People, Performance, Portfolios, Processes, Products and Projects
Management ConsultingTheoryManagement Consultants exist to provide assistance to companies by giving advice and fixing problems. Hiring A Management ConsultantWhen to use Management Consultants:
One non-negotiable function of Management Consultants should be that of Skills Transfer from the Consultant to the Enterprise's staff. Ensure that the Management Consultant is not protective of their knowledge and will transfer it freely and proactively. Ensure that the Management Consulting vendor has a methodology, but it is not a dogma for them. Ensure that when you engage a Management Consultancy you make it clear to them that that they may not subcontract to another person or Enterprise - ever. Delete all words to this effect from the Contract you have with them. You want them to be the prime and only contractor. You want to be the Systems Integrator (SI) and Project Manage the project - not them. You do not want layered Outsourcing. Ensure that you manage the Management Consultant in a manner that supports the vision and the Enterprise Strategy. You will need to allocate the same amount of time to managing a Management Consultant as you would to a normal staff member. Ensure that you interview the specific Consultant who will be assigned to your project before they start. You are generally not buying an Enterprise. You are buying a specific person and that person's skills. Ensure that you will be advised by an industry expert rather than a bright young generalist who will need to spend time (on fees) learning about your business. Ensure that tangible, measurable results can be achieved. Consider putting the Consultant on a fees basis tied to achievement of benefits. One of the areas where a Management Consultancy adds value over a Body Shop is they generally perform Peer-Level Reviews of all deliverables as well as the Consultant himself. Make sure that you understand how this will be performed, by who and at who's cost. Ensure that you perform reference checks on both the Management Consultancy vendor and the specific Consultant(s) to be assigned to your project. Ensure that the Management Consultant understands that you are not just after bright ideas and advice. You want them to implement them as well. Do not hire a Management Consultant for any of the following reasons:
The following diagram may help in understanding when to retain and when to quit a Management Consultancy:
When about to hire a Management Consultant, use the Statement of Work (SOW) as a check list, or better still, give it to the Management Consultant and ask them to prepare a Statement of Work (SOW) in that format. That way, you look professional and they provide you with all of the information you require. Expect Consultants to perform unpaid work prior to "starting the clock". It is reasonable to expect that work required to submit a Sales Proposal and/or Statement of Work (SOW) be unpaid. Consider putting Consultants on short-term rolling Contracts rather than an open-ended Contract. Being A Management ConsultantNeed to clearly separate New Business Getting from execution (ie, the sales person is different to the Consultant performing the work). Differentiation (ie, area of expertise). How to have the Client retain the Consultant for the next project lifecycle phase? How to have the Client retain the Consultant for the next project? Always perform all work in front of the Client. This includes all:
By having Open and Honest Communications in front of the Client it ensures the Success Roadmap will apply. Similarly, when you perform the work in front of the Client, there can be no argument that the work was not performed and the fee for the service should not be paid. Treat all Client information as confidential to that Client. Understand the contract. Manage like a Fixed Price contract, even if it is on a Time and Materials basis. No More Than/Capped fees. Do not threaten Client staff. Responsive. Understand Clients as people first and as Clients second. Be someone who:
Hit the road running - no learning curve. Do not get involved in Enterprise Politics. Don't tell the Client everything up front or in your Sales Proposal/Statement of Work (SOW). If you do, they won't want to pay to retain you. Align yourself with Business Staff in preference with Technical Staff. Business Staff are the ones who control the purse strings. Be seen as an honest broker for the IT Department. Businesses are prepared to pay more for people who will fix problems rather than simply identifying them. Emphasis should be on using technology to solve business problems and not on solving technology problems. Enterprise Strategy and IT Strategy need to be inextricably entwined. What is our intellectual capital? Behaviour
First AssignmentDo everything possible to get the assignment in the first place. Add-On AssignmentsGetting add-on business. Office/Practice ManagementCollection of Timesheets. Debtors Invoicing and billing. Office staff management. Similar activities to IT Project Office. Have each Consultant regularly update their personal résumés so that it can be included in any Statement of Work (SOW) submitted. General Assignment PracticesBe careful of communicating with all levels of staff (unless specifically asked to do so). This may put the hierarchy's nose out of joint. Do not talk badly or tell anecdotes about previous Clients. What will the current Client think you will say about them when you move on? If you must talk about them, don't name them. Engagement ModelConsulting ---> Project Management ---> Systems Integration ---> Outsourcing Critical Success Factors (CSF's)
Jokes
Those who can't, teach. Those who can't teach, consult. Also SeeManagement Consulting is one of the significant Threads that exist throughout PMMentor (PMM). To print a "Handout Pack" on this Tread, create and print a title page based on that shown under the "Methodology Treads" topic and then return to this topic by clicking on the "Back" button, click on the "Print" button (to print this topic to act as a Table of Contents) and then click on each of the following topics in turn. When the topic is displayed, click on the "Print" button, then click on the "Back" button to return to this topic and choose the next topic to print. Critical Success Factors (CSF's) Differences Between an Estimate, a Quotation and a Budget First Day of Assignment Check List Management Consulting Macro Evaluation Criteria Management Consulting Reference Check Managing a Software House/Consulting Practice Product Sales and Marketing Plan Résumé Best Practice Processes |
