What is Advisory?
Advisory is advice given to a person or group of people in need of it. When talking about business firms, an advisory is given by the person who is the part of the company. He might be appointed on other projects and give pieces of advice.
His main job is to find the problems beforehand that might become hurdles while working on a project. He finds the problem and tries to avoid or solve it beforehand. As advisors are already part of the company, there is no extra payment for their bits of advice.
They are already paid as decided. They are appointed to work on long term projects. The projects that would take a long time to complete and would need advice from time to time are given to advisors.
The relationship between clients and advisors is very friendly and informal. The reason behind this is as advisors are already part of the company. But these relationships might differ on a personal basis. Advisory might differ from person to person.
There might be more than two solutions for a particular issue. That’s how advisory might differ from consultancy. Except for businesses, in general terms, advisory can be given for free as well.
What is cosultancy?
Consultancy is a piece of professional advice given by an expert in a particular field. The experts or consultants have expertise in their specific field of interest. With years of practice and studies, they are the experts and hence can provide their expert opinion to the one in need of advice. Consultancy is like a profession.
Therefore, pieces of advice are given only in return for something. In terms of business works, consultancy is a significant deed. Consultancy is an expert appointed for a particular problem. The projects appointed are for a short time. Once their work is over, they are given their payment.
After their payment is done, consultants are no more part of the organization. The consultants appointed should depend upon the type of consult you need. Consultants have expertise over a while. Hence, a Consultant should be chosen according to the type of help needed.
Consultants main aim is to find the solution to a problem already spotted. They find and provide the preferable solution to their clients. Their relationship with the client is strictly professional and formal.
The consultants also work over a short period with the company. But, once their work is over the partnership with the company gets over.
Difference Between Advisory and Consultancy
- Advisory is given when in need of advice. Consultancy is a type of professional advice given by experts, who have expertise in a particular field.
- Advisors take up projects for a long time. Consultants take up projects for a short time.
- Consultants get projects for a long period. On the other hand, advisors get projects of shorter duration.
- The main aim of advisory is to find the problem beforehand and get a solution to it.
- The relationship between client and consultant is formal and strictly professional. On the other hand, the relationship between client and advisor is friendly and informal. This is so because they are already part of the company.
- The consultant can work at their own pace and their place. Advisors are a part of the company.
Comparison Between Advisory and Consultancy
| Parameters of Comparison | Advisory | Consultancy |
| Meaning | Advisory is a advice given when in need. | It is a professional aid taken by an expert. |
| Time-Taken | Advisory is done for projects of long term. | Consultancy is done for short period of time |
| Projects | Advisors get project of longer duration to benefit the company. | Consultants take projects of shorter duration and get paid for that. |
| Aim | Aim of advisory is to spot the problems before hand. | He gives solution to the specified problems. |
| Relationship with clients | The relationships are quite friendly and informal. | The relationships are strictly professional. |
| Place of work | Advisory is done by the person of same company. | He need not to perform his work at company’s place. |