Showing posts with label Michael W. McLaughlin. Show all posts
Showing posts with label Michael W. McLaughlin. Show all posts

Wednesday, February 1, 2006

No More Root Canals

By Michael W. McLaughlin

You don’t need to be around the consulting business long before you’ll hear a client refer to a consultant (or an entire firm) as difficult, arrogant, condescending, or just plain snooty. Not all projects go exactly as planned, so it’s not surprising that some clients grouse about their consultants. Such barbs come with the territory.

And some projects call for consultants to “break glass” to achieve the client’s desired outcome, in which case, a certain amount of pain is expected. But what if, as one client put it, working with consultants is like having a root canal? No firm in its right mind wants a reputation for being that hard to work with.

Do you even know what your clients experience in working with you?

Too many consultants measure a client’s satisfaction postmortem, based on the effectiveness of the transaction. If the project delivers the desired outcome, on time, on budget, and the client pays the bill, the project is deemed a winner. Rarely does the client’s experience enter into the satisfaction equation.

Now is the time for consultants to make the client’s experience an integral part of the business. In their 1999 book, The Experience Economy, Joseph Pine and James Gilmore advise executives to battle the onslaught of commoditized goods and services by managing the customer’s total experience: "Businesses that relegate themselves to the diminishing world of goods and services will be rendered irrelevant. To avoid this fate, you must learn to stage a rich, compelling experience."

Every consultant/client interaction evokes emotions, whether it’s a presentation, a meeting, or even a voicemail message. Consultants can encourage a positive response by adding experiential elements to traditional, transaction-based consulting processes. The resulting emotional reaction will help establish a connection between you and the client that helps build the relationship.

What do I mean by adding experiential elements to the consulting process? Think Southwest Airlines, Las Vegas, or Disneyland. Okay, maybe it’s over the top to think a consulting project could be “the happiest place on earth.” But you get the idea. Those businesses attempt to create memorable, emotional, and positive encounters for their customers. The experience is a big part of the service.

This idea isn’t a stretch for most consultants. After all, delivering top-flight client service is in the mission statement of every consulting firm on the planet. Of course, consultants aren’t in the entertainment business, like Disney or the Las Vegas casinos. But why not tear a page from their book and apply it to the marketing, selling, and delivery of consulting services?

Some consultants already focus on the client’s emotional experience. Ask Doug Hall, author, consultant, and founder of the Eureka Ranch. The “ranch” is a colorful, energetic environment where clients attend facilitated sessions to experience the “Aha!” of new ideas, whether that’s imagining new products or breathing new life into old ones.

Hall’s team never loses sight of its objective, which is to deliver extraordinary value. But they use an intense, challenging, creative process to shake loose their clients’ best ideas. This isn’t a style-over-substance approach to consulting. The consulting team conducts rigorous fact-gathering, analysis, and solution development—just like every other consulting firm.

This trend is picking up steam among other consulting firms, as they apply experiential elements to their visual identity, marketing communication, business development, and consulting offerings. Suzanne Lowe, author of Marketplace Masters, believes that creating a positive emotional experience for clients can be a real market differentiator. That’s because your client’s specific experience is very hard for competitors to copy.

The opportunities for experiential consulting are enormous. Dump the stuffy status meetings, staid group sessions, and boring presentations. Take a look at your own consulting approach and products. You’ll find specific areas where you can tweak your consulting services to create memorable experiences for your clients. And there’s no reason why you can’t adopt a systematic, experiential approach to marketing and selling, too.

Raytheon CEO Bill Swanson, in his unpublished manuscript, Swanson’s Unwritten Rules of Management, makes this observation about human nature: “You remember 1/3 of what you read, 1/2 of what people tell you, but 100 percent of what you feel.” What clients are most likely to remember about you is their emotional reaction to working with you.

Consulting is a high-touch business, and one bad experience can pull the roof in on a client relationship. As one consultant said to me, “If you mess up a client’s experience with your firm—even just a little—it takes a lot of white paint to cover that black mark.” Fortunately, the converse is also true. One great experience can cement a relationship for the long-term. Consultants who bring a cold-fish, know-it-all approach to the table, even if they have talent and skill, may find success in the short-term but will stumble eventually. There are simply too many great choices out there. Clients will turn their backs on “root canal” consultants, and go with the firms that deliver results and a great personal experience.

Michael W. McLaughlin is the coauthor, with Jay Conrad Levinson, of Guerrilla Marketing for Consultants. Michael is a principal with Deloitte Consulting LLP, and the editor of Management Consulting News and The Guerrilla Consultant. Find out more at www.guerrillaconsulting.com and www.managementconsultingnews.com.

Published in Networking Today, February 2006.

Thursday, September 1, 2005

How to Write a Killer Proposal

By Michael W. McLaughlin

The words "send me a proposal" are music to the ears of many consultants.

Even though they might not really enjoy writing proposals, most consultants jump at the chance because they believe that exciting, lucrative work might be right around the corner. The invitation to write a proposal is a milestone in the sales cycle—an opportunity to get one step closer to a client and a new project.

The best proposal is one you don't have to write. Tip the competitive scales in your favor and try to eliminate the proposal process altogether. A competitive field reduces the odds of landing the business, so sidestep that challenge, if possible.

It's less costly for you to write a letter confirming your services than to prepare a formal document proposing your services. Consultants rarely ask clients to award them the business without a formal proposal, so distinguish yourself and ask whether you can start the work using a letter of confirmation. What do you have to lose?

A confirmation letter differs from a proposal in that it describes specifically what you will do, not what you are proposing to do. The confirmation letter will describe the objective, scope, schedule, fees, and results. But since it's not subject to competitive bidding, many other elements of a proposal may not be needed, such as a long list of qualifications, case studies, and detailed descriptions of your firm. Most importantly, the confirmation letter approach ends the sales cycle in your favor. So…

  • Explain to clients why they also benefit from skipping the competitive proposal process.
  • Point out that the consultant selection process takes their time and attention away from their business.
  • Stress that you have the skills to get the job done, and that the longer the process takes, the more it costs them and delays the resolution of their problems.
In one case, a client asked a consultant how to create a better process for communication between the client's engineering and manufacturing departments. The client intended to ask three other firms the same question and then solicit proposals.

Armed only with a white board and a marker, the first consultant led a three-hour discussion with the client team; that discussion dug out the real problem between the two groups, worked through a potential plan for creating the results the client needed and proposed a schedule.

At the end of the meeting, the consultant asked for 24 hours to solidify the work of the group and prepare a letter confirming the work. The client agreed and awarded the work to the consultant the very next day, without a competitive bidding process.

If consultants have done their homework in qualifying the project and the client, a request to confirm the project should seem natural. You have nothing to lose in showing the client exactly what you can do and then asking for the work. In the worst case, the client will say no.

Twelve Tips

For those times that drafting a proposal is inevitable, here are some things to keep in mind.

A public relations consultant once sent a proposal to a client for the design of a small PR campaign that was to be a test for additional campaigns in the future. The firm presented a beautifully packaged proposal with a description of their qualifications, their understanding of the project and their approach to completing the work.

After reviewing the proposal, the client noticed that the document footer showed a different client name, and in several places in the proposal the previous client's name was also used. The client threw the proposal in the round file.

To avoid this fate, follow a few guidelines before you send proposals to clients:
  1. Create a powerful, but concise executive summary.

  2. Focus on results, which matter more than methods and processes.Clients buy methods and approaches only when they know you can deliver results.

  3. Be generous with your ideas; don't hoard them.Show clients how innovatively you think.

  4. The length of the proposal doesn't win, but quality does.Projects are not awarded because proposals pass a weight test.

  5. The proposal content must be about the client, not the consultant.Take a back seat and focus on how you will solve problems.

  6. Your liberal use of "best practices" will label you as uncreative. Find the blend of outstanding practices and innovative solutions that fit your client's needs, not answers that worked for someone else.

  7. Accuracy is essential. Validate all data and double-check to make sure it's right before you present it.

  8. Sweat every small proposal detail, watch for typos, use high-quality materials, and make sure the right people receive the proposal on time.

  9. Rewrite your résumé for every proposal. Highlight the skills in your résumé that demonstrate your qualifications. Your boilerplate résumé is rarely up to the task.

  10. Let your proposal sit for a day and then reread it completely before sending it out.

  11. Let your personality shine through your proposals. Give clients a sense of the firm and your style of working.

  12. Don't let your proposal claims outdistance your true capabilities. Write an honest proposal, or you'll pay dearly in the future with blown budgets and unhappy clients.
The consulting proposal is a necessary evil. A great proposal can be decisive in winning a project; a poor one can cause you to lose a project, even if everything else in the sales process has gone flawlessly. Use these guidelines to a write a killer proposal every time.

Michael W. McLaughlin is the coauthor, with Jay Conrad Levinson, of Guerrilla Marketing for Consultants. Michael is a principal with Deloitte Consulting LLP, and the editor of Management Consulting News and The Guerrilla Consultant. Find out more at www.guerrillaconsulting.com and www.managementconsultingnews.com.

Published in Networking Today, September 2005.


Wednesday, June 1, 2005

Should You Fire a Client?

By Michael W. McLaughlin

In the early 1900s, Vilfredo Pareto, an Italian economist, concluded that 20% of the people controlled 80% of the wealth. Since then, his now-famous 80:20 rule has been applied to everything from advertising and time management to identifying product defects.

One application of Pareto’s Principle is that 20% of your customers or clients will generate 80% of your headaches. It stands to reason that you’ll boost the vibrancy of your business by pruning that disruptive 20% every year or so. Few things damage the long-term health of a business more than client saboteurs—and there are more than a few out there.

Consider Firing a Client if…

  • It takes days or weeks to get on your client’s calendar.
  • Your client wants to approve or attend all your meetings with decision makers.
  • You have stopped developing new skills.
  • Invoices are nitpicked to death or payments are consistently late.
  • The client fails to review critical documents in a timely manner.
  • Your profit margin is eroding with no end in sight.
  • Your work no longer seems to have a substantive impact on the client’s business.
It may sound crazy to fire your clients, but doing so is one of the best strategic actions you can take. Clients define the culture of your business, and serving tiresome ones erodes that culture and poisons the environment. Problem clients create more work and needless stress. They kill your profits and your productivity, and that negativity can seep into your personal life.

It takes courage to walk away from a paying client, no matter what the circumstances. But don’t worry; if you excel at what you do, more desirable clients will find their way to your doorstep.

Michael W. McLaughlin is the coauthor, with Jay Conrad Levinson, of Guerrilla Marketing for Consultants. Michael is a principal with Deloitte Consulting LLP, and the editor of Management Consulting News and The Guerrilla Consultant. Find out more at www.guerrillaconsulting.com and www.managementconsultingnews.com.

Published in Networking Today, June 2005.

Sunday, May 1, 2005

Avoiding Marketing Pitfalls

By Michael W. McLaughlin

Many competent consultants risk their own success, and their bank balances, by driving straight into the same old marketing potholes again and again. Take action to avoid these ten common marketing traps:

  1. The curse of experience. Many consultants believe that their deep understanding of clients and their businesses translates into an understanding of the nuances of marketing. That assumption can cost you clients and money.

  2. Go it alone. Consulting is a collaborative business. Whether it’s Web design, writing marketing copy, or launching a survey, you should always be on the lookout for talented people to partner with in marketing. Focus your efforts on what you do best—deliver value to clients. Let the pros cover your weak spots in their areas of expertise.

  3. Overestimate clients’ interest in you. Clients care about their own problems and how to solve them, not about your business. They’ll engage you to help and express polite interest in you, but keep the focus on them, not you.

  4. Believe your services are top-notch just as they are. Clients’ needs are always changing, so your service strategy must always be evolving too. It’s never good enough.

  5. Sell too hard. Don’t think clients are ready to be sold by you right off the bat. Clients buy, they’re not sold. Give them something to buy that they really need.

  6. Dabble in marketing. You can’t just throw an article or two out there and expect clients to take notice of you. Successful marketing requires sustained, consistent, and coordinated effort.

  7. Focus on your “accounts,” not your clients. Learn as much about the people as you do about each client’s company. Plan and market in a client-centered manner—at the individual executive level.

  8. Take the one-size-fits-all approach. Each client and project is different. Your previously winning formula can easily backfire unless it’s tailored for each individual situation.

  9. Impatience. Instant gratification and marketing rarely go together. Be patient. Your marketing investments will pay off, but it almost always takes longer than you think.

  10. Dread marketing. Consulting is a marketing business. If you don’t enjoy marketing, the road will seem like—and be—one pothole after another.
Michael W. McLaughlin is the coauthor, with Jay Conrad Levinson, of Guerrilla Marketing for Consultants. Michael is a principal with Deloitte Consulting LLP, and the editor of Management Consulting News and The Guerrilla Consultant. Find out more at www.guerrillaconsulting.com and www.managementconsultingnews.com.

Published in Networking Today, May 2005.