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Management consulting in Australia is mostly about how an organisation is put together and who is allowed to decide what. The work touches reporting lines, spans of control, role boundaries, committee structures, delegations and the meeting rhythm that holds it together. It is the layer beneath strategy: not what the business should do, but who does it and who signs off.

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The trigger is usually growth or friction. A firm that grew from twenty people to eighty still routes every decision through the founder. Two teams have overlapping remits and quietly duplicate work. A national business has state managers with different authority for the same spend. None of these are strategy problems and none are process problems. They are structural.

In Australia the restructure step is where management consulting meets employment law hardest. Most modern awards and enterprise agreements contain a consultation clause that is triggered by a definite decision to make major changes to production, program, organisation, structure or technology. A consultant who designs a new structure without telling you about that clause has handed you a live problem, because the obligation attaches to your business, not to them.

Organisation design work Australian firms commission

  • Operating model design: deciding which activities are central, which sit in business units and which are outsourced.
  • Spans and layers reviews, which usually surface managers with one direct report and managers with nineteen.
  • Delegation and authority frameworks, setting who can commit money, sign contracts and approve hires at each level.
  • Governance design for boards, executive teams and committees, including what each forum decides rather than discusses.
  • Role clarification where two functions have been fighting over the same territory for years.
  • Post-merger integration of two management structures into one, which is where most integration value is won or lost.

How an organisation redesign runs

A competent redesign starts with what the organisation must be good at, not with the current chart. The consultant works out the handful of capabilities the business genuinely competes on, then asks where each one must sit and what authority it needs. Only then does anyone draw boxes.

The middle of the engagement is interviews and document review: delegations, position descriptions, committee terms of reference, and the actual pattern of who approves what. In most Australian mid-sized firms the written delegation and the real one have drifted apart, and the gap is the finding.

The last stage is a transition plan with dates, and this is where the consultant's job overlaps with yours. If the design changes anyone's role, hours, reporting line or location, or puts a position at risk, the employment consequences start. That is your obligation to manage, with the consultant sequencing the design so you are not consulting on a decision you have already announced.

Consultation obligations before a restructure

The Fair Work Act requires modern awards and enterprise agreements to include a term requiring the employer to consult employees about major workplace change likely to have a significant effect on them, and about changes to regular rosters or ordinary hours. The obligation is to consult, which means discussing the change and genuinely considering what employees say, not seeking permission and not simply informing.

Where a role is genuinely no longer required because of changes in the operational requirements of the business, the redundancy is only genuine if the employer has complied with any consultation obligation in the applicable award or agreement and has considered whether it was reasonable to redeploy the person within the business or an associated entity. A structurally sound design executed without that step can still produce an unfair dismissal claim.

Notice of termination and redundancy pay sit in the National Employment Standards, and the Fair Work Ombudsman publishes a notice and redundancy calculator alongside its pay tools. Build those costs into the business case before the design is signed off, not after.

What a management consultant cannot decide for you

  • Whether a position is redundant. That is an employer decision with legal consequences the consultant does not bear.
  • Who is selected for a role in a new structure, where selection criteria and process expose you to discrimination and general protections claims.
  • Delegations that conflict with directors' duties under the Corporations Act; a board cannot delegate away its own responsibility.
  • Anything requiring a variation to an enterprise agreement, which has its own approval process at the Fair Work Commission.
  • Changes to a role that would take an award-covered employee below their classification entitlements.

Why restructures fail after the consultant leaves

The most common failure is a chart that changes while the delegations do not. Staff learn within a fortnight that the new manager cannot approve anything, and the old path reasserts itself. A redesign that does not rewrite the financial and hiring delegations has not changed anything.

The second is a design sized for the organisation the owner wants rather than the one that exists. Three new general manager roles in a business that cannot fund two produces a structure that is quietly ignored.

The third is silence about the transition. People who do not know whether their job still exists start looking, and the ones who leave first are usually the ones you needed. A dated, communicated sequence is part of the deliverable, not an extra.

Documents a redesign should leave behind

  • A current-state and future-state structure with every position mapped between them, including positions that disappear.
  • A written delegation schedule covering spend, hiring, contract signing and policy approval at each level.
  • Updated position descriptions for every changed role, with the award classification identified where an award applies.
  • Terms of reference for each governance forum, stating what it decides and what it only reviews.
  • A consultation record: what was proposed, what employees said, what changed as a result.
  • A transition plan with dates, owners and the point at which the change is treated as complete.

External consultant versus internal capability

An external management consultant is worth it when the question is genuinely contested inside the business, because an internal person's design will be read as a bid for territory. They are also worth it when nobody internally has designed a structure before and the business is about to do it once.

They are poor value for continuing work. Organisation design is not a permanent activity, and a consultant retained indefinitely to keep adjusting the structure usually indicates a leadership problem the structure cannot fix.

For Australian businesses of around fifty to three hundred staff, a common and sensible pattern is a short external engagement to set the design and delegations, then an internal HR or operations lead to run the transition, with the consultant available for a small number of review days.

Management Consultants: frequently asked questions

What is the difference between a management consultant and a strategy consultant?

A strategy consultant works on which markets, products and customers to pursue. A management consultant works on how the organisation is arranged to deliver whatever was chosen: reporting lines, decision rights, delegations and governance. The two overlap at the top of large firms, but for most Australian businesses they are different purchases with different deliverables. If your problem is that nobody knows who decides, it is a management consulting problem.

Do I have to consult employees before restructuring?

If a modern award or enterprise agreement applies, yes. The Fair Work Act requires those instruments to contain a consultation term covering major workplace change likely to significantly affect employees, and changes to regular rosters or ordinary hours. Consultation means discussing the proposed change and genuinely considering the responses before the final decision. Skipping it can make a dismissal unfair even where the role really was no longer needed.

When is a redundancy genuine?

Broadly, when the employer no longer requires the job to be done by anyone because of changes in the operational requirements of the business, the employer has complied with any consultation obligation in the applicable award or agreement, and it would not have been reasonable to redeploy the person within the business or an associated entity. The Fair Work Commission assesses all three. Get specific advice before relying on a redundancy, because the definition does real work.

How long should an organisation redesign take?

For a business of fifty to a few hundred people, the design phase is usually a matter of weeks rather than months, because the inputs are interviews, delegations and existing documents. The transition takes longer and is largely yours to run. Be sceptical of a proposal that stretches design over half a year, because the cost of uncertainty inside the workforce during that period is real and rarely counted.

Should the consultant be in the room when we tell staff?

Usually not for the announcement itself. Staff need to hear a structural change from the people who will manage them afterwards, and an external face makes the decision look imported. The consultant is useful preparing the message, briefing managers on the questions they will get, and reviewing the consultation record. The accountability should visibly stay with your leadership.

What if the new structure means someone's pay should change?

Check the award classification first. Where a modern award applies, the classification descriptors set the minimum rate for the work, and moving duties between roles can change which classification fits. Reducing an employee's pay or significantly cutting their duties without agreement carries risk, including that a demotion involving a significant reduction in pay or duties can be treated as a dismissal. Work out the pay consequences during design, not after the chart is published.

Sources

  1. Fair Work Act 2009 (Cth) - National Employment Standards and modern award terms
  2. Fair Work Commission - What is unfair dismissal
  3. Fair Work Ombudsman - Pay and Conditions Tool

Written by the LokalMatch editorial team. Last reviewed 22 September 2026. How we write and check our guides

What affects the fees management consultants charge

Fees depend on the work involved and how the professional bills. We only publish fee ranges when they’re backed by real LokalMatch data or reliable sources. Until then, here’s what usually changes the fee:

  • Scope and complexity of the work
  • How the firm bills: hourly, per project or on a monthly retainer
  • Experience of the team
  • Timeline and how urgent the work is
  • Ongoing support after the work is delivered

How to compare management consultants before you hire

  • Ask for examples of similar work for clients like you.
  • Read reviews and ask for references you can contact.
  • Make sure the scope, deliverables and timeline are written down before work starts.
  • Ask who will do the work: an in-house team, freelancers or subcontractors.
  • Compare two or three proposals before you decide.

Questions to ask management consultants before you hire

  • Have you done work like this before, and can I see examples?
  • Who will work on this, and who is my main contact?
  • How do you charge: hourly, per project or monthly?
  • What is included, and what costs extra?
  • How long is the contract, and how can either side end it?
  • How will you report on progress?
  • Who owns the work, files and accounts you set up for me?

Licences and registration

This kind of work is often limited to licensed or registered professionals, and the rules depend on where you are. Ask which body they’re registered with, and check their status on that body’s public register before you hire.

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