Monday, November 9, 2009

What sort of "consultancy" are you?

The word "consultancy" gets thrown around a lot and covers some very different organisations and value propositions. These range from just a few people sharing business-cards to true though to McKinsey.

1. Body Shop
At this stage you are just an outsourced agency to find contractors for clients. There are no real relationships between people on client sites it's just an volume game. The value proposition is just out-sourcing your interviewing and trawling through resumes.

2. Bunch-o-Mates / I know a guy..
At this stage one or two key senior people work as contractors out on client site, and bring in their friends and ex-colleagues to the same site. There's no real sales function it's all done through one-on-one relationships. The value proposition is a pre-assembled team of high-quality people.

3. Ad-Hoc Delivery / Hands & Feet
Once your bunch-of-mates hits a certain level of sophistication you can start to out-right own delivery of certain functional projects using whatever methods and IP is already used by the client. Commercially this is when serious profit and risk start to occur. Most organisation that delivery like this rely on one or two "heroes" (normally the owner) to actually deliver and manage client relationships.

4. Repeatable Delivery
Once you've gone through a few delivery cycles you actually start to know a thing or two about what you're doing. At this point you have the methods, IP, and embedded practices to actually reliably repeat delivery of similar solutions. At this point the founder starts to be less involved in the day-to-day and can probably start calling yourself a consultancy with a straight face.

5. Domain Expert
Knowing how to do it internally is great - but being able to pass that knowledge onto other is even better. In the Sydney market PlanIT for testing and Object Consulting for system modelling embody this trend well. Once you have a strong reputation you become sought out first for smaller consulting gigs to improve practice at clients, then as a plain old trainer.

6. Trusted Adviser
At this stage when you say no to your client they stop and listen and your ideas are incorporated into the heart of your clients strategy and execution. You're a trusted source of option and options in your domain or beyond. Congratulations. You don't need to be McKinsey, even if you're just a trusted adviser of a specific domain like data warehouses or mail-rooms that's a great achievement.

(Got some ideas from here while goggling good examples of trusted advisers)
http://onstartups.com/tabid/3339/bid/1699/Startups-Are-You-A-Trusted-Adviser-Or-A-Responsive-Assistant.aspx

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