Why Clients are Gaining Leverage Over Consultants
Hiring a consultant has often been associated with large projects and exceedingly bloated budgets.
Those who could afford to hire a consultant were often in a position to compensate for any losses they suffered at the hands of the hired gun. But what about the companies that relied on the effectiveness of the consultant? It seems that the economic downturn has indirectly benefited them, as consulting prices have been driven south.
For those companies that are reliant upon a consultant for success, consider hiring someone who is willing to foot the bill if certain criteria aren’t met. Also, be well-prepared in your search for the perfect consultant; some may over commit and underachieve.
It’s clear that the balance of power between smaller companies and consultants has shifted somewhat. The U.S. consulting industry is still booming, however. Last year, it generated nearly $400 billion in revenue ($240 billion just for IT), according to the article. Still, the author advises that a consultancy isn’t a cure-all, and should be approached – especially by those just entering the market – with a carefully wrought plan.
It’s not an easy decision, but most important ones in life aren’t.
We hope this framework makes planning during this uncertain time feel less like summoning a crystal ball and more like navigating with a map.
In this environment, it doesn’t matter if you’re the CEO of a startup or a well-established company—you’re going to have to make some difficult choices that will probably keep you up at night.