I know of a consultancy that puts 20% of its fees at risk based on the achievement of its deliverables. With my firm, my clients know if they are not pleased with any of my deliverables I will do whatever required to correct them and, worst case, if they remain displeased I will refund all or part of my fees even though I have never had to in 10 years. Neither of these solutions are standard within the consulting profession based on my experience but what is?

A guarantee is a way to offset a lack of trust. In relationships with mutual trust, it doesn't even occur to either party to consider a guarantee. One party asking, "Do you offer a guarantee (or warranty or other recompense for violating expectations)?" is saying, in effect, "I don't totally trust you, so how am I going to be made whole if you don't deliver as promised?" This is exactly why development of trust between client and consultant is so important, and doing everything to justify and retain that trust - for both parties - should be attended to throughout the relationship.

However, sometimes there may be a request for a guarantee of some kind. This is more common when a client knows little or nothing about the consultant and/or the referral is weak. This is one place where certification can increase trust by affording credibility unavailable for a non-certified consultant, all other things being equal. There is no standard for consulting service guarantees.

How to ask for guaranteed work is also hard for the client. Consulting services are largely intangible, often hard to measure and implementation may not be fully under your control. The distributed control is key. Accountability is a two-way street. Both client and consultant must contribute to the success of the effort. For one party to ask for a guarantee, the other must be sure that their part is also guaranteed.

Tip: Ultimately it's the client that makes the real decisions. And if the question of guarantee comes up, guarantee your work and the results based on the client's subjective evaluation up to a point or they can choose to disengage, but both of you are part of the guarantee. Once you have this discussion, it should become clear that there is usefully a lot of trust required by both parties to make the project successful and clear requirements, a solid and well understood project plan and continuous communication will do more for success than a paper guarantee

© 2010 Institute of Management Consultants USA

Today's tip is about reflection and perspective on what delights you about the profession and your practice of consulting.

Spend a few minutes thinking back over your consulting career. Close your eyes (after you are done reading this) and go over the research, marketing, selling, engagements, client conversations, analyses, interviews, publicity events, presenting findings and recommendations and being called back to provide additional services. What were the one or two most satisfying and rewarding events or moments you have experienced?

Was it when your team received applause at a board meeting for your work? Was it winning an engagement you had been pursuing for some time? Was it reaching a unique conclusion or insight after a long period of analysis? Was it the times you spent with a valued colleague working on a hard problem? What about being able to speak to audiences about your work or about consulting? Or is it the flexibility of lifestyle consulting can accord?

Tip: What were you doing when you experienced your favorite moment? If you think about a few of your favorite moments, is there a pattern? Are they all related to selling your services and wining an engagement, or re they mostly about doing the work? Are the winning moments all of one type? If so, how will you make 2009 a year when you get to experience more of those delightful moments? Why shouldn't you focus your efforts on living a consulting life full of joy?
P.S. Conversely, what were some of the worst moments of your consulting career. Is there a pattern? Can you restructure your practice to eliminate or at least mitigate them?

© 2010 Institute of Management Consultants USA

Strategy consulting work seems to have dried up for our firm, as well as for many colleagues. Should we develop other practice areas?

The principles of management have not changed, nor have the needs of organizations for consulting services - in the long run. However, the nature and timing of what is most important in their need for advisory services does change over the short term. In challenging economic times, cost management and revenue growth rise to the top of the needs list. When new legislation is passed in a market, legal advice is needed. When the future is unclear and even survival is uncertain, many managers dial back on grand strategy development in favor of activities that will get them through the next quarter.

Strategy formation has already started to return as a legitimate and needed service. The recent Management Consulting Recruitment Channel Report 2010 by Top-Consultant says, "Strategy consulting, often the quickest to be hit in a downturn, can also be amongst the last to recover during an upturn. In many respects it’s the most discretionary type of consulting spend there is – and this has spillover effects on the hiring trends within strategy consulting. Given this, it is therefore heartening for the industry as a whole to see a general consensus that strategy consulting hiring will gather pace this year – one of the strongest indicators that as an industry we perceive the worst to be very much behind us."

Tip: Consulting services ebb and flow with client needs so, like your investment portfolio, consider offering a portfolio of countercyclical advisory services that serve your industry in lean and rich times. Your clients are (should) not just be clients when they need a specific service. They, and you, are better off if you can provide a continuum of services that are available when they need them.

© 2010 Institute of Management Consultants USA