Cos turn to B-schools for advice

It is quite common for organizations to hire consultants from Mckinsey, BCG or Accenture for solving business problems, getting an outsider’s perspective and so on.  But now it appears that companies are out to get business advice from ‘to be consultants,’ that is, students still in B-schools.

Whether this will prove to be a good move, only time will tell, but his is definitely a ‘low –cost’ tool for getting outsider’s perspective to one’s business.  Escotel, recently gave out one such project to IIM, Lucknow, where business students from across the country will try to provide solutions to a real – life situation being faced by the company.  Sunjoy Mohanti, COO of Escotel, says that this is a part consulting, part business game as they are looking at getting fresh and innovative approach and ideas from B-school students.  However,, students will not be involved in the implementation stage.

Live caste studies and projects are quite common in B-business schools these days, but this consulting assignment is a new feature altogether.

This is because companies put out problems, but rarely share market research findings with students.  As result, inadequate information, leads to number of assumptions and hence skewed analysis and advice, which is often, not be used by the corporates.

Escotel has made available as much data and research as possible for the students to analyse.  In fact, an IMRB research study ahs also been shared for the purpose of the Business challenge organised by IIM, Lucknow – Manfest committee.  In addition the company is booking the sponsorship amount of Rs 1.5 lakh paid out to IIM, Lucknow as consulting fees in its books of accounts.

So far, firms had been approaching B-schools professors for consulting assignments, which incidentally is one the biggest revenue generators for the IIM fraternity. Most consultants are brought in to get an outsider’s perspective to look at problems in ways that insiders have missed out on.

A similar result can be expected from these students, but the bigger question is how seriously their ideas would be considered.  For instance, Dabur reportedly paid out Rs 10 crore to Mickeney to tell them that promoters should let the professionals manage the show.  Imagine how much weightage a similar suggestion would get when it comes out from business school students.