Working with consultants

Working with consultants can be both rewarding and challenging. Used correctly, consultants can resolve difficult issues and bring new ideas and insights. Used incorrectly, they can demotivate staff and drain already limited resources.

This checklist is for prospective users of consultancy and lists some of the questions you should ask yourself before commissioning an assignment, as well as advice on getting the most from a consultancy relationship.

Why use consultants?

Buying in and using management consultancy can be a valuable investment provided you:

allow enough time for the whole exercise
carefully define the area of need
know what you want the consultant to do
exercise care in selecting the right consultant
manage the relationship effectively
monitor progress towards desired outcomes
don’t become over-dependent on the consultant

What can consultants offer?

There are many advantages in using consultants, including their expertise.

As consultants are immersed in their specialism, they are well-placed to advise on the state of the art. It may be impractical for an organisation to tap such expertise in any other way. Other advantages are:

For short-term projects it may be more cost-effective for a company to buy in expertise as and when it is needed.
Help can be required for an overstretched management team or to pursue a project that would otherwise not be completed.
An outsider can see things which are unclear to those on the inside or say things which members of staff may fear to articulate.
Equally, employees may be more willing to agree to a course of action if they know that impartial advice has been taken.

Action checklist

1. Clarify the need to buy in external expertise

Firstly, be clear about whether you really need a management consultant. Check that the knowledge and expertise required is not already available within the organisation.

Consider also, that if expertise is needed on an ongoing basis, it may be more cost effective to employ someone with the necessary experience. However, if you are looking at a short term project or you need an outside perspective, a consultancy assignment may offer the best way forward.

2. Involve senior management from the beginning

Gain the approval of senior personnel for the decision to use consultants and keep them informed during the selection process. This will help ensure that your choice of consultant will be accepted at the top level.

3. Understand organisational procurement policy and practice in respect of hiring consultants

Large organisations often require procurement departments to manage the hiring process. Bear in mind, however, that buying commodities (e.g. stationery and computers) is very different from buying services and intellectual property.

4. Ensure impartiality

Make sure that that any person with an interest declares this and is not part of the appointing committee or group.

5. Prepare a shortlist of possible consultants

Some consultancies offer a wide range of services, certain areas of business activity or specific types of organisations. Recommendation is also commonly used. Ask those you work with to suggest people they trust. Make sure you request references from previous clients to establish a consultant’s track record.

6. Ask for written proposals from consultants on your short list

This will enable you to establish the extent to which the consultant can help you, the likely benefits, and the duration of the assignment. It should also give you an insight into the consultant’s approach to the problem.

7. Generate a genuine dialogue

Aim for a dialogue in a sense of partnership rather than having a sharp division of labour between yourselves. Rather than present consultants with a tightly defined problem, it may be helpful to engage them at the problem definition stage. They may have useful insights and strategic abilities to bring to the table.

8. Understand the commercial imperative in consultants’ minds

To win a contract, a consultant may appear to agree with your diagnosis, but may not actually do so. Once engaged, a consultant may hope to redefine the assignment – either to fit their analysis of the issue or to enable them to do what they are best at doing.

9. Study the consultancy proposals submitted

These should include the following:

an understanding of the situation or need
a programme of work
a timetable for completing the work
a statement of benefits
an indication of the consultant’s style and approach
details of staff involved, including relevant qualifications and experience
the resources required, time, information, equipment and the time of your own staff, for meetings, interviews and work in joint teams, for example
references to previous work of a similar nature undertaken elsewhere.
estimates of fees and costs.

10. Finalise the agreement

Check the terms and conditions of the agreement carefully to make sure that they are clear and unambiguous and that you are happy with the provisions, especially if you do not have a standard contract for consultancy assignments.

11. Be careful if you need to employ more than one consultant for the task

Sometimes a job will require more than one consultant, e.g. if specialist knowledge that the main (or “lead”) consultant cannot supply is needed. Ensure that any such relationship is clearly defined, and in particular be sure that it is clear who is employing, managing, instructing and evaluating the secondary consultant.

12. Explain to all concerned why a consultant is being employed

Brief staff on why a consultant has been appointed, when he, she or they will arrive, and the co-operation that is expected. Consider appointing someone as the main contact with the consultant, for example to help them with unfamiliar routines, geography and so on.

13. Ask for regular reports and meetings on the progress of the assignment

It is vital to monitor progress and to measure it against agreed objectives and programmes of work. You may wish to ask for regular reports, or exception reports, and to schedule meetings regularly at key points during the consultation period: start-up, midway and project end, for example.

14. Have a debriefing session before the end of the assignment

Make sure the consultant summarises the findings and conclusions of the project either in a report or in a presentation. Ensure there are no misunderstandings or errors and that you have received what you asked for.

15. Assess consultant Effectiveness

When implementing change, whether carried out by consultants or postconsultancy, check that recommendations and outcomes are properly applied, and that they are not being undermined by a return to “business as usual”. Discuss any particular difficulties which arise during implementation with those concerned. Regularly examine the results being achieved and consider follow-up visits from the consultant.

Acknowledgements

This article is based on the checklist produced by the Chartered Management Institute and is reproduced with thanks. For more information on the CIM and further checklists for managers, go to www.managers.org.uk