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Becoming A Trusted Advisor: Core Consulting Skills

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1 Becoming A Trusted Advisor: Core Consulting Skills
For: AIMC Conference By: Mark Hordes Alexander Consulting, LLP

2 Background: Mark Hordes
Education: MBA and MS Aurora University Graduate of the American Graduate School of International Management BS, University of Houston Personal experience: Partner, Alexander Consulting Instructor, Shell Core Consulting Workshop Global experience in creating strategies for transformational s-business change Success in designing and delivering professional services selling training and creating services markets Hands-on experience designing and implementing services readiness assessments and best practice applications for services organizations Former Big Five partner Former faculty member The University of Houston Vice President Quality Consulting, The American Productivity & Quality Center Former Malcom Baldrige Quality Examiner

3 OPERATIONS EXCELLENCE
Alexander Consulting, LLP “A management consultancy that creates and implements strategies for professional services organizations” Services Strategy Creation Sales Effectiveness Marketing Direction Delivery Performance OPERATIONS EXCELLENCE TALENT PRODUCTIVITY

4 Concepts presented today are taken from our new book:

5 Workshop Goal: To help you and your organization build consulting skills, capability and confidence.

6 Today’s Topics Consulting Foundations Client Development
Consulting Relationship Skills Contracting Assessment Services Delivery Managing the Change Leverage The Professional Services Champion

7 Introductions Please say hello to the person to the right or left of you and state a book or movie title that best describes your consulting work at your company.

8 Consulting Foundations

9 “IT Consultants Score Lowest in Client Satisfaction”
The Dangerous Trend: “IT Consultants Score Lowest in Client Satisfaction” (Source: The Management Consulting Client Report, KIRG) (Average Score, 1-5 scale) 3.85 3.68 3.60 PONDER POINT: In customer satisfaction research, customers that provide scores below 3.5 are very susceptible to changing service providers. On the other side of the spectrum, it takes very high levels of customer satisfaction (4.7 plus) to generate customer loyalty. QUESTION: What are the possible reasons for this very low score? QUESTION: What client satisfaction scores do your consulting projects generate? 3.40 HR Strategy Operations Management IT

10 Station Break: Client Expectations of Consultants
Working in small groups, discuss and agree upon a list of 6 to 10 of clients’ most important expectations of consultants. Be prepared to share your list with the large group. Client Expectations of Consultants

11 Client Expectations of Consultants
1. Competence 2. Credibility 3. Trustworthiness 4. Likeability 5. Business Savvy 6. Responsiveness 7. Empathy 8. Communicate

12 Client Expectations of Consultants
Clients Said… Consultants Thought… 1. Competence 1. Results 2. Credibility Reliability 3. Trustworthiness 3. Confidence 4. Likeability Credibility 5. Business Savvy 5. Empathy 6. Responsiveness 6. Responsiveness 7. Empathy Hired Help 8. Communicate

13 The Five Fatal Flaws of Consulting
(Source: High Impact Consulting) The project is defined in terms of the consultant’s expertise or products, not in terms of the specific client results to be achieved. The project’s scope is determined solely by the subject to be studied or the problem to be solved, ignoring the client’s readiness for change. The project aims for one big solution rather than incremental successes. The project entails a sharp division of responsibility between client and consultant; there is no partnership between them. The project makes labor-intensive use of consultants instead of leveraged use. QUESTION: How does this relate to your experience?

14 The 10 Commandments of Professional Consulting
Concentrate continually on delivering client value. Commit all stakeholders to action. Clarify complex client issues. Communicate authentically. Collaborate with the client. Conduct a “willing and able” assessment. Control scope creep. Compress the cycle time of delivery. Customize each solution. Continually learn and grow. PONDER POINT: Constant focus on the 10 commandments will help you dodge the five fatal flaws.

15 Individual Exercise: 10 Commandment Assessment
Time Allotment: 15 minutes Please candidly complete the 10 Commandment Assessment. After everyone has completed the assessment, we will discuss it in the large group. Please note, however, that this assessment is confidential and strictly for your own use. Share only what you want. PONDER POINT: Just like The 10 Commandments used in the biblical sense, there are no exceptions—to excel in professional consulting you must do all 10 well. EXERCISE: Think about your organization’s ability to live up to each of the 10 commandments of professional consulting and circle your perception for each of the 10, then compute your total and average score. Strongly Strongly Don’t Disagree Agree Know 1. Concentrate continually on delivering client value 2. Commit all stakeholders to action 3. Clarify complex client issues 4. Communicate authentically 5. Collaborate with the client 6. Conduct a “willing and able” assessment 7. Control scope creep 8. Compress the cycle time of delivery 9. Customize each solution 10. Continually learn and grow TOTAL SCORE ______ AVERAGE SCORE ______

16 All Consultants Must Have These
Four Capabilities TECHNICAL EXPERTISE RELATIONSHIP SKILLS CONSULTING PERFORMANCE ENGAGEMENT MANAGEMENT BUSINESS ACUMEN EXERCISE: Think about your personal client performance for the factors associated with each capability and circle your perception for each, then compute your total and average score. Strongly Strongly Don’t Disagree Agree Know Relationship Skills 1. I am very good at building rapport 2. I am an excellent listener and prober 3. I effectively negotiate 4. I capably manage conflict Business Acumen 5. I think and act like a business person 6. I am good at working at the “C” level 7. I understand critical business issues by level and function Engagement Management 8. I create strong proposals 9. I am proficient at project management 10. I build appropriate metrics and accountability into my plans 11. I am good at solving problems throughout engagements Technical Expertise 12. I am an expert in our technology TOTAL SCORE ______ AVERAGE SCORE ______

17 Individual Exercise: Four Capabilities Assessment
Time Allotment: 15 minutes Please candidly complete the Four Capabilities Assessment. After everyone has completed the assessment, we will discuss it in the large group. Please note, however, that this assessment is confidential and strictly for your own use. Share only what you want. EXERCISE: Think about your personal client performance for the factors associated with each capability and circle your perception for each, then compute your total and average score. Strongly Strongly Don’t Disagree Agree Know Relationship Skills 1. I am very good at building rapport 2. I am an excellent listener and prober 3. I effectively negotiate 4. I capably manage conflict Business Acumen 5. I think and act like a business person 6. I am good at working at the “C” level 7. I understand critical business issues by level and function Engagement Management 8. I create strong proposals 9. I am proficient at project management 10. I build appropriate metrics and accountability into my plans 11. I am good at solving problems throughout engagements Technical Skills 12. I am an expert in our technology TOTAL SCORE ______ AVERAGE SCORE ______

18 Train Consultants in Consulting Skills to Build Capability and Confidence

19 Client Core Consulting Training Example
Unit One: The Consultant’s Reality 2 hours Unit Two: Relationship Skills 4 hours Unit Three: Business Acumen Capabilities 2 hour Unit Four: Engagement Management 4 hours Unit Five: Technical Expertise 2 hours Unit Six: Marketing and Selling 2 hours Unit Seven: Contracting 4 hours Unit Eight: Data Gathering 2 hours Unit Nine: Diagnosis The Consulting 3 hours Unit Ten: Feedback Process 3 hours Unit Eleven: Solution and Design 3 hours Unit Twelve: Implementation 3 hours Unit Thirteen: Closure and Renewal 2 hours Unit Fourteen: The High-Performance Practice 2 hours Unit Fifteen: Continuous Learning 2 hours 40 hours

20 Getting, Growing, and Keeping Clients
The Consulting Process Getting, Growing, and Keeping Clients Contracting Relationship Skills Assess Delivery Closure and Renewal Solution and Design Integration Feedback

21 Business Acumen Success Elements
Effective Business Consultants Always: See the bigger strategic issues facing the client. Are able to define business solutions. Possess process knowledge of the functional area of the business and industry sector. Can define change management issues. Understand the competitive landscape. Provide relevant skills, strategies, tools, and ideas to the client. Use their knowledge and experience to build strong rapport and sustainable relationships with the client.

22 Client Development

23 The Consultant Zone of Influence
Getting, Growing, and Keeping Clients Promoting Qualifying Committing Delivering LEADS SUSPECTS PROSPECTS CUSTOMERS CLIENTS PONDER POINT: No one has more influence in developing future business than the consultant. BEST PRACTICE: Everyone is responsible for business development.

24 Making the C-Level Call
Earn the right to be there--do your homework. Be ready to share something of value first (industry information, best practices, etc.) before probing. Bring supportive data to backup your claims. Think and talk big picture. Link your conversation to how your solutions address his or her critical business issues.

25 Consulting Relationship Skills

26 Six Elements in Building Strong Consulting Relationships
Decorum Trust Commonality Value Empathy Decorum: Following appropriate norms of dress, manners, and language. Commonality: Sharing business or personal interests, experiences, or views of the world. Empathy: Understanding and aligning with differing views without challenging or sympathizing. Credibility: Communicating competence and integrity. Value: Demonstrating the potential worth of your ideas and recommendations. Trust: Fostering a belief that you always have the other person’s best interests at heart. Credibility

27 Small Group Exercise For each assigned element, add three more important actions that you can take to be more effective in building client relationships. Decorum: Research and understand the culture. Dress like your client. Commonality: Relate to personal interests. Learn business point of view. Empathy: Learn his/her personal issues. Communicate understanding of his/her situation. Credibility: Cite relevant experiences. Share best practices that relate to the client’s situation. Value: Ask about measures of success. Quantify the risk of not addressing issues. Trust: Deliver what you promise. Don’t BS.

28 Building Rapport Building rapport is the first step in establishing strong relationships. Everyone can learn to build rapport more effectively. PONDER POINT: When you first meet a client, be aware of things you are aware of through your senses. Are you feeling positive, upset, concerned, happy, glad, mad, sad, anxious, connected, reserved, quiet, grounded, focused, or engaged? Seeing those feelings in the client as well can be a helpful process as you filter out “all the noise“ and get down to aligning and bonding with the client.

29 Individual Exercise Pretend you are going to meet a client for the
FIRST TIME. List both the verbal and non-verbal clues that you need to be aware of in building rapport. EXERCISE: List below the important clues you need to be aware of in building rapport during your first meeting. Think of your past personal experience in social situations, previous business encounters, network meetings, etc. Clues in Building Rapport Verbal Non-Verbal • •

30 Listening and Probing Before you can solve client problems, you have to answer two questions: Do I actually know the client’s issues? Does the client know that I know his or her issues? PONDER POINT: Your greatest asset is your ability to correctly hear what the client is saying and understand what the client is feeling. EXERCISE: Rank the following in importance to communication: • The words we use. • Our voice. • Our non-verbal behavior. Listening and probing are the tools needed to answer these questions.

31 Exercise: Barriers to Listening
Individually think of a recent situation (business or personal) where your lack of listening caused a problem. Come up with the barriers that contributed to the problem. Discuss your findings with your group and come up with a list of five common barriers to listening. PONDER POINT: Two ears, one mouth. You get the picture. Barriers to Listening:

32 Tips to Active Listening
Imagine that you will be asked to provide a detailed description of the conversation. Act as though this is a “mission critical” conversation. Listen with your eyes as well as your ears. Write out the probes you will ask ahead of time so that you concentrate on what is being said and not what you will say. QUESTION: What other tips can you recommend to ensure active listening?

33 Probing Open Probe Closed Probe
When you want to allow the client to respond freely to gain general information. Or… When you want to encourage expansion. Closed Probe When you want to limit the client’s response to uncover specific information. When you want to confirm your understanding. PONDER POINT: Good probing not only uncovers the facts necessary for developing good solutions but the feelings that must be dealt with to create solid relationships. Probing helps you to: • Gain information. • Take (and keep) control of the interview. • Reduce anxiety. • Get cooperation. • Clear up fuzzy thinking. • Open lines of communication. • Sow your ideas. • Solve problems. • Overcome resistance. • Stimulate thinking.

34 Open Probes Usually begin with: What? When? Where? Why? or How? Or…
Oh? Tell me, Show me, Say more about that. Benefits of Open Probes Like an open road, open probes invite exploration. At the same time, they guide the conversation along the path of your purpose and intention. Open probes allow the client to become actively involved and take ownership for the exchange. Open probes require a more in-depth response and create a conversational tone and eliminate the interrogation style of yes-no responses. Examples of Open Probes: • Tell me what you are looking for. • How will you make your decision? • Describe your thinking, please. • What special considerations are there? • Why is knowledge management an issue now? • Say more about that. • What is your timetable for completion? • When does the problem occur? • Show me the process steps as they are established now. • How are you dealing with the manpower shortage? • What has been your experience with consultants in the past? • Oh?

35 Closed Probes Key words that help you identify closed probes include:
Is Are Do Does Has Have Can Could Which Who Benefits of Closed Probes Closed probes limit the range of the client’s response to a “yes” or “no,” or a choice among selected alternatives. Closed probes are good for getting specific information in a hurry and can be a good tool for catching someone’s attention. Closed probes also are excellent for avoiding misunderstanding. Examples of Closed Probes: • Is productivity a concern? • Are you interested in validating the results? • Do you want to get started? • Who besides yourself is involved in making this decision? • Does this make sense? • Which approach do you feel is more appropriate? • Could the salespeople sell it if they had a gun to their heads? • Who owns the process? • Have you tried to fix this problem before? • Has anyone measured the impact of the non-performance? • Who else would benefit from the change? • Which issue is the more critical? Closed Probes to Confirm Understanding: • In other words… • So what you are saying is… • Let me see if I am on track…

36 Skill Practice: Probing
A client statement will be read aloud. If the ball is thrown to you: Tell if you will use an open or closed probe. Ask the probe. PONDER POINT: Use pauses to give you time to think and draw out people who are quiet. Nod your head, raise eyebrows, say “Uh, huh,” “I see” or repeat the last word that he or she said.

37 The Four I’s Probing Strategy
Issues Importance Impact Investigate What are the main issues you and your department are facing? Let’s take a look at ___ for a moment. Is this a nice-to-do, or something important to your organization? Sounds critical. Tell me, what is the impact of not addressing this problem? I see. Together, can we investigate how my organization might be able to help? PONDER POINT: No matter how elegant your solution or how vast the potential value to the prospect, it is not worth spending time on unless the prospect says he or she is willing to consider action. NOTES: The value of the Four I’s probing process is that it allows you to discuss issues and opportunities and confirm that the client is willing to work with you in a collaborative manner. EXERCISE: Break into small groups and come up with at least four probes that may be appropriate in a situation selected by your group.

38 Contracting

39 Roadblocks to Success Contracting Exercise
List below all the possible things that can go wrong when you do not have a contract with a client. 1. 2. 3. 4. 5 6. 7. 8. 9. 10. PONDER POINT: The psychological agreement with the client is just as important as a written agreement--in most cases probably more important!

40 The Six Elements of Good Contracting
Explore potential traps and misunderstandings with clients without appearing negative. Strike a balance between the client’s responsibilities and commitments in the early stage of the relationship. Give true assumptions about the amount of work that will be expected by the consultant and the client. Rehearse the contracting meeting by playing both sides of the exchange: the client and the consultant. Provide information related to your available time. Move forward with clarity on measures, results expected, and accountabilities.

41 Case Study Exercise A Case of Disappointment
Team Discussion Questions Were the expectations realistic? Was the system ready? Were they committed? Who was the consultant? Who was the sponsor? Who was the client? Who should have signed the contract? What groups or people were involved? Were the roles/relationships clear? What were the client’s real objectives/hoped-for outcomes? What criteria should be used to evaluate the consulting effectiveness? Who should evaluate the consulting? What were the other contracting issues?

42 Consulting Proposal Format
(Source: How to Write a Proposal That’s Accepted Every Time. Alan Weiss. Kennedy Publications. December, 1998.) Situation Summary: Restates issues, importance, and impact. Business Objectives: Describes expected results in client terms. Progress Tracking: Establishes how headway will be measured. Timing: Anticipated durations with recommended timelines. Accountabilities: Agreed upon consultant and client actions. Credentials: A brief citation of why you are the best choice. Methodology: An outline of required steps. Options: A choice of options that can meet business objectives. Terms and Conditions: Fees, expenses, and terms for each option. Acceptance: Place for appropriate person to sign the proposal. EXERCISE: Think about a recent proposal you submitted to a client. Score the quality of your proposal using the following factors as a guide. Consulting Proposal Quality Lousy Excellent Don’t Have 1. Situation Summary: Restates issues, importance, and impact 2. Business Objectives: Describes expected results in client terms 3. Progress Tracking: Establishes how headway will be measured 4. Timing: Anticipated durations with recommended timelines 5. Accountabilities: Agreed upon consultant and client actions 6. Credentials: A brief citation of why you are the best choice 7. Methodology: An outline of required steps 8. Options: A choice of options that can meet business objectives 9. Terms and Conditions: Fees, expenses, and terms for each option 10. Acceptance: Place for appropriate person to sign the proposal TOTAL SCORE ______ AVERAGE SCORE ______

43 Assessment

44 Successful Interviewing
Use the relationship skills (listening, probing, and acknowledging) to: Establish and maintain rapport. Gather personal perceptions supported by facts and/or stories. Test the findings from other inputs. Successful Interviewing Checklist Positioning Thank participant for sharing his/her time. Provide background information (the issue being addressed, your role in the project, why the participant was asked to participate). Explain interview objectives. Share Ground Rules: approach, time requirements, note-taking/recording, confidentiality, next steps. Confirm understanding. Ask for any questions before starting. Interviewing Follow your interviewing strategy as previously determined. Wrapping Up Thank the participant for his/her time. State how the input will help in the project. Explain any next steps. Confirm confidentiality (if important). Ask participant to contact you if they think of anything else valuable to the project.

45 Interviewing Exercise
Practice gathering data through interviewing. EXERCISE: The purpose of this exercise is to provide you with practice in interviewing. You will pair up with another participant in the class for this practice. One of you will be the interviewee, the other the interviewer. STEPS: 1. Think through a consulting scenario you are dealing with where conducting personal interviews is an important data-gathering technique. 2. Write out three or four specific questions that you would like to ask. 3. Using the Successful Interviewing Checklist as a guide, think through how you will position, conduct, and wrap-up the interview. 4. Conduct the interview taking notes on what you heard. 5. Feed back to the interviewee the main points that you heard. 6. Ask the interviewee to share his/her feelings about the interview: a. How well he/she felt listened to. b. Trust in the interviewer.

46 Services Delivery Research shows that clients don't care what your engagement delivery methodology is; however, they do expect you to have one. Example: A Methodology to Integrate Service Lines

47 Delivery: Best Practices
(Source: The State of S-Business: An International Report of Progress, Performance and Best Practices. James A. Alexander. AFSMI ) Project managers know how to manage project scope.** Service providers: Utilize a common methodology.** Demonstrate appropriate selling skills.** Possess adequate account management skills.** Have access to real-time customer information.** Understand the services industry.* Understand process consulting.* Know the critical business issues of their customers.* Legend: *Statistically proven s-business differentiator from product-centered company. **Statistically proven practice of top-performing s-businesses.

48 Planning for Implementation Checklist
This checklist has been designed to help you to develop a plan of action for the solution you plan to implement. Acceptance: How can we gain acceptance from others? What advantages can we show for the suggested solution? How might we demonstrate these advantages? Anticipation: What objections to our solution can we anticipate? How should I/we respond? Assistance: How can other people or groups help us to apply our solution? Location: What places or locations are best suited for putting our solutions into practice? Timing: How can we take advantage of special times, days, dates, etc. for implementing our solutions? Precautions: How can we pretest our solution to ensure its effectiveness?

49 What have you heard from your clients?
Scope Creep Exercise “We can’t figure when this project is going to end?” What have you heard from your clients? “Can you give Marketing a hand for about a week? They are in trouble.” “What do you mean the audit project was not included?” EXERCISE: In groups of two, review each client concern and reach consensus on the role you should play in responding to these statements to manage the scope of the engagement. State your rationale and potential response. Remember to consider issues of personality and to use the relationship skills. What could you have done in the beginning of the project to prevent this type of problem from developing? “When we meet on Fridays with your team, it’s a circus! Who is in charge?”

50 Scope Creep Checklist SUCCESS FACTORS RATING low high
1. Client expectations are clear 2. Ranges of performance are defined 3. Frequent communications on scope 4. We have grouped the issues by priority and scope levels, H/M/L 5. Issues are included in feedback meetings 6. We have established objectives and results 7. We have anticipated new players’ objectives, goals, and priorities 8. We have set aside funds for scope creep 9. We have analyzed scope alternatives 10. We feel comfortable saying no In what areas did you score low? What is the reason for the low score? In what areas did you do well? Why? What are the three areas you need to focus on most? How will you try and do that? TOTAL SCORE =

51 Service Recovery “Top 10 Service Attributes of Importance to Clients”
Being called back when promised. Receiving an explanation of how a problem happened. Providing information as to what numbers to call. Being contacted properly when a problem is resolved. Being allowed to speak to your boss. Being told how long it will take to solve the problem. Being given useful alternatives if a problem can’t be solved. Being treated like a person. Being told about ways to prevent a future problem. Being given progress reports if a problem can’t be solved immediately.

52 Service Recovery Exercise
I. You are engaged in an Overhead Cost Reduction Assignment, and it looks like you will not meet the time deadlines established. II. You are engaged in a Change Management Project, and you cannot get the cooperation of key sponsors to provide you with the support you need to do the project. III. You are installing SAP and, despite your best efforts, the system is still not integrated in areas such as purchasing, financials, and supply chain inventories from around the world. For the Service Recovery Case assigned to your group, flow chart (or list) the key events you would follow to address the gaps in service delivery. Also share a short list of alternative options you would present to the client to recover the situations.

53 Managing the Change

54 The faster people accept change the faster results can be achieved.
“Making Change Work" Negative Resistance Positive Acceptance The faster people accept change the faster results can be achieved. Source: ODR, Inc. and Andersen Consulting

55 The Cost of Resistance The cost is high. People lose enthusiasm.
Market opportunities are missed. Management’s credibility suffers. The competition gains an advantage. The cost is high.

56 The Cost of Resistance $ Good people leave.
Productivity goes down (20-40 percent). Benefits take longer to achieve. Resources are wasted. $ Time

57 Dealing with Resistance: One Block at a Time
Resistors Make It Happen! Let It Happen Help It

58 Change Plan Approach Sponsorship Strategy
Organizational Impact Analysis Business Process Analysis Sponsorship Strategy Ownership & Involvement Strategy Change Navigation Strategy Job Design Strategy Training Strategy Documentation Strategy Communication Strategy Implementation Support Strategy Type name here Type title here NEWS FLASH ! Design and Development Estimate Rollout Timeline and Approach Estimate MARCH Workplan

59 Communication Activities: Client Example
Create Informed Workforce Establish Project Credibility Project Newsletter Division Management Meeting Steering Committee Meeting Bulletin Board Displays Core Integration Meetings Printed Documents Broadcast cc:Mail messages Change Management Meetings Flash Communication Team Meetings Develop Sponsorship Commitment Create Workforce Buy-in Provide Forum for Feedback Formal Survey Messages from the Steering Committee “Road Shows” Dialog Sessions/Focus Groups Meeting Presentations Town Meetings Promotions/Incentives Suggestion Box Brown Bag Lunches Walk Arounds Reengineering Hotline

60 Leverage

61 Ideas to Leverage Success
Publish a Case Study Present Project Results with the Client at a Conference Leverage Conduct Post- Review Interviews or Focus Groups Mid-Point of the First Project, Discuss Next Project Steps At your table, come up with a list of topics on which you could write a white paper, article, or case study based on a consulting assignment. What opportunities do you have to collaborate with a client to further leverage success?

62 Ensuring Client Follow-Up: Initiative Criteria Screen
CRITERIA RATING low high Size of Potential Impact Speed of Impact 3. Probability of Success 4. Availability of Resources 5. Time Requirement 6. Money Requirement 7. Hassle Factor 8. Sexiness Based upon your consulting experience at your company, what are some of the reasons clients don’t follow-up? What have you done to get them back on board? What worked? What did not work? TOTAL SCORE =

63 The Professional Services Champion
Ideal Attributes Genius of Einstein Vision of Jefferson Strength of Superman Patience of Gandhi Communications skills of Roosevelt Creativity of da Vinci Magnanimity of Sister Teresa Ambition of the Clintons The conviction of Churchill--never, never give up! PONDER POINT: We didn’t say it was going to be easy!

64 Thank You for Your Participation and Attention
Contact Information: Alexander Consulting, LLP Mark Hordes (713) office


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