Strategy

Customer expectations of the consulting industry are changing, according to recent analysis of the industry in North America by Kennedy Research.  In the past, large firms got the larger jobs using the model of many junior consultants doing a majority of the work with fewer domain experts/senior consultants and even fewer senior partners.  Now customers are demanding more involvement from the senior consultants and less from juniors.  These new demands do not fit well with larger firm structures, but do fit well with hiring a broad range of smaller niche consulting firms. 

The automotive sector has used a collaborative niche business partner model in its supply chain for many years.  Managing many subcontract business partners does take significant effort and resources.  When dealing with professional services, the deliverables are less tangible and it requires some expertise to evaluate and select them.  However, many smaller consulting firms and sole practitioners with a specific domain of expertise can work in collaboration to fulfill a bid or contract, without attracting additional overhead. 

Look for overlap

The first challenge is finding great resources – senior consultants and partner companies to fulfill the client requirements.  You can find potential resources by attending professional, industry, and community organization events and allowing some time for networking.  Once these potential resources and partner organizations have been identified, it is essential to meet with them to establish whether their values and ethics are aligned with your own and whether a good working relationship can be established. It is important to have some overlap of services and knowledge to be able to work effectively as a team.  This overlap is key in allowing organizations to work well together whether it is for short-term projects, long term partnering or mergers/acquisitions.  A good rule of thumb is to look for a 15% to 40% overlap in services or knowledge.  Less than 15% makes it too difficult to work together and more than 40% makes partnering less necessary.

If the values, ethics and attitude are aligned, then the relationship needs to be developed.  Newsletters (like this one), emails, phone calls, seminars and meetings can be used to develop relationships and a further understanding of each others’ strengths and specialties. 

Keys to success

The next step is to deliver using a synergistic team.  There are some keys to success:

1. The Right Fit – Make sure that the team members are a good fit with the client and each other.  Expertise and a humble attitude are necessary for cross-organization collaborative teams.
2. One Responsible Party – The buck has to stop with the lead consulting firm.
3. Project Management – Every project needs a manager responsible for all deliverables and schedule.
4. Clear Communications – Make sure that employees, sub-contractors and clients are communicating effectively.  Review this process regularly.
5. Use Electronic Tools – Use the tools that are available to electronically communicate, track and document processes and deliverables.  (e.g. email, instant messaging, CRM, Project)

Making all of this happen requires both skill and experience, but the result is well worth the effort.  Clients get access to a team with the best available senior talent at a cost-effective price, and the smaller consulting firms can compete on larger projects.

Scott Murphy is a Consultant and VP – Business Development at Data Perceptions. Scott helps companies select best available technologies to meet their business requirements.  In his role as Business Development lead, Scott has helped develop Data Perceptions’ extended team and the collaborative consulting model.   Data Perceptions has developed and maintains relationships with over 80 independent consultants and 200 partner firms to allow us to meet a larger range of our clients’ and prospects’ requirements.