Selecting the right consultants

HR Magazine, August, 1994 by Martha S. Cooley

A successful consultant-client collaboration can enhance organizational performance and lighten the load of the overworked HR department.

"Those who can, do. Those who can't do, teach. Those who can't teach, consult." With this quote from a disgruntled executive, Alan Weiss, consultant and author of Million Dollar Consulting, amusingly articulates every in-house professional's fear of being bamboozled by a fast-talking outside "expert." Comparing consultants to astrologers, Weiss notes that "anyone, at any time, and virtually anywhere, can be a consultant."

The fear isn't unwarranted. Yet Weiss is right in also pointing out that a good consultant--one who emphasizes results rather than tasks--can bring genuine, lasting value to the organizations she or he serves. And in this era of lean corporate structures, consultants are many companies' answer to getting important jobs done efficiently and cost effectively.

HR professionals in both large and small organizations use consultants frequently to assist with specific technical projects, fill in for staff on leave, help resolve tough managerial problems, and build better teams. Indeed, the potential uses of an HR consultant are countless. But are there particular HR tasks for which a consultant is an especially smart investment? What makes collaborations with consultants work, and what trips them up? What's the best way to find a good consultant?

The answers to these questions depend, of course, on the organizational context and the needs of the client. On one point, however, most HR managers agree: You shouldn't think about hiring a consultant unless you can state precisely what you want that person to accomplish and are prepared to hold up your end of the deal. Only when expectations are mutually clear can consultants be a wise investment.

THE MANY USES OF CONSULTANTS

Business trends such as downsizing, global competition, increased workforce diversity and technological advances pose ongoing challenges for HR professionals. Within this exciting but demanding context, consultants can step into the breach in both broad-reaching and narrowly focused ways.

How are consultants being used in diverse organizational settings today? Nancy Howe, HRIS payroll supervisor at American Medical Labs in Chantilly, Va., says one "big-picture" HR assignment that is typically undertaken by outside experts is a general HR audit. "It's helpful to get someone to take the temperature of the HR function and provide a 'How are we doing?' overview," says Howe.

A good consultant brings the right mix of knowledge and detachment to this task. When an HR audit (which can cover everything from succession planning to payroll) is designed and administered with the help of a consultant, it affords the HR department an excellent opportunity to size itself up and ask some essential questions: Are we offering the right services to employees and managers? Do we have the right equipment and the right thinking?

Like Howe, Ruth Clover, employment specialist at Lennox International in Richardson, Texas, a maker of heating and cooling equipment, believes that a fresh outside perspective is vital when undertaking a wide-angle assessment of business performance. Describing a recent functional-area assessment undertaken for Lennox Industries by the international consulting firm, Arthur Anderson, Glover says that the key is to keep the focus on outcomes. "When you're re-engineering, ask whether you're going to get better results, not just change for its own sake."

Glover also finds that consultants are particularly helpful for certain HR tasks, such as outplacement counseling, that may be better performed by outsiders even when in-house staff have the requisite skills. "For venting," says Glover, "it's safer for departing employees" to talk to a consultant who may be able to get through to individuals reluctant to talk to former colleagues.

In addition, consultants can fill in for employees on maternity or paternity leave. In this capacity, a consultant would perform a range of HR tasks similar to those of a temporary employee. "Generally speaking, the line between temporary employees and consultants is fading," asserts Glover.

Jose de la Cruz, HR director for Chicago-based Appetizers And Inc., a food processing company specializing in frozen handmade appetizers, has used consultants for projects in which specific expertise was needed. When designing the company's performance management system, he sought help from a consultant to help develop new pay strategies that put a portion of employees' compensation at risk.

"Many companies," says de la Cruz, "lack the sophistication to do this themselves. I was able to handle the manufacturing side of things, but I needed help with the sales organization, which operates very differently."

He searched carefully for a consultant capable of understanding the special market niche of the company. "You've got to test the person's business acumen," he says. "Even if the consultant isn't an expert in your business, he or she should be able to demonstrate a willingness and ability to learn fast."