3 Ways To Optimize Your Consulting Investment

FORBES | Erika Maguire, Contributor

At first glance, it would seem as if everything is going well in the consulting business. According to recent research from Forbes Insights and North Highland, 92% of executives say they are satisfied with the outcomes of their consulting projects. Despite this level of satisfaction, however, only half of the companies surveyed stated they would rehire their consultancies. This dichotomy between the level of satisfaction and the willingness to hire firms again stems from a number of shortcomings which can equate to a high cost if not addressed. Using the three strategies detailed below, companies can maximize the value of their consulting investment.

Define the Project Plan in Partnership with Your Consultants

While the outset of a project is critical for creating a successful working relationship, just 58% of executives work with consulting firms on the strategic direction of a project prior to beginning work. Although it's often assumed that the company is responsible for developing clear goals for a project, not all companies know how to define success. Consultants often bring a level of expertise to how projects should play out and what the relevant milestones should be.

By allowing consultants to shape the conversation around a project before it begins, both parties can benefit from a clearer understanding of the project, its scope, and how to mitigate confusion down the road. These conversations also provide each side with an opportunity to make suggestions on how to best achieve a project’s goal, and make the engagement much more of a partnership rather than simply a transaction.

Pay Consultants Based on Results

A common trend within the consulting business is to pay based on a flat fee or hourly rate. These preferred methods of payment, however, do not take results into consideration and thus companies forego the opportunity of a guarantee to achieve the price they seek.

One way to optimize value from a consulting investment is to pay based on results. The benefits of a results-based structure are two-fold. First, it encourages companies and consultants to sit down and discuss the key performance indicators of a project. Through these conversations, both parties develop a clearer understanding of the overall goals and their respective roles in achieving them. Secondly, by paying based on results, companies have a way to hold consultants more accountable for the work commissioned.

Encourage Partnership Across Teams

Implementing and executing change is one of the major challenges companies face. Most companies assume it is their responsibility to best determine how to execute a consultancy’s recommendations, but by allowing consultants the opportunity to develop relationships with internal teams, company-wide support for recommendations can be easier to achieve.

Instead of having consultants "leave the project at the executive PowerPoint level," companies should encourage their consultants to develop partnerships with the employees who will be carrying out the changes, as well as senior management. This allows all parties to better understand the value of the recommended changes, and a chance to embrace them rather than interpret them as suggestions from outsiders.

There is no question that consultancies provide a necessary and vital resource, and by implementing the tactics described above, companies can maximize the strength and value of these partnerships.

This article was written by Erika Maguire from Forbes.

The views expressed by the author are not necessarily those of Fifth Third Bank and are solely the opinions of the author. This article is for informational purposes only. It does not constitute the rendering of legal, accounting, or other professional services by Fifth Third Bank or any of their respective subsidiaries or affiliates, and are provided without any warranty whatsoever. Deposit and credit products provided by Fifth Third Bank, Member FDIC.