance and accounting, companies normally seek to hire internal consultants or use their own resources … they usually think they are protecting their financials from leakage; in fact they are not. This is where the money leakage happens.
Finance employee and external consulting
There is a significant difference between both of them; Business leaders know the difference. Employees with long experience are really good, do not get me wrong, I was once a finance employee and I was building my experience along the road. However, the main significant difference between hiring an experienced employee versus an external consultant is that the external consultant will be able to advise your finance department on what to do rather than waiting for the directions coming from top management.
Many top organizations create internal finance groups in order to drive internal alignment. And to make sure that the financial data are not leaked outside of the organization.
Leading companies such as American Express, Dell, and Wyeth have all developed teams of internal consultants (not employees) to rapidly launch new initiatives and stay ahead of their competition. Many smaller firms forgo internal consulting teams simply due to perceived lack of need or budget constraints.
On the other hand, top consulting firms often drive significant positive value for their clients (at a cost). Many firms have pushed these successes to subsequently expand their reach abroad to every continent. For example, McKinsey & Company currently boasts over 100 offices in over 60 countries, while, Bain & Company has 50 offices in 32 counties.
And Now As we speak, Pinnacle is operating in 13 countries across 4 continents, although we are not even near the names above, but we have all the capabilities and knowledge to expand ambitiously.
Advantages and drawbacks of external consulting
For my career in both internal CFO in several countries around the gulf and MEA, and with various industries; I can tell you the experiences I have sitting on both sides of the table, insider finance employee with great experience and external consultant and CFO of a multi-country Consultancy firm like Pinnacle.
For decades, large consulting firms such as McKinsey, Bain, and Boston Consulting Group have maintained their reputation for having the best strategy consulting practices. The expertise usually comes with a large price tag that many companies are not so willing or able to pay. However, their reputation precedes them for good reason, after working with multiple large, influential corporations. Despite the cost, external consultants have advantages which internal employees will not be able to replicate even with the best MBA graduates from the best schools. In Pinnacle the group of consultants, with their long years of experience and multicultural knowledge in cross functions fields are not comparable.
Coming from an outside perspective allows consultants to be more objective, with a bird’s eye view of the company and the industry as a whole. Instead of becoming too engrossed within a specific company, external consultants should be on top of the industry as a whole. Not only do they have a broad perspective, but an experienced consultant with multiple experiences working with other companies in the same industry and that had faced similar challenges. Therefore, they can apply experience from the past into their current projects and engagements. This is what we call in Pinnacle Applied Knowledge.
Another advantage of not being as integrated into the work project environment as employees, is that the consultants being regarded as an expert and not as a peer. Expert employees are viewed as just another pair of hands to make changes within the organization. Instead, external consultants are hired for the sole purpose of their expertise and ability to create change for a specific business problem. This brings more clarity and focus to the role and helps concentrate efforts on the project at hand.
Internal employees often regard external consultants with suspicion. This reputation, unfortunately, is often deserved. Many consultants come into an organization with a scrutinizing attitude, talking to them from above, and without an understanding of the company or willingness to hear opinions. Instead, they often try to implement one-size-fits-all strategies either taught to them by their consulting firms or from past consulting experiences.
While knowledge from other consultants can often be helpful, it does not necessarily apply in all similar situations. In Pinnacle we do take the time to fully understand our clients.
Consultancy firms also have a notorious reputation of coming in, presenting solutions, and then leaving. This conduct leaves many firms without a solid game plan and causes them to get lost in the implementation process. External consultants do not tend to stay aboard after proposing their various strategies, and most clients don’t want to pay them afterwards either. Unfortunately, this leaves clients spending far too much money for too little change.
In pinnacle, however, we do not just tell the client what to do, and how to do it, we are staying in the implementation to make sure the deployment of the strategy is done well.
The decision does not necessarily have to be an “either/or” decision. Many large organizations with sufficient resources are successful at pursuing both hiring the right staff and external consulting approach. Organizations that are the most successful at pursuing a hybrid approach have a strong understanding of where their core competencies lie and where their capabilities have limitations.
One of the most frequently asked questions when it comes to hiring of an external agency is ‘Why companies hire an agency in the first place?’ It can be quite puzzling as to why companies would not just come up with their own solution; after all they know their company the best. But there are various reasons why organizations and companies really need consultants.
Managing a business needs a strategic partner to lead, manage and assist the financial aspects of the business. Large, medium or small business, external consultation help you and your staff learn and excel in what they do, more over you will get the expertise hard to be obtained as full time employees and if you can afford, they become more of followers.
Thus, Pinnacle provides you with all financial services, what a CFO will do to your organization except that Pinnacle CFO will not be a full-time employee.
Although our CFO may not be present on-site all the time, he/she will always be there when needed. Depending on your company’s size, your business stage, tasks required etc. We provide a flexible engagement and business model that enables the clients to get the engagement levels needed according to their needs and requirements. This will be done through providing our clients with the engagements varying between four to thirty-five hours a week or through task-based business model.
We allow you to either look at the big picture and leave the daily routine to us by implementing your ERP system, assist you to hire good calibers, provide you with a business process, company policies throughout all departments, authority matrix that tells you who should be doing what and when, build up periodic set of reports reflecting your business to help you take the right decisions at the right time, assist you to build up your budget and forecast and even train your staff on how to do it OR we assist you to see the bigger picture, plan for the future, manage your cash flow or we do both for you.
Pinnacle also provides your business with many 3rd party specialized services i.e. facility management services providers either hard or soft services, a professional custom clearance agents that clears your goods from any port in a shortest time possible with lowest cost even import on your behalf if you don’t have an importation license, we have also IT hardware and software providers.
We offer top quality professionals who are providing top-quality financial services in the fields of implementing systems and processes, implementing budgeting systems, cash flow planning, cost management, and many more, Our services offered are provided with exceptional experienced qualified CFOs, who have long history in multinational and local companies in Egypt and middle East that gives them great exposure in handling different tasks through their experience in different business field.
Please use contact us and one of our business development managers will be calling you to support
Pinnacle is a multi-country consultancy firm. Our consultants are spread around the world; with 70% of our consultants are women. We have built our organization on modern business model with agility, diversity, and resilience to the business dynamics. We have chosen our technology platform to support our modern mindset thus we work from anywhere.
As work is not a place anymore. We implement Lean Six Sigma in everything we do whether internally or externally at our client sites.