Hello, and welcome to Smart Consulting Sourcing, the podcast where we unpack everything you need to know about consulting and how to get the most value from it. I’m your host, Helene Laffitte, CEO of Consulting Quest—the only global firm specialized in consulting procurement. If you’re a procurement, strategy, or finance professional looking to get better results from your consulting spend, you’re in the right place.
Before we dive in, don’t forget to subscribe to Smart Consulting Sourcing on your favourite podcast platform, and check out our YouTube channel for more insights on how to source and manage consulting services effectively.
Today, we’re tackling a topic that’s critical for any company looking to optimize their consulting spend: change management. You might be wondering—what does change management have to do with optimizing consulting services? Well, the answer is, quite a lot.
When you launch a project to optimize your consulting spend, you’re not just tweaking a few processes. You’re fundamentally changing how your organization approaches, selects, and manages consulting services—and that’s a big shift.
Here’s the thing: in most companies, the ones who are using consulting services are higher-ups—senior leaders, business heads, even C-suite executives. And often, procurement isn’t even involved in the buying process. So, to truly optimize your spend, you need to fundamentally change the ways of working, and that’s bound to meet some resistance. And the hardest part? That resistance often comes from the very top. Managing that resistance and ensuring that everyone, from procurement to senior leadership, is aligned is key to making this transformation successful.
At Consulting Quest, we use a methodology derived from John Kotter’s 8 Steps for Leading Change—a powerful framework designed to ensure smooth transitions and successful outcomes. Optimizing consulting spend can impact multiple areas across your organization, from procurement to finance to individual business units. To make sure these changes stick, you need buy-in from all levels, clear communication, and a roadmap for embedding the new processes into your company’s DNA.
In this episode, I’ll take you through Kotter’s 8 steps and explain how we apply this model to consulting category optimization projects. So, if you’re planning to get the most value out of your consulting spend, stay tuned!
Step 1: Create a Sense of Urgency
The first step in Kotter’s change management model is to create a sense of urgency. This is critical for any transformation project, but it’s especially important when optimizing consulting spend. Why? Because in many organizations, the consulting category often flies under the radar—it’s seen as a necessary expense rather than an area for improvement.
To build that sense of urgency, you need to highlight the financial implications of continuing business as usual. How much are you spending on consulting services that may not be delivering full value? How many contracts could be renegotiated for better terms? The potential savings from a successful optimization project can be significant, and those savings aren’t just about cutting costs. It’s about freeing up resources for other strategic initiatives. The money saved could be reinvested in innovation, growth projects, or digital transformation efforts—helping you do more with less.
But it’s not just about the money. Optimizing your consulting spend can also help reduce complexity in how your organization manages consulting services. Streamlining procurement processes, standardizing contracts, and centralizing vendor management can lead to a more efficient and less fragmented approach.
Then, there’s the matter of reputation. You don’t want your organization to be seen as an ‘easy’ client—one that’s easy to fool or take advantage of. When consulting firms see that you’re serious about optimizing your spend, they know you’re paying attention to value for money. This not only strengthens your negotiating position but also helps you build stronger, more transparent relationships with your consulting providers.
Now, how do you create this sense of urgency? Data is your ally. Start by evaluating where your company stands today. Measure the maturity of your consulting procurement practices—understand how well you’re managing this category and where the gaps are. We have a tool on our website that does just that, and we’ll share the link in the comments. This kind of assessment helps you identify inefficiencies and see exactly where improvements are needed.
In addition, you can conduct a high-level spend analysis to get a clear picture of your current situation. Ask questions like:
- How many projects are bought with companies in your preferred supplier panel?
- How much savings do you usually capture on consulting projects?
- How many consulting firms do you currently work with?
- Who are your go-to suppliers for key projects?
Benchmarking data can also be particularly powerful—when you show how your company compares to others in your industry, it becomes hard to ignore the need for change.
At the end of the day, the goal is to make sure everyone—from procurement to the C-suite—understands that the current way of working is no longer sustainable. The opportunity to optimize consulting spend is there, but only if you act now.
We know that data can be powerful. One day, I’ll tell you how I convinced my oldest son to reduce his video game consumption by showing him just how much time he was spending on them. Once you see the numbers, it’s hard to unsee them!
Step 2: Build a Guiding Coalition
The second step in Kotter’s change management model is to build a guiding coalition. This is one of the most critical steps when optimizing your consulting spend. You need to assemble a strong team that will champion the project, align key stakeholders, and push through any resistance that might arise along the way.
So, who needs to be on this guiding coalition? In the context of consulting category optimization, you’ll need leaders from procurement, finance, and the business units that regularly use consulting services. These are the people who understand the current processes and are invested in making the changes necessary to optimize spending.
But it’s not just about assembling people—it’s about bringing together the right people. You need individuals who have influence in their departments, who can rally support, and who are willing to challenge the status quo. Optimizing consulting spend requires everyone to step out of their comfort zones, and having a strong, united coalition is key to making that happen.
In particular, getting buy-in from the C-suite is crucial. As we’ve discussed, the senior leaders are often the ones driving consulting decisions in the first place. Their support, or at least their alignment with the new optimization strategy, is necessary to overcome any resistance. If they’re not on board, the project is at risk of being blocked from the top.
Beyond just building the team, the coalition’s role is to keep the organization aligned around the vision of optimizing consulting spend. They’re the ones who will communicate the vision, set the tone, and ensure that everyone, from procurement to business units, understands the strategic importance of this initiative.
This coalition also serves as the backbone when you start encountering obstacles—because let’s face it, you will. When different departments push back or when old habits start creeping back in, you need a coalition that can advocate for the change and keep pushing forward.”
It’s a bit like building a rugby team—you can’t just throw 15 Antoine Duponts on the field and expect to win. I mean, I’d be curious to see how that team would fare, but it might be a bit tricky in the lineout, right? Dupont’s a brilliant number 9, super skilled (and French, of course!), but a bit on the short side for catching those high balls. In rugby, like in any good team, you need players with different strengths and skills. The same goes for building your guiding coalition.
Step 3: Create a Strategic Vision
The third step in Kotter’s change management model is to create a strategic vision. This is the foundation that will guide your entire consulting category optimization project. Without a clear vision, it’s easy for teams to lose focus or get distracted by short-term goals, rather than staying aligned with the overall strategy.
So, what does a strategic vision look like in the context of optimizing consulting spend?
First, the vision should be specific and measurable. It’s not enough to say, ‘We want to reduce consulting costs.’ You need to define what success looks like. For example, you might say, ‘We want to reduce consulting spend by 20% over the next 12 months while improving the value and quality of the services we receive.’ This gives everyone a clear goal to work toward and helps ensure that everyone is aligned on what you’re trying to achieve.
Second, your vision should link back to the organization’s broader goals. This is critical for getting buy-in from stakeholders, especially the higher-ups who might be more focused on overall business strategy than the specifics of consulting procurement. Make sure your vision ties into larger business objectives like improving profitability, driving innovation, or reallocating resources to more strategic initiatives. When the vision is aligned with company-wide goals, it’s easier to get support from leadership.
Third, the vision should be realistic and achievable. While it’s important to aim high, you also want to make sure that the goals you set are feasible within the time frame and resources available. Unrealistic expectations can lead to frustration and disengagement. Instead, set ambitious but attainable targets that will motivate the team to keep pushing forward.
Once you’ve crafted your vision, the next step is to communicate it clearly and consistently across the organization. But we’ll get into that in the next step. For now, just remember: the vision is your roadmap. It keeps everyone focused on the long-term goal and ensures that all efforts are aligned in the right direction.
Step 4: Communicate the Vision (3-4 minutes)
The fourth step in Kotter’s change management model is to communicate the vision. This might sound straightforward, but in reality, it’s one of the most important—and challenging—steps in any transformation project. You’ve built your guiding coalition, you’ve crafted a clear vision, but now you need to make sure that everyone in the organization understands it and is on board.
Here’s the thing: simply sharing the vision once isn’t enough. In fact, communicating a vision requires repetition and consistency. People need to hear the message multiple times and in different ways for it to really stick. You’ll need to weave the vision into every communication, from formal presentations to casual conversations. The more people hear it, the more it becomes part of the organizational mindset.
When it comes to optimizing consulting spend, it’s especially important to tailor your message to different audiences. For procurement teams, the vision might focus on the technical aspects, like streamlining processes and renegotiating contracts. For business unit leaders, the message might emphasize how optimizing spend frees up budget for other strategic projects. And for the C-suite, it’s about demonstrating how this initiative aligns with the company’s broader goals and delivers measurable value.
Another key aspect of communicating the vision is to be transparent and realistic. Let’s be honest—change can be uncomfortable, and people will have concerns. It’s important to acknowledge that, and not just brush over the challenges. Be open about the obstacles the organization will face and how you plan to overcome them. At the same time, highlight the benefits of the change and the opportunities it will bring, like cost savings, better supplier relationships, and more strategic use of resources.
Remember, communication is a two-way street. Make sure you’re listening to feedback as well. People will have questions, and some might even resist the change. The more open you are to hearing their concerns and addressing them, the more likely you are to get people on board.
It’s like trying to convince my kids that Rome is the best destination for our next vacation. My two oldest are all about the museums and visiting the Colosseum, while my third is more interested in the food. So, you adapt your message to each of them—and then you repeat it about a hundred times before everyone’s on board!
Step 5: Empower Employees for Broad-Based Action
The fifth step in Kotter’s change management model is to empower employees for broad-based action. This step is all about removing obstacles—whether they come from the organization, processes, systems, or people. But equally important is making sure that employees understand what’s in it for them.
People need to see how they will benefit from the initiative. When employees understand how the changes can positively impact their roles—whether it’s through more streamlined processes, better tools, or simply making their job easier—they’re more likely to buy into the change. And it’s crucial to identify and address any obstacles that might get in the way of their success.
But here’s the tricky part: the obstacles aren’t always in the obvious places. For example, if you’re shifting the focus from cost savings to value, you need to look at how employees are incentivized. If bonuses are still tied solely to recorded savings, then employees will naturally prioritize actions that maximize savings, even if that’s not aligned with the company’s new focus on value. People work for a salary, after all, and even if they love their job, they’re going to favour the path that leads to the highest compensation. And that’s not necessarily a bad thing—it’s just how incentive structures work.
To really empower employees and drive the change forward, you need to align those incentives with the new vision. If the company is moving toward focusing on the value of consulting services rather than just cost, then incentives need to reflect that shift. Otherwise, employees will follow the old rules, even if those rules are no longer aligned with the company’s goals. It’s not about doing something illegal or unethical—it’s about making sure that people’s actions are consistent with the explicit or implicit rules you’ve defined.
Ultimately, removing obstacles and ensuring that incentives are aligned with the company’s values are two critical pieces of empowering employees to take ownership of the change and drive it forward.
Step 6: Generate Short-Term Wins (3-4 minutes)
The sixth step in Kotter’s change management model is to generate short-term wins. This step is crucial because short-term wins provide tangible proof that the optimization effort is working, and they help build momentum for the larger changes to come.
In consulting category optimization, these wins could come from renegotiating contracts for better terms, identifying cost savings on upcoming projects, or streamlining a time-consuming procurement process. But here’s the key—these wins need to be visible, meaningful, and aligned with the broader goals of the project.
Now, let’s be blunt for a moment: short-term wins can also help pay for the consulting work we provide. When the project delivers results, it’s always easier to get paid. There’s nothing more satisfying than seeing the project pay off and knowing that the value delivered speaks for itself.
And it’s not just about achieving the wins—it’s about celebrating them. When people see that their efforts are producing real results, they’re more likely to stay engaged and motivated. Acknowledging those wins, whether it’s through a quick email shoutout or a team-wide celebration, can go a long way in keeping the momentum going.
These short-term wins also help you build credibility with both leadership and the broader organization. When people see that the optimization effort is already delivering value, they’ll have more confidence in the longer-term goals. This is especially important if there’s any resistance—you’ll have concrete evidence that the changes are working.
Just remember, the wins you focus on should be strategic. They need to align with the overall vision of optimizing consulting spend, not just any success that comes along. Every win should be a step toward the larger goal.
Step 7: Sustain Acceleration (3-4 minutes)
The seventh step in Kotter’s change management model is to sustain acceleration. After generating short-term wins, it’s important to maintain the momentum and keep pushing forward. This is where many initiatives can lose steam—once a few wins are in the bag, people start thinking the hard work is over. But, in reality, it’s just beginning.
In consulting category optimization, this often means broadening the scope of the initiative. Maybe you’ve renegotiated a few contracts and found some cost savings, but now it’s time to scale up the effort across the organization. However, depending on the structure and culture of your company, that scaling process might look a little different.
For example, in a decentralized company with a strong resistance to change—let’s call it what it is—you might find that starting with a smaller scope is the best way to go. In this case, you focus on a particular business unit or region, achieve quick wins, and then use those wins as a case study to convince others to get on board. As they see the value of the optimization effort in action, it becomes easier to expand the initiative across the entire organization.
It’s like creating a ripple effect—once people see the benefits firsthand, they’ll be more willing to engage. And in a company where change is met with resistance, building trust through these early successes is critical. You need to show that the optimization effort works and that it delivers value without causing major disruptions.
But remember, even as you scale, you need to keep the pressure on. Don’t let up just because things are going well. Continue monitoring the optimization efforts closely, keep looking for new opportunities to improve, and make sure that everyone stays focused on the long-term goals. Complacency is the enemy of sustained success.
As the saying goes, ‘Genius is one percent inspiration and ninety-nine percent perspiration.’ Sustainable change is no different—it’s the consistent effort and persistence that ensure the transformation sticks.
Step 8: Institute Change (3-4 minutes)
The final step in Kotter’s change management model is to institute change. This is where you make sure the transformation isn’t just a temporary shift but becomes a permanent part of the organization’s DNA. It’s one thing to make changes; it’s another to ensure those changes last.
When it comes to optimizing consulting spend, this means integrating the new processes and strategies into the way your company does business every day. The new approach to managing consulting procurement needs to be embedded into your operational procedures, systems, and culture.
One of the best ways to ensure these changes stick is to formalize them through updated policies, guidelines, and performance metrics. For example, if your organization has shifted its focus from purely cost savings to delivering more value from consulting engagements, this shift should be reflected in how you measure success. Are you tracking not just how much you’ve saved, but also the quality and impact of the consulting services? If the metrics don’t reflect the new goals, people will revert to the old ways of doing things.
It’s also important to train new employees on the updated processes and make sure that leaders at all levels are modelling the new behaviours. Cultural change often flows from the top, so if leadership is fully aligned with the new approach, it will trickle down to the rest of the organization.
Another key element of instituting change is to celebrate and recognize the success stories that have come out of the optimization effort. When people see that the new way of working is delivering real results, they’ll be more likely to embrace it fully.
But instituting change isn’t a one-time effort. You’ll need to continue to monitor the process and make adjustments as necessary to keep things running smoothly. The goal is to make sure the changes become so ingrained in the way your organization operates that going back to the old way of doing things is no longer even an option.
They say it takes 21 days to adopt a new habit. Well, it takes a little more than that for an organization! But hey, that’s what makes transformation interesting… at least for us consultants!
Conclusion and Key Takeaways
Before we wrap up, let’s quickly recap the journey we’ve taken today. We’ve gone through Kotter’s 8 Steps for Leading Change and how they apply to consulting category optimization:
- Create a Sense of Urgency: By showing the financial implications, reducing complexity, and leveraging data, you can make it clear why optimizing consulting spend is not just important, but urgent.
- Build a Guiding Coalition: Assemble the right team, one that has the influence and commitment to lead the charge.
- Create a Strategic Vision: Define a clear, measurable goal that ties into your company’s broader objectives and shows how optimizing consulting spend adds value.
- Communicate the Vision: Tailor your message to different audiences and repeat it often.
- Empower Employees for Broad-Based Action: Remove the obstacles—whether they’re in processes, systems, or incentive structures—and make sure employees understand what’s in it for them.
- Generate Short-Term Wins: Early successes build momentum and credibility. Plus, they might just help pay for the consulting work!
- Sustain Acceleration: Don’t rest on your laurels. Keep the momentum going by expanding the scope of the optimization, especially in more resistant areas.
- Institute Change: Embed the new processes and metrics into the organization’s DNA.
Now, cost optimization projects, transformation, and change management? That’s what we do best at Consulting Quest. We’ve shared some of our secret sauce with you today, and if you’re looking for hands-on expertise to guide your organization through a consulting category optimization, we’d be happy to help. It’s our bread and butter.
I’m always game for a chat, so feel free to reach out if you want to discuss how we can help you take your consulting procurement to the next level. And don’t forget to subscribe to the podcast, follow us on YouTube, and visit our website for more insights.
Happy Sourcing, and until next time, Au Revoir!
;
