This blog post is the fourth in a series on how to differentiate your consulting practice. 

Continuing our series on Five Ways to Raise Your Game in Consulting, in this post I take an added step and suggest additional market differentiation through the understanding and use of a Code of (Professional) Conduct.

My previous blog on using a Consulting Competence Framework identifies those skills and experiences that separate a professional consultant from the thousands of other consultants in the US today. There is an added level of differentiation – an attestation of your professional behavior.

Did you know there is an internationally accepted Code of Professional Conduct for the global consulting community? The Code articulates the ideals to which we aspire as well as the behaviors that are mandatory in our professional roles.

Professional Code of Conduct 5 Main Parts

The new Code of Conduct is over and above the Code of Ethics and is not meant to subsume or replace it, rather to be in addition to the Code of Ethics. The Code of Conduct has five main parts to our responsibility – to the Client, to Society, to the Organization we work for, to Those We Work with, and to the Consultancy Profession itself. Each of the five has multiple sub-responsibilities.

The importance of understanding and adhering to a professional Code of Conduct is critical as you and your behavior, as a consultant, represent more than yourself. If you were to simply refer to the second blog you will likely see how these very public instances were caused by misplaced ethics and/or poor conduct behaviors.  Consider then how these eleven behaviors (out of twenty-seven) might have further precluded these and other public ‘events’ (shortened for this blog to the pertinent phrases):

1. Serve the Interests of Clients

1.1 Put client interest first … serve them to the highest possible standards … with focus on …. legality

1.4 Consider the possibility of any conflict of interest … take all reasonable steps to protect interests and confidentiality of each client

1.6 Demonstrate the personal qualities … of honesty, integrity … respect confidentiality

2. Serve the Interests of Society

2.1 Ensure I … comply with all relevant legislation and regulations

2.2. Respect social … corporate responsibility concerns … assessing the impact of my actions on … society

3. Serve the Interests of the Organization I work for (e.g., McKinsey, PwC, my boutique firm, my solopreneurship, etc.)

3.1 Make every effort to … safeguard its reputation and assets and reconcile personal and corporate values

3.2 Uphold lawful policies, practices and procedures

3.4 In the interests of all the organization’s stakeholders … I safeguard all confidential and/or proprietary information …  refrain from entering into any agreement or undertaking any activity which is unlawful

4. Serve the Interests of those I work with

4.2 Act consistently and fairly … where issues may be addressed in a frank, timely, and effective manner

5. Serve the Interests of the Consulting Profession

5.1 Have respect for the profession, upholding its integrity …. Refraining from conduct which detracts from its reputation and public confidence

5.3 Respect the intellectual property of all stakeholders

A Consultant’s Code of Conduct Helps Prevent Unprofessional Conduct

When these eleven elements of IMC USA’s Code of Conduct are presented in the context of several very visible public media reports, it becomes quite clear how an understanding and acceptance of the Code of Conduct likely would have prevented them, or at least caused others within the respective firms to be highlighted, thus changing inappropriate and unprofessional conduct.

Example from my TCPF Blog post, Consulting Ethics Challenges

Taking, only as an example, the PwC debacle and the subsequent selling of the Governmental Advisory practice to a venture capitalist firm for $1 AUD, the cost of a lack of understanding of professional conduct becomes painfully clear:

“Accusations of ethical lapses, including a ‘deepening scandal surrounding PwC’s leaking of confidential tax information.’  Other ethical lapses were mentioned in the hearing included loss-leading projects (to get a ‘foot-in-the-door) and one in which PwC was paid $1 million for a six-page Power Point presentation presented to three people. …

“The National President of IMC Australia, Peter Westlund CMC® testified and amplified that IMC Australia’s role is “to promote excellence and integrity and encourage high professional [sic] standards and ethics.” He validated that the IMC has no enforcement capacity, further stating that he believed none of the big four consultancies have anybody registered with the IMC [emphasis added].”

 Westlund proposes three courses of action (for Australia): IMC proposes: (1) “that management consultants providing management consulting services … adopt ISO 20700”; (2) “that [the Australian Government] give considerable weight to members of the IMC who commit to the [enforceable] Code of Ethics,” and (3) a CMC® is recognized as being the most trusted and expert advisor and consultant and is ascribed the highest weighting when calling for and considering tenders to supply management consulting services.”

Based on assumptions that may be challenged ($300M billings/year, 12% profit available to partners, 10 years into the future, 3% cost of capital) the present value of the sale (of PwC Australia) is in the order of magnitude of $311 million to the partners.  Yikes. All for the want of an understanding of and adherence to a Code of Conduct.

Adhere to a Code of Conduct and Rise above the Rest

Can you adopt a Code of Conduct in your practice, advertise it to your prospects and clients and give them the assurance you are different from the competition? I believe you can. Look no further than IMCUSA.org.

The next blog, the fifth in the series, is on Certification as a path to increased differentiation.

Stay tuned and raise your game.

This blog post was printed on the IMC USA blog with permission. It originally appeared on The Consultants Peer Group blog.

About The Author, David Norman CMC®-AF, FCMC

The author, David T. Norman CMC®-AF, FCMC has almost 50 years of experience as a management consultant. He is the Chair of The Consultants Peer Group and CEO of David Norman & Associates, specializing in financial, operational and general management consulting services. David was the first recipient in the United States of the CMC®-AF, Academic Fellow of the international Council of Management Consultant Institutes (ICMCI) and is a FCMC, Fellow of the Institute of Management Consultants USA.