How to get your money's worth from consultants - hiring a communications consultant - Tutorial

Communications News, March, 1994 by Paul F. Kirvan

Sometime in 1994, you'll probably hire a telecommunications consultant. Unless your organization has all the staff or specific expertise it needs to handle telecomm projects, you probably can't survive without some outside help.

If you're faced with the same amount of work (or more work) in 1994, but must do it with the same (or fewer) staff members, you may want to discuss your needs with qualified consultants.

However, before issuing an RFP for consultants, some important issues should be discussed. To address these concerns, we interviewed a "dream team" of two end users and three consultants. Users included Ruth Michalecki, director of telecommunications at the University of Nebraska/Lincoln, and Sherman Murphy, director of telecomm initiatives at ITT Hartford Insurance, Hartford, Conn. Consultants included Jim Morgan, of J.H. Morgan Consultants, Morristown, N.J.; Susan Kuttner, President of Creative Partnerships, Carmel Valley, Calif.; and Barry Marks, senior consultant with IBM Consulting Group, White Plains, N.Y.

The dynamics of the relationship between consultant and client are typically underplayed, but are a key to success. Murphy described four different types of consultants. Type 1 is a "domain expert," who has focused expertise in specific areas. Type 2 is a consulting services firm, which typically offers published information reports, plus telephone and/or on-site technical briefings. Type 3 is a hybrid of the first two. Type 4 is a "vendor consultant" in which telecomm clients utilize vendors and carriers in a consulting capacity.

Morgan considers himself a Type 1, and likes the excitement and dynamics of assisting clients to meet their goals. Kutter, who founded Rolm's original consultant liaison program, is also a Type 1, specializing in marketing and interpersonal dynamics for telecommunications. Marks' activities initially appear to be Type 4. However, as he says, "We actually focus on business processes and technology, more like a Type 2 or 3 consultant. And sometimes we recommend solutions without IBM products."

When she is not running university telecomm operations, Michalecki is also an independent Type 1 consultant specializing in numerous areas, like Morgan.

According to Murphy, "The key requirements in a Type 1 relationship are work that is focused in scope, has a finite, usually short-term time frame, and the company lacks the internal expertise, and/or time." Morgan adds, "With Type 1 projects, it is absolutely essential that the project scope is well defined." Often a Type 1 relationship can evolve over time.

"We've been working for over 14 years with the same software expert," Michalecki says. "Not only does he know software, but he also know university politics, which is essential." Kutter adds, "Recognition of a client's agenda is vital, and it must be communicated to the client both verbally and non-verbally."

Type 2 consultants (examples: Gartner Group, Forrester Research) typically provide useful information in the form of detailed reports, briefings, white papers and newsletters.

"Most telecomm shops simply can't stay on top of everything that's happening," Murphy says. "So a Type 2 firm can help by not only sorting through industry events, but by indentifying opportunities for the client resulting from the events." Murphy adds that rates for Type 2 firms can vary significantly.

"A good strategy is to try and negotiate a deal where several services are bundled together," he says, "but you still must clearly define your problem before calling a consultant."

Marks notes that a Type 2 firm should be able to examine client needs from different perspectives, and, he adds, "The firm should also be visionary, which can help identify the best short- and long-term strategies for the client."

Examples of a Type 3 firm are Deloitte & Touche and Arthur Andersen, which offer a broad range of services. These firms offer flexibility in tailoring engagements to the client's requirements, and have sufficient expertise to handle most projects. According to Murphy, occasionally Type 3 firms will obtain the services of professionals outside the firm for a specialized project.

When working with a incumbent vendor or carrier in a Type 4 capacity, remember that the vendor's principal mission is to move products, according to Murphy. "Most account teams perform what could be called value-added consulting," he says.

Also, when working with vendors, especially on unique projects, users should ensure confidentiality of information. Morgan cautions, "Be careful of vendor consulting, especially if it is free,' because nothing is really free."

A consultant's contact point is often a sticky issue. "From a consultant's perspective," Morgan says, "it's important to identify up front both the hiring decision maker as well as the consultant's working contact." Indeed, it is frustrating when a consultant is hired by one person, such as an executive, only to be delegated to another less-senior person who immediately feels threatened.