Guerrilla Marketing for Consultants

Natural Born Seller

I'm always amazed when consultants tell me that they don't like (or want) to sell. Some seem to think that the whole sales thing is completely beneath them. Then there are others who believe they aren't any good at selling. My reaction to both views is, you're kidding, right?

In this month's issue of The Guerrilla Consultant, I write about why these perspectives are missing the point, and why consultants, by virtual of their profession, can and should be top performing sellers.

Read this month's issue.

A Blog for Consultants

Fiona Czerniawska, a global expert on the consulting industry, has launched a new blog (Source for Consulting) focused on all aspects of the business, and it is well worth reading. For example, her post, "Don't ask, don't tell," looks at how the recession could change the way clients buy consulting services, and describes a simple idea for using greater transparency to get better outcomes.

Another post, "The great divide?," argues that a schism is growing in the consulting industry, separating "staff substitution" from bona fide consulting, and challenging consulting firms to decide what business they are really in.

Fiona's work is always insightful, as her new blog shows. It's one you'll want in your RSS feed. You can find here.

Laughter

It's time like these that people really need a good laugh, and the tiny town of Manzanita, Oregon (pop. 600) has taken up the challenge. Each Thursday at 12:05pm, a few dozen people gather in the town center for a mirth break.

After a quick countdown, the crowd erupts into spontaneous laughter for exactly three minutes. At 12:08pm, a whistle blows, the laughter winds down, and people go back to their daily activities, feeling a little bit better about the world.

Besides the documented health benefits of laughter, it's fun. Have you laughed yet today?

Are Layoffs Over?

Even though the economic recession continues, according to a recent study by Watson Wyatt, many executives believe they have already made most of their sweeping changes,  layoffs.

"Many companies are putting the drastic cuts behind them and are now focusing on smaller, more sustainable cost-cutting actions," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt.

According to the survey of 245 large US employers, 52 percent have done layoffs, up from 39 percent two months ago. However, the number of companies planning layoffs has fallen from 23 percent to 13 percent. Additionally, 56 percent now have a hiring freeze in effect.

For consultants, this means that many clients have done the obvious, though painful, work to rationalize their cost structures. Now, expect organizations to turn their attention to other, more complex decisions like rationalizing product offerings, rethinking new initiatives, and optimizing their sales strategies.

As in any downturn, companies cannot cut their way to success. Even though cash is tight, many organizations will find this to be an optimal time to invest in new ventures. Now is a great time to think about your clients' businesses and ask yourself, what are the two or three near-term growth opportunities my clients should pursue?

When everyone else is slashing, be there with ideas about growth. You'll catch your client's attention, and probably win some work too.

Management Practices to Avoid

In the latest issue of Management Consulting News, Aubrey Daniels talks about his new book, OOPS! 13 Management Practices That Waste Time & Money (and what to do instead).

Daniels is also the author of Bringing out the Best in People, Performance Management, Other People's Habits, and, Measure of a Leader.  He thinks many management practices do more harm than good because "The current systems, processes, and management behaviors are the same as they were ten years ago. And they are just as ineffective as ever." 

This issue of the newsletter also features articles on how to thrive in a volatile market, one question that can transform your client sales conversations, and why visual thinking is the key to solving any problem. Plus, we've got Seth Godin's interview on managing through "The Dip," and we continue to track what's happening in the professional services industry in our latest MCNews 12 Index report.

Read this month's issue of Management Consulting News.

CEOs Sweating Bullets Too

You're not the only one who's concerned about the state of the economy. In a global survey of CEOs by PricewaterhouseCoopers, only 21 percent of CEOs are very confident about the growth prospects for their companies in 2009.

In response to the weakening economy, look for CEOs to hunker down by attempting to maximize returns from existing markets, rather than expanding into new ones. In the short-term, CEOs are working to maintain sources of credit, preserve revenue, use working capital more effectively, and manage costs. Translation: Expect more layoffs to roll through the economy.

On a separate note, a survey of public opinion by PR firm, Edelman, shows that statements by corporate chiefs concerning their businesses are considered to be extremely or very credible by only 17 percent of respondents, a six-year low. It was hard to believe that anyone would spend more than $87,000 on an office area rug, as the former CEO of Merrill Lynch reportedly did.

Top Consulting Firms to Work For

When Fortune magazine released its annual report of the "100 Best Companies to Work For," consulting firms were featured prominently among the best of the best companies.

 

Boston Consulting Group (BCG) claimed the number three spot on the list, edging out contenders like Google and Cisco. The most common job at BCG is consultant, and the average salary for that role tops $140,000.

 

Accountants and consultants at Plante & Moran appeared on the list for the 11th consecutive year at the 42nd spot, followed by Ernst & Young (51), Booz Allen Hamilton (52), and KPMG (56).

 

In a year of turmoil for many firms, executives at KPMG doled out bonuses totaling more than $100 million. And Dennis Nally, audit firm chairman at PricewaterhouseCoopers (58), told employees, "We have no plans to downsize, rightsize, or reduce our staffing levels."

 

What these firms understand is that in a time of economic stress, retention of people remains a strategic priority. Instead of simply slashing payroll, they look for other ways to tighten their belts. And that behavior will serve these firms well once the economy turns around.

What Are You Here to Do?

It's always useful for clients to let people know why they have hired you, especially when you need cooperation to get the job done. But some introductions work better than others.

Have a look at this excerpt from a memo to the company from Jerry Yang, former CEO of Yahoo!, about his decision to hire a consulting firm:

"As we look ahead and to position us for success in 2009, we're continuing the work already underway to get fit as an organization: actively looking for ways to make process and structural changes to our business that will allow us to work more efficiently, with more scale. We've enlisted the help of Bain & Company to work with the leadership team on identifying ways to leverage our strengths, and to improve and accelerate our performance."

When people read euphemisms like "get fit," "structural changes," and "work more efficiently, with more scale," they think layoffs. Most consultants know that working in a tough environment is part of the job. But sometimes it's better for the client to say nothing at all than to send an evasive, jargon-laden message that raises more questions than it answers.

What's worse is that this type of introduction sets the consultant up as the bad guy when executives make the hard decision to downsize the company.

Not long after the above memo went out, Yang announced, "We anticipate we will reduce headcount by at least 10 percent" by the end of the year. Yang was later replaced as the Yahoo CEO.

Whenever possible, make a substantive contribution to the message your client uses to introduce you or your firm. Emphasize clarity over corporate-speak and brevity over bloviation.

If your firm's introduction has the client team members scratching their heads in confusion or stifling laughter, be ready for a slow start to your project.

The Myth of Merit-Based Pay

At some time or another, you've probably been through a performance review at work. Hopefully, you got a well-deserved salary bump based on that assessment.

For decades, employers have sorted employees into various segments to recognize different levels of performance and to hand out "merit" pay increases. If they're honest about it, most managers will admit that they would rather clean the office refrigerator than conduct another performance review. And that aversion isn't always because they dislike the task, but because the process is broken in most companies.

Some academicians are now suggesting that merit-based pay programs don't improve employee or organizational performance. My reaction to this finding can be summed up in one word: Duh! You'd have to be living in a cave not to know that the paltry merit increases many organizations mete out won't sustain a person's motivation to go all out for any job.

Plus, in organizations that rely on pure merit increases, some people inevitably exhibit behavior that's beneficial to them, but detrimental to the team. What is interesting, though, are the ideas floating around to deal with the issue.

Jeffrey Pfeffer, a professor of organizational behavior at Stanford's Graduate School of Business, suggests that group bonuses, profit sharing plans, and other gain-sharing arrangements are more effective than the traditional merit pay strategy.

The stakes in how organizations handle merit pay are huge. Human resources executives help manage the $4.5 trillion that US companies spent on wages and salaries in 2008. And, they'll also have a say in how to divide up the $200 billion increase in wage and salary spending for 2009.

For most people, gain-sharing approaches to compensation seems obvious, but many organizations are stuck firmly in the past. Consultants have an opportunity to help clients see the benefits of alternative compensation approaches and the potential productivity gains that can result.

Dubious Cures for Jet-Lagged Road Warriors

Jet lag is a familiar malady to most anyone who flies across time zones. And it's been studied by scientists for years. The first study on the effects of jet lag, which the FAA conducted in 1965, found that all test subjects felt fatigue and experienced significant impairment of "psychological performance."

Over the past few decades, researchers have completed dozens of studies, using humans and lab animals as test subjects, without much luck in finding a cure. One such study found that jet lag in hamsters was reduced when they ingested small doses of a well-known erectile medication. For humans, that treatment has obvious drawbacks. Who comes up with these ideas anyway?

One study, published in the May 2008 issue of the journal Science, reported that fasting for sixteen hours before a long-distance flight might enable travelers to better resist jet lag. The theory is that fasting can reset the brain's internal "clock," helping it adjust faster to a new time zone.

I'm sure most flight crews would dread any flight carrying large numbers of passengers who were starving before they even boarded the aircraft.

So if you have your own method for overcoming jet lag, stick with it for now. Science isn't ready to help out the road warrior yet.