Business Management Consultancy
Current Scenario and Need of it in Nepalese Market
The word Business Management Consulting, itself defines which simply means consulting and advising on how to manage your business. It looks into identifying management problem, their analysis and providing assistance on these issues. Further it enhances implementation of solutions in better way to achieve business objectives. Their services are not confined to only single function of the company rather they cover the major core functions of any business such as finance, human resource, marketing, IT, research, etc.
Management consulting grew with the rise of management, as a unique field of study (Source: Wikipedia) The first management consulting firm was started in 1886 which focused only on technical research. Then in 1893, Fredrick W. Taylor established the first BMC in Philadelphia whose function was to organize the works. The demand for the services of management consultancy grew with the passing years. The demand grew for the advice on finance, strategy, organization, accounting and auditing. By 1990s, these consultancies had started providing information technology advices.
The service area of the Business Management Consultancy (BMC) covers vast area. It is not limited to only few sectors. Some of them are:
- Trading firms
- Manufacturing industries
- Corporate houses
- Service sectors (School, University ,Hospital)
- Recreation and Entertainment sectors
- Financial Institutions
- NGOs and INGOs
- Government organization (Central government, state or any municipal body)
- Information and communication technology houses
- Data Centre
- Financial Institutions
Deliver quality service
The main objective of BMC is to provide quality service to its clients by acquiring updated quality information for quality planning, quality assurance, quality control and quality improvement.
The BMC focuses to solve the problem that arises in business relating to its functional area. It assists any business from its set up phase to its company registration, from acquiring employees to keeping the records of books of account. In whole, it helps to solve any kind of business problems.
Provide deep and functional expertise
The BMC is a company full of expertise and specialization. They hire different people who are highly educated and specialized in their own area and are divided into different departments accordingly. So, different functional problems of the client offices are looked upon by the respective department.
The BMC assists those companies and business houses with their partial functions through outsourcing . The companies who are specialized and who only wants to focus on the core function of their company usually undertake outsourcing to save their cost and time. Furthermore, With the partial function performed by BMCs effectively and efficiently, the companies are able to achieve the multiplier effect on their performance.
Services provided by Business Management Consulting in Nepal
There are numerous services that a BMC provide but the actual services that each consultancy provides to its clients differ. It highly depends on the level of the size, capital and the availability of diverse knowledgeable people and experts within the consultancy. Some of the mostly provided services among management consultancies in Nepal are:
Firms and managers have been seeking external advice and support for issues of procedural matters such as accounting and taxation. Since these matters should be done and followed by abiding certain rules and regulations, Acts and Standards To release the business houses from these complications, The BMC provides financial service through different methods such as
- Assist in keeping books of accounts
- Arranging an Internal audit system
- Payroll management
- Taxation and VAT calculation
- Budgeting and forecasting
- Acknowledging the cost centre.
Since, marketing is an essential tool for today’s business houses not only to start but to grow, survive and to hold on the market position lifelong, BMC provide high quality information, timely delivery, and the action and ability of insights delivered to clients through reliable and cost effective data collection, advices, assistance and strategies relating to the marketing so as to gain competitive advantage against the competitors by:
- Conducting a market research
- Acquiring information on the current scenario of the market
- Making market penetration , growth and divergent strategy
- Advertisement Strategy
Human resource is considered the most important resource of a business because it operates the other resources effectively and efficiently. The success of the business highly depends on the quality of the employee the company has. So, the BMC assist in this regard by:
– HR Policies & HR Manual Solution
Every business has different needs, priorities and different code of conduct which helps to guide employee activities, so BMC helps to make HR policies and HR Manual to preserve and enforce important factor with transparency for the successful business.
– Manpower Planning
Manpower Planning is an important foundation in the effective management of personnel in an organization. This helps to get the right number and type of employees to perform the essential tasks for the accomplishment of the goals and objectives of the business.
– Recruitment and selection of candidates
This is one of the most important HR functions which have an extreme impact on the revenue growth and the profit margins of a business. As the employee retention does matter for the growth of a business.
– Staff Outsourcing
Staff outsourcing usually helps on lowering costs and improving the efficient allocation of resources within a business. Outsourcing allows a business to focus its attention to its own competencies and hire outside resources so that they can handle their other tasks.
– Training and development programs
Providing training and development is the effort to improve the performance of an employee by increasing the capability of an employee through training and helping one’s skills or knowledge in the specific topic.
It also helps the business houses with different official and secretarial tasks such as
- Preparing business proposal
- Making company profile
- Conducting Job Analysis for the clients by preparing job description, job specification and job evaluation
- Administration of performance evaluation and appraisal regularly.
IT & Security Service is an increasingly a critical enabler of business transformation and growth which needs to play a fundamentally different role as it partners with the business. In fact, This enabled businesses advance products, services and innovation, and foster customer-led growth. BMC help clients realize the full potential of their IT & Security as they embark on major change and growth initiatives.
In a digital age technology, BMC is a critical enabler of business transformation and growth. Businesses gain a competitive advantage by allowing them to innovate at a faster pace. Likewise, It helps client that are embarking on major technology-dependent growth or changes to identify the optimal future state of IT & Security Services, aligned with business needs, and to develop an implementation blueprint.
BMC’s approach to IT & Security strategy starts with the business strategy. It first assesses the current state of IT & Security to understand where its strengths and weaknesses lie. A Strategic plan is made, then lay out of a roadmap brings IT & Security to its optimal future state which means developing a short-term plan to improve capabilities, such as processes and talent, as well as a longer-term plan to reshape technology solutions, including infrastructure, applications and data. Finally, we look, how an organization can achieve its goals, taking budget constraints and competing investment priorities into account.
BMC is an enterprise-wide, structural approach that provide products and services which enterprise customer’s value most and are willing to pay for. It is grounded in the premise that you must operate a business model or framework and adopt a system/process view of the enterprise in order to understand what products and services a customer values most to derive maximum benefit to the enterprise. By understanding the key business process(s) the enterprise uses to meet these customer needs, the gap between customer expectations and the enterprise’s ability to perform begins to emerge.
Many enterprises adopt management systems, based upon Quality Management System ISO 9001:2015 or an integrated management system covering various management systems, ISO 14001 [Environmental Management], OHSAS 18001 [Occupation, Health & Safety Assessment], ISO/IEC 27001 [Information Security Management System], ISO 22000 [Food Safety Management System] etc. However superficial adoption and questionable verification of management systems has devalued the credibility and value of the management systems among many Executive Management Teams, Customers and other interested parties including ISO.
- Mentoring Merger and Acquisition
- Assist in Project Management
- Performance improvement by increasing sales margins and repositions.
The Current Scenario of Business Management Consulting in Nepal
Although, the consulting firms were established in mid 19th and 20th century in Western market, the establishment of the management consultancies took slow pace in Nepalese market. Very few management consultancies started before year 2000 but the establishment of these consultancies rapidly increased after year 2000. Because of this, the concept of BMC is new in Nepalese market. Also, Very few know about these consultancies and many are yet to get familiar with these consultancies and the services they provide.
There is no separate regulation amended by the government for the registration, renewal and dissolution of business management companies in Nepal. Due to this, there are no exact numbers and statistics related to the BMCs here. According to Nepal Yellow Page there are 45 companies that provide business management consultant (www.nepalyp.com) but the statistics does not seem to be correct since there are many other BMCs which are not included in it. Then, Another reason may be that, BMC does not give academic attention. If it was to be studied as a separate discipline in educational sectors then today more people would be aware of it. And lastly, there doesn’t seem to be professional bodies of BMCs in Nepal just like Labor’s Association. Because of which many people are not aware of these consultancies and contributions they are making in our society and our nation.
Need of Business Management Consulting in Nepal
Firstly, BMCs hold a connecting chain with their clients which need lots of people in all the levels providing numerous employment opportunities. Through BMCs we can help in eradicating unemployment problem in our country which is among most critical issue of our country. The increase in population, high inflation rate, political instability and lack of job opportunities are compelling our youths to leave their own nation in search of better job and higher salary. Till now, BMCs have successfully provided opportunities to many youths and will continue to do so. With the help of these Business Management Consulting we can surely alleviate poverty from our country.
Utilization of available Factors of Production
Our country Nepal is full of opportunities. Nepal has natural beauty and cultural heritages, diverse group of ethnicity, language, religion and tradition, abundant natural resources. National and International charity and cheaper labor costs pave way for more opportunities. Government need to utilize this opportunity to emerge within the developing countries.
But the main problem here is lack of expertise and the methodology to start and implement those big projects. So in solving these problems, Business Management Consulting companies can play a major part. They can undertake different projects and study, assess, analyze, plan and implement those projects by providing their advices and expertise for the successful completion. So by doing this, we can stop the capital flight, increasing level of youth going abroad thus leading to the use of domestic resources, knowledge and expertise for development of the nation.
Increasing level of Efficiency
The services from BMC’s to business and other sectors is helping to increase level of efficiency. Outsourcing, completely or partially, enables both parties to work efficiently. Moreover, it is achieved by being more specialized and providing concrete and productive result. BMC companies help businesses to grab opportunities and mitigate threats in the market with their strength. And the success of the business houses and other sectors will ultimately strengthen our economy.
So, it’s high time that our Nepalese Government should focus on the development and the welfare of BMCs. Amending different rules and laws for their protection is one option. Government should provide equal priority similar to financial institutions since they hold similar capability in developing our country. Likewise, as responsible citizen, we need to acquire knowledge on performance of these consultancies. Further, this helps in understanding country’s economy and providing assistance to flourish it. As they say, “United we stand, divided we fall”, together we can make our country strong, we surely can.