Dolf L'Ortye, one of the founders of Summiteers, mentions four warning signs to be aware of when considering hiring a consulting firm. He also shares practical advice on how to deal with this wisely.

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1. Follow the script

Unfortunately, what we see happen with some regularity is that consulting firms use standard methods to, for example, create an organizational blueprint. (operating model) to come. Often, all the elements that this method prescribes are then discussed. Even if they are not relevant to the specific issue. As an organization, that costs you an unnecessary amount of time and money. As soon as the end result is delivered, you wonder what you got out of it. You see it happening, a relatively inexperienced consultant gets hold of the script and simply follows it from step 1 to step 47. The crucial question, however, is: does this contribute to solving the issue? And yes, we also use methods. The difference is that we always start from the specific needs and context of the client and the issue at that moment. We then assess which parts of the methodology are relevant to solving the problem.

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The red flag?

“It will be fine, because we have the script ready.” Or the variant: “No, we really need to take this step, because that will keep us following the methodology.”

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What to do

Be critical of what you see happening and make sure that the consultant only uses elements from the script that are relevant to your situation. Request a clear explanation of why that step is necessary. Ask why you should attend a workshop on issue XYZ if you don't see the link to your specific issue. Don't just let yourself be sent into a random forest, but ask yourself why you're going into the woods in the first place and why that forest.

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2. Anonymized benchmark

There are two variants of this issue. In the first variant, benchmarking is used as a selling point. The message is: “We've compared you to the market and you're underperforming, you need to take action now.” When you then look at the benchmark results, you'll see all kinds of impressive graphs and figures, but nowhere is it clear what data these figures were used to calculate, nor is it clear which other organizations are included in the benchmark. If you ask for clarification, it's complicated, who the other organizations are is top secret and there are a number of reasons why that data cannot be shared. But no clarity.

In the second variant, you hire a consultant yourself to perform benchmarking or the benchmark is the first step of deploying the consultant. Because: “we already have the benchmark data”. When you hire us, we start with an idea of where you stand in relation to the market. He or she performs the benchmark and presents the results, but... tadaaaah... Even now, the data is anonymized. You paid a lot of money for the research, but you don't know who you were benchmarked against. Yes, with similar players (industry peers) in the market. But who are they then? You have no clue what you're reading. And the remarkable thing is, I've never seen that an anonymized benchmark shows that you're doing extremely well.

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The red flag?

If you get hit around the ears — solicited or unsolicited — with a benchmark, you should immediately question you. If the benchmark is also anonymized, serious alarm bells should sound.

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What to do

Never accept an anonymous benchmark or at least don't take it too seriously. In any case, always be critical of benchmark results: don't let yourself be fooled, there's no need for that in most cases. In my experience, it's already difficult to get useful insights from non-anonymized benchmarks, because the context of the question is often missing and there are different definitions. That really doesn't get better in an anonymized benchmark.

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3. The ready operating model

Some agencies claim they already have the operating model on the shelf. All you have to do is hire them. Then they make the model context-specific: 'that's really just a few weeks of work and then: just implement it'. You do have to sign a contract first, but then you can also get started with change in no time.

Trust me: such a blueprint is actually always very expensive, rarely really applicable to your specific situation. Soon after hiring the agency, it appears that additional, often costly, workshops are needed to adapt the model to your needs. Of course, there are many reasons for this.

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The red flag?

If a consultant says the design is already ready, be very careful!

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What to do

Let them prove it. I am one hundred percent sure that no agency will invite you to come and see the blueprint on their so-called shelf, because it simply does not exist. It's a sales pitch.

Tip: Make this as explicit as possible in your contract negotiation. So: if you really have to sign in advance, there will be a clause in the contract that provides prior insight into the operating model (this is allowed on location at the desk, no phones in the room, etc.). If it disappoints (at the discretion of you and your people), the contract will expire or be amended. If you get pushback on this, that's an alarm bell 2.0!

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4. Guaranteed cost savings

There are also agencies that claim that bringing in their consultants is guaranteed to lead to cost savings. This approach is almost always focused only on short-term results. The big question is whether this will not erode your business model in the longer term. A well-known and well-described example: let's say you have a company that operates an amusement park. A consultant suggests that maintenance could be done quite a bit less, 'because after all, there are never any problems'. True, there are never problems because maintenance is so well organized. By cutting back on maintenance, you are indeed guaranteed to save costs, but before you know it, a big accident will happen and you will be screwed.

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The red flag?

If a consultant promises guaranteed cost savings, be cautious. Unless, of course, you really want to do it for the short term.

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What to do

Again, be critical. Put on the longer-term glasses. Don't just focus on short-term cost savings, but also look at the long-term impact of the proposed changes. It's wise to find a healthy balance between short-term cost savings and maintaining the long-term sustainable integrity of your business model. Keep asking!

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