Ten Reasons to Hire an Independent Consultant
By Teri Mendelsohn, President, Mendelsohn Consulting, Inc.
In my conversations with senior executives, we often run up against the question, explicitly or implicitly, Why should I hire a consultant? And they mean it. Perhaps they know the problem in their organization exists but assume a staff member will handle it ... even though the issue has been lurking for over a year. Or perhaps they have had a negative experience with consultants because expectations going in were not realistic. Or perhaps they never have worked with a consultant and don't know how to frame engagements or what value the consultant will bring. To address all these scenarios and more, here's my list of the top 10 reasons to hire an independent consultant:
1.
Get politically-neutral results. Existing team members are motivated to defend their projects, turf and resources. The client can be swayed by personal relationships with her reports or manager and simply by being too close to the daily details to have sufficient perspective. The consultant can analyze, filter and prioritize options and input and deliver them to the client in a neutral way so the findings can be judged by their merits, not their political impact.
Get politically-neutral results. Existing team members are motivated to defend their projects, turf and resources. The client can be swayed by personal relationships with her reports or manager and simply by being too close to the daily details to have sufficient perspective. The consultant can analyze, filter and prioritize options and input and deliver them to the client in a neutral way so the findings can be judged by their merits, not their political impact. 2.Access skill sets not available in your organization. Typically, independent consultants, having spent some number of years in industry, strike off on their own in search of independence, variety and flexibility. They offer deep industry knowledge, operating experience and particular operational skills. Hiring an independent consultant allows you to deepen the bench of talent in your organization and access skills not otherwise available.
Access skill sets not available in your organization. Typically, independent consultants, having spent some number of years in industry, strike off on their own in search of independence, variety and flexibility. They offer deep industry knowledge, operating experience and particular operational skills. Hiring an independent consultant allows you to deepen the bench of talent in your organization and access skills not otherwise available. 3.Accelerate or take on a project for which you do not have sufficient resources in-house. Even in the best of times, staffs can be overextended. Bringing in a consultant who can focus on a particular project and have it be her top priority, always, will ensure that the job gets done. She's the power tool in your toolbox.
Accelerate or take on a project for which you do not have sufficient resources in-house. Even in the best of times, staffs can be overextended. Bringing in a consultant who can focus on a particular project and have it be her top priority, always, will ensure that the job gets done. She's the power tool in your toolbox. 4.Get the benefit of an experienced resource without having to make a long-term hire. Consultants will work on engagements for a matter of days, weeks, months or years. Have a highly-skilled talent on your team for as long as you need him, and not one hour longer. There's no need to make a full-time hiring commitment or take on the associated overhead costs.
Get the benefit of an experienced resource without having to make a long-term hire. Consultants will work on engagements for a matter of days, weeks, months or years. Have a highly-skilled talent on your team for as long as you need him, and not one hour longer. There's no need to make a full-time hiring commitment or take on the associated overhead costs. 5.Sample the consultant's skills. A consulting relationship gives both parties the chance to "date" first. You can bring the consultant in for a short project and evaluate whether you'd want to continue with follow-on engagements. Or perhaps you anticipate needing a full-time-equivalent in six to twelve months. Some consultants are not intending to consult for the rest of their careers; rather, they see it as a bridge job, one that enables to them to sample work at a variety of companies after a long stint in a previous position. This is a good way to find out just how the consultant operates and whether she's interested in and fit for taking a job at your company.
Sample the consultant's skills. A consulting relationship gives both parties the chance to "date" first. You can bring the consultant in for a short project and evaluate whether you'd want to continue with follow-on engagements. Or perhaps you anticipate needing a full-time-equivalent in six to twelve months. Some consultants are not intending to consult for the rest of their careers; rather, they see it as a bridge job, one that enables to them to sample work at a variety of companies after a long stint in a previous position. This is a good way to find out just how the consultant operates and whether she's interested in and fit for taking a job at your company. 6.Access the consultant's network. A large part of the consultant's brief is marketing his services. He's an entrepreneur and has to build out his network of partners and get the word out about his company. If he's worth his salt, the consultant is following industry and economic trends and staying alert to other experts in the field. Consequently, he should have a Rolodex worth tapping. Mendelsohn Consulting, for example, can bring in to an engagement qualitative and quantitative market researchers, financial analysts, industry wonks, innovation gurus, pricing wizards and bakers of clever cookies with your brand on them that will keep customers talking long after the party is over.
Access the consultant's network. A large part of the consultant's brief is marketing his services. He's an entrepreneur and has to build out his network of partners and get the word out about his company. If he's worth his salt, the consultant is following industry and economic trends and staying alert to other experts in the field. Consequently, he should have a Rolodex worth tapping. Mendelsohn Consulting, for example, can bring in to an engagement qualitative and quantitative market researchers, financial analysts, industry wonks, innovation gurus, pricing wizards and bakers of clever cookies with your brand on them that will keep customers talking long after the party is over. 7.Perform sensitive research. A not-often-discussed capability consultants can offer, especially in competitive analysis, is accessing key information. A consultant with good research experience knows how to suss out hard-to-find information and how to ask the important questions. She also is able to say with all honesty that she represents a client whose name she is unable to share. Used with discretion, this card can get one far on the phone or at trade shows, for example. The privilege should not be abused - don't do anything that would turn up the client or the consultant on the front page of the newspaper, is a good rule of thumb - so discuss boundaries with the consultant upfront. I was on an engagement for a leading publisher where I was able to reconstruct the economics of different pieces of the magazine printing industry largely through phone conversations with people I never met; the client was able to use this information dramatically to restructure its printing operations and cut millions of dollars in costs.
Perform sensitive research. A not-often-discussed capability consultants can offer, especially in competitive analysis, is accessing key information. A consultant with good research experience knows how to suss out hard-to-find information and how to ask the important questions. She also is able to say with all honesty that she represents a client whose name she is unable to share. Used with discretion, this card can get one far on the phone or at trade shows, for example. The privilege should not be abused - don't do anything that would turn up the client or the consultant on the front page of the newspaper, is a good rule of thumb - so discuss boundaries with the consultant upfront. I was on an engagement for a leading publisher where I was able to reconstruct the economics of different pieces of the magazine printing industry largely through phone conversations with people I never met; the client was able to use this information dramatically to restructure its printing operations and cut millions of dollars in costs. 8.Gain perspective on the state of the industry. Consultants constantly are tracking the advances and setbacks of previous, existing and prospective clients. They are attending conferences and gathering data. Their job, by definition and by default, is to have an overview of their industry. Some executives have neither the time nor the inclination to be out in the field in as great depth or breadth. A consultant can offer valuable perspective that challenges the any inward-facing tendencies of clients. In my case, I attend and present at conferences and regularly read about venture capital and private equity, software and information, medical informatics and health IT, product development and innovation.
Gain perspective on the state of the industry. Consultants constantly are tracking the advances and setbacks of previous, existing and prospective clients. They are attending conferences and gathering data. Their job, by definition and by default, is to have an overview of their industry. Some executives have neither the time nor the inclination to be out in the field in as great depth or breadth. A consultant can offer valuable perspective that challenges the any inward-facing tendencies of clients. In my case, I attend and present at conferences and regularly read about venture capital and private equity, software and information, medical informatics and health IT, product development and innovation. 9.Save money. Large consulting firms have to cover significant overhead costs: multiple offices, support and research staffs, full-time consultants who need to be staffed year round, and benefits for all. Independent consultants often don't have any of these fixed costs and hence can offer competitive pricing on their fees. At Mendelsohn Consulting, we bring in partner specialists to work on engagements as needed.
Save money. Large consulting firms have to cover significant overhead costs: multiple offices, support and research staffs, full-time consultants who need to be staffed year round, and benefits for all. Independent consultants often don't have any of these fixed costs and hence can offer competitive pricing on their fees. At Mendelsohn Consulting, we bring in partner specialists to work on engagements as needed. 10.Get what you paid for. The typical team structure at a large consulting firm is one partner, one manager, 1-2 associates, and 1-2 analysts. The partner knows the industry dynamics and the players. She is responsible for "making rain" by selling engagements and managing the client relationships. The manager oversees the day-to-day research and analysis performed by the associates and analysts. Hired directly out of business school, associates have Master's degrees. Their business training has provided them with tools for analyzing qualitative and quantitative data. They work closely with analysts, who are recent college graduates, in identifying what data to collect and how to manipulate, interpret and display it. In most cases, the client has little or no say on who is staffed on the engagement team. Analysts and associates are generalists with limited industry experience: they are learning as they go, with the result that clients find that they are being told what they already know. These teams are appropriate for data-intensive or large-scale engagements. But there are plenty of targeted projects where a specialist or smaller team from an independent firm would be suitable, even pivotal.
Get what you paid for. The typical team structure at a large consulting firm is one partner, one manager, 1-2 associates, and 1-2 analysts. The partner knows the industry dynamics and the players. She is responsible for "making rain" by selling engagements and managing the client relationships. The manager oversees the day-to-day research and analysis performed by the associates and analysts. Hired directly out of business school, associates have Master's degrees. Their business training has provided them with tools for analyzing qualitative and quantitative data. They work closely with analysts, who are recent college graduates, in identifying what data to collect and how to manipulate, interpret and display it. In most cases, the client has little or no say on who is staffed on the engagement team. Analysts and associates are generalists with limited industry experience: they are learning as they go, with the result that clients find that they are being told what they already know. These teams are appropriate for data-intensive or large-scale engagements. But there are plenty of targeted projects where a specialist or smaller team from an independent firm would be suitable, even pivotal.If you have a project that's a political snarl or isn't advancing fast enough, or you want to deepen the skill set on your team or get briefed on the state of your industry, hiring an independent consultant is a low-risk, high-impact solution.
Mendelsohn Consulting, Inc.
Digital product development in science, technology and medicine
917.603.3987
www.mendelsohnconsulting.net
