"We
seem to know our problems but wish to interview various consulting firms to help us
solve them. In addition to the obvious questions we will ask, what other considerations
are there?" VC, Los Angeles, Calif. "We
seem to know our problems but wish to interview various consulting firms to help us
solve them. In addition to the obvious questions we will ask, what other considerations
are there?" VC, Los Angeles, Calif.
THE INDUSTRY ADVISOR
Retaining the Right Consultant
Gene Levine - www.genelevine.com
The objectives of any business can be simply stated
. . . They are; to satisfy customer's and employee's wants and needs and still make a
profit. Today, businesses are faced with a complex mosaic of contemporary problems. In
GLA's opinion, there are seven general causes of problems which threaten a business’
ability to meet its goals. They are: Personnel, materials, money, information, machinery,
minutes, and government regulation.
These seven problems are compounded by your competition and your lifeline – your customers. Chances are your customers are demanding 1) deliveries yesterday, 2) perfect quality, and 3) lowest cost. Their demands, coupled to the other prevalent problems, add up to one big problem called "survival".
Sometimes, consultants are the answer to solving, or better yet, avoiding problems. Usually consultants are retained when issues surface and the firm lacks the required expertise to solve those issues. Deciding to hire a consultant is one thing; actually picking the right one is quite another.
"A healthy business can be measured the same way we measure a healthy person – by the ills it does not have and therefore does not have to cure."
If you went to a doctor with a pain in your side and the doctor immediately took out a scalpel and started cutting out your appendix what would you think? You probably would jump off the table, grab your clothes and bolt out of the office. In visiting a doctor, you expect a complete examination, a prognosis and then a prescribed treatment. A professional consultant handles your business issues the same way; examination, prognosis and treatment. One advantage of this thorough analysis is that it puts your company's operations under a microscope. A healthy business can be measured the same way we measure a healthy person – by the ills it does not have and therefore does not have to cure.
Through a very careful, time consuming analysis a consultant’s investigation, usually called "A Survey," or, "a Study," should focus on providing you with information on at least seven issues.
1. What is wrong with your business - if anything?
2. Where is it wrong?
3. Why is it wrong?
4. How is it affecting your present and future position?
5. What can be done about it?
6. How long will it take and how much money will it take to correct?
7. What are the benefits -(money-wise and organization-wise) you should receive?
When interviewing consultants, determine how well they can initially define your real problems. This preliminary approach is necessary to determine whether a particular consulting firm is the one to help you. Succinctly, they must gain your confidence by qualifying their abilities to find and solve your problems using a safe, sure evolutionary manner.
You want to have the consultants evaluate those indicators and factors effecting your bottom line with no disturbance to your people. So, look for a consulting firm that has earned a commendable reputation as getting their job done by being human- resources oriented rather than just technology oriented. In that regard, GLA suggests you have all of your "Key" people tested by a competent Industrial Psychologist knowledgeable in your industry. Also, evaluate the consulting firm by calling their clientele and ask any questions of them that you deem applicable to your situation.
The consultant’s recommendations should clearly list both potential and definite benefits. The consultants should also guarantee confidentiality of all the information you provide them with. The consultant's analysis, when presented, should be made available only to those "key" people you designate, thereby minimizing your people becoming upset. The consulting firm’s final report should be an unbiased, objective preliminary appraisal of your business which could be used for the outline and springboard for a modernization program.
You should interview the actual consultants who will come into your business and do the work. It is just not good enough to receive assurances from the selling group that they are staffed adequately to supervise their junior consultants. Your project and business could end up in a way you didn’t expect if you have the wrong resident-consultant being supervised occasionally by one of the firm’s senior management people. Visit with any resident consultant being assigned to your project before you sign any contracts.
It is important that your survey be conducted by a firm somewhat knowledgeable in your type business, but not limited to the specific products you manufacture. There are things learned in other companies or other industries that could be easily applied to yours. Prior to signing a contract for their survey, you should require the consultants furnish you with . . .
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