Financial Times

On consultants and consulting
By Nilooka Dissanayake
To begin with, let us define a consultant. This is a pretty well known definition. "A consultant is someone who borrows your watch, tells you the time and then charges you for the privilege."

I dreamt of becoming a consultant years ago. I actually achieved that goal and worked on many assignments, both within professional firms and on my own. I was so much into consulting that I selected Management Consultancy as one of the electives for my MBA. I still take on consultancies on a freelance basis. However, since becoming an entrepreneur by default and a media person, I have given consultancies low priority and take on only the most interesting assignments that come along. But what has really put me off is the fact that Consultant has become almost a dirty word.

And it need not be. Consultants are necessary for businesses and other organizations. And the joke that a consultant is someone who can't do any work is unfair by the many entrepreneurial individuals who realize that they can make more money and have a challenging career on their own as opposed to working as an executive. It is also unfair by the consultants who work in professional firms. A ruthless few have given a bad name to consultants. Although the nasty reputation sticks to consultants alone, many clients have contributed to that reputation by their sheer carelessness.

Consider what usually happens in most cases both in large and small businesses: A consultant approaches a key decision maker in the organization with an idea. Or an opinion leader introduces a consultant to the organization. It is usually a brilliant idea. It may be a fad that is doing the rounds in Sri Lanka at least five years after it was discovered in the US; and best sellers have been written about it and almost forgotten. If this organization does not take on this idea, it is hinted and understood that the Board of Directors are missing out on a major trend. They are out of fashion. They will be seen as old codgers who don't know what they are about. Now, which director in which Board wants to be an old codger? So, taking our world class idea or the cutting edge technology and adapting, using or implementing it becomes a consultancy assignment, naturally.

Can you blame the decision makers? They are muddling through, not managing their business. Athula Jayasekera, Chairman of the Management Club, Galle Face Hotel is fond of saying that "no one is managing in Sri Lanka." I would agree to the extent that perhaps less than 5% of Sri Lankan managers are actually managing anything, including themselves.

If this is the scenario into which a ruthless consultants walks in, who can you blame? It is your business. Not his. You are in charge. Not he (or she). You must never forget that.

There are so many things to ask before you go ahead. Does your organization need this assignment or this idea? What are the costs and benefits of taking it on? How does it affect the future of the organization? How does it affect your organizational strategy (assuming there is one)? What other alternatives are there to achieve the same results? After spending hundreds of thousands of rupees and a lot of managerial time, will this idea or report reach its usual destiny-the bottom drawer of your filing cabinet? Assuming you can find coherent and logical answers and explanations for all these, you should go ahead.

At this point, you might consider reading "A Concise History of Management Hooey" an article in the Fortune Magazine, issue 05 July 2004. It provides an interesting history of management fads. Read and be alarmed (or ashamed).

It is necessary for you as the client to assess what your organization’s needs are before calling for consultants. It is necessary to agree with the consultant a clear brief for the assignment. What are the expected outcomes? What results are expected? If the consultancy is operations or productivity related, can remuneration be linked to productivity gains? Depending on the type of assignment, industry and consultancy services available, you need to look into various aspects.

A rule of thumb is to never take on things just because they appear too good to be true. All that glitters is not gold. Think before you leap etc. etc. Your grandmother could have told you all this, couldn't she?

What questions should you ask your consultant? Let us discuss that topic next week. In the meanwhile, we invite you to share with us your experiences with consultants or as consultants. You can contact us on ft@sundaytimes.wnl.lk or on 5-552524

The writer is the Managing Editor of Athwela Vyaparika Sangarawa (Athwela Business Journal), the only Sinhala management monthly targeting the small and medium enterprises and its English version, Small Business International magazine and www.smallbusiness.lk, the bilingual small business website.

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