What is the difference between consultants and advisors in business? Beyond my own opinion and experiences, I researched both roles on how they are perceived today and investigated the history of the activities and the etymology of the terms.
Find out details about the differences between a consultant and an advisor
The line between consultants and advisors can be blurry when working in consulting and advisory services. Having navigated both realms, I understand the nuances that set these roles apart. With thorough research and practical experience, I’ve explored the essence of these titles, uncovering their history and modern perceptions. Join me in exploring consultancy versus advisement, the impact on stakeholder relationships, and the importance of clear communication for alignment. Let’s uncover the differences and enhance our understanding of these crucial business roles.
Etymology
The term “consultant” originates in the Latin word “consultare,” which means “to discuss something” or “to deliberate.” An “adviser” or, the more popular alternative version, “advisor” is derived from an old French phrase that goes “ce m’est a vis” (in my view). The “vis” originally comes from the Latin word “visum” which is the past participle form of “videre” (to see). Before people used the word “to advise,” there was an old version written “to avise,” which fills the gap between origin and current use.
What does a consultant do?
A consultant fulfills pre-defined terms, such as solving problems or underlying constraints. These terms are defined by a sponsor or stakeholder, and usually, the consultant is presented with a task after the need to solve a particular problem has been identified. Sometimes, a consultant is expected to handle the problems independently and report the solution to the sponsor.
However, the consultant will often prepare options for solving the problem and then discuss the pros and cons with the sponsor. In rare cases, a consultant is used to temporarily replace a management position until a long-term replacement has been hired.
What does an advisor do?
An advisor has deep knowledge across multiple disciplines and has experience in working in several functions. The role of the advisor can be compared with a mentor or guide around a broad scope of subjects and differs categorically from the scope of a task-specific consultant. The advisor is usually a long-term member of an organization and understands the organization’s strategic targets of near-, mid-, and far-future planning. They know the staff, the leadership, clients, and all other related individuals and their services/products very well. They can translate perspective and verbiage from one angle to another.
Advisors identify issues (or tasks in general) before they become a problem and share their opinions and insights with the stakeholders. They adequately raise their concerns and help address work items to clear out the “threat” of not engaging in this particular activity. The advisors usually decide how much of their own time they invest in the activities based on the severity of the issues.
Comparison
So, in a compact format, what is the difference between a consultant and an advisor?
- Consultants act retroactively; advisors act proactively
- Both consultants and advisors can be either external or internal
- Consultants have functional roles; advisors are usually part of the leadership
- Consultants are generally hands-on problem solvers; advisors lay out the plan and explain the necessity
- Consultants typically work with sponsors or stakeholders and not with advisors directly
- There is no difference in the quality of work between these two roles; they do different work
The Norwegian loan agency Lån For deg may serve as an example. While their financial consultants work dedicatedly to find solutions to their customers’ specific financial needs, their advisors lay out strategic plans to maintain the company’s strong market share.
Zeitgeist
The reputation of consultants has suffered severely in recent years. Suppose you provide professional services as a freelancer or within an organization and feel you cover the activities from both roles, as described above. In that case, I recommend you market the services as advisory rather than consulting to avoid such issues.
However, if you feel that consulting, as per this definition, is the most appropriate term for yourself or your service, you can surely make use of it if the messaging is clear. Firms Consulting, for instance, have made their offering for consulting and professional services very clear in their marketing so that prospects can better understand what they do.
So, what do we land on regarding defining the differences between an advisor and a consultant?
The main distinction seems to lie in the level of involvement and expertise. Advisors typically provide guidance and support, while consultants are more hands-on and offer specialized knowledge and skills. Ultimately, it is up to you to decide how you want to position yourself and your services. Both titles have their own merits and can be effective in different scenarios. Ensure that your messaging aligns with your chosen title so potential clients understand exactly what you can offer them.
Also interesting: What’s the Difference between a Technician and an Engineer?
In conclusion, there is a clear difference between an advisor and a consultant, but the terms may often be used interchangeably. As a professional service provider, it is crucial to understand these distinctions and use them strategically to convey your offerings accurately. Whether you market yourself as an advisor or a consultant, remember always to provide value, communicate effectively, and continuously improve your skills and knowledge to stay ahead in the ever-evolving consulting industry.
Further reading
When I started work in the newly established “Professional Services” team of GMS in early 2013, CEO Tobias Enders gave a book to all founding team members. The book was titled “The Trusted Advisor” (written by David H. Maister, Charles H. Green, and Robert M. Galford) and lays down a great framework for the good practices of advisory work. It splits up into client relationship management, professional services, and a guideline for being a (…you guessed it) trusted advisor.
If you have not already read it, I strongly recommend that all consultants and advisors check this out. Also, if you are a service provider of another nature, reading this will greatly help you augment your advisory senses and may allow you to further your career based on the practices described in this book.
Photo credit: The feature image is symbolic and has been done by Sebastiaan ter Burg.
