1.
April 18th, 2008 at 5:36 pm e

Tuhin Chaturvedi wrote:

Grill them on their experience, Find out if they really know your business and industry – Quiz them on what projects they have undertaken -
Ask them what will be the value-add – how much will you save? Ask them for references – Talk to the references which they provide – Are they willing to guarantee their solution? What if you implement it and you don’t save x? Talk to people who have experience in your industry: These consultants say that if I do x, y will happen. What do you think? Be sceptical – don’t be overawed by the big names or designations – Take your time to decide whether to engage them – and then trust your instincts.

2.
April 18th, 2008 at 5:38 pm e

Christian Ruiz wrote:

I do not know how large your business is but typically you can keep a list of all of your hardware and software assets. This will allow you to keep track of how long you have had it and if you need to replace it or not when the sales guy is around. If it is not broke do not replace it has been the motto for years for many generations. However, in todays technological society there is always that newer, faster, more robust hardware or software application that gains your interest. Again, I think it is solely based on if it is working for you, if it is then why upgrade. On the other hand you may want to keep abreast what you need to upgrade like your Infrastructure and or Security as those pieces are constantly improving.

3.
April 18th, 2008 at 5:40 pm e

Doug Hering wrote:

Hire consultants when your need outside expertise that you either can’t hire internally or when you can’t free up internal resources. Make sure you need a consultant before you ever go looking.

Then check references. Don’t just ask for a list of previous clients.

Interview a number of consultants.

4.
April 18th, 2008 at 5:41 pm e

Doug Spencer wrote:

I don’t try to be the cheapest consultant around. Anyone can charge a low rate, regardless of their talent and contribution to your company. I work to provide the best value. I deliver results that make money and/or save money for my clients many times my bill rate. I want to be an investment in your company’s future, and a very good one at that.

The key to effectively utilizing a consultant is to use them for the problems and goals that will make a positive difference to your company. A good consultant should be a net positive to their clients, a business partner who facilitates accomplishing the otherwise impossible tasks in a way that helps your company reach new levels of success.

If you feel your consultants are draining resources from your company and not providing positive returns on your investment, why are they there? I think everyone has met people who calls themselves “consultants,” but who are only there for the billable hours. The problem is even more pervasive in so called “consulting firms” that will send out a ringer to make their services look good initially. When the client is committed, they send the ringer to a new client and deliver an army of entry level trainees for the ongoing billable hours. The staffing/recruiting/consulting firm generally collects the majority of the bill rate, paying their consultants peanuts. Since good consultants don’t work for peanuts, yet the client is paying premium rates, this creates a situation where client expectations far exceed the skills of the so called “consultants” they were assigned.

I feel that everyone providing a service should be contributing in excess of their cost. This is why I tend to avoid staffing/consulting firms, and I switched to Solo W-2, Inc. after seeing the tactics used by traditional firms. Solo W-2 provides only employer of record, back office support, and benefits administration at reasonable, known rates. I set my own bill rates with clients, and receive most of the rate. This means both my clients and I know my cost and benefit. My clients dollars pay for my time and expertise to benefit their company, not to pad an agency recruiter’s bonus plan. It works out very well for all parties, except the agencies.

Clients often don’t require the level of expertise I provide on a full time basis. By using my services 40-80 hours per month, a client can reap the benefits of my expertise when needed, while paying a monthly cost on par with the cost of a junior to mid-level FTE. It works well for clients and for myself.

5.
April 18th, 2008 at 5:42 pm e

Sheilah Etheridge wrote:

Speaking as a consultant I will say that a reputable one will not waste your money or their time by selling you on services you don’t need. You already have an idea of what you need when you call them, stick to it and don’t let others play you.

I have been asked by many why I tell potential clients when they don’t need as many hours of my time as they originally thought. It’s simple, it allows me to maintain my integrity and also to better utilize that time with someone who does need it. It also speaks volumes in word of mouth advertising.

6.
April 18th, 2008 at 5:43 pm e

Shuki Weiss wrote:

Most points are skillfully covered.

However 5 main consecutive questions remain to be answered by each side in the possible initiative:
1. what specific outcome you want to achieve?
2. what are the detailed benefits of this outcome?
3. list your obligations in detail to that initiative besides money?
4. list the criteria for successful completion/
5. list the hazards and disturbances the initiative faces.

if each party is honestly answering these questions, you should be in a much better position to know if you like to hire the consultant.

7.
April 20th, 2008 at 2:48 pm e

John James O’Brien wrote:

My answer is informed by experience on both sides of the table. There seem to be a number of different kinds of consulting referenced in answers to date. Sheilah’s resonates in particular.

With my consultant’s hat on:

– many clients operate within accounting (and accountability) structures that seem to require a level of specification that defeats the entire purpose of hiring a consultant.

– if you are hiring a consultant, let him/her contribute the necessary expertise. If you already know what needs doing, how to do it, the process, tools and options…then you do not want to hire a consultant, you want to outsource prescribed work. It’s not the same thing. But too many clients and not a few consultants don’t seem to know the difference.

– make sure your procurement processes are not getting in the way of achieving quality outcomes. There is more than one way to ensure a transparent, accountable and fair process–if you are not doing something about the process that limits your result (or do not even know that this the case) then you should not be complaining about consultants, you should be hiring one! Hint: if the procurement vetting takes 18 months on a 2 year project, there’s a problem…

With my client’s hat on: many people go into consulting without a stint working in organisations (much less being accountable for outcomes and leading in organisations). This is a handicap for which the client must compensate, having determined the gap that this less experienced person fills with knowledge and competencies that are required but not available internally.

After hiring the big firms and not a few independents and smaller firms, my observation is that the firm that NEEDS the client’s success is more likely to ensure the right fit and commitment. Make sure the consultant needs your success, or cares enough about you, your project and/or the domain to want your success to be a reflection of his/her own.

Last thought in passing…effective consultancy engagements are partnerships. There is mutual growth, learning, commitment and achievement. Such an engagement is a beautiful thing for all parties.

8.
April 20th, 2008 at 2:50 pm e

Christian Erik Rijnders wrote:

I very much agree with John’s comments.
Especially about it being a partnership, that it is best if the consultant needs you to be succesfull and especially that it only makes sense to hire one if he brings a skill or experience that you don’t have.

John already touched on this but I would underline the importance of the “practicalities” of contract negotiations:

Even if companies normally hire consultants they already know a keystone to a successful partnership (and avoiding future misunderstandings) is the contract.
Clear definitions and agreement of deliverables, metrics, timing, required functionalities, resources, flow and ownership of information, etc.
And different phases are best defined, where every time the contract is adjusted as required. Flexibility is introduced into the agreement from the start, in other words. Because once the projects kicks off on the one hand many things will always be different than expected while on the other hand there will be a ramping-up of effectiveness .
Normally the document will be drafted by the consultant (he is bringing experience that you don’t have, after all), and a close look will make it clear if he is just trying to get as many billed hours as possible or really interested in your needs.

9.
April 20th, 2008 at 2:52 pm e

Ashutosh Bhatnagar wrote:

Well in general terms, few facts need to be understood in this context – ‘Consultants and Prudence’

1. Sales is general phenomenon from vendors perspective and not all consultants sell every thing they have in inventory…. Jokes & exceptions apart…
2. Consulting is a business solely based on “reputation of solutions” as first described by Sheilah Etheridge above.

“clear needs and wants” (objective/WHY) serve as primary input to consultant orchestrating the engagement dynamics on consumers spending limit / quality of solution (who, what, how, where, when) and then of course a careful accommodation of their strategic commercial interests.

And a “reputable” consultant will / should always help first define “needs & wants / objectives / WHY”

If consumer doesn’t feel solution justified, there is a flaw in engagement objectives… Yes consultant does have a share in cause of the problem otherwise

10.
April 20th, 2008 at 2:53 pm e

Amit Dharia wrote:

Like in every trade there are different grades – some are standard and some are upgrades! Some are apprentice and some are journeyman! Being a successful in technical consulting myself and having hired consultants, I agree with your friend’s comments but in different light. Consultant is something between a marriage and a one night stand. They both have their disadvantages and managers job is to decide whether he wants to hire a permanent staffer or can do with a consultant. In case of a staffer both the quality and quantity matters (if he want so keep his job), in case of consultant only quality matters!

First, in my experience very few clients really know what they want. The answer is going to depends on specificity of question. Many times I have noticed, solution is right under their nose, but they are too occupied to work out of box. Consultant like a car mechanic knows where to kick to start the car – if you want to drive – he deserves reward for that.

Second, the purpose of hiring outside consultant is not always related to solving problems. There could be internal conflicts which requires “independent” input to sober a staffer or to revitalize internal competition.

Third, there is nothing wrong in learning and exchanging ideas with staffers. Consultant is nothing but a “non-staffer” with some expertise. He shares all short comings of a regular staffer Consultant may have a broad set of skills in particular area but may be unfamiliar with specific industry, terminology, machinery, processes. Learning and contributing is what problem solving is about. What really counts is methodology and approach. Real solutions are simple and results of right approach.

Fourth, if you don’t trust consultant to do the job, it is counter productive. I turned down consulting offer if I feel that rest of team is eager or capable to solve problem themselves. I have worked with some consultants, who are extremely knowledgeable and deliberate but are not very vocal or fast -does not mean they they are not productive. Hiring and retaining a consultant is an art very few managers have.

Fifth, it is very easy to say who learned what from whom after the fact. Consultants are not there to take credit or score points. Their job is to solve problem as fast and as complete as possible so that client will give them repeat business.

Do not pay or hire consultant on hourly basis but on milestone basis. Pay equal importance to skill as to their general experience as problem solver. Problem solvers are resourceful and creative. They leverage their skills in one area to solve problems in the other area.

Your friend’s experience indicates that he did not do his homework. Had he done so he may have felt enriched by the experience he gained and may felt good about spending money too.

11.
April 20th, 2008 at 2:54 pm e

Gerry Mann wrote:

Build an RFP with specific information in terms of deliverables, expected value, ROI models, etc.

When you receive the work proposal, dissect it. Challenge incorrect assumptions and incomplete information. Ask them to resubmit with corrections.

Take the top three final responses, these are representative of the best work that they can do. Review them with a small team of experts.

Ask your small team of experts to rank the responses and make a recommendation. Sometimes the recommendation will be to adjust the RFP and rebid. Sometimes it will be a don’t do anything – these are the wrong people to do business with – start over. Sometimes there will be a clear differentiating consultant emerge from the pack.

Design whatever contract you put in place around payment for accepted deliverables. Provide a bonus structure for early/exceptional delivery. Provide a penalty structure for non-performance.

To summarize, know what you want before engaging a consultant. Make sure the consultant knows they are competing with others for your business. Use the experts in your organization to help you vet the RFP, the consultant selected and the contract. Tie pay to specific deliverables.

12.

April 20th, 2008 at 2:55 pm e

Tony Wanless wrote:

Obviously there is some antipathy out there to consultants, probably because too many people call themselves consultants when they’re really selling “solutions” — systems of some sort. That seems to be the basis of the confusion I’ve seen here.

As a Certified Management Consultant, I’d say always look for a CMC designation. It at least provides some guarantee that the service provider is trained in the methodology of management consulting and subscribes to a rigorous ethical code that forestalls many of the problems I’ve seen presented in some of these answers.

Consultants are simply knowledgeable guides that help you navigate through tricky situations. A consultant should be able to help you identify and solve your own problems and design plans and tactics that will add value to your business. Anything else is just free-lance implementation work.

13.
April 20th, 2008 at 2:57 pm e

Jeff Williams wrote:

As a Managing Consultant it is my role to get involved in pre-sales activities. By working with the prospective customer and along side our sales team and subject matter experts (other staff consultants) the goal is to have the necessary discussions with the customer to identify their business needs, project goals, desired outcome, deliverables and expectations and then wrap it all up in a detailed statement of work (SOW).

Once the SOW is drafted it is my responsibility to review it with the prospect to ensure all is covered and understood by us both. If we are chosen to execute the project we continually communicate with the customer to make sure we keep focused on the scope of work and execute as planned.

The KEY here is to find a partner that you can work with who understands your business need and who doesn’t just execute the tasks but honestly consults in the true essence of the term. Work with the consulting company to create a detailed SOW and then continue working with them to communicate status and expectations as your project moves along.

14.
April 20th, 2008 at 2:58 pm e

Peter Mojica wrote:

A consultant should 1) leave things “better” than they were when he or she walked in the door and 2) he or she should add value “over and above” what thy have been asked to accomplish. This usually comes in the form of “creativity” and “invention”.

When I hired a landscaping “consultant”, after an initial meeting she returned with drawings that included what we discussed, however she took the liberty to use her gifts, talents and creativity and almost “apologetically” she extended upon my vision and created drawings and designs that I had not asked for, nor envisioned, or for that matter even knew was possible. I was obviously very pleased, and receive value “over and above what I asked for, she deserved her fees.

In a professional vein I once hired a top-tier consultancy to analyze and provide recommendations and best practices for automation across several divisions of a large bank. What I received was a very detailed number crunching analysis, financial projections and comparisons, of our current expenditures from things to office supplies to outgoing mail, etc. The best practices recommendations included recommending the use of fax machine instead of FedEx for transmitting documents that did not require a passing of the “spit test” (signature) thus reducing an expense and adding “efficiency” since the said documents would be received sooner. I definitely got what I paid for, the analysis was exhaustive; but it’s questionable if I received any “value”.

It’s easy to see the differences in the two examples, what’s curious is that in both instances the consultants certainly “earned” their fees.

I would recommend in questioning a consultants background and experience to break it down very simply and ask about #1 and #2 above, they are simple questions with simple answers; in your last assignment how did you leave things “better” and what did you provide that the client didn’t even ask you for?

Lastly, “consultants” should not be confused with “contractors”.

15.
April 20th, 2008 at 3:00 pm e

Pablo Reig wrote:

Unfortunately, today the word “consultant” applies to anything. The brainy McKinsey , the IT nerd, the sympathetic door to door salesman, the bartender downstairs, some morons I know, myself… the list is endless. Everybody can be a consultant in our fast-paced & paradigmatic corporate world of the XXIst century. It looks like it makes us feel better. Some big fishes I’ve met had even consulting contracts to serve blue chip corporations as CEOs! I respectfully bend to ground level at this last one. Let’s consider for practical purposes that a consultant is a third-party bloke with the experience, as your friend said.
To answer your question I shall say that, what I would always look for in the consultant side is proven track record, ROI figures and the St. Thomas approach to case studies. In the solution side, a neutral fourth-party assessment would be greatly appreciated.
To further spice up your friend’s approach, as fun as reality, I give you a friend of mine’s one: “The moment I really feel the urge of hiring a consultant is when sh*t is happening and nobody would talk about it, nor in board meetings, nor at the coffee machine.”

16.
April 20th, 2008 at 3:01 pm e

George Montgomery wrote:

“Your job is to only buy what you need”

There have been a good range of answers to this question already. I would just add a couple of observations :

– what you need may change, based on your chosen consultant’s input. If you value their advice then it is worth acting on it;

– knowledge is the only thing that once sold still remains with the seller. Therefore pay your consultant for the benefit / improvement they bring to your business, not for their expertise.

17.
April 20th, 2008 at 3:02 pm e

Richard Tabor Greene wrote:

If you are so stupid that you need consultants for anything you are too stupid to manage them effectively–that is why their industry continues to exist.

Instead of consultants you should do what Procter & Gamble for 50 years has done–hire every consultant in the history of the world for precisely one week, pick his/her mind completely, and never see them again. This works–it is a kind of “adult learner college” approach to using consultants. It is vastly cheaper than paying them to “mess up X system for us”.

18.
April 20th, 2008 at 3:04 pm e

Brian Lindholm wrote:

Some respondents here mention the consultant should essentially guarantee results. I’ve been in a consulting role before. You cannot force someone to implement even the most proven methods effectively let alone implement ideas at all. If your client refuses to follow your advice entirely or at all, what are you supposed to do? I’ve almost had to let clients fall on their sword because despite their words, they really only wanted to confirm what they believed…not get a dose of reality from someone who had been there and done that. However, in the end, the consultant is only an advisor and not the owner of the business or its problems…it should stay that way. As a consultant I would NEVER sign an agreement holding me accountable for things that I ultimately have ZERO control over…such as how well another implements my recommendations.

I think the best way to work with a consultant is to challenge their ideas, advice, etc. but in the end realize that you own our business. The best engagements that I’ve been with were true collaborations. My client used their knowledge of their industry to judge feasibility of my recommendations. If something was unrealistic, I would go back to the drawing board to find another solution that would work. We would really teach each other about the other’s world. Eventually, we would always find something that truly worked. Also, the more I learned about their business, the better an advisor I became until I was virtually one of their employees.

Maybe the short answer here regarding the best use of consultants is to realize they’re advisors. They do not own your business or its problems. A consultant may start out looking and feeling like anything new and exciting…shiny and interesting. If he or she is truly a charlatan, or otherwise incompetent, that should come out soon enough. Only the sneakiest can masquerade as wolves in sheep’s clothing for long.

19.
April 20th, 2008 at 3:05 pm e

Jerry Weinberg wrote:

I make this easy for my clients by two principles of my consulting business:

1. At the end of every consulting visit, I ask them to evaluate the worth of my contribution. If it’s not worth more than they paid me, we either adjust what I’m doing or we terminate the relationship.

2. If they don’t feel what I’ve done is worth what they’ve paid, they can have their money back, no questions asked. I make sure they know this up front–though I’ve never had to give back their money.

If a consultant doesn’t give you both these things, don’t hire them.

20.
April 24th, 2008 at 11:04 am e

Sherri Dohemann wrote:

Good question Earl.

These are all excellent answers so far by Tuhin, both Doug H and Doug S, however Brian’s reference to guaranteeing RESULTS especially resonates with me because that would create both selectivity and commitment to the working consulting engagement relationship, which is good, not just billing for the sake of it.

It’s wise to remember that consultancies are growing enterprises themselves with targets to hit. In that regard, it’s important to understand what methodologies they use and how that impacts the results you’ll get vs. what you want.

For example. Say you empty a consultancy with world-class analytics metrics known for cost cutting reorganization when what you really need is a thorough understanding of customer needs to drive innovation.

You may have a talented consultancy, however you may be purchasing the wrong goods. You may have cut costs, however if you’re the CEO or President wit a passion for the long term business, you may not have fed your needs for the long term with the hiring of that particular consultancy. If what you’re after is to grow the business with game-changing business plans, then analytics-based cost cutting may not cut it.

For those in consumer based industry, here’s an innovation book by the P&G CEO. The medical industry is so much more complex.

21.
April 24th, 2008 at 11:05 am e

Glen Smith, CBIP wrote:

John’s answer is great. Make sure you want a consultant not a contractor. Make sure both you and the consultant have accountability/accounting structures can handle someone who is taking this role. At any point, you should be learning knew things from your consultant. At the end, you should probably be able to do what the consultant did for you yourself. You should trust the consultant: maybe someone you’ve worked with before or has glowing referrals from someone you’ve done business with before.

And the consultant should know the difference between knew and new.

22.
April 24th, 2008 at 11:07 am e

Hilal Hussein wrote:

Normally, consultants will be called for two main reasons: 1- Time/Resources Constrains (T/RC), or 2- Lack of Skills/Experiences (LS/E) in the area.
As you are asking on how do you make sure you only buy what you need, sure in terms of services (like expertise in implementation, installation, product selection, developing plans and policies, …. etc). I would say that in case of (T/RC) it is not an issue as you/(or of of you team) are also expert(s) in the area, so easily decide on the appropriate scope of work, time, and with the right consultant
But in the case of (LS/E) it is quite different and difficult, as you need to do lot of research on the scope of work for such service that you need, expertise needed, and under the proper scope of work need together with a checklist and matrix for evaluating the candidates (consultants).
RFP will be required in all cases, and it will include as mentioned before the references which is a key source of information for your own evaluation (cross checking).

23.
April 24th, 2008 at 11:08 am e

Merydith Willoughby wrote:

Your friend is a wise man. Consultants are fantastic when an organization needs expertise that they don’t have. It’s up to the manager to do her/his homework and find out that they are as good as they say they are.

It takes a skilled consultant a tiny amount of the same time to do something they’re trained in as it would someone who hasn’t got that experience.

Like anything – buyer beware. Have systems in place to ensure they achieve your desired outcomes and have a performance review.

I am a consultant and always talk to the people I work with about what they will achieve from having me and only stay for as long as they need me. From my perspective reputation is everything and I want to know that I have added value to anyone I work with and for.

Sadly, some consultants have given the good ones a bad name. Get a good one and they can help you to take your business to dizzy heights and get a bad one and they’ll not help at all but cost you lots.

24.
April 24th, 2008 at 11:10 am e

Jim Parnitzke wrote:

I don’t remember telling you that ;
Seriously I’m a management consultant based out of Jacksonville Florida. And agree completely with the wise words you have shared, especially the advice about “buying what you need…” and not what you want, something we can all reflect on in our daily roles as “consumers”. In the end, I remain firmly convinced the best way to select the right consultant for what you truly need is in thoroughly evaluating prior references. And really probing to uncover the values you should expect. Did the consultant:

– Consistently making the best use of the best people
– Believe in making consultancy and mentoring (training) a true value driven profession
– Use proven, field and research-based processes, tools and techniques
– Believe in life long learning – just in time; and readily transferable

And most important:
– Produce fast, reliable and economic results

25.
April 24th, 2008 at 11:11 am e

Marc Lawn wrote:

Hope this finds you well.

A few pointers:

1. Be clear what you want/need from a consultant.
2. Offer to pay them a % of their fee based on results – a good consultant will always agree as long as you are prepared to ‘negotiate’ the metrics.
3. Be 100% sure you don’t have the experience internally, if you do make sure you free it up.
4. If you are pretty sure you know the answer but are using the consultant to confirm then go with your experience.

Hope that helps. Feel free to drop me a line for any more.

26.
April 24th, 2008 at 11:12 am e

Malcolm Gabriel wrote:

Thank you for these thoughts. It made me laugh.

In my experience, consultants bring with them the external reference points from practices in other industries and companies. If their experiences are transferred to the organization through a consulting project, then I believe it is money well spent if that best practice fits an existing or future need.

27.
April 24th, 2008 at 11:13 am e

Ira Turner wrote:

I agree with Shuki. Define the objectives, develop contingency plans, take the agreed upon info and write a binding contract. In my ~20 years of utility experience, most contractors fear this. You are preempting the idea of “getting a foot in the door” and subsequent scope expansion. You will also be limiting or addressing personnel performance issues up front. Make sure the consultant (or contractor, I still don’t know the difference) recognizes they own the performance issues.

28.
April 24th, 2008 at 11:15 am e

Anil Ballal wrote:

Your friend’s 1st sentence is a reminder statement backed by his experience and the 2nd is his conclusive advice. Both are plausible and sound.

I’m addressing your question’s ‘how to’ from another angle, not the specific steps to be followed, which has already been given very well by others before me.

Looking at ‘your job’, ‘your need’ and ‘value’, then whatever be your decision, buy or no buy, it adds value to you only when you perceive it as valuable.

For example, you might decide to have a consultant even though you don’t need one, say to help a friend/company who/which has stood by you through thick and thin and now he’s/the company’s going through a bad patch. Here you don’t need the service yet it has value to you/your company according to you; some in the management might understand and support whereas some others might not, but you have solid reason(s) for doing so. That would be prudence even though it may appear otherwise to others. You cannot base your decision on what they have to say, it has to be based on your perceived value.

This is the deciding factor and you should follow your friend’s advice on the basis of your own perceived value; I believe your friend meant this too; it’s the punch line in his advice.

29.
April 24th, 2008 at 11:16 am e

Dan Lucarelli wrote:

Another thought provoking question!

In my career, I have been both a producer and consumer of consulting services – mostly I/T-focused. In that time span, I have learned lessons – some easy, some hard. What follows are sound bite bullet points of the lessons I’ve learned.

As a consumer of consultant services, I have learned to:
* Insist on a results-driven deliverables list.
* Agree on a fixed cost, regardless of effort required.
* Just like a resume, quantifiable results should be baked in to the expectations.
* Time lines are a quantifiable, and measurable, deliverable.
* Define economic impact if expectations, or deliverables, are not met.
* Insist on reference-able projects the consultant (not the consultant company) has worked on. Call the reference. Talk to them.
* Insist on documentation of activities to support the dollars billed.

As a producer of consulting services, I have learned to:
* Agree on the definition of success with the client before billable activity begins.
* Honor fixed price engagements, even if I mess up on estimating costs.
* Document billable activity in more detail than ‘X hours @ &yyy per hr’ on an invoice.
* Provide more value than the client expects.

I am reminded of two engagements in my career:
* Client ‘X’ wanted me to build a program that kept track of collection activities. I estimated 40 hours of effort, and estimated a 5x return on their investment. My effort turned out to be 65 hours, and their return was more like 100x. The good news? I enhanced the program over the next year, at T&M, and 25 years later I still have an enthusiastic reference.

* Client ‘Y’ always paid my invoice within 3 days. Why? I asked them one day. “Because”, they said, “we make money with you, you always tell us what you do with the time you bill, and you’ve never said ‘No’ when we ask ‘Can we do this?’ with our I/T systems. You’re the only consultant we work with that does this.” 15 years later, I still have an enthusiastic reference that steers business to me.

Provide real value. Do what you say you will do, when you say you will do it. Hold consultants accountable for results. And ask questions to make sure that what is in inventory is actually what you need.

30.
April 24th, 2008 at 11:17 am e

Lauren Kirby wrote:

Consider that a good consulting experience may also come from a consultant not tied into your industry, so evaluate first if they need your specific industry experience or if their objectivity from the outside is really more desirable. In my line of work (business process improvement/risk management/corporate documentation), it’s sometimes better that I don’t have industry knowledge–it fosters questions and research that the average customer would generate (without any assumptions being made) and an outside-in view of the business you won’t get otherwise. Ask for samples of the consultant’s work. If you don’t see what you want in the samples or if the writing style or quality is off or not complimentary, you can bet that’s what you’ll get. If you don’t get samples or don’t like the samples, don’t entertain the offer. Find someone who has experience AND work samples that truly demonstrate their value.

31.
April 24th, 2008 at 11:19 am e

Dorina Grossu wrote:

Educate yourself before hiring a consultant or become yourself a consultant within the organization; look at opportunities and take action. Develop a step-by-step business plan and monitor performance. You already know this!
Majority of large consulting companies hire “fresh MBA’s” with no experience on how to implement concepts, models into action and companies are wasting time and money. You know this as well!

32.
April 24th, 2008 at 11:19 am e

Melissa Storz wrote:

When dealing with consultants…buyers beware. I love using consultants because I can limit the contract and get a quick turn on the knowledge needed. I would be cautious when the end objective is still truly unknown. What ends up happening is the clock starts ticking, the costs begin increasing yet no end deliverable is in sight. Keep focused and a consultant can help you see the forest through the trees.

33.
April 24th, 2008 at 11:21 am e

Sam Lund wrote:

Quite many times, clients lack in methods and capabilities in a such a great extent that providing them with the “ultimate solution” is not a viable option. If you do it, they will not understand “why?” – so there ain’t too many options left.
You need to guide them to the next achievable step and then check what would be their ambition level even for a step further.
Now, this at sometimes gets interpreted as “selling more” – but most of the times is due to consultants being both realistic – and prudent.

34.
April 24th, 2008 at 11:22 am e

Chris Kelly wrote:

Great answers to an age-old question. Among the duds there are some great consultants out there who add much more value than they cost. As a consultant, I offer my clients both a Service Level Agreement at the outset and a feedback questionnaire at the end. Keeps me on my toes and gives assurance to the client. You can see from the client testimonials that it works.