PI Business Survey Uncovers Large Median Time When Hiring Consultants
by Bruce Newman
This article was originally published in The Productivity Institute (PI) Newsletter
Hiring the right consultant has always been a difficult responsibility. Hire the wrong person and it can hinder a project’s outcome, often resulting in additional costs, decreased morale and rework – along with the hiring person receiving much criticism. Hire an outstanding consultant and receive little credit for a well designed, appropriately budgeted and timely project that significantly improves productivity.
In a recent survey by The Productivity Institute, respondents were asked how much time they spent on each search. 46.3% of respondents reported spending 5 or more days doing a consultant search. This inordinate amount of time reflects the importance of hiring the right consultant. This percentage jumped to 63.5% when including searches of 2 – 5 days.
This significant period of time in the hiring process reflects both caution and three necessary steps. These steps include: locating consultants, checking their credentials and experience, and somehow assessing their knowledge. All too often it does not include assessing their communication skills and ability to work with others – which most companies consider the two most important traits, as also reported by our survey. In lieu of these steps, it is easy to understand how personal referrals often shortcut this entire process, though sometimes with very detrimental results.
All three steps can be very time consuming. Locating consultants is usually accomplished through recruiters, personal or business references, going to the websites of the relevant organizations and online searches. Unfortunately, this can result in the receipt of many resumes and business overviews, each of which needs to be closely evaluated. Even more troubling is determining accurate evaluation criteria. Without extensive experience and knowledge, a limited skill set can easily be hidden by a candidate’s good salesmanship. Knowing exactly what skills and characteristics you are searching for prior to evaluating consultants will greatly increase your chances of selecting an excellent consultant.
The benefits provided by outstanding consultants are both short and long term in duration. An excellent design or service can benefit a company for many years. One analogy is to compare their work to a building foundation. If that foundation is solid and broad, more and more stories can be added to it. Conversely, a poor foundation is unstable and every addition that is built upon it weakens the entire structure, making it more prone to collapse. When evaluating a consultant’s performance, it is important to assess the long term benefit of their work, particularly in today’s economically troubled and competitive marketplace.
Assessing the expertise of consultants can be extremely difficult. Determining which criteria to assess and how to impartially apply it is problematic, particularly when applying it only at one specific instance of time. Regular reviews are much more accurate since they provide a long-term view of the consultant. Our survey also showed that personal referrals are the fourth most important background factor when considering a consultant. In fact, many companies mistakenly hire consultants based on these referrals and do not apply these applicants to the same criteria as other potential consultants – which can be disastrous.
In summary, with a median search time of almost five days, companies are expending significant resources in time and money in the locating and evaluation of consultants. This is understandable since there are several factors to consider and the decisions they make can enhance or adversely affect their company’s positive cash flow and productivity – along with their own careers.
Bruce Newman is the Vice President at The Productivity Institute, LLC, an acknowledged leader in locating, evaluating and matching the specific areas of expertise of consultants to the needs of its clients. Bruce also specializes in evaluating companies to improve their productivity and positive cashflow. He is also the editor of the Productivity Institute Newsletter, a free content-is-king newsletter (circ. 6,000+) and a thought leader. Follow him on LinkedIn, Twitter and the Productivity Institute blog.

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