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Navigating Your Way Through the Client/Consultant Relationship

a speech by David A. Bratton to London Education and Training Society

Contents

·         Introduction

·         Some facts and views on consulting

·         Ease of entry = Ease of exit

·         Some consultants get bad press!

·         Some consultants get g

·         Good press!

·         What's it all about, Alfie?

·         Management consulting defined

·         Consulting as a body of knowledge

·         Consulting as a process model

·         Pitfalls and pratfalls -- It ain't all glory

·         A reality check - So you want to be a consultant?

·         So you still want to do it?

·         Where to go to get help

·         Tools you will need

·         My favorite books on consulting

·         Concluding remarks

Management consulting, in all its myriad forms, is the fastest growing profession in North America. Despite, or perhaps because of the recession and prolonged organizational downsizing, the profession has grown by leaps and bound in the last five to ten years.

It is a fascinating, challenging, frustrating, rewarding, unrewarding, odd, funny and thoroughly engaging profession to be in. As a profession, it is laughed at, cursed, praised, revered, appreciated and under or overvalued as may be the view of the consultant or the client.

It is a field filled with lots of people who would have you believe that it is a complicated field, fit for only the most qualified, rarefied people in the world. There is a mystique attached to consulting that defies explanation. Many people dream about being a consultant. Some people actually seek it out as a profession. Others, the smart ones, wouldn't touch the profession with a barge pole!

Pat Carney, a former cabinet minister in the Mulroney government, started her consulting practice in the Yukon of all places. She subsequently moved to Vancouver and when asked about the consulting profession, said, "There is nothing complicated about the consulting business. There are only three things to remember. Get the work. Do the work. And, most importantly, get paid for the work!"

I am pleased to be with you tonight to share some of my thoughts and observations on the consulting profession. Let's start with some facts.

Some Facts and Views on Consulting

Consider these statistics that attest to the rapid growth of the consulting industry:

1.       Explosion in Revenues. Rough estimates of the size of the consulting market in North America are in the order of $4 billion annually. With a growth rate exceeding 10% it is a field that attracts entrants.

2.       Proliferation of Services. Not only have revenues increased but so has the variety of "products" and "services" offered by consultants. In the early 1900's there was an almost exclusive focus on industrial consulting. Today there are practically hundreds of services ranging from the traditional ones of recruiting, training, etc. to change management and re-engineering (today's hot but fading service).

3.       Growth in Professional Consultants. Whether driven by demand or by supply, the number of individuals attracted to consulting has skyrocketed in the last ten years. In London alone the number has quintupled since I went into business eight years ago. New entrants include, in addition to people seeking to make it their chosen profession, newly downsized individuals, early retirees, etc. The rise in contracting out services and the parallel rise in homebased businesses have all contributed to the growth.

4.       Entry of new firms. Consulting is a profession with virtually no barriers to entry. In other professions you have to be licensed, called to the bar, certified, certificated, approved or whatever barriers are erected to control the entry into the profession and the conduct of the members. Not so with consulting, you need little in the way of capital (a computer, faxmodem and printer are essential tools) and a business card that says "Consultant in..." and you are on your way. It is no wonder that the consulting profession has been linked with the "oldest" profession!

In fact, the consulting business is not the oldest profession but it is the second oldest! The first organizational consultant in recorded history was Jethro, Moses' father-in-law. You may recall that Moses was having trouble organizing things after the exodus out of Egypt. Jethro saw that Moses was trying to do all the judging himself (cf. management development - lack of delegation). He told Moses to shape up and get help (recruiting) from able people (competency definition) and teach them ordinances and laws (training) and to place them as rulers of thousands, and rulers of hundreds, rulers of fifties and rulers of tens (organization analysis and recommendations) (Exodus Chapter 19, Verses 14-22.) This gave Moses the time to work on the Ten Commandments and the rest is history!

Ease of Entry = Ease of Exit

Getting into the consulting profession is easy. With all markets that are characterized by ease of entry, they are also characterized by ease of exit. Thus in the consulting business there is a significant amount of turnover of individuals. Some try the profession and don't like the role of hired gun. Some people are in the profession only long enough to find another job. Some have "retired" and have dabbled in consulting for a bit before finding that it takes a lot of work to make a living.

The point of this observation is that the entry/exit phenomenon causes a great deal of churn in the market. This in turn leads to confusion, doubt and distrust of the experts' claims in the mind of the consumer. Confusion over who is a consultant; doubt about the claims of the consultant and his/her experience and distrust of the expertise.

Some Consultants Get Bad Press!

Given the ease of entry into the profession and the phenomenal growth in services, professionals and firms, consulting has inevitably attracted a lot of bad press in recent years. Ease of exit that causes churn is only one source of bad press. Consultant jokes are everywhere. "She must be a consultant -- she has overheads and is from Toronto." "Yeah, I know about consultants. They borrow your watch to tell the time and keep your watch." You probably have heard a number of other jokes but please don't offer them to me tonight!

There are lots of reasons that consultants get bad press. Here are a few:

·          Ease of entry and exit causing churn in market.

·          Shoddy work on the part of the consultant leading to upset clients.

·          Good work but poor service.

·          Angry internal staff who were trying to get their ideas across to management and watch the consultant take those ideas and sell them.

·          Overcharging and under delivering (nobody ever heard of the reverse).

·          Hired guns scare people. Some hired guns are there to cut and slash (the hidden agenda).

Some Consultants Get Good Press!

Consultants also get lots of good press. I cannot think of any examples right now but I know that they do! Most of the time though, their work goes unreported unless it is in the public arena. Then it is 'free throw' time and everyone can second guess, take potshots etc.

What's it all about, Alfie?

Well, the dalliance over the profession is over and we must get down to some serious business. For the balance of my speech, I am going to first define management consulting and then explore the process of consulting including managing client relationships and things like the real truth behind the glamorous mask! I will conclude with some advice for anyone thinking about going into the consulting profession and for anyone hiring a consultant.

Management Consulting Defined

Management consulting is an advisory service contracted for and provided to organizations by specially trained and qualified persons who assist, in an objective and independent manner, the client organization to identify management problems, analyze such problems, recommend solutions to these problems, and help, when requested, in the implementation of solutions.

Consulting to Management
Greiner & Metzger

Management consulting is not a product or service that is neatly packaged and sold at a fixed price. According to Greiner and Metzger (see bibliography, below) it is "an open-ended activity in which the management problems and solutions are usually ill defined and where the client seeks greater clarity and advice through the consulting process. The consultant has the opportunity to bring his or her intellect to the systematic unraveling of the client's problem and then to apply creativity to the formulation of a sound solution." (Pp. 7 & 8.)

In the case of training consulting, the process is applied through a careful definition or needs analysis. The creation of a training programme targeted to developing the behaviour that is required is the next step and the implementation of that training programme on behalf of the client.

In fact, as every good trainer recognizes, not every problem can be solved through a training programme. The recognition that this is the case shows the value of the objectivity of the independent third party. If, for instance, the client says, "we need a communications programme" he or she has defined the problem and decided on the solution. Therefore, your choice is to deliver the programme or to take a consulting approach and insist that you have the opportunity to analyze the problem and define the solution. If it turns out that the client is right, then hallelujah we have a deal! If the client is wrong, the consultant has a dilemma! Do I tell the client he or she is wrong and risk losing the contract? Or do I just do as the client says and hope for the best? It is a moral dilemma faced by every consultant. The need to eat versus the need to tell it like it is!

Consulting as a Body of Knowledge

It always surprises me when I uncover so much ignorance in the consulting field. By ignorance I do not mean in the technical specialty of the individual consultant. For the most part, consultants are very able to develop their own technical expertise and, through professional development activities, keep up-to-date on the latest developments in their field of expertise.

No, I mean the ignorance that comes from an almost complete lack of understanding that over and above their technical expertise there is a whole body of knowledge called consulting and consulting skills. Just last week I met someone who had been in the consulting business for seven years, all with a major, well known consulting firm. In that whole time, the individual was never exposed to information on the hows and whys of consulting. Nor, just for balance, did the individual think to even ask the question!

At the end of my paper, I will give a number of references so that anyone who is interested in learning more about the profession can pursue their own independent research. In the meantime, I want to deal with consulting as a process as opposed to a technical specialty or service offering.

Consulting As a Process Model

Most consulting assignments, whether it is a training assignment, an organizational restructuring, a change management or a re-engineering project, follow a process model. The one I most often use works on two principles. The first is that there is a defined path for a consulting assignment. The second is that there are two basic elements that you need to manage, the task elements and the relationship elements. The former concerns the content of the work and the latter concerns the relationship or partnership with the client. The model, very briefly, looks like this:

Phase 1 - Scouting and Entry

This is the beginning of the assignment where you are trying to define who the client is and to find your way into the organization. Lots of time spent up at the front building trust and developing a valid contract that specifies the form of the partnership. This contract specifies roles, responsibilities, timing, fees and deliverables. If done properly the understanding arrived at will make the assignment go well and save endless grief later on in the contract. My advice is to spend a lot of time making sure you know who the real client is and building trust and confidence with that person or group.

And be sure you address both the Task and the Relationship issues in the assignment. Tasks are the 'hard' side of consulting and Relationships support the 'soft' side and often the potentially most dangerous part of the client/consultant relationship.

The outcome at this stage is a valid contract that both parties can use to define the assignment.

Phase 2 - Analysis

This is the fact-finding phase and is equivalent in training terms to the needs analysis process. Here you are trying to find out, through appropriate data gathering techniques, what the real problem is and what are its dimensions. You also want to use the data to, as Geraldine used to say, "figure out what to do with what you've got."

The client as partner can help you with the fact-finding, diagnosis and synthesis of information. Involvement of the client builds support for the final recommendations.

Phase 3 - Recommendations

This phase of the assignment is for generating alternative solutions, assessing them, selecting the best alternative and developing preliminary implementation strategies. You must at this point involve the client in the solution. Ask yourself, what can the client live with? What is the organization's capacity for change? And most importantly, what is the level of commitment to the solution you've generated from the data?

The outcome at this stage is a decision to accept your solution (or the solution generated by the team if it is an external/internal team).

Phase 4 - Implementation

The task variables at this stage include a specific implementation strategy, plans, communication methods, training, and monitoring systems. The relationship variables include defining the key players including resisters and supporters; going for incremental change; building on small successes and providing moral support for the organization.

The outcome at this point is disengagement or leaving with confidence. This is often the hardest part for the consultant. The excitement is over and letting go time has come! You are no longer the hero, the implementor, the partner. You are finished the assignment and must find a way to disengage with grace. Staying on too long is always a mistake!

Phase 5 - Impact

At this stage you are following up with the client to assess results, verify the problem and solution, verify the implementation strategy and the contract. You have to ask the question, "Is the client better off as a result of this intervention?" Can the client system maintain itself?

On the partner/relationship side, you follow up to show you care about the outcome. I often build follow-up right into the contract to ensure that I follow through with the client. You really need to know whether or not the client liked what you did.

The outcome is a validation that the solution fit the problem and that both you and the client are satisfied with the project outcomes.

Pitfalls and Pratfalls -- It Ain't All Glory

So much for the process. Now let's do a reality check. While the process looks simple and straightforward, it is far from it. Every consultant I have ever known has a story to tell about the 'client from hell.' In my case it was dealing with a megalomaniacal owner who terrorized his staff . Every time I was with the staff, the owner would find a way to sidle through the room, just to make sure everyone knew he was watching.

I resolved the client issue by using all of my constructive confrontation skills to let the client know that his behaviour was unacceptable and was getting in the way of the development of a workable solution. My advice - pay close attention to the client. Understand where they are coming from and, more importantly, where they are going.

A Reality Check - So You Want To Be a Consultant?

Many people would like to be a consultant. They see the glamour of Gucci shoes, lots of travel and accolades on a job well done. Those things are possible but not always achievable. Here's my list of the plusses and minusses of being in business for yourself:

The Good

·          Lots of freedom, if you want to work, you work. If you want to goof off, nobody but you will object.

·          Satisfaction of getting the work and doing it and especially being paid for it.

·          Potential to make an excellent living as an independent consultant/small businessperson.

·          The challenge of keeping up to date in your field and using that knowledge for the benefit of the client.

·          Your tax position is better than being employed (but this is predicated on you making enough money to afford the tax breaks!)

The Bad

·          It can be very lonely out there, all by yourself. Homebased consultants often feel that they are modern-day troglodytes (cave dwellers).

·          It can be very scary. If you work, you eat! If you don't work, you don't eat. It's an immediacy that few understand until they actually try it.

·          It can be hard on your family. No security, no benefits and no fallback position often drive the unwary or uncertain out of the business, especially if it's the only income in the family.

·          Proposal writing is time consuming and has a low percentage of acceptance. Be prepared for lots of disappointments along the way.

The Ugly

·          Consultants are an object of scorn and derision so be prepared for the fact that you will not be loved by everyone!

·          Consultants can be used as cannon fodder, to take the hit or as windowdressing to justify what the client has already decided.

So You Still Want To Do It?

Well, here are my thoughts on making a go of the consulting business:

·          Do your homework - research the market for your skills and services. Read a lot of books on consulting and your field. Ask lots of people lots of questions. You'll gather a lot of good information and build a network of good contacts in the process.

·          If you haven't got a network then you'd better develop one quickly.

·          Put together a business plan that shows you various scenarios of revenues, expenses and net profit on a monthly basis for at least the first year. Be realistic.

·          Make sure you understand how to market your services and if you don't know how to sell or you don't like to sell then forget consulting as a profession. You'll starve!

·          An ability to write proposals, speeches, articles, invoices, etc. is a critically important skill to have.

Where To Go To Get Help

There are all kinds of sources of help for you:

·          The books I recommend at the end of my speech are a very valuable source of information.

·          Your public library or the Western Business School library has a wealth of information.

·          The Institute of Certified Management Consultants of Ontario (located in Toronto) is a good source of information and it is worth exploring membership and qualifying for your CMC designation.

·          Your Banker can be a friend and supporter. Most bankers are knocked out if you present them with a good business plan.

·          Other consultants.

·          The Journal of Management Consulting, which is available at the UWO Business School library has good articles on consulting.

·          The Internet offers a very exciting source of information. If you are signed on then your research on any subject will be made much easier.

Tools You Will Need

Here are the tools you will need to get you started:

·          A computer with word processing, spreadsheet and a contact database programme are essential tools.

·          A Fax machine or a faxmodem.

·          A place to work.

·          A line of credit to keep you going in lean times.

My Favorite Books on Consulting

Surprisingly or not, you can learn an awful lot from books. Here are my top five favorites. They have provided me with information, insights, useful processes and just general knowledge. If you are interested in the field, either as an internal or an external consultant, you will find these books very useful.

Greiner, L. and Robert Metzger. Consulting To Management. Prentice-Hall. 1983.

This is an eminently practical book for anyone considering consulting as a career or a profession. It is divided into three parts, The Consulting Profession, The Marketing of Consultant Services and Models and Methods for Consulting. In this book you can learn how to write a proposal, how to price your services, what kinds of services you can offer, etc. Highly recommended. My favorite reference text.

Block, Peter. Flawless Consulting - A Guide to Getting Your Expertise Used. University Associates, Inc. San Diego. 1981.

Peter Block wrote the book on process consulting. It is a practical and useful consulting guidebook that focuses on consulting behaviour. It is a how-to-do-it for process consulting. Not as nuts and boltsy as Greiner & Metzger but excellent.

Zemke, Ron and Thomas Kramlinger. Figuring Things Out. Addison-Wesley. Don Mills. Sixth Printing. 1987.

Many of you may be familiar with this book. It is a Trainer's guide to needs and task analysis and is good value for money. This is a handy source book for any training consultant to have in his or her library.

Maister, David H. Managing the Professional Service Firm. Maxwell Macmillan Canada. Don Mills. 1993.

David Maister's book is very useful. Don't be put off by the title. This one tells you all about some very important things such as marketing your services. He tells you what works and what doesn't work. This book is good stuff.

Concluding Remarks

The consulting business is at once fascinating and frustrating. For me the fascination outweighs the frustrations, most of the time! On the one hand it's a business like any other business. On the other hand it is challenging, rewarding, exciting, satisfying in a way that no other business can be.

I hope that during the course of this speech I have given you some insight into the work of a consultant and I would be very pleased to answer your questions. Thank you.