Consulting, derived from the English word "consulting," literally translates to advisory. It is commonly used to describe companies whose primary activity is providing expert advice in specific areas necessary for every business organization to realize its full potential.
In Serbia, it is often perceived as "lecturing." For me, it's problematic because I've never managed to explain to my mom, dad, and grandma what I do.
Let's go in order, from global to local, to understand better the consulting realm, especially the part above Serbia, which is clearing up. Globally, the consulting market's value in 2022 was around 280 billion euros, with a projected growth rate of just above 4%, expected to reach approximately 350 billion by 2028 (Mordor Intelligence). The United States has the largest market share globally (over 40%), followed by the United Kingdom and Germany, albeit with much smaller proportions.
Dominant in the West, but also significantly present in the East, as evidenced by the fact that three Asian countries—Japan, China, and India—are among the top 10 countries in terms of consulting share on a global scale (Statista). So, even though consulting may seem challenging to explain (at least in Serbia), it undeniably generates significant value and is present everywhere.
It appears to be more present and better accepted in highly developed countries, prompting the logical question: Can cultural factors shape the perception and usage of consulting services?
The relationship between national culture and consulting services is a more complex topic than it might initially seem. Why? While it's undeniable that national culture plays a significant role in shaping how companies and individuals approach various aspects of business, decision-making, problem-solving, and even the engagement and use of external consulting services, the question is how these differences manifest in practice.
The idea is to guide you through several dimensions of national culture influencing expectations and preferences regarding consulting services before identifying Serbia's position in the consulting coordinate system.
1. Communication Style
In Western cultures, such as Germany, direct communication is valued, and clients expect consultants to present the advantages and disadvantages of proposed guidelines openly. In cultures like Japan, communication is often indirect, requiring consultants to understand subtle cues to provide advice in line with unwritten norms.
2. Social Interaction
In the United States, where business results are more valued than personal relationships, consultants need to focus on delivering concrete value, unlike in China, where business relationships are built on trust, implying that consultants are expected to invest time building relationships with clients before serious work.
3. Hierarchy and Authority
Countries with highly respected hierarchical relationships, such as South Korea, require consultants to be careful in approaching higher-level managers and providing advice that will uphold their authority. On the other hand, in countries like the Netherlands, where hierarchy is less pronounced, consultants can openly and directly communicate with various levels of management without being perceived as "undermining authority."
4. Tolerance for Risk and Change
Consultants proposing new ideas and solutions will almost certainly be well-received in Silicon Valley but not necessarily in Germany. In Germany, consultants suggesting drastic changes to clients may face resistance, especially if they need compelling arguments to alleviate the fear of risk in a country traditionally oriented toward stability.
5. Respect for Time and Deadlines
Although it seems like the ultimate rule of every business, even respect for time and deadlines can vary depending on the company's culture. In Brazil, consultants are expected to be open to schedule changes and ready for adjustments, considering that flexibility in time is part of the national culture. The Brazilian flexibility model should not be applied if you work as a consultant in Switzerland, where precision, respect for timeframes, and deadlines are crucial.
6. Finances and Costs
In the United Kingdom, consultants should emphasize how their services will contribute to the client's long-term success, emphasizing overall value and return on investment, while in India, clients pay more attention to costs, given that frugality is highly valued in this country.
These examples show key differences between consulting and expectations from consultants across different countries and between the West and East. This leads to the conclusion that international consulting firms must be culturally sensitive and adaptable to serve clients from different cultures successfully.
I was wondering where does Serbia fit into all of this.
As always, it is somewhere between the West and the East.
Consulting companies operating in Serbia are expected to respect deadlines and be agile. To contribute to the client's long-term success and be cost-conscious, all while building trust and diligently working to deliver value to the client. Hierarchy can be respected, but strict attention must be paid to maintain the authority of the client's management.
Proposed solutions should be innovative but not too risky... and I will only list so much; it's clear to you. Serbia's position between the West and the East has shaped its culture into a unique mix of often contradictory values, making consulting in Serbia challenging. Unfortunately, these are not the only challenges consulting firms in Serbia face.
Another challenge that must be mentioned, which Serbian consulting companies encounter, is... Guess. Don't guess; it's too easy, and I already hinted at it at the beginning of the text.
Misunderstanding. Refrain from understanding what consulting is and how it can benefit you as a client when you know your company, its processes, business practices, and shortcomings best as an owner, CEO, or manager. And why would you need the services of external consultants, and what will we consult you on when you already know it yourself?
Indeed, you've heard the expression, "Can't see the forest for the trees."
Although it might sound strange, external consultants, even though they don't know every detail of your business and every employee's name, can sometimes see and propose solutions to challenges you're facing more quickly and efficiently than you can. Why is that? Well, the answer is already in the expression mentioned above.
Unlike employees in a company, external consultants aren't overloaded with regular operational tasks that take up a lot of time. Therefore, it's often challenging to see the bigger picture and the overall business from a different, "fresh" perspective unburdened by everyday problems and obligations.
Not to mention that companies and their executives are slowly becoming more aware of this than before, and consulting is gradually (but surely) starting to be perceived correctly. However, consultants in Serbia still face resistance due to the misunderstanding and the perception of consultants as someone who has come to "lecture."
When will this be eradicated?
For now, the only thing that matters is that we're moving in the right direction. And suppose you still wonder whether you need the services of external consultants and why. In that case, I'll compare consulting with basketball, which is, you'll agree, significant for our national culture. Let's take Nikola Jokic, for example; even though he is outstanding in what he does, even Nikola Jokic needs a coach, right?
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