Comments on: On Consultants http://www.johnsjottings.com/archives/2003/01/22/on_consultants.html Technology, Blogging, Food, Travel, Poker and More Thu, 11 Aug 2011 16:45:41 +0000 hourly 1 By: john http://www.johnsjottings.com/archives/2003/01/22/on_consultants.html/comment-page-1#comment-131 john Sun, 26 Jan 2003 13:56:22 +0000 http://www.johnsjottings.com/wp/?p=53#comment-131 I agree Henry and the reason why I sugget limiting the length and scope of projects - the longer the project the more impact changes in the business will have and the more unlikely it will be that a project can be completed as initially scoped - hence the reluctance for them to sign u As an example we've had two reorganizations in the last year that have effected our schedule greatly. Key people leave, objectives changes. Over the course of anything longer than a quarter all of this will happen and if I was a consultant I'd be hesitant to sign up for it too. I talked with an ex-consultant who works for us and she told me that when she was a consultant spoecially in training her main objective was figuring out how to turn that $1M contract into a $4M one. Certainly not the incentive that benefits the client. I agree Henry and the reason why I sugget limiting the length and scope of projects – the longer the project the more impact changes in the business will have and the more unlikely it will be that a project can be completed as initially scoped – hence the reluctance for them to sign u As an example we’ve had two reorganizations in the last year that have effected our schedule greatly. Key people leave, objectives changes. Over the course of anything longer than a quarter all of this will happen and if I was a consultant I’d be hesitant to sign up for it too.

I talked with an ex-consultant who works for us and she told me that when she was a consultant spoecially in training her main objective was figuring out how to turn that $1M contract into a $4M one. Certainly not the incentive that benefits the client.

]]> By: Henry http://www.johnsjottings.com/archives/2003/01/22/on_consultants.html/comment-page-1#comment-130 Henry Sat, 25 Jan 2003 20:19:14 +0000 http://www.johnsjottings.com/wp/?p=53#comment-130 From my own CRM implementation experience (as well as lesser projects) I don't believe consultants are incentivized properly. Usually their number one goal is to sell more work to you after the project is over. Unless they have another project waiting for them elsewhere, in which case it's to rush your job (getting paid the full amount, of course) so that they aren't late to your next job. When dealing with consultants I usually tie them to a contract with 1) measurable deliverables with mutually agreed upon deadlines, 2) liquidating damages if they pass the deadlines and 3) a bonus if they deliver what I want on schedule. The bonus is effectively what I agreed to pay them for the expected man-hours of the project. If a consulting firm won't agree to those stipulations -- and most big firms won't -- I refuse to use them. From my own CRM implementation experience (as well as lesser projects) I don’t believe consultants are incentivized properly. Usually their number one goal is to sell more work to you after the project is over. Unless they have another project waiting for them elsewhere, in which case it’s to rush your job (getting paid the full amount, of course) so that they aren’t late to your next job.

When dealing with consultants I usually tie them to a contract with 1) measurable deliverables with mutually agreed upon deadlines, 2) liquidating damages if they pass the deadlines and 3) a bonus if they deliver what I want on schedule. The bonus is effectively what I agreed to pay them for the expected man-hours of the project. If a consulting firm won’t agree to those stipulations — and most big firms won’t — I refuse to use them.

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