All consultants assume they are being clear with clients, yet miscommunications still occur. Are there any common miscues that we might not be aware of?

Past Tips (#24, #54, #958) have discussed the importance of language and nomenclature in your communication with clients. We need to be especially clear for two reasons. First, we are consultants and have a set of terms and concepts related to management and consulting that may not be familiar to clients and staff. Second, we are communicating condensed and well thought out concepts and recommendations to clients, having put in far more thought than they have. In this latter communication, having had the advantage of working out the details of a finding or recommendation, we can quickly run past even the sharpest client in a conversation.

Perhaps equal to or greater in importance than the content of your communication is the underlying messages that go with it. Stay with me on this one. Consultants, even when they are familiar to and trusted by a client, are in a unique relationship that carries with it a context for any conversation. You are not an employee, nor (usually) you are not a friend. You are by both implication and contract, someone who judges a client and their operations. The words you speak and write may be received favorably or not depending on how you say them. Subtle differences in phrasing can have a profound difference.

Tip: Take time early in the engagement to assess the level of acumen with business concepts, management terminology and how closely your client and staff are following your work. For example, fielding a survey that contains big words for simple concepts may create an opinion that (1) your work is beyond the ability of staff to understand or participate, or (2) that you are arrogant and out of touch. Your words may have been clear but in both cases the message you sent will compromise the effectiveness of your engagement. Better you should adopt the nomenclature, phrasing, and traditions of the organization in your client's culture - and work hard to understand the meaning behind their words - before you communicate your thoughts back to them. Watch closely and ask frequently about how your message was received, not just if your words were clear.

© 2010 Institute of Management Consultants USA

I have a small practice and try to read about my industry but don't have the money for research reports and special studies. Is there a less expensive source than these market research studies that cost thousands of dollars each (some of which are of questionable value)?

This shouldn't be a secret but it seems that few people know about it. Every public company, and many private ones, publishes an annual report. It contains financial information, news about the company history, major initiatives, people, partners, sometimes identifies suppliers and vendors, and often shows images of facilities. These are available for free, either online or in hard copy. You should never be having a conversation with a prospect, or a client, without having thoroughly digested at least the annual report.

To get an understanding of an industry, look up your target company in a marketing information service like at Hoovers where it lists the "top" companies in the industry (by revenue, product sales, number of employees, growth rate or other criteria). Request the annual report of each of the companies on that list and create our own "research report."

Tip: In almost every report is a section called the Management Letter, in which the company describes the key issues it faces, its investment and market philosophy and its perceived risks. These are a gold mine of insight into the company and, when compared across leading companies in the same market, give you your trends and research for which you didn't have to pay a cent.

© 2010 Institute of Management Consultants USA

How do I handle a client who has contracted with me for specific services and then asks for more saying, "I thought that was included?"

This underlines the importance of a key item found in our Code of Ethics — "I will mutually establish with my clients realistic expectations of the benefits and results of my services". The "setting of realistic expectations" for the prospect/client is a critical step to be performed at the outset of the engagement. Simply put, it is your responsibility as a consultant to ensure that your client/prospect fully understands what they are and aren't getting and specifically how additional work or services outside of the original project scope will be handled. One approach used by some is to build in some "as needed" additional services that could potentially be requested during the project and include them in your quotation/contract. These items might also lessen prospect anxiety in entering into an engagement (i.e., if this were to happen, you do not need to panic. If needed, this service will be provided without additional charge.)

Tip: Clarity is always critical in maintaining trust and goodwill between consultant and client. Since you can't always anticipate everything that is likely to come up over the life of a project, you might be well advised to work under the assumption that issues will undoubtedly arise periodically. Why not build in the opportunities (at pre-defined points in the project) for the client to be able to request unscheduled changes be made? Perhaps you can consider the offering of this flexibility as a value added component of your service and build the costs into your pricing.

© 2010 Institute of Management Consultants USA