Why The Consulting Model Is Here To Stay  
By Sandra Evans

As Published in The Online Consultants Network Website

My introduction to the consulting model started in the video production and graphics industry. In that industry it was customary to marry talent and management specifically to projects in order to obtain an engagement from a client.

This has always been one of the aspects of production and consulting that I've truly enjoyed. Working with teams customized for the sole purpose of creating the best creative product is exhilarating, increases your knowledge base and refines negotiation and management skills. Infusing a team with spirit and carrying out a successful project is fun.  Whether it's for an advertising agency, design firm or corporation the engagement can be a lot like a military operation. Tactical teams are formed with fewer politics and a unique camaraderie develops based upon completing a successful mission.

I've found that the production industry presents a clear example of why the consulting model for handling certain aspects of business as outsourced teams makes sense. It naturally evolved due to Capitalism and Darwinism.

During the 1980's only a few post-production companies could afford the high-end equipment that was driving clients to try the new technologies. It was impossible for a smaller company to venture into this world with equipment costing between $250,000 and 1Million. Then the entry price of the equipment dropped. 

 As the equipment became more affordable, smaller companies were able to compete as "boutique" companies. This parlance is usually associated with greater creative quality as driven by a consultant who personally selects the team,  lowered overhead costs and supplied niche services.  Boutiques were extremely popular during the 1980's with advertising, design firms and production and post-production companies.

The boutique model allowed consultants to set up their trendy offices with less of the overhead associated with equipment. The consultants would assess a client's  needs, develop a project plan and timeline, negotiate with subcontractors (often the companies with whom they had previously been employed) to rent the equipment on a time and materials basis.

This new model drove clients to the consultants who managed projects and made recommendations to achieve the best outcome. Often these consultants were free of the political or financial baggage associated with some companies that force certain talent on projects even when they may not be the most appropriates for the project.

As the equipment became more affordable, clients became more interested in following the consultants and their teams, trying new technologies or opting for less expensive technologies if it made more sense.

These smaller offices with virtually no equipment were driving the customers. This model is based upon the consultant assessing the job scope, recommending a game plan and then firming up the deals with trusted suppliers and creatives often at reduced rates. This is a win-win for the client and the consultant.

Gradually the clients and business started following consultants who then took these clients to companies and artists who would provide services and the best creative value.  

Outsourcing is here to stay. The right team, a realistic budget, combined with an educated consumer can produce excellent results at more affordable prices.

The benefits to the client include: talent selected based upon their skill, a team that is excited about working on a project and the client isn't saddled with the same talent from a company that may be inappropriate for a specific engagement.

Here are some things to consider when retaining a consultant:

1. Set aside time to meet face to face to assess the project, the timelines, deliverables and goals. Have the consultant develop a project plan with contact personnel, a working methodology, methodology for presenting creative work, deadlines, specific deliverables, the client's approval team. It's best never to set sail without a plan of action. It's also advised to eliminate project approvals run by a committee. Setting up expectations with a group that the will have equal say in decision making is setting a course for disaster creatively and will wreak havoc with the schedule. Limit the approval team to key decision makers and have "fallback" decision makers if the team is not always available.
2. Ask for a project estimate and read the contract and cancellation policies. Consultants often require partial payment at the beginning of a project and for retainer engagements may require two months in advance. This is to ensure that the consultant has adequate time to ramp up for a project. To protect your investment, have the timeline and deliverables schedule mapped out somewhat before signing a contract with a consultant. This will protect you as well as the consultant and start the engagement the most predictable way.  

3. Industry experience is sometimes  not as necessary for a consultant as the ability to absorb information quickly by asking the right questions. Every industry has its vocabulary but don't let this limit your selection of consultants. Consultants don't survive if they can't be flexible and adapt and bring fresh ideas to industries. Often consultants can apply time tested principles to varying industries with positive results.