Apply information, instinct when using consultants

Every small businesses will ultimately confront the need for outside consulting services. And yet it’s a course of action that inevitably generates fear and apprehension. How can I find the right consultant? How will I know whether or not I’m paying too much? Will the advice that I receive legitimately help my business, or is it simply a concoction of right-sounding jargon from a hyper-confident, smooth-talking pitchman?

Rules to live by

The following advice is a distillation from a number of hiring experiences – some successful, many flawed. It represents the consultant-hiring process viewed from both sides of the table – the client and the consultant. As always, pay heed to intuition and instinct: If it doesn’t feel right, it probably isn’t.

• The Three “Cs”: The prospective consultant should always pass this simple test.

Chemistry: Do I like the person? Can I form a harmonious working relationship with him?

Conviction: Does he really want my business? Is he as excited about my business as I am? Can I call him 24/7 with a serious problem and get an immediate, willing response?

Confidence: Does he exude an aura of trust and responsibility? Does he know his business, and does he speak with experience and wisdom?

• Trust: Can I trust the consultant with my company’s confidential information and inner-most business secrets?

• Responsiveness: How responsive is he likely to be? How quickly will he respond to my phone calls and emails? Will I get enough ‘face’ time?

• Meshing with the corporate culture: Will the consultant’s personality conflict with my company’s culture, and to what extent will that aid or hinder the evaluation and advisory process?

• Proven track record: Does the consultant have a successful track record? To that point, has he worked in similar industries or business categories, and to what extent will I have to train him about my operating environment?

• Ask for references, and check them out carefully: Talk to a minimum of two or three references. Ask probing questions about service, responsiveness, performance and results.

• Know what you want: Many companies will hire consultants without a clear objective in mind. This confuses the consultant and inevitably leads to disappointment. To paraphrase famous ad man David Ogilvy, “Don’t buy a dog if you’re going to do your own barking.” And don’t have unrealistic expectations; the consultant can only do so much. Be clear as to what the deliverables will be and confirm that expectations on each side are evenly matched.

• Beware the Jack or Jill of all trades: Watch out for consultants who say they can do everything. With the exception of the larger firms, most small business consultants specialize in specific areas or functions.

• Strategy vs. execution: Don’t expect consultants to be capable of, or willing to, execute their recommendations. Most will address the problem, deliver the solution and leave the execution up to you or other parties. If you want the consultant to stay involved through the execution phase, say so up front.

• The inevitable compensation issue: Probe compensation issues carefully. Be specific about what you want and what you’re willing to pay for. Ask for specific rates (these will vary by seniority and experience of the staff members assigned to your account). Also be specific about what you will and will not pay for, e.g., out-of-pocket costs such as travel, phone, research time, etc. Put the agreement in the form of a contract. It provides a written record of agreement in the event of a later dispute. And remember that a consultant’s fees should be reasonable ($100-$300 per hour). Low fees may suggest substandard quality. High fees may indicate more vapor than substance. Whether monthly retainer, hourly rate or set project fee, remember everything’s negotiable.

• Test the waters: If you’re not totally sold on the consultant, try a test assignment. See how he performs and then decide on a more irrevocable long-term commitment.

It makes sense to hire a marketing consulting if there is a legitimate need that cannot be addressed internally. But, make sure the need is defined and the objectives of the assignment and the relationship are clearly understood. And remember, the best consultants deliver more than technical expertise. They understand the success of the assignment depends equally on the relationship they develop with their client, which, in turn, provides the platform for truthful and realistic assessment, honest and candid feedback, and a recommendation that will ultimately receive buy-in.

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