Things to clear before hiring a consultant

Talk to as many consultants as you'll before hiring one. According to Constance Siaflas, Whether or not you've got one person or firm in mind, interview a minimum of some others as a kind of due diligence. You'll likely find that every interview helps you target the problems you're hiring a consultant to assist resolve.

1. Most consultants specialize in two areas: Cutting costs and raising revenues. What does one see because of the relationship between the 2 functions? Which does one do better?

Cost-cutting is that the consultant's usual expertise. It's what most companies need. Most of those hired outside consultants require an objective to take a look at organizational charts, value-adding processes, and competitive environments. 

"We spend lots of your time speech a company's customers, so we understand what they like and do not like," one consultant says. "What does the customer value? Is it time? Is it quality? 

" What this suggests is that an organization can cut jobs and still not touch on one non-value-added activity or add value to the customer said Constance Siaflas.

2. What was your professional experience before you became a consultant?

Ultimately, you ought to want any consultant you utilize to possess a robust bottom-line sensibility. you would like this person or team to target the items which will add the best amount important to your company within the shortest amount of your time. 

This sort of thinking doesn't come naturally to several people. it always demands two forms of experience: as a chief military officer or as a company turnaround specialist. 

A consultant who has this type of experience has controlled strict cost controls, high-pressure scrutiny, and therefore the need for quick results. These are the identical traits you must explore for in anyone supplying you with expert advice.

3. what percentage of professionals work with you or at your firm?

Business consultants fall essentially into two categories: Solo-practitioners and team players. The differences between the 2 usually involve the sort of labor they take. 

Most of the time, the soloists accommodate less specific, strategic, or vision-related issues; the teams get into the more tightly focused computation. 

Less-specific functions tend to require less time (sometimes as little together day); the more specific take more. one in every one of these functions isn't better or worse than the opposite. 

The trap to beware: The marketing soloist who claims he or she will also review all of your accounting.

4. Will you sign a letter of confidentiality? Will you refrain from working for our competitors?

Ask all consultants to sign a letter of confidentiality. Some owners and managers assume that short-term strategic consultants pose less of a threat to proprietary interests than the amount crunchers. 

Don't make that assumption. You and your staff should be at liberty to debate any business subject together with your consultant and trust his or her discretion. If you're feeling uncomfortable, you will not discuss things candidly. 

Your risk in these cases isn't usually that the consultant will knowingly steal proprietary information or material. Most are professional enough-and add sufficiently little markets-that reputations matter. 

More often, the danger involves a consultant unwittingly mentioning something. If he or she has signed a confidentiality letter, he or she is going to be more likely to consider it.

5. Who are a number of your other clients? Who are some people and corporations with whom you've worked before? am I able to call them to ask about your work?

Don't be wowed by big-shot former clients. At big companies, consultants are hired in teams to tackle extremely specific projects. simply because the person within the expensive suit claims Microsoft as a former client doesn't suggest he knows Bill Gates on a first-name basis. It's better if the consultant has worked with companies closer to your size and shape. They'll more likely understand your needs.

6. With what percentage of clients does one work one time? does one have enough time to devote to our company to accomplish our goals? Will you come to phone calls or emails on an identical day?

Asking other or former clients about the consultant's responsiveness and attentiveness will be helpful. As can more pointed questions of the consultant. These questions all concentrate on the identical point: what quantity of attention can the consultant afford to spend on your needs? the amount of clients a consultant can foster varies with the type of service provided and the client involved. 

But some general rules apply: you wish to possess the same-day response to questions or problems. If you're undertaking a serious restructuring, you almost certainly don't need your consultant working with over two or three other clients. 

A caveat: Some owners and managers who've had bad experiences with overly invasive (and expensive) consultants warn that you just should not be the sole client a consultant has.

7. Will you teach us to try and do this work for ourselves and become self-sufficient? How long will this take?

One common trap in employing a consultant is becoming obsessed with him or her. From the consultant's perspective, this could simply be good business assuring future work for himself, herself, or themselves. From your perspective, it should be a little better than the status you had before you had the consultant is available.

By making training a part of the consultant's job, you'll be able to limit the possibilities of a protracted engagement. Establish a schedule within which the consultant can accomplish his or her goals. Assign a staff person to figure closely during this process-and learn everything he or she will be able to.

8. have you ever written anything published or not that deals with issues just like the ones this company faces?

Consultants like to write their experiences and their theories. Sometimes this may be pretty rough reading, but it'll usually facilitate your understanding of how the consultant sees markets and business factors that will affect you. 

Also, the management or technical literature is a decent place to appear for consultants. While the newest management guru writing for the Harvard Business Review is also beyond your needs and means, you would possibly be able to find useful experts in trade or regional newspapers and journals.

9. How does one charge for services? Do your fees include a period and other miscellaneous charges or are those billed separately?

There's no set standard for paying consultants: Some work on a straight-fee basis, others work for a fee plus performance bonus, some work on a contingency basis- tied to sales increases or cost reductions. Like paying any outside contractor, your concerns should be assured a prime quality of labor and containing costs within a predetermined budget. 

With consultants, focusing their use as specifically as possible will help accomplish both of those ends. Also, make it clear from the start what incidental expenses you're willing to pay and the way you'll pay them. Consultants who've worked at or for giant corporations could also be accustomed to expense accounts that you just aren't. 

Be very clear about what proportion you're willing to spend on the full project or series of projects. Insist that the consultant warn you in writing if the project won't be completed on time and within budget.

10. What reasonable documentation will you give us when the project is completed? Who will own that documentation?

Keeping a written account of the work a consultant does for you accomplishes several ends-all of them good. First, if the consultation has worked well, this can usually offer you some forms and tools that you simply can use to enhance some a part of your performance. 

Second, it allows you to stay a record of the analyses made by your company and also the responses you've taken. This sort of "scrapbook" is often a giant help when coping with future problems or other consultants. 

Third, it makes clear what the consultant did and didn't do while working for you. If any disputes should emerge over overpayment or ownership or confidentiality, you will have some support. In general, all work (including spreadsheets, computer programs, mechanical devices, or literature) a consultant does for you is your property.