| With staff sizes and budgets restricted or diminishing, | | | | * When planning to include a consultant in the mix, be |
| and top executives up and down the ladder under | | | | sure to make "room" for them both in the budget |
| pressure to do more with less each year, many | | | | and in the schedule. There will be some initial ramp up, |
| savvy executives are seeking help among the | | | | no matter how short, as they learn to work with the |
| seeming army of consultants of every stripe to get | | | | particular in-house players, and assess their individual |
| their companies on the profitability track. Are they | | | | capabilities. Leave a reasonable time for them to get |
| finding success down that road? | | | | acclimated and figure out who's who in your |
| The idea of the consultant is ancient - Egyptian kings | | | | organization. |
| and pharaohs had "consultants" with specialized | | | | * Depending on the type of project, the consultant |
| magical talents to advise them and point them in the | | | | has been hired to provide expertise, advice and |
| right direction when governing the masses. King | | | | specialized services. This often requires change from |
| Tutankhamun had one of the greatest PR | | | | the status quo, introduction of new ideas, and some |
| consultants ever seen, who told him that to the | | | | assessment of the internal strengths and |
| Egyptian people, big buildings mean big power, big | | | | weaknesses on the team. Take the advice and ideas |
| statues mean big power - and Tut and other | | | | you're given and make the most of it. Putting up |
| Pharaohs took this to heart and built the pyramids of | | | | roadblocks, creating obstacles, withholding |
| Giza and other wonders of the ancient world. | | | | information, and rejecting ideas out of hand are all a |
| Consultants can be used for a variety of purposes, | | | | waste of time and money. You've hired him or her as |
| from adding moral support in difficult or | | | | an expert, treat them as such, and listen to them. |
| uncomfortable political situations, to adding credibility | | | | * When planning to use a consultant, build into your |
| to pet projects in communicating them to Boards or | | | | plan sufficient staff time to manage the consultant, |
| subordinates. The image of the unfamiliar man with | | | | and the money in the budget to implement the ideas |
| the briefcase and the air of confidence in the boss's | | | | they introduce. You've hired an expert, but if you |
| office was born out of some particularly sticky board | | | | don't leave room in the budget to put into practice |
| meetings in the 1960s by top executives at a large | | | | the concepts they introduce, you've only done half |
| conglomerate who's ideas were not being | | | | the job. Even if you don't keep the consultant in the |
| communicated effectively or credibly, and a CEO | | | | picture during the implementation, you still need to |
| who's head was on the block. Once the Board | | | | fund the project sufficiently to be successful. |
| members heard the same message in a different | | | | Most good consultants in most fields have learned to |
| way coming from the consultant, an expert in such | | | | work with a bare minimum of supervision or |
| matters, they approved the plan and the CEO was | | | | management. If you carefully outline the goals for |
| spared. The consultant in that case didn't come up | | | | the project, introduce them effectively to the internal |
| with the idea, he simply communicated it effectively | | | | staff, and provide the resources and the |
| and lent his credibility to the idea. | | | | communication pathway for them to get accurate, |
| This practice continues today with great success in | | | | unvarnished answers to questions quickly, they will |
| companies and organizations across America. | | | | take the ball and run with it. |
| Communication by proxy can be used as an effective | | | | In order to keep them from veering too far from |
| strategy if a number of conditions are met. One is | | | | what you envision a success to be, some check-ins |
| that the idea or issue must have real merit on its | | | | or milestones for approval should be built into the |
| own. | | | | project schedule. That way you can adjust the |
| A bad idea is a bad idea, no matter who presents it. | | | | course at critical junctures before they go too far |
| Another condition is that the consultant be at least | | | | off the map. Too many of these can erode the |
| as credible as the staffer to the selected audience. | | | | effectiveness of the consultant and doom the |
| He should be a known, or at least vetted, quantity, | | | | project, so avoid the temptation to micro manage. |
| with the credentials to back it up. Once those two | | | | You had the foresight to hire them, now let them do |
| elements are in place, communication by proxy can | | | | their thing. Too few milestones can lead to some |
| be effective in getting new ideas implemented. | | | | surprises, when the end of the project approaches |
| Short Term Expertise | | | | and the final product is not what you envisioned and |
| Consultants have many other functions as well, and | | | | you don't know why. A happy medium and a light |
| most departments within the organization can find a | | | | touch usually lead to a successful outcome. |
| number of consultants that specialize in their particular | | | | Finances |
| areas of functionality to assist them. Sometimes | | | | The financial arrangements for consultants vary to |
| consultants can simply be used as additional | | | | some degree, depending upon the industry, the |
| manpower, fill-ins for key employees on personal | | | | scope and duration of the project, and the nature of |
| leave, plug-ins providing necessary functionality on | | | | the organization. Many work on an hourly rate, which |
| short notice for the short term. | | | | are standardized to some degree based on what the |
| These are not temps you can call in for a day or | | | | market will bear for the size of the projects, the |
| two while someone is out with the flu. They are | | | | area of expertise, the reputation of the consultant, |
| highly-trained, experienced executives who have | | | | and the geographic area. |
| been in many different corporate situations and | | | | A Human Resources Consultant will likely charge a |
| reached a level of comfort with the commonalities in | | | | small company in Tennessee less per hour for a |
| procedures in their area between companies to be | | | | candidate search than a large company in New York |
| effective quickly. They are typically not used in | | | | City, and the company's expectations and needs will |
| situations where the term is shorter than a month, as | | | | likely differ as well. The rate can be negotiated up |
| the cost of lost opportunity for a stint that short | | | | front, before the project starts, and the terms are |
| drives the hourly rate beyond the return value. | | | | often outlined in a binding legal contract. Most Boards |
| Expectations in this situation are relatively high, as the | | | | insist on such a document in one form or another, to |
| consultant is being asked to step into any number of | | | | help provide the company some recourse and some |
| situations already in place and under way, and gather | | | | protection for both parties should outcome turn out |
| sufficient information from internal sources to keep | | | | to be less than expected. |
| these projects moving forward effectively, in a very | | | | Some consultants in certain industries work on a |
| short period of time, but without injecting much of | | | | fixed project fee. This is negotiated up front as well, |
| their own influence or changing the direction of the | | | | once the scope and extent of their involvement and |
| project. This is a tough gig, and successful | | | | the size of the project has been agreed upon. A |
| consultants are to be highly prized and respected for | | | | contract is often required for this arrangement as |
| this set of skills that make such performance not | | | | well, with some contracts including an incentive bonus |
| only possible but routine. When projects are critical, | | | | for successful or early completion or for staying |
| and the schedule is inflexible for any number of | | | | under established budget guidelines. |
| reasons, this may be a good option for mid-size to | | | | On rare occasion, a consultant will work on a |
| large organizations. | | | | contingency, similar to a tort or personal injury |
| "Special" Projects | | | | attorney. Especially in forensic financial work, |
| Some organizations use consultants as outboard | | | | collections, auditing, or tax work, these arrangements |
| manpower to plan and implement special projects | | | | exist where the consultant's fee or payment is tied |
| outside the normal scope of the department or | | | | either directly or indirectly to the money they are |
| organization, or for projects that are of vital concern | | | | able to recover or save the company. |
| to the organization's success but only come up rarely. | | | | No matter what the arrangement, no matter what |
| Changing membership databases for a non-profit | | | | the industry, selecting which consultant to work with |
| organization is a prime example of this type of | | | | is a critical step to a successful outcome. A |
| consultant use. An IT or Association Consultant who | | | | recommendation from a colleague who has used |
| has been through many such changeovers and data | | | | someone for a similar project is a great start. Other |
| conversions can be an invaluable resource for such a | | | | sources include your local Chamber of Commerce, |
| critical undertaking that most organizations only face | | | | and industry-specific trade publication editors. The |
| every few years. Hiring a consultant under such | | | | local College or University department most closely |
| circumstances will expand and extend the | | | | aligned with your industry is also a good source of |
| organization's scope of expertise for a short period, | | | | "experts" in your selected field. Once you've |
| and take advantage of specialized knowledge that | | | | gathered a few names, a brief phone interview is |
| isn't needed on a regular basis. | | | | always a good idea. That alone can whittle the field |
| The expense of the consultant is far outweighed by | | | | down to two or three suitable candidates. |
| the savings gained by avoiding a misstep in the | | | | Their availability, and responsiveness will give you an |
| process and crippling your organization, however | | | | idea as to what they will be like to work with on |
| temporarily, while the problem is investigated and | | | | your project, and you can prepare some industry |
| fixed. The consultant can prevent you from making a | | | | specific questions to ask, to see how close to your |
| poor purchasing decision, and mitigates buyer's | | | | industry and your project they are currently. Once |
| remorse by making the correct match between user | | | | these are complete, a personal interview is in order. |
| and product. | | | | This will give you an even better idea as to the |
| Sometimes that special project requires some | | | | character of your candidates and their capabilities. |
| specialized expertise in order to allow a "pet" project | | | | Each candidate should furnish a list of client |
| to be executed properly, and that expertise doesn't | | | | references, and they should be rigorously checked |
| exist in house. If time is a factor, and there's no time | | | | before making a decision. |
| for internal staff to develop that type or level of | | | | Once a decision is made, financial arrangements can |
| expertise, a consultant can be an excellent solution. | | | | be made, and your project can begin. |
| The can work directly with your internal staff, | | | | Consultants can be a vital part of your organization, |
| provide the expertise necessary to move the | | | | expanding your capabilities, allowing you flexibility in |
| project forward effectively, by-pass the internal chain | | | | staffing to meet short term needs, and let you take |
| of command and the inherent internal politics, and | | | | advantage of expertise beyond the level you are |
| propel the project to a successful conclusion quickly | | | | able to train in house. Used wisely and strategically, |
| and effectively. | | | | consultants can help you meet goals, complete new |
| Guidelines | | | | projects, grow your organization and function more |
| There are some guidelines to keep in mind when | | | | efficiently and profitably. |
| using a consultant for this purpose. | | | | |