DYNAMIC ALTERNATIVES, INC.

Managing Growth With technology Since 1980

Criteria For Selecting Consultants

By The Staff Of Dynamic Alternatives, Inc.

The use of consultants by independent businesses is an economical and effective way to achieve business goals in this age of change and explosion of information. Expertise that cannot be afforded on a full-time basis can be purchased as needed. The value of an informed, objective, outside viewpoint is recognized as a great assistance in business problem solving. The talents and abilities of owners can be supplemented in areas of need by solid knowledge and experience.

There are as many different reasons for seeking consulting support as there are potential clients. Consulting support is offered in a number of specialty areas such as Human Resources, Marketing, Accounting, Computers, and General Management – all of these areas can be critical to a business as it grows and develops. As in the purchase of any other professional service (including medical services), it is the business owner’s responsibility to choose wisely. The following criteria are suggested for that important choice:

The consultant should guarantee complete confidentiality. This includes information about the client’s financial status, business plans, and personal information. It usually does not mean that the relationship between the consultant and the client is kept secret.
There should be no conflict of interest between the consultant’s business and the client’s business.
The consultant should guarantee complete satisfaction.
Written or phone references to some of the consultant’s present or previous clients should be made available on request. The potential client should take the time to review them and call to ensure that they were fully satisfied with the consultant’s performance. If higher education or specialized training is claimed, a diploma or other document should be available for review.
For contract work, the scope of the work and changes to it should be clearly documented and agreed to by the client prior to work beginning. This can be an area of uncertainty, especially if the consultant’s job is to define a problem and present possible solutions. When the owner cannot be specific about the work desired, the consultant should agree to five interim reports as the work progresses based on the amount of time expended.
To the extent possible, timelines should be agreed on and adhered to. A consultant should not make promises he/she cannot keep. The consultant should not substitute others without obtaining the permission of the client.
The consultant should be willing to explain processes, facts, and solutions to the client as the work progresses. There is nothing mysterious about business, so there is no need for secrecy and jargon. Good communication allows the client to manage the consultant and maintain responsibility for the impact of the consultant’s work on the client’s business.
Solutions proposed must be appropriate to the client’s business and available resources. While the ideal solution may be proposed, it may be necessary to also present a reasonable tradeoff option to meet resource constraints.
Fees should be clearly stated in advance. An engagement could be priced on a fixed-fee contract basis or by the hour used. In either case, the owner should have a clear understanding of the results that are desired and those that are promised.
There should be no hidden charges – fees should include reasonable phone support, local transportation, etc. The types and expected cost of additional charges should be clearly understood by all parties. Cost of distant travel and supplies purchased on behalf of the client are usually borne by the client.
Billings should clearly show the hours billed for each activity and offer sufficient explanation to justify the charges.

As in any marketplace it is "buyer beware". The owner of a business must be deeply involved in the management of that business. The same focus of attention needs to be placed on the selection and management of any consultant. Remember, their work will have a great impact on the business, how it will function, and where it is going.