Welcome back to Smart Consulting Sourcing, the definitive podcast for insights into the world of consulting procurement. My name is Helene and I’m your host, and today we will embark on an exploration of why consulting is so different. We will dig deep and delve into the intangible facets of it. But before we head straight into today’s topic, let’s briefly re-visit last week’s episode which was all about the dynamics of direct and indirect procurement.
Direct and indirect procurement differ in strategic focus, with direct procurement emphasizing long-term supplier relationships for core products, while indirect procurement traditionally focuses on cost control for non-core items. However, there’s a shifting perspective on the strategic importance of certain indirect procurement categories, notably consulting services.
Although direct procurement receives more attention due to its direct impact on products and revenue, there’s a growing recognition of the strategic role of well-managed indirect procurement. Companies are adjusting resource allocation to address the expanding complexity and strategic importance of categories like consulting.
The outdated perception of indirect procurement as less strategic is evolving. Businesses are optimizing processes and acknowledging its role in operational efficiency and cost management, aligning it more closely with overall business goals.
To optimize procurement, businesses need to recognize the values of both direct and indirect procurement and view them through the lens of strategic versus non-strategic purchases. Collaboration, technology investment, strong supplier relationships, adaptability, and alignment with broader company goals are key strategies.
Zooming in on consulting, aligning consulting spend with broader company strategy enhances the return on investment. Investing in consulting for projects directly contributing to strategic goals transforms consulting spend into a strategic move that adds tangible value to the business.
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Alright then! Now back to today’s episode where we’re going to uncover what truly sets consulting apart from other categories, and it all begins with trust. So, let’s get started.
Trusting the consultants involved in your projects can transform the entire consulting experience, making it smoother, more collaborative, and ultimately ensuring the effective application of recommendations. But you might be wondering, why is trust such a big deal in consulting? Well, let’s take a dive into the fascinating psychology of trust, and I promise it won’t be boring!
Intangible Facets: The Importance of Trust in Consulting
To understand the role of trust in consulting, we have to explore the inner workings of our brains and emotions. Trust isn’t just a warm and fuzzy feeling; it’s a complex web of factors that influence our decisions.
Imagine you’re a client looking to revamp your organization. You’ve brought in a team of consultants to help define the right options. Now, from the very beginning, if you sense that these consultants are genuinely committed to your success, that they have your best interests at heart, and they’re not just in it for the paycheck, you start to trust them. It’s like a spark that ignites the collaboration.
When trust is present, you’re more likely to open up, share crucial information, and actively engage in brainstorming sessions. You’re also more inclined to implement their recommendations with confidence. It’s a powerful dynamic that can make or break a consulting project.
So, what are the key components of trust? These are the building blocks that make up the foundation of trust in consulting. And I have to tell you, these insights come from a fascinating podcast I listened to, featuring an expert in the field, Adam Waytz, an Associate Professor of Management and Organizations at the Kellogg School of Management.
First up, we have benevolence. Think of it as the consultants’ genuine kindness and caring nature. Do you perceive them as truly invested in your success? Are they looking out for your best interests, not just their bottom line?
Next, we’ve got integrity. It’s about trust in their ethical compass. Can you count on them to do the right thing, even when no one is watching? Integrity is all about knowing that your consultants will always act in an upright and principled manner.
Moving on to competence. This one’s a biggie. Do your consultants have the skills and knowledge required to get the job done? Trust in competence means believing that they’re not just talk but that they have the expertise and ability to deliver results.
Last but not least predictability. Can you rely on your consultants to act consistently and predictably? Trust in predictability means you know what to expect from them, and there are no surprises along the way.
So, what does all of this mean for consulting? Well, it means that trust is the secret sauce that can make or break a consulting engagement. When you, as a client, believe that a consultant is not only competent but also reliable, it changes the game.
It’s not just about the project sponsor, the one who’s footing the bill. It’s about the entire team involved in the project. Trust in a consultant, ripples through the entire process.
Let me share a story with you. Early in my career, during my tenure at Gaz de France, I faced what initially seemed an insurmountable challenge: implementing the ISO 9000 in our gas emergency group. For those unfamiliar, Gaz de France was a place of strong unions and a workforce that, quite frankly, did not shy away from showing toughness. The task at hand required a fundamental shift from an oral work culture to a written one—a leap that was, to say the least, daunting.
The transition demanded more than just a change in procedures; it called for a transformation in mindset and culture. Given the deeply ingrained oral traditions of communication within the team, convincing my colleagues to document processes, adhere to standardized procedures, and essentially, to change the way they had been working for years, was no small feat.
The cornerstone of this transformation? Trust.
Building trust wasn’t about asserting authority or demonstrating superior knowledge. It was about opening a two-way street of communication, learning, and adaptation. I quickly realized that to move forward, I had to earn the trust of my colleagues. This meant engaging with them not as subordinates who needed instruction but as partners in a shared journey of improvement.
Truth be told, the learning curve was steep, not just for my team but for me as well. Each step of the way, trust was what paved the road ahead. It allowed me to gain their attention, to be heard. My colleagues were not just willing to listen to my arguments but to engage with them, propose adjustments, and take ownership of the process. This collaborative approach, rooted in mutual respect and trust, was what ultimately led us not just to implement the ISO 9000 framework but to achieve certification.
Reflecting on this lesson, a pivotal lesson emerges—one that has profoundly influenced my perspective on consulting throughout my career: the transformative power of trust. Trust transcends the conventional notion of a “soft value” to become a strategic asset, pivotal for opening doors, facilitating meaningful dialogue, and nurturing a culture of collaboration and continuous improvement. In consulting, where change is often the only constant, trust lays the groundwork for building successful, impactful engagements.
How Do You Find Consultants You Can Trust?
Now, trust is a multifaceted gem, shimmering differently depending on who’s looking. But if we’re to find a starting point in our quest for trustworthy consultants, it leads us straight to the concept of ‘fit.’
So, what does ‘fit’ mean in the consulting world? It’s a term that captures the essence of a consultant’s ability to gel with your organization, embodying integrity, expertise, and knowledge. Fit is about more than just ticking boxes; it’s about finding that consultant whose approach, style, and ethos align with the specific needs and culture of your project and organization. And yes, this alignment can shift dramatically from one project to another, adding layers to what already is a complex notion.
Now, let’s break down ‘fit’ a bit further. At its core, you’re looking at expertise—both in the capabilities necessary for the work at hand and relevant industry experience. But it’s not just about having experience; it’s about having the right kind of experience, the depth that resonates with the project’s unique challenges and goals.
But as we delve deeper, we start to touch on the softer, yet equally critical aspects of fit: location, language, and cultural components. These elements can significantly influence how smoothly a consulting engagement runs.
And then, at the heart of it all, are the people themselves. After all, consulting isn’t just a business transaction; it’s a human interaction. It’s about the individuals who will be working closely with your teams. Who are these consultants? Will they mesh well with your team’s dynamics?
Let me paint you a picture with a real-life scenario. Imagine you’re leading a transformation project in a Centre of Excellence, surrounded by teams brimming with experienced professionals. You’re delving into intricate, specialized expertise.
Would you lean towards a team of bright-eyed, bushy-tailed young consultants fresh out of college? Or might you prefer a cadre of seasoned consultants, former executives with years of direct experience in your field?
See, finding the right fit in consulting goes far beyond just the price tag or the brand prestige. It’s profoundly about the people on both sides of the equation—their personalities, experiences, and, critically, their ability to work well together to deliver the value that’s expected.
This, listeners, is the secret sauce to capturing the best value in any consulting engagement. It seems obvious, doesn’t it? Yet, more often than not, this doesn’t happen. So, what throws a wrench in the works? What keeps us from always making these ideal matches?
Emotional Connections and Interpersonal Relationships
The answer, while simple, is also one of the most powerful forces in human nature: emotions and personal connections. Consulting, at its heart, is a human-to-human business. It’s about building relationships, about creating bonds that can sometimes become as strong as those we have with close colleagues or even friends. And while these connections can be the very thing that makes a consulting engagement successful, they can also cloud our judgment and lead us to make decisions based on feelings rather than facts.
Now, imagine for a moment that trust is the door to a client’s organization. If that’s the case, then empathy and emotional intelligence are the keys that unlock deeper levels of collaboration and partnership.
Consultants aren’t just hired brains; they’re hired hearts, too. They dive into the emotional depths of an organization, feeling the pulse of its people, understanding their fears, and celebrating their joys. This emotional attunement allows consultants to navigate the complex interpersonal dynamics within client organizations with grace and effectiveness.
But here’s the rub: as consultants, we often find ourselves building personal relationships with our clients. It’s part of what makes us good at our jobs. These relationships become so strong that the thought of breaking them seems not just daunting, but downright wrong. And rightly so, because maintaining these relationships is crucial.
However, it’s crucial for our clients to recognize when these cherished bonds might begin to obscure their judgment. There’s a risk that the close relationships formed can lead them to view consultants less critically – not just as partners, which they are, but forgetting that they are, fundamentally, suppliers. It’s essential to maintain that perspective to ensure decisions are always aligned with the company’s best interests.
However, this very reliance on influence and personal connection brings us to a significant crossroad—the challenge of introducing new suppliers into the fold. Our internal stakeholders often have a favorite tune they like to play, sticking to the consultants they know and trust.
“Why venture into the unknown with a new supplier?” they ask, when the existing relationship not only feels like a comfy old shoe but has also danced to the tune of tangible results and a strong return on investment. It’s a compelling argument, indeed. If the current partnership is not just meeting but exceeding expectations, the urge to change the music can seem, at best, minimal.
Here’s where the story takes an interesting turn. Picture this: as we were knee-deep in the world of cost optimization within the consulting category for a US-based company, something unexpected unfolded. It’s not a fictional tale, mind you. The CPO himself dropped this bombshell on us, “This consulting firm, you shouldn’t touch them because they are the pet consultant of the CFO.”
Suddenly, we’re not just talking about comfort zones; we’re venturing into the realm of court favorites in a royal palace. This isn’t merely about sticking to the known for fear of the unknown; it’s about the perception, and sometimes the reality, that certain consultants hold a ‘protected’ status, a special badge of invincibility granted by their close ties to power.
But here lies a delicate balance. While it’s true that a proven track record and a deep, personal connection with a consultant can lead to outstanding outcomes, this comfort zone can also become a barrier to exploring potentially more innovative or cost-effective solutions. It’s about recognizing that our attachment to existing suppliers, driven by positive past experiences and the emotional bonds that have been formed, can sometimes cloud our judgment or limit our openness to new possibilities.
To navigate these waters successfully, implementing solid supplier relationship management is key. It’s not about dismissing the value of established relationships; rather, it’s about setting boundaries that preserve the integrity of the consulting engagement while fostering a connection that’s both personal and professional. This involves maintaining that personal touch while ensuring decisions are made in the best interest of the organization, striking a balance between loyalty to existing consultants and openness to new partnerships.
Moreover, consultants’ ability to thrive on influence, leveraging their emotional intelligence to read a room and understand the undercurrents of an organization, becomes a double-edged sword. While their influence can drive breakthroughs and cement strong partnerships, it must be tempered with a commitment to ethics and objectivity.
The value of the personal relationship with a consultant is undeniable, but it cannot be the sole foundation of the partnership. Without a system in place to mitigate bias and encourage a healthy rotation of suppliers when beneficial, there’s a risk that decisions might be made based on personal affinity rather than a solid strategy and a clear-eyed assessment of what’s best for the company.
Conclusion
As we wrap up today’s episode, it’s clear that the essence of consulting transcends the boundaries of traditional business transactions. It is a multifaceted discipline, enriched by intangible yet vital aspects such as trust, fit, and the power of personal connections.
At the heart of successful consulting engagements is the concept of trust—a complex, dynamic force that serves as the foundation for effective collaboration and impactful results. Trust is not just about competence; it’s about benevolence, integrity, and predictability, elements that together build the confidence necessary for clients to fully embrace and implement consultants’ recommendations.
Equally important is the notion of ‘fit’—a term that encapsulates the alignment of consultants’ expertise and approach with the unique needs and culture of the client organization. Finding the right fit involves considering not only the technical capabilities and industry knowledge of consultants but also softer aspects such as communication styles, values, and the ability to integrate seamlessly into existing teams.
Consulting, therefore, is about much more than mere problem-solving. It’s about forging relationships, understanding the human element, and navigating the sometimes complex interpersonal dynamics that can influence the success of a project. It’s about recognizing that consulting engagements are, at their core, human-to-human interactions, where emotional intelligence and the capacity to build and maintain trust are as critical as professional skills and knowledge.
As we close today’s episode, for those of you inspired to dive deeper into the intricacies of consulting and learn more about the themes we’ve explored, I’ve curated a list of resources that will enrich your understanding and equip you with the knowledge to navigate the consulting world with confidence.
Insight: “How to Negotiate with Consultants: The Definitive Guide“: This article breaks down the art of negotiation within the consulting space. Discover what to negotiate beyond price, how to approach these negotiations, and strategies to ensure you’re getting the best value from your consulting partnerships.
Insight: “How to Buy Consulting Services like a Pro: The Definitive Guide“: Here, we delve into the various dimensions to consider when assessing the fit of a consulting service. It’s a comprehensive guide that covers everything from understanding your own needs to evaluating a consultant’s proposal through the right lens.
Episode 125 of this Podcast, “How Consultants Create Value for Your Business?”: Revisit one of our episodes where we unpack the value that consultants bring to your business. We explore different ways consultants can drive change, innovation, and efficiency, shedding light on the tangible and intangible benefits of their services.
You can find all these resources and more on our website, consultingquest.com, under the ‘Thought Leadership’ section. These guides and episodes are designed to provide you with the insights and tools you need to make informed decisions and foster successful consulting engagements.
Looking ahead to our next episode, we’ll continue with this topic and talk further on how to assess impact and true value. We will also take a look into the unique nature of consulting negotiations and round it up all by briefly taking a peek at consulting beyond business interests.
Thank you for joining me on this episode which was all about the importance of trust in consulting. Your thoughts and feedback are always welcome, so feel free to connect with me on LinkedIn or drop an email at hcl@consultingquest.com. You know I am always game for a chat.
Until next time, stay safe and keep up the smart consulting sourcing game. Au revoir for now, and happy sourcing!
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