Contractual Documents Used in Consulting

Contractual Documents Used in Consulting
Contractual Documents Used in Consulting

I had a friend once who had several years of experience. He decided to give consulting a try. He knew a friend in the industry and made an agreement to consult for him. It was a handshake agreement. They were friends after all. It would have been insulting if either side insisted on a signed contract.

My friend worked for his friend for a few weeks and submitted an invoice for his services. His friend balked. He had no idea the cost would be so high. He didn’t agree to that.

My friend insisted that they had agreed on his hourly rate and that the invoice was accurate. His businessman friend had a different memory of the agreement and had different expectations.
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Please the Client or Please the Boss

Please the client
Please the client

Successful consultants know that there are two critical success factors to consulting: Provide quality service and sell more of it. It is hard to sell more services if the ones you deliver are of poor quality. But providing top quality does not guarantee additional consulting business at that client.

Selling more business at an existing client is a skill all by itself. On top of providing high quality work, the consultant needs to keep her eyes open for other opportunities. Growing an existing account is important for consultants at every level

Consultants should think about what is best for the client and not the consulting firm. If the consultant reaches that pinnacle – being the client’s trusted advisor, he may not have to worry about selling. The client will come to the consultant with issues to solve without any need for the consultant to go into sales mode.
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Process and Consistency – Not Always the Same

Process and consistency
Process and consistency

I once worked for a man that had a defined process for everything. He tracked everything with a spreadsheet. Everyone was expected to follow all of his processes to the letter. People became so bogged down following process that they got little else done.

It was also a drain on morale. They did so much mindless administrative work that their brains never really got a chance to create anything meaningful.

At another time in my career, I had another boss who went to the other extreme. He didn’t believe in process at all. He thought that if we establish core principles, people should be enabled to make decisions on their own.

The problem was that nobody knew what anyone else was doing. Duplicate tasks would be completed by two people because neither one knew the other was working on it. Some tasks fell through the cracks because everyone assumed someone else was doing it.
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The woman who could communicate

Woman who could communicate
Woman who could communicate

I once knew a woman who worked as a client relationship manager (CRM) for an IT consulting firm. The CRM’s role was to be a liaison between her clients and the candidates that we placed with those clients.

Her job was to work with the client and understand their resource needs. She would then communicate those needs to recruiters who would identify IT workers to be candidates for those positions.

After the recruiters submitted the candidates to her, she would talk to those candidates to verify their abilities. She would negotiate rates with both clients and candidates. If the candidate was rejected, she would communicate it to the candidate. If selected, she worked to help get the new employee on-boarded.
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7 Reasons Your Billing Rate is Low

billing rate is low
Why your billing rate is low

We probably all know someone who does the same thing as we do but makes a lot more money doing it. We can sit there in jealousy, wondering how he or she does it. But they are obviously doing something we are not. It’s probably more than one of the items below.

You’re not up to date on technology

There is still demand for mainframe COBOL programmers. But everyone knows it’s not the hottest skill in demand. While organizations still need people to maintain their old back-end systems, they’re paying top dollar for cyber security skills and mobile app developers.

Technology changes at a more rapid rate than ever. Last year’s hot technologies may be obsolete by next year. If you don’t invest the time and money to keep up to date on the latest technologies, you will find fewer companies willing to shell out high billing rates for you.
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The Boss’s Unreasonably High Expectations

High Expectations
The Boss’s Unreasonably High Expectations

The movie “Eight Men Out” is about the 1919 “Black Sox” scandal in which several members of the Chicago White Sox fixed the World Series by losing games on purpose. They did this based on an agreement with two gamblers who promised to pay them more for losing than they would have gained by winning the World Series.

Eddie Cicotte was a pitcher on that team and had a $10,000 bonus clause in his contract if he won 30 games. When Cicotte reached 29 wins, White Sox owner Charles Comiskey ordered the manager to bench him for the remaining two weeks of the season.

And such is the world of business. People are provided incentives to reach milestones that can be manipulated, preventing them from being reached. In other situations, the carrot is set so far out of reach that few, if anyone on the team can reach them.
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I Took My Eye Off the Ball

Took My Eye Off the Ball
Took My Eye Off the Ball

Boy, did I screw up last week. We had a big opportunity for one of our biggest clients. They asked if we could help them place a very specific resource. They only needed this resource for about two or three months. It wasn’t going to result in a lot of direct profit for the placement itself.

But this was still a big opportunity for a number of reasons. It was an opportunity to show them how responsive we could be. The company I work for has a vast network of IT resources. We could have proven that to our client by providing them exactly what they were looking for.
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The Stone Soup Approach to Consulting

stone soup
Stone soup made in a village

The old folk story of stone soup is about three vagrant travelers passing through a small town with nothing but a cooking pot. They ask residents of the town for food but meet resistance at every door.

Finally, they go to the local stream and fill their cooking pot with water. They place a large stone in it and put it over a fire they built in the center of town.

This piques the interest of the towns folk and they asked the vagrants about their endeavor. The three men explain that they are making stone soup. They describe how delicious it is, but it just needs a little garnish to finish it off

One of the townspeople doesn’t mind providing a few carrots. Another offers come celery. Other people offer various herbs and spices.

Before long, a delicious pot of soup is enjoyed by the whole town.
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How to Help the Client Make Decisions

How to Help the Client Make Decisions
How to Help the Client Make Decisions

I have an aunt who up until the age of 93 drove herself to the doctor for each visit. At each of those visits, the doctor would to tell her to stop smoking. She didn’t heed his advice and her life was cut short at 95 years of age.

We tend to look to doctors to heal us. But they are really just advisers. They can prescribe medicine, suggest different ways to eat, and advise us to change bad habits. But we have the final decision over how we live and how it will affect our health.

Consulting works in the same way. Consultants can advise their clients on recommended business practices. The client can choose whether they want to follow that advice. They may disagree with it. They feel it’s too big of an investment. There are ways that the consultant can help the client make the right decision.

Be like an auto mechanic

When you hear a clanking sound in your engine, you probably take your car to the mechanic. The mechanic will investigate the noise and advise you on what needs to be done. If it’s very expensive, you may decide you want to live with the clatter. The mechanic should tell you whether it is dangerous to drive with the noise.
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3 Skills Required to Get Hired in Management Consulting

How to Get Hired in Management Consulting
How to Get Hired in Management Consulting

If somebody mentions consulting, many things may come to mind, mainly because there are so many types of consulting. There are consultants in virtually every industry that will provide any number of services needed by their clients. But regardless of the industry or service sector, there are three primary categories of consultants.

Staff augmentation (Staff Aug) consulting: This is a filler role. It’s usually used when a person or a group of people with a specific skill is needed for a temporary project or a peak time. This can be handled by an individual, but they usually work with intermediary firms that connect people and skills with an organization’s needs.
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101 Tips for Success in Consulting