Nothing represents a game of ‘chance’ more than a pair of dice. Even with “loaded” dice, the outcomes are far from certain. Very often there is money on the line, significant money. So, I couldn’t think of a better subject –gambling on the roll of the dice– to compare with the use of consultants for high stakes decisions, intitiatives, etc.
Very often, consultants come to the same conclusions as the company’s own internal analysts. There is a perception that a prestigious consulting firm can 1) validate and therefore ‘certify’ the solution as the correct approach; 2) provide risk-averse executives with a scapegoat if things go bad; 3) increase commitment of the organization’s leaders to justify the large consulting bill.
But, at the end of the day, does any of this lower the possibility of rolling “snake eyes” with respect to the issue or opportunity that is being addressed? Does the lovely PowerPoint presentation leave you ready to “let it all ride” on the next roll?
As the truly great consultant would say, “it depends”. Perhaps, surprisingly, that consultant would actually be correct.
If so, then what does it depend on? While each situation is different, my take is that the biggest factor is matching the consultant to the mission. If you need ideation and strategies, hire a consulting firm that has demonstrated success in such engagements. Be wary, however, when the partner tries to sell you the implementation work. The firm may be great at analytics but does it have impeccable execution and delivery credentials?
In a very recent blog post, Chip Camden comments on the reasons why a client should hire a given consultant:
Prestige comes at a price that fewer companies are willing to pay for these days. In this economy, it comes down to the bottom line: What is your net effect on profitability (short- and long-term), and how does that compare to their other options?
So, basically, it ultimately depends on who can step in and “deliver the goods”. And it is this point that, to me, is the most important. Has the consulting firm or individual ever delivered a complete and successful solution? Have they ever had to live with the outcomes of delivered projects? Maybe, but usually, the consultants are long gone a month or two after the project is ‘complete’.
The world is now full of people who are mid to late stage career professionals that have early retired or have been let go in staff reductions due to the troubled economy. Some will come back to work at their former employers, albeit at lower cost to the company because the worker will be responsible for overheads like health benefits.
Others will become entrepreneurs and start their oun consulting practices, either as individuals or banded together as small “boutique” firms.
In any case, their “brand” will be etched on their faces, come through in their resumes, be evident in their wisdom and show in their been-there, done-that attitude. Their accomplishments and decades of experience will be a compelling option for managers looking to increase the odds of winning in this business version of the game of craps.
Image: FreeDigitalPhotos.net