Not just consultancy

I was musing to my wife the other day - trying to explain how I conceptualise my skills - what makes what I do special, and a bit different from other people who might have the same role. I explained that what I like to do is to chat with people, find out about the problems they are having, and then try to work out ways that they can solve the problems. Sometimes the solution might involve technology, sometimes training, sometimes changing processes, sometimes changing the way that they think about the problem.
She said to me, "That's just consultancy!"
Instinctively I shrink from describing what I do as consultancy, and, over the past few days I've been trying to figure out why.

Three problems I have with consultants

Consultants tell you what you want to hear 

 

I think that a lot of businesses bring in consultants to justify what the MD or CEO wants to do anyway. They come in, listen to the Boss, write it all down, add some charts, take the money and away we go.

Your problem is always solved by what the consultant has to sell

The second problem I have with consultants is that a lot of them come in to sell you their own solutions off the shelf. Whatever your problem is, the things that they just happen to sell are the solution. So the process improvement consultants will sell you CMM, or EFQM, or Scrum, the software vendors will sell you a new CRM or an ERP system (if you're really rich and unlucky) and the system integrators will sell you lots of different systems which will cost a fortune to glue together.

Consultants charge too much, with no guarantees

The third problem is that they're so expensive. A one-man band will cost you £350-£500 a day, a consultant from a small to medium-sized consultancy will cost £600-800 and if you go to the big beasts then you can expect to pay anything up to £1500 a day. And whats worst about this is the risk is all yours: once they have delivered the report, or the new project management templates, or the shiny new website they are out of the door and it's up to you to turn all that spend into something that actually benefits your business.

Another way

I'd like to propose another way. My way has two parts to it: a new way of working and a new way of getting paid.

A new way of working

It's very simple really: This is how it works:

1. I work with you to figure out what your real problems are;
2. I work with you to figure out what is the simplest and cheapest thing that can be done to solve that real problem;
3. I work with you until the problem is solved or until you don't need me any more.

 A new way of getting paid

Instead of doing half the solution, taking the money and leaving you to do the rest, the consultant should have an up front conversation about how much you expect to gain from solving the problem. Then we can talk about how much and when the consultant should be paid.

How much

There's very little point in paying £5k for a new website if it doesn't bring in any new business. As an aside, this conversation (known in Prince2 speak as the Business Case) is a key part of step one of my 3 step plan, above. Maybe you would want to pay £5,000 if you were going to get £50,000 of business from it. I don't know, but it's a conversation we should have

When

I am of the firm opinion that any decent consultant should have enough faith in his own expertise to be willing to be paid by results instead of getting paid whether or not he (or she) makes a difference. Of course there are limits - I wouldn't expect a consultant to shoulder the risk of implementing a new data centre (and I hope neither would you) but it should be part of the conversation.

Do you think this would work for you? If so contact me and we can have a chat.