Hidden Benefits of Working with a Consulting Firm

Many large organizations realize the benefits of hiring outside consulting firms to assist with a myriad of business issues they face on a daily basis. Some of the areas where a business uses consultants are Management, Business Process and Technology. In the technology area it is not just custom development but also in areas of SAAS where a system is already done but needs to be further customized for the needs of the company. Strategizing exactly how and when to use consultants varies by company but each comes with hidden benefits. This article highlights just a few of these areas.

1.     When does it make sense to hire outside talent?

2.     What are the success criteria expected from the talent?

3.     How should the model of engagement be framed?

When does it make sense to hire outside talent?

1.     When the team does not have enough resources or experience with a specific technology. Hiring a consultant and/or firm can make sense. Additional benefits are the Think Tank concept and/or Sounding Board where other perspectives that challenge the corporate status quo results in improved outcomes. But having a plan for this is important.

2.     The hire will benefit the team or department when planned and done properly. Every consulting firm has a template of best practices that are gathered from multiple experiences across specific industries and multiple clients. Ensure the company is protected with a warranty period, access to the developed code and/or environment. In addition men certain it is clear who owns the Intellectual Property.

3.     The hidden benefit from the company is to have someone shadow everything while they manage the project. Regular written feedback and have the consultants back up and send over the actual code at regular intervals.

What are the success criteria expected from the talent?

1.     Often times the only success criteria from the consulting firm is based on completion and delivery of a project that has been tested and accepted by the business. This is just the tip of the iceberg. The major costs start with maintenance and upgrades that inevitably will be required. Testing multiple firms either via the RFI process or small projects across departments helps determine cultural fits to an organization.

2.     Every consulting firm has a template for success for programs, projects and personnel. Ask for it specific to the current engagement. Managers at each level of the organization should have clearly defined and tracked success measures. This can be delivered in a myriad of ways. Often times it is at the QBR, Project Turnover report and Knowledge Transfer requirements. When these criteria are only delivered at summary levels, it can hide issues and areas of problems before It is exposed to senior leadership.

3.     The hidden benefit here is to use the information provided as updates from the consultants to improve the template used for the team for its next projects. This should be a collaborative effort with the consultants. Improving your team will actually make it simpler, easier and more efficient if consultants are a regular part of your corporate strategy. Everyone benefits when all are in sync.

How should the model of engagement be framed?

1.     Defining the model of engagement to be used with the consultant is in direct relationship to the hidden benefits to the company. The popular engagement models are: Staff Augmentation, Project Implementation and Program Implementation.

2.     The engagement model is based on the first point of when it makes sense to hire outside talent. It is this questions that answers the how long and the long term strategy for making the hire. Start small and escalate from there or when you have the budget start with a project and test out several firms.

3.     The hidden benefit is that your company will be able to make requests for ‘investment’ from the consultant. This can be free resources, additional functionality added into the project and for programs the implementation of a corporate strategy at their expense. Be careful here as there is the expectation of additional consulting revenue and the company is expecting reductions in expenses.

Takeaway

1.     Stay with the defined corporate strategy before committing to a single firm.

2.     Success measures need to be defined at each management level

3.     Choose the engagement model after pilots with multiple departments