Difference between coaching and consulting

Other terms that are used interchangeably are coaching and consulting, but they are different services, just as the roles of coach and consultant are different.

Both specialties make a diagnosis as a starting point, at the beginning of the relationship with the client. Both elaborate a plan of action and aim at advising the client in the fulfillment of his or her objectives. Both coaching and consulting provide their services to entrepreneurs and companies.

The main difference lies in the nature of the relationship established between the specialist and the client. In a consultancy, the priority is given to the objectives to be achieved, while in coaching, the fundamental thing is that the client grows, the person becomes the center of the process, and the objectives are subordinated to his or her wellbeing.

They fulfill different functions and both are equally useful and important, you just have to know when one service or the other is required. The business must assess which option is the one they need. The coach facilitates and accompanies in a learning process while a consultant recommends, directs and advises directly the path to follow.

Scope of consulting

A consultancy is performed by experts in a specific topic. It is usually an external service, either an independent specialist or a consulting firm. It is implemented in a specific area of the business in order to solve problems and improve work competencies, which translates into an increase in profitability.

It is a service based on the confidentiality of information. It is a good investment if you need to solve a specific situation or provide a necessary service but do not have the personnel or resources to perform the task.

Among the most common types of consultancy are legal, IT, marketing, human resources management, economics, communication, but there are many others.

It can be aimed at increasing sales, optimizing processes, restructuring the business organization, performing technical audits, training employees, managing hiring, performing accounting exercises, preparing a market study, and many others.

At the end of the contract it should be specified whether the work is concluded because the objectives were completed, suspended or will continue but without the consultant's advice.

Differences between coaching and consulting

Problem solving: In coaching, the client must find the solution himself. In consulting, the consultant makes the decisions directly, teaches and advises what to do.

Working style: In coaching a non-directive style is used where the client always makes the decisions while consulting does direct the client towards the outcome based on their professional opinions and experience.

Specialization: In coaching, the coach does not necessarily have to be an expert in the business sector in which the client operates, a general knowledge may be sufficient. The consultant is an expert in his area and applies his knowledge to the different situations that may arise.

Experience: In coaching, the coach avoids using his experience to influence the client. In consulting, the consultant's experience is key to guide clients.

Knowledge: In coaching, the coach works to develop the client's skills and abilities with the knowledge he already has, so that he can meet his objectives. In consulting, the specialist brings knowledge that does not exist in the client or the company, and brings his own perspective independently of the client.

Action plan: In coaching the action plan is determined by the client and it is he who executes the agreed actions. In consulting the plan is elaborated according to the consultant's judgment and he/she can participate in the actions.

Benefits of consulting

Among the main benefits of a consultancy are:

• It provides solutions to specific problems.

• Since it is an external service to the business, it is impartial and objective.

• Consultants are experts in their areas.

• Creates an action plan and strategies to achieve objectives.

• Business performance increases.

• Avoids having to hire a full-time specialist to solve a particular issue, which is a saving to the business.
• a particular issue, which is a savings in the long run.

• Generates investment opportunities.

• Evaluates the potential of the business.

• By knowing the sector, it identifies areas of opportunity and creates competitive advantages.

• Prevents potential problems.

When is a consultancy necessary?

A consultancy is necessary when you already know what is wrong but you prefer to have an external specialist take care of it while the business staff concentrates on other objectives. Likewise, if the business is looking to expand or is going through a crisis, this service is a good option thanks to its ability to analyze the facts in depth.

When we want to ensure a global vision of the situation we want to solve. When there are deficiencies or we cannot solve the problems with the internal human resources of the business. It is also very useful when we do not want the policies and culture of the business to influence the decisions that need to be made.

What does a consultant do?

A consultant is someone who:

• Fills in the client's gaps.

• Teaches, guides, advises, directs and/or executes a self-developed action plan to solve a specific problem.

• Designs solutions and delivers short and long term results.

• Applies his knowledge in ever-changing business environments by staying current in his specialty.

• Provides training and resources to facilitate business change.