Tom "Bald Dog" Varjan's PSF (Professional Service Firm) Barking Board

Welcome to my blog. Here we discuss all aspects of running a successful consulting firm. Mainly we’re searching for the answer to the ultimate consulting firm question: How can we deliver more value for higher fees using less of our time, money and effort? If you like this concept, then I invite you to start reading. You may find something valuable.

Tuesday, June 29, 2004

Defining the Characteristics of Value- or Result-Based Consulting

In traditional consulting emphasis is placed on number of hours worked and poundage of deliverable generated. There is one problem. They hardly ever contribute to the improvement in the client’s condition. Here is an alternative with a different focus.

People from different backgrounds and different organisations are thrown into the melting pot together. Cultures may clash, expertise may collide, experiences may conflict, tempers may rise, but the end result synergistically combines many different perspectives, which is drastically higher in magnitude than the sum of the individual parts.

Diversity and conflicting views are overcome by focusing on a shared objective, usually related to creating both a qualitative and quantitative lasting positive impact on the client’s condition.

By focusing on outcomes, as opposed on tasks and deliverables, the initiative becomes an investment in a specific outcome, and the project’s benefits are directly measurable. There is a drastic difference between spending money on a sales workshop and making an investment in an initiative to increase sales by 20%.

Predefined off-the-shelf (you do it for me) methodologies are replaced by highly customised approaches and implementation (you do it with me). You are no longer an outsourced labourer, but a partner, a collaborator.

Tight time frames and close team work assures that formality and bureaucracy are cut out as much as possible.

Each member of the implementing team is empowered and encouraged to make decisions which under normal circumstances would require several signatures from high above.

The emphasis is not on developing rigid anal retentive plans but creating dynamic, agile and flexible models which enable team members to evaluate various scenarios and turn on a dime if necessary with the agility of a butterfly and deal with the challenge and opportunity with the impact of a tank.

This approach achieves two things. Higher level of improvement in the client’s condition and higher level of satisfaction both for the client and the professional.

Sunday, June 27, 2004

What an Oxymoron - Delivering Value for Clients

It is so interesting. Service professionals all over the world are hammered over and over again for not delivering value for their clients. Yes, it happens, but let us also look at the other side of value creation.

Delivering value is like delivering a package. You deliver the package but the addressee is not there to receive it. So you leave a message about when you will re-deliver it, and then re-deliver. The addressee is not there again. Then you get totally pissed off, and return the package to the sender.

A few days later the addressee screams the speaker out of your phone, complaining that you failed to deliver the package and demands all sorts of compensation from you.

And this happens to so many service professionals. They create tonnes of value but clients fail to recognise that value, let alone actually implementing it, and then complain that hiring this consultant was a waste of money.

Actually most consulting projects go sour due the clients’ sloth and inherent cowardice to take action on the consultant’s advice.

Last year a woman hired me who had just been downsized from her company and wanted to start her own consulting show. After one month she quit my programme because “you didn’t make any money for me”. She nodded to everything I suggested, but failed to take action on it. She said she could get more valuable street-smart business advice from her husband (who is a loyal employee with a secure paycheque) for free.

Shortly after our disengagement, she went back to work for the same hated boss in the same hated business culture as a subcontractor (a.k.a. outsourced labourer) for a bit more than her former hourly rate, but minus the benefits and vacation.

Her big dream of being her own boss and creating her own future is gone by the wayside.

Will all clients ever understand that coaches, consultants and other advisors cannot make money for them directly?

So, when we talk about delivering value for clients, maybe we should also take a look at whether or not they are ready, willing and able to take our value, and what they want to use it for.

Otherwise we can deliver value until we are blue in the face, but clients just keep complaining that they are getting nothing for their money.