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So that decision makers can reduce their own liability. If something doesn't work out, you can always put it on the consultants.
Multiple reasons, some most common being: an outsider unbiased view, knowledge of what peer companies are doing, drive new initiatives which are too radical for insiders to get implemented, lack of consensus in the C suite, the list goes on!
For 7 reasons really -
1. Get an independent firm to confirm their "hunch" (read: agenda)
2. Augment capacity for an initiative
3. Transfer skills
4...
For other four reasons, please sign the engagement letter.