MOnkeyPi

Companies may need to bring a consultant on board for an array of different reasons. Maybe they need expertise or specialized knowledge they don’t currently have, or they may have the correct resources, but these resources are busy with other projects, or involved in the day-to-day business operations. Other reasons may be the need for an outside, fresh set of eyes and ears, or the need for objective advice, confidentiality of a particular decision or initiative. The need may also be prompted by an emergency that requires immediate action.

Here are some guidelines for the qualities you should look for in a business consultant:

1. Experience in the particular field or area you need help with: Depending on the nature of the problem and the expected solutions, a consultant with 15-20 years of experience will give you the best chance of success. Ask if the consultant has actually worked in your industry, or in the problem area you are trying to address.

2. After the initial interview with the consultant, you should come away with the distinct belief that the consultant had listened carefully to your problem statement, understood the problem, and was not quick to jump to an answer or a conclusion.

3. Does the consultant have the right chemistry to work with your partners and employees? The last thing you want to do is to choose a god consultant that will cause one or more of your good employees to leave. Did you feel that the consultant cares about your busienss, your people, and your money?

4. Ask for the consultant’s specific qualifications (what makes him/her a good service/solution provider for your project), and discuss previous work done for similar projects. What was the outcome of their work?

5. Have more than one member of your organization interview the potential candidate. I suggest a minimum of three

6. If you believe that the consultant is a good match, ask for a proposal. The proposal should re-state the consultant understanding of the project or problem, mention both the symptoms and the root cause, the proposed action to be taken, timeline, cost, and the ultimate benefit/result (the result should be un-ambiguously stated- example; reduce defects by 12%, cut cost by $65,000/month, increase sales by 10%, or other tangible measures. The proposal should also be broken down to phases or milestones each have a specific date and an interim result, or outcome.

7. Cost should be easy for to understand. Have the three internal resources that interviewed the consultant read the proposal and make sure that they all agree on the same understanding. Never sign a contract where it is open to interpretation. Turn-key, fixed price proposals are generally better than hourly-rate fees (there are exceptions). With the hourly rate, the meter is running, and you have no direct control over it. If you have to go the hourly rate route, ask for a “not-to-exceed” figure.

8. Insist on clear and constant communication. Weekly or even daily reports may be needed to ensure that the project is on the right track. A good consultant will make it easy for the business owner to receive these reports regularly and conveniently.