Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
business builder consulting
by Cindy Bielke
Ever wonder why some business people love their consultants and enjoy great long-term results, while others seem to constantly change vendors, endlessly in search of someone who “gets it”?
Knowing what you’re looking for, what you can afford and how to work with consultants who can provide the desired results are keys to unlocking this mystery. If you do your homework, it should be relatively painless to find and select a qualified consultant who can meet your needs.
The benefits of using a consultant are varied. Consultants typically have a wide range of industry experience and can give you perspective about how others have handled similar challenges. Because they have some distance from the day-to-day politics of your organization, they can provide unbiased and professional counsel.
The consultant can interact with third parties, such as the news media, on your behalf and impart instant credibility based on experience. Consultants can be used to mentor junior staff members. They’re also easier to let go if things don’t work out as planned.
Know thyself
Before you begin searching for a consultant, try to determine what you’re really looking for. Do you need a trusted, senior level adviser, or simply additional “arms and legs” to supplement your existing staff, or a combination of both?
Think about how adding a consultant will affect your staff, and take steps to avoid staff jealousy over perceived plum assignments going to outsiders. This might mean involving a senior staff member in the selection and day-to-day interaction with a consultant.
Also give some thought to what you expect a consultant to help you accomplish, how much time you’ll have to work with the consultant and what sort of budget you can afford.
The vast majority of consulting relationships that fail can be traced to problems in these areas. Hiring a consultant is not the equivalent of waving the proverbial magic wand. You must be available for meetings, be willing to provide information and feedback, and have a realistic budget to support your objectives.
Do homework
Be choosy. Don’t engage someone simply because you’re in a hurry to handle a specific problem. Anticipate your needs in advance, ask other business people for names of consultants they respect or observe how companies you admire handle challenges similar to your own.
A little sleuthing on their Web sites or through industry associations will help you discover if they use outside consultants and who those consultants might be.
Spend some time asking questions and listening to consulting candidates before you select one. I’ve been astounded at the number of business people who call me for an “interview” and then spend the entire time talking about their business issues. They don’t ask me a single question or even peruse my portfolio.
Ask for references and check them out. Try to get a sense of how the consultant gives feedback and counsel, the frequency of meetings, if deadlines are met, whether invoices seem fair, and whether or not the client felt they received value from the consultant.
Did the consultant proactively suggest strategies to help the client? Did the consultant seek to learn about the client’s industry and business? Did the consultant remember important details from past discussions, look for new opportunities to apply the information and generally adopt a helpful, proactive stance with the client?
When you’ve narrowed your search down to a few qualified candidates, provide a realistic budget range before asking for a proposal. Most consulting contracts can be scaled up or down according to the budget parameters. Asking a consultant to give you a specific proposal without any budget parameters is like asking an artist for a painting. You could get Elvis on velvet or Monet’s water lilies, with the corresponding range in price and quality.
Don’t expect the consultant to give away intellectual property in a proposal. Instead, ask to see clear evidence of how they approach problems, examples of past assignments and several recent client references. You might also ask how the consultant formulates strategic objectives and action plans, and how progress and results are evaluated.
Don’t be shy about billing inquiries. Be clear about how the consultant issues invoices, whether or not markups are applied and how frequently payment is expected.
Once you decide to engage someone, request a written contract laying out the terms of your agreement on such matters as work to be performed, how much will be paid, length of contract, and responsibilities and liabilities for each party.
Make it work
Ask any counselor who’s responsible for the demise of a marriage and you’ll hear that both parties bear some responsibility. It’s no different with consulting relationships.
While the onus is on the consultant to provide excellent service, the client must be willing to participate in the relationship. This means committing to regular meetings, returning phone calls and e-mails on a timely basis, and paying invoices promptly.
Most importantly, it means allowing the consultant to function as a trusted adviser by providing details about your business operations, industry issues and pressing problems, and allowing the consultant to advise you. If you’re concerned about proprietary information, ask the consultant to sign a confidentiality agreement.
You don’t have to take the consultant’s advice but you should at least factor it into your problem-solving process — after all, that’s part of what you’re paying for!
If you’re pleased with a consultant’s performance, let the person know. Nothing motivates a consultant more than an appreciative client.
Likewise, don’t stuff your unhappiness if there’s a problem. Human nature is to avoid conflict until it’s unbearable and then call it quits. Avoid that lose-lose proposition by clearly articulating your expectations in the beginning, asking for regular progress reports and letting the consultant know if you’re unhappy with the work sooner versus later.
When chosen wisely, consultants can bring solid value to your organization for a fraction of the cost of hiring full-time employees. When treated like a trusted adviser by an open and responsive client, there’s no telling how much your consultant will be able to accomplish on your behalf.
[contact] Cindy Bielke is president and senior consultant at CAB Communications, a St. Paul media relations and marketing communications consulting firm: 651.683.1910; ca*@******mm.com.
