Tips for Working with Consultants

The core problem in a consulting/contracting relationship is that you don't know whether you are going to get the quality of service you want and the service provider does not know whether they will be paid for the work they do.  Here are some steps you can take to minimize your risks without placing unfair risks on your service providers.

• Clearly defining your needs is more than half the battle to meeting them.  Understand your situation as well as you can before you look for a service provider.  Don't hesitate to hire someone to help you identify and elucidate your needs if you have any trouble getting a clear handle on the nature of your situation and problems.  The cost of consulting will almost certainly be less than the cost of ending up with a system designed to solve problems that you didn't really have.
• Whether you do it yourself or hire outside help to do it, create a detailed specification that clearly defines the results to be obtained from the service in an objective way.  Make it a part of your contract.  For instance if you ask an architect to design a 10,000 square foot office building for you, you can't blame him/her for providing a design of a two story building with 5,000 square feet on each floor when what you really wanted was a four story building with 2,500 square feet on each floor.  The architect is justified in asking for additional pay to redesign the building.  If in the same situation you also specified that the building was to be placed on a 4,000 square foot lot you would have some justification for asking the designs to be modified at no charge.  However it would be best if you had just asked for a four story building with 2,500 square feet on each floor to start with.  Then there could be no argument at all that the design should be changed at no charge.  This is a simple example and it is not always easy to clearly envision what you want in advance.  Some of the tips in the Planning and Design section of this site may help.
• Be creative with the pricing and payment structure of the contract.  Most service providers have standard options for pricing such as "Time & Materials" or "Fixed Price" but are willing to work with you to develop pricing alternatives that are more suitable for you both.  The problem with most standard pricing options is that they reward the service provider for using the maximum possible project budget.  If you can work together to devise a pricing and payment plan that will reward the service provider for providing the desired level of quality while minimizing cost and risk (both to you and the provider - which isn't always easy) you are both more likely to be happy at the project's completion.

• There are two aspects to a good service provider:  ability to do the job well, and willingness to do it well.  You want to hire the provider that has the best combination of both.  The trick is determining the best provider(s) and weeding out the ones that are less qualified.  Once you have narrowed the field to those providers who you feel can do the job right, you can then compare their prices.  Never assume that the lowest price is the best deal or that the highest one represents the best qualified provider.  Here are items to consider in choosing a service provider.

  • Don't let a provider mold your problems to fit their solution.  Initially present your needs as only marginally or minimally requiring the provider's services.  If they are honest in telling you that the help they can provide you is limited you should be able to trust them.  If they try to convince you that you need more of their services than your stated needs merit, beware.
  • Many industries provide professional certifications that can help assure you that the personnel provided by the contractor have the basic skills needed to do the job.  These certifications often require a certain amount of experience to obtain, and so can be even more valuable indicators of ability to perform the job than more standard qualifications like a college degree.  However, certifications only tell you that a person is capable of doing the job, not how well they can do it or whether they are willing to put forth the effort to do it well.  Certification is definitely a plus but should not be the only factor in evaluating a provider's qualifications.
  • References can provide an indicator of both ability and willingness to do a good job, whether the reference is from an organization or from individuals within an organization who has previously used the provider's services.  References from someone you know or are familiar with are best as long as you trust the judgment of the person or entity providing the reference.   However, you can never be sure that reference names a service provider gives you aren't from the few successes they have had among many failures.  As with certifications, references can give you a comfort zone but should not be the primary factor in choosing a provider.
  • Stability and experience are also important factors in determining a provider's ability to do a good job.  An organization or individual who has been performing the type of services you need for some time is more likely to know the kind of problems that you are likely to face with your project and deal with them appropriately.
  • Perhaps the most important factor in deciding which service provider to use is intuition.  Meet the people who will be managing the project, and if possible those who will be doing the work (particularly for professional services).  You should get the impression that they are confident in their own abilities but not that they are "smooth talking" you.  Most importantly, you should feel that they are being straight forward and honest with you about their ability and willingness to perform the work to your satisfaction.  Ask the potential service providers to tell you the down side of using them, or some other question that will likely catch them off guard.  Those who answer in a straight forward manner are more likely to be honest in discussing various issues with you before and during the project.
  • Finally, ask the provider what kind of guarantee, if any, they will provide that you will be satisfied with their service.  You have a right to quality service.  Within reasonable limitations service providers should be willing to offer you some degree of compensation if you are not satisfied with the results of their service.  If a provider does offer any kind of guarantee make sure it is included in the contract.
• Closely monitor the progress of work that is being done.  This doesn't mean you need to micro-manage the provider, but you have the right to expect timely and complete status reports.  If the provider is not notifying you of problems when they first occur or is not trying to work with you to solve them in a straight forward manner then you may want to consider finding another provider.
• Set reasonable expectations.  Find the provider that can provide you with the combination of service quality and price that you are looking for and then be willing to pay for the level of service you are requesting.  However, be cautious of bargains that seem too good to be true.  It is better to pay twice as much for a system that meets your needs than half as much for a system that doesn't.