The 10 Critical Questions to Ask Before Hiring a ConsultantTalk to as many consultants as you can before hiring one. Even if you have one person or firm in mind, interview at least a few others as a sort of due diligence. You'll probably find that each interview helps you focus on
issues you're hiring a consult to help resolve.
1. Most consultants focus on two areas: cutting costs and raising revenues. What do you see as relationship between two functions? Which do you do better?
Cost cutting is consultant's usual expertise. It's what most companies need. Most of these hired outside consultants to take an objective look at organizational charts, value-adding processes and competitive environments. "We spend a lot of time talking to a company's customers, so we understand what they like and don't like," one consultant says. "What does customer value? Is it time? Is it quality? We define that." What this means is that a company can cut jobs and still not touch on one non-value-added activity or add value to customer.
2. What was your professional experience before you became a consultant?
Ultimately, you should want any consultant you use to have a strong bottom-line sensibility. You want this person-or team-to focus on things that will add greatest amount of value to your company in shortest amount of time. This kind of thinking doesn't come naturally to many people. It usually demands two kinds of experience: as a chief executive officer or as a corporate turnaround specialist. A consultant who has this kind of experience has dealt with strict cost controls, high-pressure scrutiny and need for quick results. These are same traits you should look for in anyone giving you expert advice.
3. How many professionals work with you or at your firm?
Business consultants fall essentially into two categories: Solo-practitioners and team players. The differences between two usually involve type of work they take. Most of time, soloists deal with less-specific, strategic or vision-related issues; teams get into more tightly focused number crunching. Less-specific functions tend to take less time (sometimes as little as one day); more specific take more. One of these functions isn't better or worse than other. The trap to beware: The marketing soloist who claims he or she can also review all of your accounting.
4. Will you sign a letter of confidentiality? Will you refrain from working for our competitors?
Ask all consultants to sign a letter of confidentiality. Some owners and managers assume that short-term strategic consultants pose less of a threat to proprietary interests than number crunchers. Don't make that assumption. You and your staff should feel free to discuss any business subject with your consultant and trust his or her discretion. If you feel uncomfortable, you won't discuss things candidly. Your risk in these cases isn't usually that consultant will knowingly steal proprietary in formation or material. Most are professional enough-and work in small enough markets-that reputations matter. More often, risk involves a consultant unwittingly mentioning something. If he or she has signed a confidentiality letter, he or she will be more likely to think twice.
5. Who are some of your other clients? Who are some people and companies with whom you've worked before? Can I call them to ask about your work?
Don't be wowed by big-shot former clients. At big companies, consultants are hired in teams to tackle extremely specific projects. Just because person in expensive suit claims Microsoft as a former client doesn't mean he knows Bill Gates on a first-name basis. In fact, it's better if consultant has worked with companies closer to your size and shape. They'll more likely understand your needs.
6. With how many clients do you work at one time? Do you have enough time to devote to our company to accomplish our goals? Will you return phone calls or emails same day?
Asking other or former clients about consultant's responsiveness and attentiveness can be helpful. As can more pointed questions of consultant. These questions all focus on same point: How much attention can consultant afford to spend on your needs? The number of clients a consultant can serve well varies with kind of service provided and client involved. But some general rules apply: You want to have same-day response to questions or problems. If you're undertaking a major restructuring, you probably don't want your consultant working with more than two or three other clients. A caveat: Some owners and managers who've had bad experiences with overly invasive (and expensive) consultants warn that you shouldn't be only client a consultant has.
