In a marine engineering project, I encountered challenges when external consultants began expanding their work beyond the original scope, which led to unnecessary costs & delays. In a private equity setting, I would draft a detailed Scope of Work (SOW) before engaging consultants, clearly outlining deliverables, timelines, & costs. For example, if consultants are hired to optimise the manufacturing process, the SOW would specify exact areas of improvement—like reducing cycle time by 15%—& the methodologies they should use. This ensures that both parties remain focused on achieving specific results without straying into unplanned areas that do not add value.

Remove ambiguity from the processes of interaction. Give clarity on expectations, Delegate supervisory responsibilities when not able to give feedback on time. Provide guidance and support to the consultants if optimal performance is threatened. Identify milestones and litter the path to it with indicators for deviations from and proximity to the milestones, Identify assessment measures for each milestones achieved and missed with lessons learnt. Remain close enough to monitor progress but far enough to allow independence of thought and task execution. Provide encouragement to the team. Be open to different ideas. Watch your tone in giving feedback.

Interaction with external consultants in the management of a portfolio company requires a clear strategy. Optimizing results begins with choosing a consultant who matches the specifics of the business and understands industry trends. It is necessary to set clear goals and expectations at the contracting stage, which will minimize risks and misunderstandings. The key aspect is the creation of a transparent monitoring and reporting system, which ensures control over progress and the ability to promptly adjust the strategy. Regular feedback and integration of consultants' findings into current processes contribute to deeper data analysis and optimization of internal processes. Synergy between teams should also be taken into account.

Optimizing external advisory work in Private Equity requires a strategic approach. First, be clear about the task: advisors should understand specific KPIs, expectations, and deadlines. Second, structure the interaction: use agile methods to regularly evaluate interim results to avoid deviations from the course. Third, create conditions for knowledge transfer: advisors often solve short-term problems, but their experience should be integrated into the team. And finally, monitor profitability: evaluate not only the quality of decisions, but also their long-term impact on EBITDA and other key financial metrics.

To maximize results with external consultants in private equity, start by defining clear goals and aligning consultants with your strategy. Firms like Blackstone and KKR have seen 25-30% improvements in operational efficiency by integrating consultants early in the process. Set specific KPIs—such as revenue growth targets or cost reductions of 15-20%—to measure success. McKinsey data shows that companies using consultants effectively are 1.4 times more likely to outperform competitors. Additionally, a Harvard study found that clear goal-setting with consultants improves project outcomes by 60%. Regular check-ins and performance reviews can ensure consultants stay aligned with your evolving needs, boosting returns.