What is an Operations Consultant? The Complete Guide | Joshua Schultz Ops Command Center

TL;DR

An operations consultant helps businesses fix broken processes, build scalable systems, and improve profitability. Unlike management consultants who deliver slide decks, operations consultants get their hands dirty—actually implementing changes and staying until results are measured. The best time to hire one? When you’re growing but profits aren’t keeping pace, when you’re preparing for PE investment or exit, or when you’ve tried fixing operations yourself and hit a wall. Typical engagements run $5,000-$25,000 per month with ROI of 5-10x within 12 months. The key to success: hire someone who’s actually operated, not just advised.

What Does an Operations Consultant Do?

An operations consultant identifies why your business isn’t performing as well as it should and fixes it.

That sounds simple, but the work isn’t. Here’s what it actually involves:

Diagnose the Real Problems

Most business owners know something is wrong but can’t pinpoint what. An operations consultant digs into your data, processes, and team to find the root causes—not just the symptoms.

I’ll spend weeks mapping your order-to-cash cycle, sitting with frontline workers, analyzing your P&L by customer and product, and interviewing your team. The goal isn’t a 100-page report. It’s a clear answer to: “Here are the three things costing you money, and here’s how to fix them.”

Design Better Systems

Once we know what’s broken, we design better ways of working. This includes:

Process redesign (eliminating waste, reducing handoffs, standardizing work)
Metrics and scorecards (so you can see problems before they hit your P&L)
Meeting rhythms and accountability structures
Technology recommendations (if needed—often it’s not)
Organizational changes (roles, responsibilities, reporting lines)

Implement and Train

The hard part isn’t knowing what to do—it’s actually doing it. An operations consultant worth their fee sticks around to implement changes alongside your team, train people on new processes, and troubleshoot problems as they arise.

This is where most consulting engagements fail. The strategy is right but execution falls apart. Good operations consultants stay until the change is embedded.

Measure and Optimize

We set up measurement systems so you can see if improvements are working. Weekly operational metrics, monthly financial reviews, quarterly strategy check-ins. Then we optimize based on what the data shows.

The goal is to get you to the point where you don’t need me anymore. Your team can run the systems, read the metrics, and improve continuously on their own.

Types of Operations Consultants

Not all operations consultants are the same. Here’s how to categorize them:

By Engagement Type:

Type	Duration	Best For	Typical Cost
Assessment Only	2-4 weeks	Understanding your current state	$15,000-$50,000
Project-Based	3-6 months	Specific transformation (pricing, inventory, capacity)	$50,000-$200,000
Fractional/Retainer	Ongoing	Continuous improvement, leadership gap	$5,000-$25,000/month
Interim Leadership	6-18 months	COO/VP Operations replacement	$15,000-$40,000/month

By Industry Focus:

Generalists (work across industries, apply frameworks)
Industry specialists (deep knowledge of distribution, manufacturing, services, etc.)
Functional specialists (supply chain, production, quality, finance operations)

By Methodology:

Lean/Six Sigma practitioners (Toyota Production System, waste elimination)
EOS/Scaling Up implementers (franchise systems with set playbooks)
Custom framework consultants (original methodologies tailored to your situation)
Technology-first consultants (implement software to solve problems)

I fall into the “custom framework + industry experience” category. I use my own methodologies built from 15+ years of actually operating businesses in distribution, manufacturing, and home services.

Signs You Need an Operations Consultant

How do you know when it’s time to bring in outside help? Here are the warning signs:

1. Revenue is Growing But Profits Aren’t

You’re selling more but keeping less. Your margins are compressed. You’re working harder but not making more money. This usually means your costs are growing faster than your revenue—a sign of operational inefficiency.

2. You’re Always Firefighting

Every day is a crisis. You can’t work on the business because you’re constantly putting out fires. This indicates broken processes, unclear accountability, and insufficient systems.

3. Key Processes Live in People’s Heads

If Mary leaves, you lose how to process returns. If John quits, no one knows how to set up new customer accounts. Tribal knowledge is risk. You need documented, standardized processes.

4. You Can’t Step Away Without Things Breaking

The ultimate test: can you take two weeks off without checking in? If the answer is no, your business isn’t a system—it’s a collection of people reacting to whatever happens. That doesn’t scale.

5. You’re Preparing for PE Investment or Sale

Private equity firms want to see clean operations, documented processes, and measurable KPIs. If your house isn’t in order, you’ll get a lower valuation or lose the deal entirely.

6. You’ve Just Acquired a Company

The first 90 days after an acquisition are critical. You need to quickly assess what you bought, stabilize operations, and identify improvement opportunities. See the RIP Framework for how to approach this.

7. Your Team Has Tried and Failed to Fix It

Sometimes your team knows what’s wrong but can’t fix it. Politics, competing priorities, or lack of expertise get in the way. An outside perspective cuts through the noise and brings accountability.

8. You’re About to Scale and Don’t Want to Break

Growth breaks things. The processes that worked at $5M won’t work at $20M. Better to build scalable systems now than to clean up the mess later.

What to Expect When Working with an Operations Consultant

Here’s a typical engagement structure:

Phase 1: Discovery (2-4 weeks)

Data collection (financials, operational metrics, customer/product profitability)
Process observation (physically walking the floor, sitting with workers)
Stakeholder interviews (leadership, managers, frontline staff)
Gap assessment (where you are vs. where you could be)

Deliverable: Clear diagnosis of your biggest problems and opportunities.

Phase 2: Strategy and Planning (2-4 weeks)

Prioritized recommendations (what to fix first based on impact and feasibility)
Implementation roadmap (who does what, when, with what resources)
Quick wins identification (changes that can show results in 30-60 days)
Success metrics definition (how we’ll know if it’s working)

Deliverable: Actionable plan with clear ownership and timelines.

Phase 3: Implementation (2-6 months)

Process redesign and documentation
Training and change management
System and tool implementation (if needed)
Weekly progress tracking and adjustment

Deliverable: New processes implemented and working, team trained, metrics in place.

Phase 4: Optimization and Transition (1-3 months)

Continuous improvement based on data
Knowledge transfer to internal team
Sustainability check (can they run it without you?)
Exit planning

Deliverable: Self-sustaining operational improvements, capable internal team.

How Much Does an Operations Consultant Cost?

Let’s be direct about money:

Day Rates: $1,500-$5,000/day

Senior consultants with specific industry expertise charge more. Junior consultants and generalists charge less. You get what you pay for.

Monthly Retainers: $5,000-$25,000/month

Typical for fractional engagements (1-2 days per week of support). Lower end is for smaller companies or specific projects. Higher end is for larger companies or comprehensive transformation.

Project Fees: $25,000-$200,000

Fixed price for defined scope. Common for assessments, specific transformations (pricing, inventory, capacity), or implementation projects.

Results-Based Pricing: Varies

Some consultants tie compensation to results. This aligns incentives but requires clear metrics and can be complicated to structure.

ROI Expectations:

A good operations consultant should deliver 5-10x their fee in measurable improvements within 12-18 months. If you spend $100K on an engagement, expect $500K-$1M in EBITDA improvement, working capital freed, or cost savings.

If a consultant can’t explain how they’ll generate ROI, walk away.

How to Choose the Right Operations Consultant

Here’s what to look for:

1. Actual Operating Experience

Has this person actually run operations, or just advised others? Look for P&L responsibility, team leadership, and hands-on implementation experience.

I’ve managed production floors, warehouse operations, sales teams, and finance functions across 20+ companies. That experience matters when things get messy.

2. Relevant Industry Background

Industry nuances matter. Distribution, manufacturing, services—each has different constraints, metrics, and best practices. Choose someone who’s worked in your space.

3. Clear Methodology

How do they approach problems? What frameworks do they use? If the answer is vague (“we customize to your situation”), probe deeper. Good consultants have tested, repeatable approaches.

4. References from Similar Companies

Talk to past clients. Ask: Did they deliver results? Were they practical or theoretical? Did they implement or just recommend? Would you hire them again?

5. Cultural Fit

You’ll work closely with this person for months. Do they communicate in a way you understand? Do they respect your team? Can they adapt to your company’s pace and style?

6. Focus on Implementation

The best strategy in the world is worthless if it doesn’t get implemented. Choose consultants who stay through implementation, not those who hand off a report and move on.

Operations Consultant vs. Other Roles

How does an operations consultant differ from other options?

vs. COO (Chief Operating Officer)

A COO is a permanent executive who manages day-to-day operations. An operations consultant is temporary, focused on transformation rather than ongoing management. Consultants help you build systems; COOs run systems.

If you need someone permanently, hire a COO. If you need to fix things first, hire a consultant, then hire a COO to run the improved operation.

vs. Management Consultant

Management consultants (McKinsey, BCG, boutiques) focus on strategy—what should you do? Operations consultants focus on execution—how do you do it? Management consultants deliver reports; operations consultants deliver results.

vs. Business Coach

Business coaches help you grow as a leader and make better decisions. They don’t typically dig into processes or implement systems. If your personal effectiveness is the constraint, consider a coach. If your processes are the constraint, hire an operations consultant.

vs. Fractional COO

Similar to an operations consultant but positioned as an ongoing leadership role rather than a transformation engagement. Fractional COOs typically provide broader leadership coverage; operations consultants focus more specifically on process improvement and systems building.

vs. EOS/Scaling Up Implementers

These are consultants who implement specific, franchised methodologies. They provide structure and accountability but may not address deep operational problems. Good for companies that need discipline; less effective for companies that need transformation.

What Results Should You Expect?

Here’s what good operations consulting delivers:

Quantitative Results (within 12 months):

EBITDA margin improvement of 200-500 basis points
Working capital reduction of 15-30% (freeing cash)
Labor productivity improvement of 10-25%
On-time delivery improvement to 95%+
Customer complaint reduction of 30-50%

Qualitative Results:

Clear accountability and roles
Documented, standardized processes
Operational metrics visible to leadership
Team capability to improve continuously
Owner/CEO able to step back from firefighting

What Failure Looks Like:

Lots of analysis but no implementation
Improvements that don’t stick after the consultant leaves
Changes that created new problems while solving old ones
Scope creep without corresponding results
Teams that resent and resist the changes

Avoid failure by choosing consultants who implement (not just recommend), who train your team (not just do the work themselves), and who define success metrics upfront.

FAQ: Common Questions About Operations Consultants

Q: How long does a typical engagement last?

Assessment-only: 2-4 weeks. Transformation project: 3-6 months. Fractional/retainer: ongoing (typical commitment is 6-12 months). Interim leadership: 6-18 months.

Q: Can my industry benefit from an operations consultant?

If your business has processes, people, and the need to be more efficient, yes. Operations consulting works across distribution, manufacturing, home services, professional services, healthcare, construction, and most B2B businesses.

Q: What’s the difference between an operations consultant and a management consultant?

Management consultants tell you what to do (strategy). Operations consultants show you how to do it and help you actually do it (execution). Different problems, different solutions.

Q: How do I know if my business is ready for an operations consultant?

You’re ready if: (1) you acknowledge that operations is a constraint, (2) leadership is committed to change, (3) you have resources to invest in improvement, and (4) you’re willing to implement recommendations, not just collect reports.

Q: What if my team resists outside consultants?

Common concern. Good consultants work with your team, not against them. They listen, respect institutional knowledge, and position changes as improvements to make everyone’s job easier. If resistance continues after a skilled consultant engages, the problem is usually leadership commitment, not consultant approach.

Q: Can a small business afford an operations consultant?

Yes, but scope appropriately. A $3M company doesn’t need a $200K engagement. Consider fractional arrangements ($5K-$10K/month) or project-based work focused on your single biggest constraint.

Next Steps: Is an Operations Consultant Right for You?

Here’s how to decide:

1. Self-Assess Your Situation

Review the warning signs above. How many apply to you? If 3+ apply, you probably need help.

2. Define What Success Looks Like

What would have to change for you to consider it money well spent? Be specific. “Improve operations” isn’t a goal. “Reduce labor cost per unit by 15% while maintaining quality” is a goal.

3. Interview Multiple Consultants

Talk to at least three. Ask about their experience, methodology, and references. See who you’d actually want to work with for 6 months.

4. Start with Assessment

If you’re unsure, commission an assessment before committing to a full engagement. A good consultant can diagnose your situation in 2-4 weeks and tell you whether their help would generate ROI.

5. Consider Your Options

If you’re a business owner struggling with operations, a PE firm with portfolio companies to transform, or a CEO preparing for growth, let’s talk.

I’ve helped companies across distribution, manufacturing, and home services improve EBITDA by 100-300% through operational transformation. No slide decks. No theory. Just systems that work and results you can measure.

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