Thursday, November 09, 2006

Consultant Myths and Truths

Ever been in a meeting and somebody said "let's just get a consultant in here to help us." Well bringing in a consultant might be a good idea, but then again it might not.

Statistics show that only 4% of buyers of consulting services can claim they are very satisfied with the results of the consulting engagement. That number is staggering when you consider that hundreds of billions of dollars are spent on consultants each year.

Buyers of consulting services have the power to help their consultants succeed. Matter of fact - the buyer is REALLY the key to a consultant's success!

The most common projects to fail are what I like to call the "knee jerk project." These are projects where clients are quick to jump and say "I want this fixed!" without fully understanding what needs to be fixed. Prior to hiring a consultant, the company should ask questions like is it really a problem, what specifically is the problem, can the problem really be fixed, what are some scenarios of potential solutions, and what does the end product/project look like? In other words, what do you want the consultant to accomplish?

Additionally, even when the project is well thought through, consultants aren't magicians who wave their wand and suddenly make all the bad things in a company go away. If there are internal barriers that would prevent a problem from being fixed, no consultant can fix it, no matter how much experience they have or how much they charge you.

Another project likely to end in failure is the "band aid project." Many companies are willing to spend a small amount of money on a consultant who can really only provide a patch, rather than paying more money for one who is tasked with providing a long term, sustainable resolution.

For example, don't pay a company to set up a lead management software program unless you are going to pay them to make that software communicate/exchange data with other pertinent company software programs and business practices. Short cuts may provide immediate gratification but their benefits are short lived. If you can't afford to do it right, wait until you can.

Finally, let your consultant do what they do best - their job. If you are constantly pointing out "this won't work" or "we tried that" then their ideas won't be fresh. First let them present the ideas then suggest improvements. They won't always be right on the money, but if you stifle ideas then there is no point in hiring them. Let them do the work and don't second-guess every step of the way. Be open-minded and more often than not they will slip in an idea you never considered.

Before you hire a consultant you need to make sure the objectives are realistic and achievable, that you both agree to a Statement-of-Work with set expectations and a communication vehicle for milestone tracking, and that all internal barriers are removed before any of the work begins. Don't waste your money if you are going to set your consultants up for failure.

Article written by Emarket.com
http://www.eworkmarkets.com

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