What Happens When Clients and Consultants Clash?
Max
Williams, Principal Consultant
Harvard Business Review case studies
for managers are legendary, and in one of them, this
question was the central issue.
The scenario
outlined a case in which a consulting firm was called in to assist a
new client. The consultant accepted the assignment, even though
the fundamentals of the situation were far from clear.
Inevitably, client and consultant were both unsatisfied with progress,
and the developing conflict sat brooding like a dark cloud over the
future of the project.
One of the several recognised
world authorities asked to contribute an analysis and make comment on
the case study, was Robert H. Schaffer, author of an important
consulting reference book, "High Impact Consulting". In this
book, dedicated to achieving significantly improved results from
consulting assignments, Schaffer outlines five principles for highly
leveraged consulting that yields recognisable benefits early in a
project, and produces results that stand the test of time.
This approach sets out to ensure close collaboration from the outset,
rather than fixing the differences in understanding after problems have
become apparent. This method of working keeps client staff
informed of the project progress and outcomes, uses their particular
insights into the way the business works, and keeps them involved right
through the whole process.
Significantly, the principles
outlined in the Schaffer book turned out to be the five principles
embodied in the Consulting Charter that directs all this
Practice's relationships with its clients.
What are the
five points of the Consulting Charter? Every client gets a copy of the
Charter, but here they are again, just for easy reference.
- We define your
consultancy in terms of specific performance goals that will be
attained.
- We determine the scope of the consultancy to suit
what you are willing and able to do.
- We establish
milestones, so you can measure results along the way, as the
consultancy proceeds.
- We work in partnership with you
through every step in the consultancy.
- We involve you and
your people so that everyone keeps in touch throughout the consultancy.
It is good to know that the key drivers in your
business, whatever that business is, are in line with global thinking,
and global approaches. We are delighted that our drivers are indeed,
just like that!
N ow that the GFC
appears to have begun to fade into the background - more quickly
in some countries than others - the question arises about the best way
to take full advantage of the recovery. While there had to have been
some staff rationalisations in recent times, now is the time to start
building new productive capabilities!
Attitude Changes to a
Growth Mindset!
"Change management", "Downsizing" and
other words to denote a focus on cost cutting have now fallen out of
favour. But managers of Small and Medium Enterprises (SME's), having
seen the prospect of a serious recession arise, and then fade, now
realise that the new economy needs us to develop continuously improving
profitability and company value. Now the emphasis has moved to getting
performance from the workforce. This means adding staff, and
making sure that they're fully qualified.
For most small
businesses, the question of downsizing has sometimes seemed to be
irrelevant, except that the faddish behaviour of big companies
retrenching large numbers of employees has spawned a number of
competitors to existing small enterprises. Nevertheless, this
change in corporate behaviour has some valuable lessons for operators
of small and medium enterprises (SME's).
The first effect
of the decline in downsizing activities is shown in reducing
unemployment, and reflected in increasing shortages of skilled
labour. Labour and skill shortages are always important to small
businesses, increasing labour costs, reducing labour flexibility, and
increasing training costs.
As larger enterprises cease
firing and begin hiring, SME's find themselves in a bidding war for
good quality labour. They need to prepare for the inevitable
increase in labour costs that follows.
In the long run,
increased labour costs can be supported only by increased productivity,
or increased value added per unit time. This places significant
demands on the management skills of operators of SME's.
Second, the trend to outsourcing of components and processes will slow
down.
As
large corporations reassess the long term significance of activities
once slated for closure during the downsizing era, more activities will
be kept in-house.
For SME's geared to supplying more
of the needs of "downsizing" companies, there is the emerging
need to show substantial positive long term benefits to the new face of
corporate customers. The challenge to operators of SME's is to
increase the value they add to their customers' whole process.
For example, a metal machining company that does nothing more than
supply machine time and labour to the production process, will come
under increasing pressure as the pool of potential customers decides
against "downsizing" and "outsourcing".
By contrast, the
metal manufacturing company that adds design, scheduling, delivery and
process improvement becomes increasingly valuable to its customers,
expanding its business base and increasing its profitability.
The successful SME has increased the rate of success by building its
own organisational capability. So the question is, what extra
value can your enterprise add to for its customers. Retail customers
usually need more support services, and business customers usually need
more productive inputs to their own internal processes.
Keeping up with these evolving changes in management strategy and
technique has never been easy for operators of SME's. Getting
ahead will now be even harder.
The Red Zebra Management
Program is a useful addition for any manager who wants to increase
organisational capability, and improve both the profit and the value of
the business.
If you'd like to find out more about
how to make measurably more in your business right now, talk
to us, or ask us a question here! Remember, there's no charge or
obligation.
This same offer applies in New
Zealand. Click
Here!
McNicol
Williams Management & Marketing Services is a Small Business
Advisor listed with the Small Business Victoria, and has presented The
Red Zebra program under its auspices. This listing requires
that the first hour's consultation is always free. So when we say
"No charge or obligation", we mean it!
