I get asked this question often, and it’s confusing because some people use the terms interchangeably.

The best way I can describe the difference is to explain what I do with my clients.

A consultant is hired to study a process or specific issue within the company, whether it’s cycle time reduction, cash flow, or whatever. He of she comes into the business, conducts interviews with the appropriate staff, and learns how the process is being completed now. The consultant then looks at what the outcome is expected to be, compares it to what it is now, and develops recommendations.

A business coach on the other hand does not take the time necessary to become a subject matter expert. He or she believes that the company management knows more about their business that he or she will be able to learn in a reasonable amount of time. The business coach facilitates a process that brings the management team together to solve the problem or issue.

Which way is better? A consultant is actually better if the problem is new to the business and the expertise, skills or experience doesn’t exist within a business. An example would be perhaps converting to a Lean Manufacturing System where outside guidance is needed for initial development and training. Hiring a consultant for a general business issue or strategic planning is perhaps not the best way to go. The consultant will need to take the time to study your market; your industry, your product and depending on the complexity this could take a lot of time. You as the business owner are paying for that time while he or she learns what you already know for the most part.

A business coach uses proven tools and processes to facilitate the outcome by using your internal knowledge and challenging you and your staff to defend your assumptions and directions. An experienced business coach will use his or her knowledge gained from other markets or industries to lead you toward new and different ways of looking at your business. This is usually much faster and less expensive. In addition the solution to the problem or the development of the strategic plan is yours, you own it and you’ve developed it with outside help. It’s not something that is presented to you in a formal document and left with you as someone else’s solution.

I do both coaching and consulting depending upon the application and the problem. If the business doesn’t have the knowledge internally I, or one of the members of my network will help them develop it. I till try to facilitate ownership of the solution to insure better execution.

For things like strategic planning, diversification, improving bottom line profits I take a coaching role. I use the knowledge available internally and provide my experience and tools to help them look at things differently and to develop custom solutions that are right for their organization.

Be careful when choosing with a coach or consultant. It’s relatively easy to get business cards printed and call your self one or the other. Look for background and a solid track record.

As the Business Process Outsourcing continues to surge amidst a worldwide depression, the inter-reliance of firms across continents can be inspected in an ambiguity in which it is both condemned and celebrated. Some will argue the benefits and cons the pros and cons of outsourcing are unimportant to the prerequisite to chop costs ; with firms under economic pressure struggling to stay afloat.

The good points and cons of outsourcing are littered with legends and misunderstandings on both sides of the debate. Ideally, outsourcing means quality services at low costs. The reality is, however, that there are a lot of firms that have, in the end, highly regretted their call to outsource.The first and foremost myth regarding discussions of outsourcing is per cost-efficiency. Cost saving has been, and is today, the driving factor for the decision to outsource any range of processes. However, there are two major reasons why companies regrettably spend much more than they at first predicted ; these are declining price arbitrage, and extra costs.

Technical issues and QC can prompt clients to spend hefty additional fees; especially if resolving these issues means traveling to and from the supply source. The level to which service suppliers can be held responsible for these concealed costs is debatable and will alter by case. In any case, clients looking to take a position in outsourcing need to develop a strategy of thoroughly forecasting these costs. A good communication system, infrastructure assessments internal changes, and employee retainment are all factors that many clients have a tendency to overlook. The growth of Business Process Outsourcing industries in offshore locations means the price arbitrage that made outsourcing so fascinating in the 1st place is diminishing. Consequently, clients have started moving operations to 3rd tier cities.

Another prominent misunderstanding per the bitching of outsourcing is the idea of it “stealing jobs” from the originating country. Such views are especially rampant in the US, the source country of the world business disintegration. Outsourcing is not just an investment in invention which may lead to more higher paying jobs in the long run, it’s a service to globalization. The growth of offshore destinations is going to enable them as bigger spenders in the worldwide community. The return of most of outsourced jobs is something that even President Obama admits “wouldn’t be good” for the US economy. The pros and cons of outsourcing in the US context means that the growth outsourcing will boost invention and create highly specialized jobs in the future ; roles that can’t be outsourced.

Outsourcing can be an effective solution if the necessary precautions are undertaken. Sure, it isn’t not as inexpensive as it once was, but this only implies the economies of outsourcing locations are slowly catching up by establishing their worth in the 1st World. The previously mentioned 200% growth in the Philippines is, afterall, owed to the leveraging of increasingly higher end services. This is an indication of the worldwide Business Process Outsourcing market quickly becoming information based.