Managing Consultancy Input
It is common in programmes or single large projects to use some consultancy support to supplement in-house skills. The rapid recent increase in management and IT consultancy is indicative of the sector's desire to start doing business in different ways. Such expertise, if properly applied, can be of enormous benefit. It is however inevitable that when two different types of enterprise come together there will be conflicts and clashes as well as success stories. The key to success is given in the section heading - the input must be managed and that means by you! All too frequently institutions will employ consultants then leave them to 'get on with it' and still be surprised when costs overrun or the results aren't what they expected.
When designing your programme or project, think long and hard about what you want to achieve and what external input you require. Be realistic but optimistic about the skill set within your own organisation. Consulting firms are very often hired to advise at the time a programme or project is being set up and all of them, without exception, will be keen to offer project management expertise. Why is this? Because it is a very generic skill. That's not to say it's easy - but it can be learned. There is of course no substitute for experience; an experienced project manager is worth their weight in gold to your organisation but increasingly so if they have home-grown skills. A manager who has generic project skills and who knows your business will cut to the chase more quickly than one who needs to learn your organisational set-up and your business. Plan ahead, identify staff who may be required to lead projects, invest in project management training, use our Project Management infoKit and find ways of applying a practical project approach to work situations to gain experience. It's worth it, you'll save a fortune.
Having identified areas where you do need external support, be very clear about what that support is intended to deliver. Even where you have contracted for external project management, you and other senior managers involved, need to be aware of the principles of sound project management in order to quality assure that input.
Feedback from a wide range of colleagues who have used consultancy support, particularly in systems implementation projects, reveals consistent themes of superficiality, inappropriate models and failure to understand the nature of our business. This is an issue in finding external support not only for student system projects but also for related projects such as financials where an understanding of student finance is essential to adequately meet user requirements.
A common feature of 'consultancy-led' projects is that they attempt to shoehorn clients into their own standard template and they can often go a long way off track before the approach is challenged. Realistically you can't always blame them for this. It is inevitable they will have standardised approaches and it is up to us to ensure we understand the models they are using and challenge them where we know that the education sector is different.
You do have to remember that this is a commercial relationship. In a good project it won't feel that way; the consultants will be part of your team and helping you achieve your goals. However, if things aren't going so well, don't be afraid to question the approach. The consultancy may have a vested interest in prolonging projects either by belated changes of approach or, in the worst cases, ongoing consultancy support for a live system which is effectively a square peg in a round hole. Most consulting firms will argue they would not risk their reputation by involvement in such projects. Experience, however, shows otherwise. It is, after all, very easy to blame the sector for its naïvety or un-business like approach whilst continuing to dispatch the invoices!
Get The Right People
Once you have a clear remit for the consultants, you need to select the right people for the job. Your choice of a consulting firm may be based on a response to a tender or by previous experience or a recommendation. The critical thing is, having found a firm with appropriate credentials, to get the right people on site. They will send their brightest and best to win the business but they are only as good as the person who actually joins your team. Be prepared to ask for CVs and to interview potential candidates. Be prepared to start again if they can't send anybody suitable.
When it's gone, it's gone...
A frequent tactic is for a firm to say they have somebody ideally suited to your brief but this person will be allocated to another job unless you can sign a deal immediately. It may be true but you need to evaluate that person. You should also be concerned that they don't have a larger pool of relevant experience...
Education sector experience is rare even amongst the major consultancies. Don't expect to find someone who knows the sector inside out, it won't happen. Think about what key skills they need to bring and how you will evaluate whether they can adapt to your situation. Most consultancies will be happy to send candidates for interview. If a potential candidate needs bringing up to speed about your business or key issues for your project, many firms will be happy to allow some non-chargeable time for this but you need to agree this before you sign a contract.
Having found someone suitable, check on their status with the organisation. Consulting is a business where turnover is high and certain skills are at a premium. Our own experience has involved finding consultants suitable for a medium term assignment only to discover they were short term contractors not employed by the company, or in one case, a member of staff already working their notice. You should also make sure that the company can't sell you their brightest star then move them onto another project as soon as a new prospect appears on the horizon. Look to your contractual documentation to cover these points. There will inevitably be turnover situations which the company can't foresee and you should agree beforehand what is your preferred approach should your chosen consultant suddenly hand in their notice.
Get The Right Contract
The whole issue of contracts is covered in our infoKit on Contract Negotiation. This section simply serves to give a few pointers. The first and most important is to ensure that you do have a written agreement.
Consultancy fees will either be on the basis of a daily rate or a rate for the job. A daily rate gives you slightly more control so long as you are prepared to manage your project very closely; a fixed rate may be appropriate where there is an absolutely finite budget and the scope and deliverables can be very clearly defined. On the whole, we would tend to recommend the former but scrutinise and re-scrutinise their estimates of effort so that you have a clear idea what the maximum total cost is likely to be.
Daily or Fixed Rate?
Either way is a win/win situation for the consultants. If they quote a rate for the job, this will include a hefty contingency sum to ensure that they can't possibly lose out if they hit problems. If they quote a daily rate, you will pay for more days should the project encounter unforeseen obstacles.
Don't forget issues such as expenses as this can add a hefty sum to the overall cost. If you are simply paying expenses as billed, discuss where the consultants are coming from, how they are travelling and where they are staying. Daily flights from the opposite end of the country or your city's most expensive hotel may otherwise come as a nasty shock to you. If you are handling a long term programme/project and employing a number of different consultants, it may be more appropriate to agree a fixed rate for expenses simply to help your own budgeting. Most firms will grumble initially then agree it's not unreasonable.
You should also agree what constitutes a day's work. In a good relationship you will find that all of your team is working to meet your goals and consultants in particular often put in long hours to get the job done. You do however need to cover yourself against paying a thousand pounds or more per day (plus expenses) for someone who regularly arrives at 11am or gets a 3pm flight home if they aren't putting in the work at other times. Agree how time will be monitored and ensure that records are kept. This is especially important if off-site working is included - you do have a right to know what they are charging you for.
It is important to set out your expectations of one another as regards facilities to be provided. Consultants will often need office space in your project environment - you should be clear about their requirements at the outset as your project could be delayed if you suddenly find you need extra phone lines or have to buy and configure printers etc. It also pays to clarify what versions of software such as Microsoft Word or Microsoft Project your respective companies use. Don't be afraid of stating the obvious - we once experienced difficulties working with a consultant from a reputable firm who didn't have a working e-mail address.
