In the complex fields of business performance management and business intelligence, few companies can go it on their own. More often than not, they need to engage the services of a professional consultancy, and for good reasons. After all, consultants spend all their time working in an area of specialisation - and business performance management, or BPM, certainly is one of the most specialised areas of business/technology.
It is where the worlds of technology and business meet in the most explicit and exquisite detail.
Nowhere else do consultants have to understand the intricacies of technology, finance, regulatory compliance, cross-border transactions, multiple currency conversions, tax implications, forwarding planning, budgeting, reporting, financial consolidation, accounting and auditing. They need the IT knowledge of Steve Jobs and the mind of an actuary.
Choose carefully
Given these requirements, in this market there are several cases in which consultants have provided less than desirable results for their clients. On both sides, people are left asking what went wrong. Often, it's less about the quality of the consultant, and more about achieving the right fit.
When a company hires a consultant, it is effectively contracting a business partner. The company is, either for a period of time, or for an extended period, engaging with someone in an outsourced capacity, and entrusting the success of a critical project to him or her.
The company is also committing itself to a process of skills transfer, as the consultancy will have an obligation to leave the staff able to run the BPM implementation themselves.
They need the IT knowledge of Steve Jobs and the mind of an actuary.
Adrian van der Merwe is MD of 8<sup>th</sup> Man Consulting.
A company must ask these critical questions: Is the person the right fit for the organisation? Has the company set up a successful relationship from the word go? Is the deal fair to both parties? Is the project clearly defined?
If the answer to any of these is “no”, the company could be setting itself up for failure and wasting a great deal of time, energy, resources and money.
Course of action
Choosing the right partner should be a systematic, considered process that takes into account several key factors:
1. Referrals: Nothing is as reliable as word of mouth and reputation. Ask peers for the names of consultants they have used, and find out what the outcomes were. If they found someone that moved their business forward, that's the person a company should speak to.
2. Rapport: There is much to be said for chemistry. Meet with prospective consultants before engaging with them. Make sure you like who they are and that you are able to establish a good rapport. Personality conflicts can be a major drawback when the company is under pressure to complete a project. The key word here is “partner”. Don't look for a vendor or subordinate.
3. Due diligence: The partner selected should be an established business with strong financials. Ensure the consultant has a valid business, with business cards, Web site, marketing materials, letters of reference from prior clients, samples of work and a proven record of delivery.
4. Proposal: The consultant should provide the company with a proposal based on achieving clear business outcomes, and not a methodology. This is critical. It's great to know how they work, but what is needed is a proposal that outlines a solution for the company's specific business requirements. This should include an outline of work to be performed, milestone dates, how often the business will be billed and when payment us due.
5. Deal structure: A good consultant is willing to structure the agreement in a way that works best for both parties. Consulting fees vary dramatically and work is generally done either on a project or hourly basis. Choose the structure that is right for both parties.
The right partnership with the right consultant will give a company access to objective advice, a frame of reference and best practices from other clients, methodologies and models to gain results more quickly and also to gain permanent transfer of skills to internal resources. It facilitates innovation and growth and can ultimately boost the bottom line.
Share