How to Waste Money on a Consultant

Sometimes a consultant has to convince potential clients not to do a projectLately I often find myself trying to convince potential clients not to hire us. Or, trying to convince them to rethink what they’re asking for before we begin working together. Or, sometimes, I realize we’re at a stage in a project where we need to just call a timeout. From my archive of false starts and blind alleys, here are five ways to ensure that a consultant you hire will achieve no useful results. 1. Don’t Define the Project "We have a lot of issues to deal with," said the voice on the phone. The discussion ranged far and wide—systems, networks, suppliers, service, staffing, money, you name it. "Can you help us?" asked the anxious manager. "If we work on this," I responded, "on what basis will you determine whether the project was successful?" I had him there. There was no project definition, no clear scope, no specific objectives—just ill-defined concerns. Consulting work could easily lead to major fees with no clear gain. Before you hire a consultant, you should be able to state very clearly the results you hope to see. If you can’t, it may be appropriate to hire a consultant just to define the problem. Often that’s the only way to lay the basis for consulting work that has a clear goal and can bring a clear return on investment. 2. Don’t Get Senior-Level Buy-In or Buy-In from Other Groups One executive asked us to conduct an operations review. The goal was clear, and our summary more than met the stated requirements. But when we presented the results jointly to the executive committee, one senior executive from another business unit responded acidly to our client. "You’re worrying about mice in the hallways when we have elephants in the basement." Top management in the other departments were convinced that the organization had major planning gaps that had to be addressed first. They didn’t know that we had been hired and wouldn’t have agreed if they had known. 3. Don’t Get Involved An IT manager asked us for a baseline study—a broad survey of network facilities and service levels. "Ask for any data, and ask any questions," she said. "I’ll make sure everyone cooperates." Then she disappeared. We were on our own to decide what was important, what documents were needed from where, who to talk to—and we had no one with whom to review preliminary data and conclusions. We called a timeout and stopped the project. It was clear that everything would likely take three times as long as it should. Without strong support and active participation from the client, consulting projects can run up needless costs and fall well short of optimum results. 4. Hide the Real Agenda Asked to review an organization’s telecom infrastructure, we concluded the project by presenting a wide range of practical recommendations. "But what about our staffing?" asked the person who hired us. "Aren’t we working well?" His real concern, it turned out, was to head off being outsourced. We were supposed to endorse the efficiency of the operation. The hidden agenda was to head off a proposal they had received from a systems integrator to provide outsourced services and staff. Our client had begun to develop an internal document without the right facts and information. By the time we learned of the document and obtained it, it was too late for us to contribute anything useful to a quick resolution by our client’s executive team. We could have addressed the real issues from the beginning and saved everyone a lot of time and effort. If you want a hired gun to help fight your turf wars, make the targets clear from the outset. 5. Look for a Rubber Stamp We had been asked to help decide whether to upgrade an older system or replace it entirely. But it soon became clear that the person who hired us had already decided that a replacement was best—he just wanted us to reach the same conclusion. Sometimes you need an outside opinion to lend authority to your recommendation and to help convince the senior executive. In fact, it’s very common. In that case, it’s best to tell the consultant right off: "I want you to provide the support needed to sell my proposal." But at that point I always ask, "Are you open to different viewpoints?" and "Are you open to additional comments?" You can buy a rubber stamp at any office supplies store. It’s precisely the consultant’s independence and objective weighing of options, in the best interests of the client enterprise, that give true value to the project’s conclusions and recommendations. And often that’s just what a client needs to win support for a critical initiative. "On the Line" is based on the consulting experience of Angus Dortmans Associates. Henry Dortmans, President, welcomes comments and suggestions. Send an e-mail to dortmans@angusdortmans.ca or call him at 416-849-2896. For information on the firm’s advisory services, seminars and speeches, visit www.angusdortmans.ca.

How to Waste Money on a Consultant

News | 06/28/2005 4:00 am EDT

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