Consultants can be invaluable resources for nonprofits, offering expertise, guidance, and fresh perspectives. And I’m not just saying that because I am a consultant. I truly believe that effective consultants and consulting firms can make a difference for organizations looking for highly specialized expertise and support tackling complex challenges. However, it’s essential for nonprofit leaders to recognize that there are situations when hiring a consultant may not be the best course of action. Let’s explore some scenarios when not to hire a consultant for your nonprofits.
Lack of Clarity or Vision
When a nonprofit lacks a clear sense of purpose, or a strategic vision, bringing in a consultant may not be the right step. Consultants thrive when they have a well-defined problem to solve or a specific outcome to achieve. Without a clear focus, their expertise may not align with the organization’s needs, resulting in wasted time and resources. In such cases, nonprofits should prioritize internal discussions and engaging board members to clarify their mission and vision before seeking external help. There is, of course, an exception to this rule: your nonprofit could hire a consultant with the specific goal of helping your staff and board align around purpose and vision, ideally with significant input from the people you serve. Sometimes, an outside perspective can be just what you need if you’re struggling to get everyone on the same page about why your organization exists and what it is looking to achieve over the long haul.
Limited Financial Resources
If your organization’s financial resources are strained, it’s crucial to consider whether the anticipated benefits of hiring a consultant outweigh the associated costs. Yes, the best consultants come at a cost, and trying to nickel and dime them will not benefit your nonprofit in the long-run. You want to be able to pay a consultant’s going rate to ensure you get the level of support and expertise they’re capable of offering. Assess the potential return on investment, and if consulting fees feel out of reach for what you’re looking to accomplish, explore alternative options, such as seeking pro bono support, engaging volunteers, or leveraging partnerships with other organizations. Allocating funds strategically can help you address immediate needs while saving resources for other critical areas.
Lack of Internal Capacity
This is an important one! Consultants are most effective when they collaborate with internal staff who possess a deep understanding of the organization’s culture, history, and operational intricacies, and perhaps most importantly, those who have time to devote to the relationship. If your nonprofit lacks a skilled and motivated team with the bandwidth to work alongside a consultant, the consultant’s expertise may not be maximized. Before considering external help, evaluate your organization’s internal capacity and assess whether you truly have staff with the time to devote to a consulting relationship. Consultants are not a replacement for in-house staff. While they can create efficiencies in the long-run, they won’t necessarily save you time while you’re in the thick of an important project.
Inability or Unwillingness to Engage Stakeholders
Consultants bring fresh perspectives and expertise, but they are not a substitute for engaging stakeholders in important activities like strategic planning or brand development. If key stakeholders, such as board members, staff, and (most importantly) beneficiaries, are not involved in the decision making process or feel disconnected from the consultant’s work, it can hinder the success of the engagement. To avoid this, don’t enter into a consulting relationship unless you’re willing to do the hard work of authentically involving your diverse stakeholders in the consulting process. Ask your consultant to advise on how you can ensure that all relevant parties are consulted, communicated with, and have an opportunity to provide input. This involvement will foster ownership, align expectations, and enhance the likelihood of successful outcomes.
Significant Resistance to Change
One of the primary reasons nonprofits seek the help of consultants is to drive organizational change. Consultants can bring new ideas, innovative strategies and change management practices that can help nonprofits adapt to new realities and overcome challenges. However, if the nonprofit leadership or staff members are extremely resistant to change or unwilling to embrace new ideas, hiring a consultant may not be productive. Before engaging a consultant, nonprofit leaders should take a hard look at their organization’s culture and readiness for change. Are key stakeholders open to new ideas and strategies? Are they willing to challenge traditional practices and explore innovative approaches? If the organization’s culture change-adverse, it may be more effective to invest in internal capacity building and foster a culture of continuous improvement before seeking external expertise.
Additionally, it’s crucial to assess the organization’s capacity to implement the recommended changes. Consultants can provide comprehensive plans and strategies, but ultimately, it is the responsibility of the nonprofit to execute them. If the organization lacks the necessary resources, infrastructure, or commitment to follow through on the consultant’s recommendations, the engagement may not deliver the desired results.
Nonprofits must be willing to embrace change and actively participate in the consultant’s process. This includes actively collaborating, being open to feedback and suggestions, and making necessary adjustments based on the consultant’s expertise. If the organization is not prepared to engage in this level of involvement, the consultant’s efforts may be in vain, resulting in a wasted investment of time and resources.
Hopefully it goes without saying that we’re big believers in the value consultants can offer. But we’re also big believers in being honest about when your organization can benefit from a consultant’s services, and when you’re just trying to outsource a challenge you don’t want to deal with, or put a bandage on a deeper wound that can only be healed internally.
Have you ever hired a consultant for your nonprofit and wished you hadn’t? Tell us about it in the comments!
