How to select an external service provider for change management? Do you need a change management consultant, an interim manager or contract resource, or some other option?
In my view, issuing a written "Request for proposal" to potential service providers and inviting submission of a written proposal followed by interviews of the selected few is a waste of time.
It is not possible to do anything other than provide a generic "cut and paste" response to this type of enquiry. There are always factors and issues that are not apparent in a document and with change management this is especially true.
Here is how I do it:
Speak with potential service providers, give them a high level briefing and have a discussion with them - on the phone initially. See if they talk sense, ask the right questions and seem to have a good intuitive grasp of your issues, and assess the personal chemistry.
Provision of information
If you both feel it is worth proceeding to the next step invite them for a meeting and email them a non-disclosure /confidentiality agreement to sign then email them the output of your latest strategic review or any other relevant documentation.
Preliminary analysis FOC
If you both feel that it is worth proceeding, then rather than requesting proposal invite them to spend the time they would otherwise spend preparing written submissions in undertaking a brief on site preliminary analysis - with a clear brief from you and allowing them to meet a cross section of key people involved. There should be no charge for this but you cover their pre-agreed out of pocket expenses.
Debriefing
The "deliverable" to you is a face to face to debriefing and one [2 maximum] sheets of A4 summarising their assessment. Then if you they feel they can help you and vice versa then, and only then, do they prepare a succinct proposal addressing the first and most obvious step - with an outline only of possible following steps.
Developing a mutuality of interest
The benefit to you is that you don't pay them to understand your business, you get to see them in action and to decide if you want to work with them, and they get to see if they can help you and if they want to.
Then, if both parties are happy, contract them to implement the agreed first and most obvious step. Then, if both parties are still happy, hire them for the duration of the assignment, and if needs dictate, beyond that.
The key to this approach is that it is organic and incremental; it most closely mirrors the way that relationships develop naturally in "real-life" and it allows for the development of a mutuality of interest.
Showing posts with label Consultants. Show all posts
Showing posts with label Consultants. Show all posts
Why Use a Change Management Consultant?
Why use a change management consultant? This is a very good question because unless you are very clear about exactly what sort of help you need I would just simply say don't!
Key factors
There are a number of factors that will have a bearing on how you approach using a change management consultant - or in determining whether you even should do so.
~ Your objective - the deliverable you are seeking. [See comment below re 3 fundamental motivations]. What do really want? An answer or solution that (a) you can implement or (b) someone else can implement for you? A solution and the knowledge and means to be able to replicate it yourself in future?
~ Your company's size. The smaller you are the more you need to maximise the leverage of your budget. The difficulty you have is that you need the knowledge and expertise but you can't generally afford to pay someone else to do it.
The larger you are the greater the temptation and tendency to take the easy way out and pass the problem on to external consultants - rather undertaking the diagnosis yourself which is part of what senior management are paid to do and training your own people and/or where necessary hiring interim external support.
~ Your budget - this is usually closely related to the size of your organisation. Thus the larger you the easier it is to "throw money" at the problem with external consultants but avoid taking the difficult steps to resolve the real issue. The smaller you are the greater the tendency to be reluctant to spend any money at all and to just "muddle through".
~ Your situation - what stage you are at with your change initiative.
- "We've done the strategic review, so... how do we do this and make it work...?"
- "We know what we're doing and we know what the issues are... we just need some extra flexible resource to help get it delivered on time..."
- "We're up and running, and - we're up to our necks in alligators..."
~ Your knowledge base - do you know anything about change management and change leadership? Where would you be positioned on a change management maturity model? Do you know what you don't know?
~ Your company culture re using consultants - this will have a considerable influence on your attitude to and propensity to use any form of external assistance. A "positive" attitude may make it a more acceptable option but increase the likelihood of it becoming the "default setting". A "negative" attitude may preclude the possibility and for the "wrong" reasons.
3 reasons for seeking any sort of external assistance
(1) Development - via some form of knowledge transfer, education or training
(2) Diagnosis - problem identification, definition and recommended solution
(3) Delivery - implementing a solution to a business need to realise a business benefit
Consultancy - including change management consultants - is only one source of provision for each of these reasons for seeking outside assistance. Other options in addition to or instead of using a change management consultant are:
- Information sources via the internet
- Training courses and building in house capability
- Non-executive directorships
- Business mentoring
- Peer group input and support via various business forums
- Interim management - an excellent option for medium and larger companies with over 500 employees
- Contract resource - similar to interim management but situation specific rather than functional specific as per interim management
Recommendations
If your requirement includes "development" - via some form of knowledge transfer, education or training - then for the small to medium sized enterprise [up to 500 employees] internet sources, training courses and peer group support is the best option. For larger enterprises an interim or contract resource or a smaller bespoke change management consultancy is the recommended route.
A requirement that includes "diagnosis" - problem identification, definition and recommended solution - is best met via a non-executive or some form of business mentoring via trade or business or government sponsored agencies for smaller enterprises. The recommendation for medium and larger enterprises with over 500 employees is for an interim or contract resource or a smaller bespoke change management consultancy.
A requirement for "delivery" - implementing a solution to a business need to realise a business benefit - for a smaller enterprise is best met via a non-executive or some form of business mentoring via trade or business or government sponsored agency. The recommended option for larger enterprises is via an interim or contract resource. I would not recommend using a change management consultant resource unless it had a proven record of change initiative delivery as well as diagnosis.
Key factors
There are a number of factors that will have a bearing on how you approach using a change management consultant - or in determining whether you even should do so.
~ Your objective - the deliverable you are seeking. [See comment below re 3 fundamental motivations]. What do really want? An answer or solution that (a) you can implement or (b) someone else can implement for you? A solution and the knowledge and means to be able to replicate it yourself in future?
~ Your company's size. The smaller you are the more you need to maximise the leverage of your budget. The difficulty you have is that you need the knowledge and expertise but you can't generally afford to pay someone else to do it.
The larger you are the greater the temptation and tendency to take the easy way out and pass the problem on to external consultants - rather undertaking the diagnosis yourself which is part of what senior management are paid to do and training your own people and/or where necessary hiring interim external support.
~ Your budget - this is usually closely related to the size of your organisation. Thus the larger you the easier it is to "throw money" at the problem with external consultants but avoid taking the difficult steps to resolve the real issue. The smaller you are the greater the tendency to be reluctant to spend any money at all and to just "muddle through".
~ Your situation - what stage you are at with your change initiative.
- "We've done the strategic review, so... how do we do this and make it work...?"
- "We know what we're doing and we know what the issues are... we just need some extra flexible resource to help get it delivered on time..."
- "We're up and running, and - we're up to our necks in alligators..."
~ Your knowledge base - do you know anything about change management and change leadership? Where would you be positioned on a change management maturity model? Do you know what you don't know?
~ Your company culture re using consultants - this will have a considerable influence on your attitude to and propensity to use any form of external assistance. A "positive" attitude may make it a more acceptable option but increase the likelihood of it becoming the "default setting". A "negative" attitude may preclude the possibility and for the "wrong" reasons.
3 reasons for seeking any sort of external assistance
(1) Development - via some form of knowledge transfer, education or training
(2) Diagnosis - problem identification, definition and recommended solution
(3) Delivery - implementing a solution to a business need to realise a business benefit
Consultancy - including change management consultants - is only one source of provision for each of these reasons for seeking outside assistance. Other options in addition to or instead of using a change management consultant are:
- Information sources via the internet
- Training courses and building in house capability
- Non-executive directorships
- Business mentoring
- Peer group input and support via various business forums
- Interim management - an excellent option for medium and larger companies with over 500 employees
- Contract resource - similar to interim management but situation specific rather than functional specific as per interim management
Recommendations
If your requirement includes "development" - via some form of knowledge transfer, education or training - then for the small to medium sized enterprise [up to 500 employees] internet sources, training courses and peer group support is the best option. For larger enterprises an interim or contract resource or a smaller bespoke change management consultancy is the recommended route.
A requirement that includes "diagnosis" - problem identification, definition and recommended solution - is best met via a non-executive or some form of business mentoring via trade or business or government sponsored agencies for smaller enterprises. The recommendation for medium and larger enterprises with over 500 employees is for an interim or contract resource or a smaller bespoke change management consultancy.
A requirement for "delivery" - implementing a solution to a business need to realise a business benefit - for a smaller enterprise is best met via a non-executive or some form of business mentoring via trade or business or government sponsored agency. The recommended option for larger enterprises is via an interim or contract resource. I would not recommend using a change management consultant resource unless it had a proven record of change initiative delivery as well as diagnosis.
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