I see other consulting firms list a series of "affiliates" on their websites. What is this all about?

There are two strategies a firm can do to increase their service revenue, regardless of size. One is to add capacity in their main line of business and the other is to extend their service lines, either through new product/service development or cross selling through a partner.

A small firm or solo practitioner rarely has the opportunity or resources to add a lot of capacity unless they choose to grow in size. For many small firms, this is exactly what they do not want to do, particularly because they would give up valuable flexibility, speed and independence available to them as a small firm. Similarly, line extensions more than the natural introduction of evolved services or an occasional new product are also difficult.

A strategy increasingly used by small firms to build breadth of offered services is to create a network of complementary service providers. These are the "affiliates" you see listed on many small firm websites. An affiliate could provide functional expertise, added personnel capacity, geographic coverage, disciplinary extensions, stage of service extensions (e.g., planning, implementation, management may be different skill sets in some industries), or financial capacity. Your affiliate strategy depends on (a) what you need to strengthen or complete your business offerings, and (b) what you think might increase the confidence of your clients that you are capable of providing the next level of service.

Tip: List the three things that you are pretty confident are responsible for your not getting business recently. Was it lack of personnel? A missing area of expertise? Lack of financial capacity? Make a list of other small firms in your network that have these capabilities and identify what you might provide to them in return if you were to affiliate? Pick one firm to talk to this week to begin the process of a formal affiliation. As your discussions proceed, you will better appreciate what you might do together to strengthen both firms (i.e., the relationship could range from "looking out for each other" to a formal, vigorously pursued strategic alliance).

© 2011 Institute of Management Consultants USA

As consultants we advise our clients to develop streamlined, repeatable processes where possible. As consultants, we pride ourselves on providing customized solutions for each of our client needs. Isn't this a bit hypocritical?

Well, that's a loaded question, but you do have a point worth exploring. First, recommending streamlining of a process makes sense if it provides the outputs and outcomes a client wants for their process or service at the appropriate efficiency and cost. There is nothing wrong with developing efficient, repeatable processes if this is what is needed.

Alternatively, customized solutions are appropriate where there is a highly variable environment, a high degree of freedom in the solution, and limited rules governing the conditions under which you can develop the solution. There is a continuum between a totally customized solution (assuming the client judges it worthy of time and budget) and a cut and paste solution resurrected from one of your prior clients. Every consultant owes every client the respect of thoroughly evaluating needs and presenting alternative approaches to solve the problem at hand.

What clients don't deserve is a "duct tape" solution. Duct tape is strong, flexible, durable, and can be applied in endless ways to "solve" almost any problem. There are consultants who have a few limited tools that meet these characteristics and propose to use them for almost every problem. Like duct tape, the reason they don't solve the problem at hand is because you didn't use enough of it. If a client isn't satisfied, there are always more assessments, more interviews, more process models, more PowerPoint, more pilot studies, more benchmarking, etc. The solution is rarely satisfying in the end.

Tip: Consultants should have processes they can reuse but they need to be grounded in business and management theory and proven to work in various cultures and business conditions. Don't get a reputation of being a "duct tape" consultant who doesn't have the range of tools and experience to provide competent and appropriate solutions.

© 2011 Institute of Management Consultants USA

One of the many things I've learned as a consultant is that the real problem is often not the one the client first presents. However, since they are paying the bill, isn't it appropriate to start with the problem they give you?

Our obligation as consultants is to improve the client's position, which means we have to solve the problems as they exist. We are to lead the client on a path with the right questions, not follow them down the wrong path because they ask the wrong ones. It does not necessarily mean we will start on the path the client specifies or even the one we assume is correct before we begin the engagement. Many times, a client will scope your engagement by telling you the problem he or she sees, but this may just be a symptom, or may not be the root cause of the challenge or opportunity they face. It may not even be the most critical or the first in a series of issues that need to be addressed.

Above all, our obligation is to make sure the question is legitimate before you try to investigate it. It is easy, especially if you don't have experience as a consultant or executive, to be tricked by something that sounds like a legitimate problem. For example, the client says her salespeople are not on the road enough of the time. This is neither a problem statement nor perhaps not even a symptom. Your investigation begins with why sales staff utilization is even an issue (i.e., the best situation is to generate target sales with 0% utilization) and then decide whether it is staffing, revenue, management, cost, etc. that are the real issues.

Tip: Develop a standard process or sequence of criteria you use to validate and scope engagements. This is one area many consultants decide to just "wing it" and ask penetrating questions until they close in on the real problem scope. Create an investigation process and use it, refining it on every engagement. When your client expects you to answer a question, you will then have vetted and validated it and will be sure you are answering the right questions.

© 2011 Institute of Management Consultants USA