A guest posting by Patrick Horgan of Paladin Associates penned on the Sourcing Innovation blog addresses many of the popular perceptions of why certain companies will not seek cost-reduction assistance from outside consultants. It’s worth a read, especially if you’ve been trying to get new thinking interjected within your company.

With so many companies under the gun to cut costs and preserve cash and try to survive this severe recession, the burden often falls upon over-worked existing staff to come-up with new ideas or out-of-the box thinking.  Patrick walks the reader through many current perceptions of why an external or perceived too expensive consultant can’t help, and counters with some arguments of why an experienced consultant can add some value.  We can often observe where overworked staffing, expertise, conflicting priorities or internal politics can hinder the timely completion or overall effectiveness of such critical initiatives.  This brings to mind that age-old principle of “penny-wise and pound foolish“.

I tend to agree with Patrick. “Cost -reduction programs should be win-win initiatives, structured and empowered to encourage cross-functional cooperation”.  Sometimes an external consultant is the catalyst to facilitate a new-thinking.

Bob Ferrari