Consultancy Recommendations the Situation at the New

Consultancy Recommendations

The situation at the new company is far from optimal, with the company engaged in a business that is removed from the core competencies of the parent company, exacerbated by the lack of direction and focus at the company. Knowledge disadvantages exist as well, with the new company in a situation overrun with "unknown unknowns" -- risks, opportunities, and elements affecting the business/industry of which the company is not aware, meaning they are entirely unaware of the effects these unknown elements have. A key figure at the company is also suffering from post-partum depression, which is typically a temporary condition but one that can be incredibly distracting and can require some significant personal time to properly address. In light of these facts, combined with the already-present strategic use of wide vendor networks, it is advised that the company hire an outside management or consulting firm to run the business for the short-term and establish a foundation for future growth.

This solution addresses all of the problems that the new company is facing. First, it will relieve pressure form the individual suffering from post-partum depression, allowing her time to restore her health and her productivity without the pressures of bringing the company in line. It will also ensure that relevant experts are brought in to focus the business and increase the needed competencies in permanent staff, at a lower cost than hiring such expertise outright. This will work to increase the knowledge level immediately and on a continuous basis through ongoing training and development involving permanent company members, and will make the unknown unknowns into known unknowns, at the vey least.

Addressing this issue with the parent company could be more delicate. Having just spun off a new company, justifying the outsourcing of expertise could seem redundant: either the new company shouldn't exist and outsourcing should have been used initially, or the new company ought to be able to do its job, one could reason. Separating a company that requires a different core competency is a good thing, however, and so is finding external expertise when it is needed to guide a new company. Ultimately, the parent company should fairly easily be able to see the cost benefits of this strategy, and the need to implement drastic and immediate changes in the operation of the company if they wish to reverse its status from a drain on parent company resources to a profitable enterprise. The steps that such an outside consultancy would take, from aligning management to providing training and designing operations, should all be guided by cost effectiveness and long-term stability and profitability, making it the type of program a parent company should approve of.