Input vs. Output-Based Consulting

by Tom "Bald Dog" Varjan, Organisational Provocateur

It is hard, or even impossible to find one way of standardising what consultants are supposed to deliver, but, based on my research, this is how clients perceive consultants with two drastically distinctive approaches.

Input-Based Consulting (Tasks and Deliverables)

In this approach clients do not know what they want to achieve by hiring a consultant. That is, there is a rigid action plan, and we follow that plan even it kills us. The client knows that a customer service workshop must be performed (task) and a 100-page workshop manual (deliverable) must be produced.

The military equivalent of this method is telling the troops that "Tomorrow you will march 17 miles, fire 476 rounds of ammo, dig 3 trenches and drink 1.5 litre of water."
All, in all, nobody knows what we want to achieve, but are going through the motions.
Many clients say that they have complex change projects and there are far too many variables, so only the tasks are certain. I think that is bullshit.

If I do not know where I am travelling there is no point in flying all over the world just for the sake of collecting stamps in my passport. Yet, this is how most buyers hire consultants. They establish deliverables and activities, but nobody knows what they want to achieve. So, considering that you cannot stipule a financial return on input-based consulting projects, we can easily call it is just another expense.

Output-Based Consulting (Results and Outcomes)

This is the total opposite of task-based consulting. In this scenario the client has a clear vision of what to achieve and collaborating with a consultant the client's people (the implementing team) put together a fluid and flexible plan to execute the strategy.
So, if the desired outcome is 20% improvement in sales within six months, then there is a plan created to support this strategy.

The military equivalent of this method is telling the troops that "Tomorrow we go and win the war."

Often clients complain that it is not certain how much the consultant contributed to the achievement of a certain goal. How much? All 100%!

My contention is that if clients could have done it, they would have already done it. The consultant was the catalyst to that change.

Without Lou Gerstner IBM almost died to a rather miserable death. It means the existing people alone couldn't turn IBM around. Then the existing people plus Lou did. They did it together but Lou was vital in the equation. Lou was the proverbial yeast in the brewing process.

Have you seen a live classical concert? The conductor plays no instrument and makes no sound, yet, without him the orchestra would die.

Since you can stipule a financial return on output-based consulting projects, we can call it an investment. And smart buyers know that their returns are always proportional with their investments.

Summary

$20,000 may be a bit steep to run a customer service workshop (feature) with a 100-page workshop manual, but this same $20,000 is a small pittance in an initiative that will perpetually increase responsiveness, reduce client attrition, reduce talent turnaround, increase unit sales, enhance customer satisfaction, etc.

Sadly many clients shy away from this approach because it requires some responsibility, and while consulting clients are very good at demanding improvements from their consultants, they are pathetically poor at demanding results from their own people.

Clients' objectives should be to do whatever it takes to achieve the projected outcomes, not how many miles you march, how many rounds you fire and how many trenches you dig are irrelevant.

Look at any area of life. They are all outcome-based.

Starting a family vs. let's spend some money on baby food and nappies
Getting to the airport vs. driving 10 miles, turning left 6 times and stopping at three traffic lights
Getting a MBA vs. commuting to the university building 5 times a week, sitting in front of a set of books 40 hours a week and fill in 34 exam papers

I can imagine the former, but have a hard time to see the latter as my life goal.
Then why are consultants so stupid that they promote tasks and why are so many clients so retarded that they demand tasks and deliverables from their consultants.
It seems the whole life is objective based, except consulting. Hm.

Copyright 1997-2010 Tom "Bald Dog" Varjan. All rights reserved. You are free to use this article in whole or in part. One favour though: Can I ask you to you include complete attribution, including a live website link. Also, can you please let me know where you plan to publish the article.

The attribution: This article was written by Organisational Provocateur, Tom "Bald Dog" Varjan of Dynamic Innovations Squad, a firm specialising in helping consulting firms to sell their expertise at the highest margins. Get Tom's free Practice Management Black Paper when you sign up for his monthly newsletter, Commando Consulting: Lessons And Practices From The Ultimate Professional Service Firm, The Military. Visit Tom's website at http://www.di-squad.com.

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