HOW
TO SELECT A CONSULTANT
By Doug Williams
You
have an important project that has to be done. You and your staff
are loaded down with other work or a special set of skills is needed.
This may be writing a business plan
to get new financing, setting up a new production facility or recommendations
for trimming your operating budget. The potential list is endless.
Hiring
a consultant may be your most cost effective solution. They are there
when you need them. They aren’t added to your payroll and their
cost goes away when the project is complete. Since your consultant
will have the skills tailored to your project, they don’t have
to be trained as an employee would.
The
consultant’s role is that of an advisor. The ultimate decision-making
and approval stays with you. Their job is to identify problems and
recommend strategies to improve your business offering a fresh, unbiased
view of your organization. A consultant should provide an independent
perspective, knowledge and judgment developed from work across many
organizations.
The
process of selecting a consultant is made up of 3 major steps.
-
Define the project so all parties understand the objectives and
the key results desired. Establish the selection criteria for this
project.
-
Select
the consultant against these criteria.
-
Get
a written agreement describing how the project will be carried out
and the agreed to terms and conditions.
Define
The Project
Begin by writing a detailed description of your objectives and requirements.
What results do you expect? How do you want the information presented
at the end of the project? What is your timeline and required completion
date?
This
is an example of a project definition:
Other
things to consider as you define the project: What resources you are
willing to commit to the project? What are your top 5 “hot buttons”
or key issues for this project? What level of involvement and interaction
do you want from consultant and staff? A clear detail of the scope
and objectives of the job will allow the client and the consultant
to fully understand the project. The more information supplied to
the consultant, the faster the project can be completed and at a lower
cost.
Select
The Consultant
The process of selection really becomes a process of elimination.
Develop a rating sheet on the attributes that you want in your consultant.
Based on the complexity and nature of the project, list the top 5-10
criteria that is most important to you. Apply a factor to each criterion
that weights the items most important to you with the highest value.
In the end, those consultants with the lowest scores are eliminated
and the final choice is usually made from between the two top scores.
Locate
candidate consultants: The first choice is to look at past consultants
that you have used where the experience has been favorable. The next
option would be to choose referrals from other business managers or
owners. The third choice would be to select from an Internet search
or yellow pages.
Pre-qualify:
This is the first screening to get the number of consultants being
interviewed down to a manageable number, typically 3 or less. Size
of firm, background, experience, ability to meet your time frame,
and costs are common pre-qualifying criteria.
-
Size of firm: Big firms tend to focus on a pre-packaged standardized
consulting approach. Small firms tend to focus on custom work where
more flexibility and innovation is required.
-
Background:
It is not unusual for top management consultants to have 15+ years
experience as a vice president, general manager or plant manager
prior to becoming a consultant. In addition, many senior management
consultants will have had 10+ years consulting in their field and
/ or an advanced degree such as a Master in Business Administration
(MBA).
-
Experience:
Do they have the required experience for your project? What does
firm specialize in? Who are the principals, what do they specialize
in? What is their track record at doing this type of project? Who
will be assigned to your project? Review their web page, advertising
literature and samples of their work.
-
Capacity:
Do they have the resources and the available capacity to meet your
completion date? What is their past track record at meeting deadlines?
-
Costs:
How do they charge: by the hour, day or project or cost not to exceed.
Some will charge a contingency fee based on results. Will their
fees be within your budget?
References:
You will want to check references on the top candidate firms. This
should include both current clients and past clients of the consultant
who would be working on your project. Would they use them again? Did
they get the desired results? Was the work performed capably? Did
they demonstrate good leadership qualities?
Interview
/ presentation: Prior to the interview meeting contact the final
candidates and give them the full details of your project. They should
come to the meeting with a written proposal, presentation and pricing.
Develop a list of questions. Discuss their proposed method on this
project. Is their industry experience sufficient? Did they demonstrate
sound knowledge? Do you like and trust them? Was there good rapport?
Did they clearly recognize your needs?
Debriefing:
Some consultants may request a debriefing as why they were not selected.
They want to know how to improve their presentation and sell their
services. Be brutally honest and let them know where they were lacking.
Keep good notes through the evaluation process. Keep the conversation
concise and to the point. Time spent here will keep consultants coming
back to make proposals on other projects.
Get
A Written Agreement
Set up a meeting with your selected consultant. Formalize your agreements.
The basic elements should include:
-
Short description of the project.
-
Timeline
with a completion date.
-
List
of deliverables.
-
Fees:
by the project or hourly, how much and how payments will be made.
-
Which
expenses are reimbursable?
-
Who
owns the copyright and reproduction rights?
-
Cancellation
clause.
The
consultant should then prepare written contract or agreement. It may
be a good idea to have your attorney pre-approve this agreement. Both
parties need to sign the final written agreement.
Depending
on the size of the project and how formal your company is, you may
elect to follow all these steps, streamline the process or even make
it more comprehensive. The essence of this process should be followed
to choose the right consultant for the job.
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