Welcome back to another exciting episode of Smart Consulting Sourcing, the ultimate podcast dedicated to the fascinating world of consulting procurement. I am Helene and I’m thrilled to have you join me as we continue our journey through the captivating topic of “How to buy consulting services like a pro.”
In today’s episode, we’ll dive deeper into the intricacies of managing consulting projects, a crucial aspect that is often overlooked but holds the key to successful outcomes. It’s time to unleash the power of effective project management and take the ROI of your consulting projects to the next level.
But before we dive into today’s topic, let’s take a moment to recap the key points from our previous episode. Last time, we discussed the importance of starting your consulting project on your terms. By working closely with your legal team, you can create a template that sets the foundation for all your consulting projects, ensuring consistency and alignment with your company policies.
We also emphasized the need to clearly define the commercial terms in your consulting agreement. This includes specifying how consultants will be compensated, whether through hourly fees or variable compensation models. It’s essential to establish payment amounts, timing, and any caps or limitations.
Confidentiality and intellectual property are also critical aspects to address in your agreement. Robust confidentiality clauses should be included to protect sensitive information, and ownership rights for materials developed during the project should be clearly outlined. Don’t forget to consider any security requirements for handling confidential data.
Managing third-party involvement is another key consideration. If your consulting firm works with partners or subcontractors, you’ll want to determine how they will be managed and ensure compliance with non-disclosure agreements. Clearly define intellectual property rights for any contributions made by third parties.
And lastly, plan for different scenarios and include provisions in your contract that allow for changes, specify governing laws, address talent competition, define liability and termination clauses, and establish the right to audit. These provisions protect your interests and help mitigate risks along the way.
By incorporating these key points into your consulting agreement, you can set the stage for a successful and well-managed consulting project.
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Why Effective Management of Consulting Projects is Essential for Achieving Desired Results
Now, let’s delve into today’s topic! When you buy a car, you simply place an order and wait for the finished product to be delivered. There’s no need to inspect the production line or be involved in the manufacturing process. However, when it comes to consulting services, the dynamics are quite different. Managing the project becomes a crucial aspect of the process if you want to achieve the desired results.
The intangible nature of consulting services, combined with the ever-changing business environment, makes it highly unlikely for a project to unfold exactly as expected. And the longer the project duration, the higher the chances of changes occurring along the way. So, how do you approach managing a consulting project?
Let’s take a step back and think about how you handle major internal projects. You define the scope, appoint a project leader, secure resources, and create a work plan. Additionally, you establish project governance, which may include a Steering Committee and key milestones. Essentially, you organize and coordinate the work while steering the project toward success.
The same principles apply to consulting projects. Although you may outsource a significant portion of the work to external resources, it doesn’t change the fact that the project remains a project—a significant endeavor that requires dedicated attention. The project governance, which outlines roles, responsibilities, and decision-making processes, should be clearly defined in the proposal and the contract signed with the chosen consultant.
3 Key Dimensions of Consulting Project Management
While I won’t delve into the intricacies of project management or organizational change in detail today, I want to highlight three crucial dimensions for ensuring project success: managing stakeholders, managing the project itself, and managing change.
1/ Stakeholder Alignment: A Fundamental Aspect of managing Consulting Projects
Let’s get started with stakeholder management. In any project, it’s crucial to ensure that key stakeholders are aligned and on board with the initiative. We’re not talking about a military operation here, but rather the process of getting important players in your organization to support the project. It all starts with establishing the rationale for the project and the expected benefits for the business.
Before launching a project, ask yourself: Are the key stakeholders truly on board? Have they understood the purpose of the project and do they agree with the guiding principles? Even if some stakeholders have doubts, are you confident that they will support the project’s approach and provide the necessary support? It may seem obvious, but many projects stumble at this stage. An executive may initiate a project without fully engaging other members of the management team, resulting in a lack of support and a lonely journey during project execution.
Communication is key. You need to engage with key stakeholders, whether they are senior executives who need to be aware and supportive or contributors who will play a role throughout the project. This communication should clearly articulate the reasons behind the project, the objectives, and what is expected from each stakeholder. It should be aspirational, motivating people to take action and contribute their expertise. In fact, when launching the project, it’s beneficial to form a senior team that will co-sponsor the project and provide additional traction. For a deeper understanding of this subject, I recommend reading John Kotter’s book, “A Sense of Urgency.”
By effectively managing stakeholders and gaining their support from the beginning, you lay a solid foundation for project success. Their buy-in and active involvement are instrumental in overcoming obstacles and ensuring that the project moves forward smoothly.
2/ Implementation of the Project Management Best Practices – Work Plans, Roles and Governance
Once you have aligned the stakeholders, it’s time to implement classic project management practices. This involves addressing the work to be done, defining the roles of project members, and establishing project governance.
Work Plan
A good starting point is to create a work plan, which serves as the foundation for effective project management. The work plan breaks down the project into manageable tasks and provides a structure for monitoring progress. While complex projects may require detailed planning and interdependencies management, a critical path analysis with workstreams and milestones should suffice for most consulting projects.
In a typical consulting project, you’ll find different phases, such as information gathering, analysis, client meetings, and report development for the steering committee. It’s essential to review the detailed work plan early in the project and revisit it regularly to ensure alignment.
The work plan should also include a breakdown of the resources required for each phase to complete the work successfully. This allows for better resource allocation and management throughout the project.
Roles and Responsibilities
Now, let’s shift our focus to the roles within the project teams. In a consulting team, you’ll often find a pyramidal structure. At the top, there’s the relationship partner, who handles the client relationship and is accountable for project success. The production partner or principal brings expertise and serves as the senior contact for the client. The project manager oversees day-to-day activities, while consultants handle various project tasks. Experts are brought in for specific expertise during interviews and workshops.
On the client side, roles include the budget owner, sponsor, business line manager, project manager, and project stakeholders. Each plays a specific role in supporting the project’s progress and success.
To ensure effective project governance, most consulting projects have two governing bodies: the Steering Committee and the Project Management Committee. The Steering Committee, comprised of key decision-makers, provides direction and oversight. It’s important to keep the committee focused and avoid including too many individuals. The sponsor typically leads the committee, with the internal project manager organizing the meetings.
The Project Management Committee, on the other hand, is a recurring meeting between the client team and the consulting team. It ensures that activities progress as scheduled, addresses any obstacles, and reviews communication materials. The consulting team prepares the meetings, while the client’s project manager chairs them. These meetings also serve as a platform for preparing the Steering Committee meetings.
By implementing effective project management practices and establishing clear roles and governance structures, you set the stage for smooth project execution and collaboration between the client and consulting teams.
3/ Change Management
Let’s dive into the fascinating world of change management, the third dimension of effective project management. It’s a dimension that often gets overlooked or underestimated, but it’s a crucial puzzle piece. Communication alone won’t cut it when it comes to implementing change. It’s more complex than that.
The first step in change management is anticipating why change can be challenging. Put yourself in the shoes of those who the project will impact. Why might they resist or have concerns? People are smart and have good intentions, but they may fear job security, a loss of power, or a challenge to their established ways of working. It could be as simple as fearing an increased workload or more oversight from management. It’s important to address these anxieties if you want to move forward successfully.
To address these concerns, develop a stakeholder map with the consulting team and create strategies tailored to each situation. Some stakeholders will want a clear rationale, others will need their concerns addressed, some will seek assurance from their management, and some will want to be actively involved in the project to develop a sense of ownership. It’s about understanding and addressing their specific needs.
While having a communication plan is important, remember that you don’t need to communicate every project detail with everyone. However, it’s crucial to inform those who will contribute to the project about its launch. There’s nothing worse than people hearing about a company project for the first time from an external consultant. Keep them in the loop from the beginning.
For long-term projects involving significant change, include change-reinforcing elements in your communication. Celebrate early successes and highlight progress to keep the momentum going. It’s important to maintain positivity and show that the change is making a difference.
In consulting projects, there’s often a human dimension involved. While you want to maintain some distance from your consultants to avoid getting too comfortable, it’s essential to collaborate closely with them. This allows for addressing sensitive matters that may not be suitable for a larger audience, provides an early warning system, and allows for real-time course correction. It’s particularly crucial for stakeholder management
Preparing for Consultant’s Departure – An Often Overlooked but Vital Step in Consulting Project Management
Last but certainly not least, it’s vital to anticipate what will happen when the consultants eventually depart and ensure that you can take full ownership moving forward. This step is often overlooked, but it’s key to sustaining the change and ensuring its long-term success.
So, remember, change management is not just about effective communication. It’s about understanding the concerns and needs of stakeholders, developing tailored strategies, celebrating progress, maintaining close collaboration, and planning for the future. By incorporating these elements into your project management approach, you’ll set yourself up for success.
Points to Remember Form Today’s Episode
As we saw today, consulting projects are indeed projects, and applying project management best practices is essential for their success. Let’s recap the key takeaways from today’s episode:
Align key stakeholders from the beginning and ensure they understand the project’s objectives and benefits. Communicate effectively, address their concerns, and involve them in the project to foster buy-in and support.
Develop a work plan that breaks down the project into manageable tasks and milestones. Monitor progress and resource requirements throughout the project. Clarify roles and responsibilities within both the client and consulting teams.
Establish governance bodies, such as a Steering Committee and Project Management Committee, to drive the project’s activities and make key decisions. Keep the Steering Committee focused on decision-making and involve relevant stakeholders without making it too large or unwieldy.
Anticipate and address resistance to change by understanding the concerns and anxieties of stakeholders. Develop strategies to address these concerns, maintain effective communication, celebrate early successes, collaborate closely with the consulting team, and plan for the sustainability of the change after the consultants depart.
That concludes today’s episode of Smart Consulting Sourcing! We’ve covered the fundamental principles of project management and how to structure your consulting projects for success. But our journey doesn’t end here. Next week, we’ll dive deeper into driving performance and managing the life of the project.
Till then, stay safe and keep up the smart consulting sourcing game! Remember, if you have any questions or need additional support with your consulting procurement endeavors, I’m always game for a chat. Feel free to connect with me on LinkedIn or drop me an email.
Au revoir for now, and happy sourcing!
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