Do consultants appreciate their responsibility to small businesses?
Written by: Craig Mckenna, Published on: May 20, 2011
This is probably the most emotive blog I have written and I have tried to wait until my anger subsided before writing it, however its a Friday and I want to finish work at a sensible time!
There seem to be more and more consultants kicking about these days, as well as professional service companies who “claim” they add consultancy value within their offering. This isn’t a bad thing, after all I am a consultant. Although I try to deliver in a different way it would be hard for me to deny that I a consultant. Enough about me…
I have debated with some associates and clients over the past month or so where the duty of responsibility sits in a buyer/ supplier relationship and opinions always vary and the conversations have at times become a little heated.
It appears to be a very grey topic to most and there are many varying shades of grey but I see it very black and white when it is within a small business scenario and the small business is engaging a consultant/ professional.
I genuinely believe that the duty of responsibility in the small business scenario firmly sits with the consultant/ professional. Without being disrespectful the majority of micro/ small businesses use consultants because they just don’t know what they need to do. My clients come to me because they are not sales people, and they will go to accountants because they are not finance experts, they go to lawyers as they don’t understand the law. I am sure you get the picture.
The consultant/ professional is the perceived expert, they should assume the duty of responsibility and they should take that duty seriously. Far too often I have come across companies who have “invested” a significant amount of money in “experts” who were there to help their business, yet the money has been wasted. I have challenged some of these “experts” and they respond with such sound bites as “they didn’t tell me what they needed properly”, “well it isn’t my specialist sector”, “they needed more help than the budget allowed”. Pathetic.
If you are a consultant/ professional you need to be aware of the possible challenges that come from working with the smaller businesses. They come to you for help as they have no other route to help, they would prefer to find good quality help for free but there is none. They will find it hard to source the funds to pay your invoices, the project will require you to over deliver and they will trust your advice and guidance and they will follow it, if you are wrong they will not know until it is too late for them and you are long gone. If you can’t or won’t accept that, then steer clear and allow them to spend the little amount of funds that they do have somewhere they will see a return from and on someone who cares about what happens to them after you have taken your cash and moved on.
There a load of great people out there working in this space, and they know who they are. They will also know this is not aimed at them.
I suspect their will be fingers out there that potentially will point this blog right back at me, I sincerely think there won’t be and I sincerely apologise if there is!
Comments obviously welcomed…
Having spent a while as a marketing consultant a while back Iwould make the following comments:
1. I adhered to an ethical policy whereby I did not undertake work unless I was sure I could save/increase ROI by at least a factor of 4. There were a few exceptions like business plans which are sunk cost issues but even here my plans were action plans not like many ex SE types weighty docs designed to impress with size not quality.
2. Many owners believed themselves to be experts in marketing and some were. Others though didn't listen to advice and some even took it and then thought it would be a good idea not to pay for it - responsibility cuts two ways.
3. Most consultants can offer case studies/ references - use them.Those who affiliate themselves with groups are usually better as they can pull in experts in fields like IT/ H & S
4. One thing I always found a bit frustrating was that I sometimes never received feedback on outcome of plans - I think it is a good idea for both parties to have a post activity phase - perhaps 6 months review where either a bonus or refund is payable.
Otherwise I agree with you - consultants should be mindful of their responsibility to businesses and look to build l-t relationships but equally smes should look to build these relationships by giving clear briefs, communicating good and bad feedback.
Hi Criag, great blog and it has certainly got people thinking. For me like most things there are two sides.
1. The small business owner sometimes needs to do more diligence before hiring. I am sure when buying when buying equipment for example, they will get several quotes before buying. I don't think this happens when hiring a consultant/coach.
2. There needs to be a professional responsibility from the consultant/coach to highlight when a "specific expert" is required.
With my own background in managing & developing teams/people, I would never claim to be an employment expert, and its not the first time I have passed on details to a client, normally giving them two contacts.
For me, this can also build trust with the client, which is fundemental.
John J
Thanks John,
Just a wee note on your first point, there is no doubt that more diligence is needed by the business owner at the engagement stage but I do sympathise with them in the respect that some of them are just looking anywhere for that silver bullet that will break the back of their issues and some consultants take "advantage" of that scenario.
As a business coach, I can't define what I'm going to deliver before I've delivered it. I help people clarify what to commit to in their business, and keep them motivated and confident as they fulfill it. What they commit to is up to them, and it stands or falls on their own willingness to commit.
(My clients tend to get a lot more than they expect. That's ultimately because of them, not me.)
The whole point of what I do is that my clients end up empowered and being genuinely in control of their business. If I take responsibility for it happening, I undermine them.
This is not to wash my hands of the responsibility to be an excellent coach and act with the utmost integrity.
So what does that mean?
Anyone providing any service or product has to do what they say they will. Simple as.
So first of all the consultant must be clear what service they're
providing. If the client is unclear about what they need, the onus is on
the consultant to take the initiative regarding clarifying things.
Secondly the consultant must be honest about what they expect will be necessary and what their own limitations are.
Thirdly, having established what's needed and what they can provide, they must follow through.
Mark, a lot of valid points and not much I would dispute and all consultancy agreements are different. The main point I wanted the blog to make is that too often consultants don't take any ownership of any of the stages you are describing. The business owners are far from immune from criticism but they do need some direction from the perceived expert.
Here's another thought. How many consultants have said to their clients "I haven't the expertise to do that for you?"
Precious few I'll bet
Very valid point Ian, I know I have done personally. I have an extensive network of people who can help in scenarios that I am unable to and I ensure that I utilise that network. I hadn't assume that was a rarity but from feedback to this blog it would appear that it is.
I have! Lots of times!
Succumbing to the temptation to try to sort out something you can't serves neither the client nor oneself.
I fear we are in the minority here Mark. I have done work with 6 clients in the past couple of months who had contracted in consultants who were blatantly the wrong fit to the educated eye, but had managed to convince these people that they could help. Frightening.
A PR expert delivering a sales strategy and A Salesman delivering HR work would have been the worst.
Craig,
Sound advice indeed - well said!
Thanks for the comment Alison, someone had to say it I think.
Craig, very interesting post. To me the solution is to
ensure that as with any commercial relationship there is a clear contract in
place, with clear deliverables linked to financial results. Your analogy with
the provision of other services is sensible but in each case the
"buyer" has control as they can end the relationship if agreed
deliverables are not achieved.
I've spent the last year studying the small business support market both in
Scotland and England. Too me the biggest issue is that the small business owner
appears to be expected to carry too much of the risk in the relationship. The
model I prefer to see is where the consultant earns their fee through the
delivery of new business, ie. the consultant is paid through new profits they
helped secure. This research lead us to the creation of www.popinjay.net which
provides business services. Here we
enshrined the "balance" concept by operating as a Social
Enterprise thus even where profits are delivered they are simply reinvested
into the local community so that everyone benefits.
Russell I agree with your point but in the very small businesses the buyer is generally leaning on the consultant for guidance and what needs to be done and the time-scales needed. Rightly or wrongly this leaves the power with the supplier and they abuse that power far too often and by the time they realise this and end the relationship they have burned money they can not afford!
Russell - for me, while I can see the appeal of the idea, working on commission in this way doesn't work. I can see that it would be applicable to something specific like sales, or referrals (as in a "finders fee" arrangement); but I can't agree that it's suitable for things at a more strategic level.
Firstly, it makes the reward dependent solely on one thing - increased short-term profits. There's no room for initiating medium to long term growth, CSR policies, etc.
Secondly (and I accept this one's more specific to the type of work I do, which isn't really consulting per se), impartiality goes out of the window. I would instantly become another inside voice; being external can be very important.
I find this post very interesting Craig. I was once a business owner who was in at the deep end, juggling many jobs, under pressure and trying to achieve the best results I could with a very small budget. I needed advice on subjects that I had little knowledge of and on occasion I wasted money investing in the wrong advice from the wrong consultants.
The boot is now on the other foot and I am a consultant in social media ..... a sector that is in demand and full of "gurus".
My advice to anyone employing the services of a consultant is to a) ask what experience the consultant has ...who have they worked for? (especially if your business is in a niche market) and b) don't be afraid to ask a consultant for references. Check out their LinkedIn profile, phone up people who employed them. Treat a consultant in the same manner that you would treat someone coming for a job interview .... are they the right fit for your company? Do they have the right experience? Do they have references?
I'd also point out that any business, large or small, deserves the same treatment in regards to the duty of responsibility from the consultant. In this economical climate every business is watching the pennies and every customer deserves the same respect.
Communication is key, setting clear goals and working together need to be a priority.
Some great points Annie, and there is definitely an education needed by some of the smaller businesses on how to engage the right consultants. This isn't so much of an issue in the larger businesses as they tend to have experience in this area.
I totally agree on clarity of the project and communication is key.
Some great points Annie, and there is definitely an education needed by some of the smaller businesses on how to engage the right consultants. This isn't so much of an issue in the larger businesses as they tend to have experience in this area.
I totally agree on clarity of the project and communication is key.
Consultants can be a very good investment for things like business plans or legal expertise or something very specific. When consultants agree to take on a project, it is very important that the right expectations are set and obligations of both parties clearly defined.
If something falls outside of their engagement agreements, then they either need to pay more money or figure it out themselves.
Consultants should do as good as job as possible screening and figuring out if the specific client is going to be a pain.
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