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| Methodology |
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A debate persists in the consulting industry about the role of methodologies and tools in the sales process.
Some argue that, once you utter a word about "how" you plan to do the work, the client begins to perceive you as a commodity, rather than an adviser. Others suggest, with equal vigor, that a consultant's methods and tools are central to any sale.
In my opinion, both positions are right--and wrong.
Any experienced consultant will tell you that our business has few hard and fast rules. What works for one client doesn't necessarily work for another. What we really need is flexibility, not dogma.
Naturally, clients will ask you to help solve a problem or envision the future. And it's foolish to talk about how you will get there until you and the client agree on what needs to be done.
But it's equally wrongheaded to believe that prospective buyers should have no interest in your methods.
Most clients want that vision of the future and a road map to get there. Providing both, in the right proportion, can help close a sale.
If you tell a senior executive that you'll help shave 15 percent off the company's inventory costs, don't be surprised when the client asks exactly how you'd do that. Brush that question off, and expect to be shown the door.
When hiring, say, carpenters, most people don't care if they plan to uses 21 oz., Anti-Vibration Hammers for the job. They leave it to the pros to do the job the best way possible.
Services buyers, though, do care how you will do the work. They want to know how your team will manage the project and communicate with the client's people. They want to know how much disruption to expect, and how you will produce the promised result.
The challenge is deciding what level of detail is appropriate for your audience at various points in the sales cycle. Of course, focus first on what needs to be done. But be ready to answer the inevitable "how" questions.
Enjoy this month's issue.
And send me an email if you have comments.
Mike
McLaughlin
Editor
Management Consulting News is a publication of MindShare
Consulting.
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| MCNews 12 Index of Professional Services |
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A Great Start to an Uncertain Year
In spite of a jittery market in January, the returns on the stocks of the MCNews 12 Index easily outpaced the S+P 500, turning in a monthly gain of more than 4 percent.
In February, the US congress agreed on an economic stimulus package in the hopes of preventing a protracted recession. With a potential downturn on the horizon, Satyam's chairman warns consultants about the implications. Executives at Watson Wyatt aren't as concerned.
Bearing Point continues to struggle, having racked up more than $500 million in losses in the past two years. At $1.60 per share, someone is likely to find value in that business.
Speaking of value, EDS saw its net income jump in 2007, but its stock price slumped by almost 25 percent. That didn't prevent the EDS board from letting CEO Ronald Rittenmeyer pocket nearly $14 million in annual compensation.
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MCNews 12 Index |
Monthly
Change |
S+P 500
Change |
| February 2008 |
933.75 |
4.48% |
1.08% |
| January 2008 |
893.69 |
-11.6% |
-9.8% |
The MCNews 12 Index reflects general investor sentiment about the state of the global professional services industry.
The twelve publicly-traded companies included in the MCNews 12 Index account for roughly $80 billion in combined annual revenue, and serve clients around the world.
Learn more about the MCNews 12 Index 
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| Interview:
Tom Sant |
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 "By using big words, we might think we are going to impress people but, instead, we put them off and make them doubt our own competence."
Ask any client about the writing habits of consultants, and you'll hear a horror story about jargon-laden prose that needs a translator to decipher. It's never simple to find just the right words for every business communication.
So, this month we asked Tom Sant, author of The Language of Success: Business Writing That Informs, Persuades, and Gets Results, for his advice on beating the nonsense out of our writing. Sant has effective writing tips for everything from proposals and marketing messages to email and memos.
Read
our interview with Tom Sant
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| Flying Solo, by Alan Weiss |
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 It's Not You, It's Them
I'm here to lend comfort and stop you from beating yourself up. Sometimes the prospect is damaged, is unreasonable, and is from the far side of the universe.
Read
the article
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| How Much Do Consultants Earn? |
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It's natural to wonder how your earnings stack up against those of others in the industry. To get a handle on comparative earnings, we took a look at the reports of several organizations on salary ranges for consultants, and then we created a composite.
Naturally, there are problems with any reported averages, but the figures below should give you a sense of where salaries are headed. For purposes of deriving average salaries, we defined a consultant's role as encompassing all aspects of the consulting process, from problem definition to solution implementation.
The average annual salary, excluding benefits, for US-based consultants is about $146,000. The high point in the salary range is $219,000.
As you would expect, the average salary shifts for specific geographic areas. For instance, in the San Francisco Bay Area, half of the consultants earn between $127,000 and $271,000, with average salaries reaching $180,000 annually.
Keep in mind these salaries are for employees, not business owners or partners.
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| From the Bookshelf |
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Here are two recent books that you might want to check out. The first focuses on managing a professional firm, while the second provides advice on becoming a thought leader.
When Professionals Have to Lead, by Thomas J. DeLong, John J. Gabarro, and Robert J. Lees
Leaders of professional services firms face a tricky balancing act: how to manage the sometimes conflicting needs of clients, practitioners, and partners. In their new book, When Professionals Have to Lead: A New Model for High Performance, the authors offer a compelling new framework for managing the professional services firm.
Using examples from a range of firms, industry veterans DeLong, Gabarro, and Lees show how this framework functions to:
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Align a firm's culture with key organizational components
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Satisfy clients' needs without sacrificing essential managerial responsibilities
Address matters of size, scale, and complexity
The authors provide a creative approach to address the realities of managing a firm, while maintaining the qualities that make professional services firms unique.
The Expert's Edge, by Ken Lizotte
It's easy to say that the path to success in the consulting business lies in establishing a position as a thought leader. But how do you do that? In his new book, The Expert's Edge: Become the Go-To Authority People Turn to Every Time, Ken Lizotte lays out the details.
Using the "Five Pillars of Thoughtleading," Lizotte, the Chief Imaginative Officer of emerson consulting group, outlines the strategies any consultant can use to gain the expert's edge in the market.
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| The Trouble with Marketing |
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If you've ever thought your marketing and sales processes weren't working well together, you're not alone. According to a survey by The Bloom Group, professional services firms' sales and marketing teams are often out of synch.
Bloom surveyed marketing and sales executives from 224 professional services firms in North America and Europe. The survey found that few firms effectively coordinate marketing campaigns, measure results of those campaigns, or even work from a common client data base.
It's no wonder that only 29 percent of firms are highly successful in creating awareness of their expertise and services with target buyers.
Of course, it's no secret that many firms throw good money after bad in the hopes of making a market impression. But it's equally true that by landing a few engagements, most firms can cover years of marketing costs. And, unfortunately, that seems to be okay with some firm executives.
Have a look at the survey results by visiting The Bloom Group.
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| Coming
Attractions |
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 "It's easy to forget that calls made today are unlikely to turn up business today."
Join us next month when we talk to Ford Harding, author of the newly revised classic, Rainmaking: Attract New Clients No Matter What Your Field.
We'll ask Harding how consultants can overcome the ongoing challenge of marketing, selling, and delivering work simultaneously. Harding will also discuss his views on crafting a winning sales strategy for any consulting practice.
Look for the next issue of Management Consulting News on April 1, 2008.
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