Why do nonprofits hire consultants?  As we know, there are many different kinds of consultants out there, consulting in a variety of areas (HR, Strategy, Finance, Technology, Organization Development, etc.).  But there are a set of common reasons why nonprofits tend to hire consultants, and typically what drives hiring a consultant is a combination of needs simultaneously:

Content expertise

In highly specialized areas like finance, technology, and even HR, consultants often possess a level of content expertise that may not exist in-house.  This may range from the ability to do complex analyses of data that yield new insights, to advising on technology platforms that would automate certain functions, to educating internal staff to deepen their skill in the content.  There are myriad situations where an organization might require specific technical content expertise.

Even in less technical and more human-centered areas like strategy, change management and organizational development, consultants are hired for their expertise in how to run those kinds of projects and what tools to use that will yield the best results.  Content expertise at the end of the day is a blend of experience and training that produces a consultant who is exactly right for an organization’s unique situation.

Finally, content expertise can sometimes mean deep expertise in the organization’s mission.  For example there are consultants who only work in a particular industry like environmental organizations, or arts organizations or human service organizations.  By specializing in an industry, this gives them a shortcut to understand the basic business model and the issues the most organizations in that field wrestle with.  There are times when this is most valuable to a nonprofit.

Process Expertise

For larger scale, more complex, or longer term projects, nonprofits will often seek a consultant with process and project management expertise.  It is easy to lose steam for large, long or complex projects if they are run internally.  If they are truly important to the organization’s future, it is helpful to hire a consultant to manage the process and project.  The consultant acts as the driver of the project, keeping it on track and keeping the momentum going.  The consultant manages the process, ensuring the right people are involved at the right points, facilitating conversations, and building alignment to make decisions.  Nonprofits are unusual in that so much of their work relies on building consensus around initiatives – it can be very helpful to hire a consultant with expertise in that very process.

Field expertise

Finally, and this is often a function of experience, consultants are hired for their field expertise.  Knowing a given field (arts, human service, environment, etc.) is often valued when the consulting projects requires that field-wide vantage point or perspective.  Often these consultants bring contacts in the field that can be valuable to the work at hand.

There are times when, unfortunately, leaders may say things that their boards don’t “hear” unless they are said by a consultant – an outside expert.  Consultants provide a level of objectivity and lack of vested interest in a particular outcome that makes them inherently more trusted as advisors.  Their expertise in the field tends to deepen this trust.

Fresh Perspective

Often when part of a complex human system, we lose the ability to see our own blockages or bottlenecks because our attention is more focused on managing the processes.  Sometimes a fresh perspective from a consultant can be extremely helpful in helping organizations identify and break out of patterns that may not be serving them.

Thinking of hiring a consultant?

Here are some key things to look for in a prospective consultant:

1. Experience – how long have they been doing the work they are being hired to do?  What experience do they have in your particular field?
2. Expertise – what training or credentials do they have that speak to their relevant technical expertise?
3. Process – how well do their experience and expertise translate to strong project management?
4. Distinction – why or how are they different from others who do this work?
5. Listening – how well do they listen and respond by customizing their work to your needs?
6. Values – what are their values and how do they align with your organization’s values?
7. Price to value ratio – how well is their price calibrated to the value of what they will provide?