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Consultants: FYI
This Month in Management Consulting News
Interview: Patrick Lencioni
It's likely that everyone knows someone who is stuck in a rotten job, and that's because almost 77 percent of people say they hate their jobs. Can our workforce be that unhappy?
Patrick Lencioni has written about dysfunctional teams, turf problems in organizations, and the productivity-sapping power of excessive meetings. Now, Lencioni has turned his attention to a $350 billion problem--job misery.
In our interview with Lencioni, we ask why so many people are miserable at work and what consultants can do to help their clients make the workplace less miserable and more productive.
We're also featuring articles on what to do if you think your client is a jerk, what clients say they want from consultants, and strategies for capturing more time for life outside of work.
Plus, Jeff Thull gives us some advice on a slight change in mindset that can make selling to decision makers easier. |
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Guerrilla Consulting Moment
According to a congressional study, consultants who recommend pay packages for corporate executives have "pervasive" conflicts of interest that appear to be inflating executive compensation.
The study, prepared by a committee of the US House of representatives, raised concerns that consultants may pad their recommendations for executive pay in hopes the chief executive will reward them with other business.
source: Wall Street Journal
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The
Guerrilla Consultant -
a newsletter dedicated to applying the principles
of Guerrilla Marketing to the work and lives of
consultants.
Run with the Bulls
As 2007 wraps up, many consulting firms chalked up another year of double-digit revenue growth and strong profit performance. And the demand for consulting services appears bullish as we head into 2008.
You might think that selling services in times of high demand is the easiest of the market conditions we face. Some firms will find that a "rising tide" lifts their boat. But for most consultants, the strategy for succeeding in a bull market is to make subtle changes in how you position your services.
This month, I'll discuss the challenges and essential strategies for consultants to succeed in any bull market.
Enjoy the article, and
let
me know what you think.
Mike
McLaughlin
Co-Author, Guerrilla Marketing for Consultants Principal, MindShare Consulting LLC
Selling in a Bull Market
Like other industries, the professional services business experiences pronounced cycles. Spikes in client demand for services follow events such as changes in the regulatory environment, innovations in the application of new technologies, and evolving consumer needs--to name just a few.
Of course, it's tough to know which industries, or even which parts of your client's business, will be the source of new demand. But as that demand grows, consultants can ride the wave by paying close attention and adjusting their approaches to marketing and selling.
As you'd expect, as the demand for services grows, new competitors rush to market to take advantage of emerging opportunities. You can get trampled as new firms and individual practitioners stampede into the market.
In the 1990s, for instance, which was an era of historic growth for the consulting industry, entrepreneurs launched dozens of new consulting firms to help clients migrate parts of their businesses to the web. Many of those new firms have since vaporized or morphed into different entities. But they took a large share of a new market that was created by innovations in information technology.
New firms aren't the only threat. Existing firms rarely stand still during an industry growth spurt. Instead, they expand their capabilities by recruiting new people, retooling existing services, and creating new lines of business. For example, early this year, global consulting firm Accenture announced plans to double its management consulting practice to 26,000 people in the next three years. That would mean hiring more than 700 people every month.
| "New firms aren't the only threat. Existing firms rarely stand still during an industry growth spurt." |
The bull market calls for a response akin to the "hurry up offense" in football. Everything must move more quickly, with precision and no wasted movements (or words). Small mistakes can cost you big, but the reward for flawless execution can mean victory.
Sharpen Your Focus
In most sales situations, but especially in a high-demand market, a client's perception of your value drives the decision to make contact with you. Unless you have a prior working relationship with the client, that initial perception is based on your marketing materials.
Too many consultants fail to recognize that their value messages to clients need attention. What worked well in the past may not be potent enough to compete in a bull market. Why? As new competitors enter the market, the best ones will strive to separate themselves from competitors who represent the status quo. Other firms will resort to the copy-cat approach by mimicking the marketing communication strategies of others. That dilutes the power of all the messages.
A bull market magnifies this problem by a factor of how many new competitors you have. If you are saddled with an out-of-date value proposition, you can lose whatever edge your firm had in the past.
Revisit your value proposition and sharpen your focus. Instead of relying on tired offers to "help organizations achieve results," or "leverage all internal and external opportunities," or "tailor solutions" for every strategic change initiative, get real about the essential elements in the client buying process--solving specific problems, mitigating client risk, and proving your experience, delivery capability, and track record.
Stress the few areas where your firm is exceptional. And express that in terms the prospective client will understand. What, exactly, do you do to help clients? Discussing the macro trends and business issues the client faces is fine, but emphasize and clearly demonstrate your depth of capability.
Call Now
You can be certain that, in an up market, your clients are being bombarded--on a regular basis--by your competitors. Fiona Czerniawska, one of the industry's leading observers, notes that there are almost 3,500 articles and other forms of thought leadership material on the web sites of the world's top forty consulting firms. And that doesn't include the thousands of case studies and other materials that support marketing, but don't rate the thought leadership designation.
| "Too many consultants fail to recognize that their value messages to clients need attention." |
Add to that the thought leadership material smaller firms are generating, and you've got a virtual mountain of material to discuss with prospective clients. And that's precisely what competing firms are doing. Whether it's through direct mail, cold calling, or other marketing campaigns, your clients are the target.
In a fast-moving market, doors open quickly but close just as fast. It's easy to completely miss a golden opportunity simply because you were out of sight, and out of mind. The remedy to this problem is simple--get to your clients soon.
Many consultants are reluctant to keep in touch with former clients. And others get frustrated with unreturned calls from clients and give up trying. Ford Harding, the well-known author and business development consultant, still fights the urge to stop calling past clients. Harding says, "After all these years, the little voice inside me says to give up, that it is not worth the effort, that the person doesn't like me and doesn't want to talk with me. It is by learning to override that voice that I have become successful."
Harding's experience is especially relevant in a bull market. Whatever your preferred approach to connecting with past clients, you're likely to benefit from accelerating the frequency of that contact in a high-demand market. When your former clients have new projects, help them think of you, not your competitors.
Never Stand Pat
Demand for services always heats up for a reason. In the 1990s, for instance, Michael Hammer and James Champy's concept of business process reengineering gave rise to scores of firms offering services to support an organization's transformation to a new business model. When the US Congress passed the Sarbanes-Oxley bill in 2002, a multi-billion dollar industry emerged to help organizations cope with the implications.
As powerful new ideas take hold, winning firms make rapid changes to their service offerings to stay one step ahead of the competition. Recently, for example, one firm has been integrating environmentally-friendly manufacturing processes to help clients align their businesses with their customers' wishes and the perceived direction of environmental legislation.
For each of your markets, ask yourself if your current offerings match current demand. With some adjustments to your offerings, you should find it possible to disrupt your competitors' momentum and earn a larger share of new work.
Winning firms never stand pat with a service offer, but remain highly attuned to the market and react quickly to changes in demand. Sadly, some consultants hold onto history and watch the market pass them by. There are dozens of firms still peddling business process reengineering as a core offering when most firms moved on many years ago.
Grab the Bull by the Horns
In a bull market, a successful consultant can get buried with a strong backlog of profitable work. But, it is also easier than ever to let your ongoing market activities take a back seat to client work. When faced with a growth market, it's wise to ratchet up your marketing efforts, not dial back.
Never forget that what goes up, will come down. A bull market will eventually lead to an oversupply of service providers, who will be scrambling for work when the cycle turns.
In a strong market, you have the opportunity to add new, high-value clients to your practice. But you have to help them find you. Sequestering yourself in client engagements causes you to miss the potential upside of a bull market.
To reap the long-term rewards, you must grab the bull by the horns. After all, as clients' businesses change, your practice must also adapt by offering new services, boosting market visibility, and sharpening market focus. It's in a bull market that we should take the advice we often give to our clients: Be bold, take measured risks, and innovate as if your life depended on it.
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