Fall 2008 - O&M Connections Newsletter - Antioch University New England

Consultants: Leaving a Package or Trusted Advisor?

We all know the familiar mantra of mail carriers: "neither rain, nor sleet, nor snow" will prevent them from delivering. They are responsible for having the package (or deliverable), bringing it to a location, leaving it, and expecting the recipient to take it from there. For many leaders, the consultants we hire simply deliver something to our organizations and then leave it there - much like our ever-reliable mail carriers. While such an approach is just what we want from our mail carriers, it's not the best model for consulting. Often the organization leaves the package on a shelf, not ever making use of the contents. The issue many leaders struggle with is how to get greater value from their consultants, ensuring that they go beyond just delivering the product or service and become a trusted advisor to the leader.

How do consultants know when they enjoy a trusted advisor relationship with their clients? We know of three key indicators that suggest this relationship exists. First, responsibility for making recommendations is a shared experience. While consultants are hired for their expertise, blindly accepting a consultant's advice reduces the client's commitment to proposed solutions and limits both the quality and quantity of viable alternatives. Second, the consultant is expected to play a role in implementing and measuring the effectiveness of solutions. Continuously expecting the client to take "handoffs" from the consultant reduces the effectiveness of solutions, as a key "author" of the recommendation is not present to ensure proper application, suggest "mid-course corrections" as necessary, and share accountability for the degree of success achieved. Finally, trusted advisor relationships occur over a longer (strategic) time horizon and involve numerous projects. It is expected and understood that the consultant be available to provide consistent support and feedback over a broad range of engagements and topics as opposed to being hired to "plug and play" one or two generic products or services.

Most consultants strive for and prefer the trusted advisor role in working with clients; however, they often feel as if the client is actually pushing the mail carrier approach on them. This happens in a variety of ways. Here are two common examples. To keep costs (time, money, etc.) as low as possible, clients often ask for solutions without the benefit of allowing the consultant to perform a needs assessment. This puts the consultant in the unenviable position of solving only the problem the client sees, which may or may not be the core issue, and ultimately does not solve the client's need. Another common "mail carrier" situation occurs when the client continuously accepts the consultant's recommendations without actively engaging in the decision making process, often even "blaming" the consultant for less than optimal results. The role of trusted advisor is an earned one. The following paragraphs detail some ways in which this relationship can be fostered.

Creating a "Trusted Advisor" Relationship - Solving the Real Problem

Prior to engaging a consultant (and prior to paying them), leaders need to be confident that the consultant has a solid understanding of the issues the leader is trying to solve. Consultants need to be confident that they are solving the "real" problems within the organization.

Create Value

Webster defines value as "the rate or scale in usefulness, importance, or general worth." We propose that a simple, useful approach to assessing value is a ratio: got/cost = value. Is what the leader GOT from the consultant more valuable than the COST? If the answer is yes, then the consultant provided value. For example, suppose a leader brings someone in to make improvements to the way the organization purchases products or raw materials. If the consultation results in cost reductions that are greater than the cost of the consultant, then the consultant created value. Similarly, if the leader brings someone in to improve the effectiveness of the senior team and the result is an increase in team performance at a level more significant than the cost to the organization, then the organization has received value. This ratio also works from the consultant's perspective since she is able to create a real impact on the organization and will be viewed in a favorable light. After all, the best relationships are attained when both parties get more than what the relationship costs.

While this comparison between what was gained and what capital was consumed is the quantifiable value, there is also a potential peripheral value. That is the impact the consultant has on the organization that goes beyond the agreed upon deliverables. For example, the consultant might be a distraction or cause disruption if expectations are not clear and he is not held accountable for results. On the contrary, a consultant might work collaboratively within the organization and move projects forward much more efficiently and effectively than could have been accomplished without their assistance. This will undoubtedly provide the client with solutions that address their needs and can also produce additional value in the consultant's work. Being able to understand the culture and what is important to the leadership team enables the consultant to forge strong relationships, build trust, and establish a platform for transferring knowledge to the organization. Ultimately, this will allow the leader and organization to think of the consultant as a trusted advisor.

Align Expectations

Once making the decision to bring a consultant in, it is helpful to engage in dialogue about what the consultant thinks he needs to do to meet expectations. This way both the leader and consultant have a common understanding of expectations from the beginning of an engagement. A consultant may be an expert in information technology, have a successful track record and applicable experience. However, being an expert in this specific discipline does not necessarily mean he is an expert at setting up a framework for success within the leader's particular climate or environment.

Stay Within Area of Expertise

Many consultants have a breadth of experiences and some have significant depth. Leaders should be sure to enlist them in the areas in which they have a proven track-record. Be specific about what needs to be done in the organization and ask for specific examples where the consultant has addressed similar issues, what processes she has used before, and what the impacts were. Some consultants are very good at staying within their area of expertise, but all too often, consultants try to reach outside their circle of excellence. This may result in the consultant learning on the leader's dime and can be too risky for the organization and the leader's reputation.

Deliver "Without Fail"

Leaders are well served when asking consultants to explain the projects, interventions, or services they can "deliver without fail." That is, they are confident in the area, have proven experience and consider it within their "circle of excellence." From the consultant's perspective, thinking about what you can deliver without fail is often an empowering activity. From personal experience we know that, more often than not, the consultant can identify more of what s/he does without fail than first thought. One useful activity for both experienced consultants and for those looking to get into the field is to make a list of the interventions (projects, workshops, activities, etc.) that comprise their own circle of excellence. We define a consultant's circle of excellence as the interventions with which she or he has successfully delivered more GOT than COST from the client's perspective.

Anticipate Risks and Measure Success

When leaders bring a consultant into their organizations, there is often a perception by others that the leader has given the consultant her "blessing" to do the work assigned. How the consultant represents the leader during this process is important. Recognizing that there is risk for the leader in bringing in the consultant helps guide leaders to the right selection criteria and the right ongoing management style to use during the assignment. We suggest engaging in project risk dialogues early in the consulting engagement so the consultant can provide her view of the risks of the project based on her experience. This will help the leader to anticipate difficulty, proactively manage roadblocks, and help remove barriers to success prior to them becoming a reality.

Once the consultant understands and agrees to expectations and helps identify risks, she is more equipped to offer viable, useful solutions. One size never fits all with regard to leading and consulting in the organization of the new millennium. Ensuring that solutions truly address the organization's needs is ultimately the leader's responsibility. Consultants will not have all the touch points leaders have and will never be as close to the organization as the leader is. Creating the trusted advisor relationship helps the leader to feel confident in trusting his instincts and experience to make final judgments on the applicability of solutions.

There are a number of ways to measure success at the end of the day; it is the leader's definition of success that will determine whether the organization will rehire the consultant for more assignments. Where possible, be sure to establish clear and measurable milestones and monitor progress throughout the engagement. Reaching agreement up front about what metrics will be used ensures that leader and consultant are both striving for the same outcome. When possible, linking a portion of the consultant's fee to his success, especially if this results in a potential "bonus," ensure both the consultant and leader are vested in the success of the engagement.

If the leader and consultant have anticipated roadblocks, removed potential barriers, and measured progress throughout the assignment, leaders are much more likely to get the results they were shooting for. Others in the organization will also have a positive view of how the leader manages projects and resources. Since these are two areas of leadership in which demand is growing in today's rapidly changing marketplace, there is additional value to the leader from successful consulting engagements.

To maximize the relationship, a leader should have exit conversations with the consultant about what the leader will do when the consultant leaves the organization after an assignment. Is there further action that the consultant recommends? When and how are the recommendations best implemented? What is the value of these additional steps? Recommendations that take the consultant's work and the leader's organization to the next level ensure that leaders have a great thinking partner and trusted advisor in their consultant.

Tad Dwyer is a graduate and former faculty member of Antioch New England's Department of Organization and Management. He is an Organization Development Consultant who specializes in providing cultural change, and training solutions for businesses, government agencies, and not-for profit organizations. He is also the interim Vice President for Human Resources for Sermatech International, a multinational specialty coatings firm. Tad lives in Keene, New Hampshire with his wife and two children.

Joelle Marquis is a Principal for Arsenal Capital Partners (ACP), a New York based private equity firm. Joelle's career spans more than 20 years as a General Manager, Chief Operating Officer, and senior leader of Human Capital. She has led numerous workshops for business leaders, has published related articles has been an adjunct professor and contributes to the community by serving on the boards of both for-profit and non-profit organizations. Joelle holds a B.S. in Business Administration, a M.S. in Organizational Development, has her SPHR certification and successfully completed the Executive Program at the University of Michigan. She resides in Fleming Island, Florida with her husband and two children.

Feel free to e-mail Joelle or Tad with comments and questions on this article.