Do you pay for a car based on the number of hours needed to construct it? Or do you pay for the value that you see in it? Of course, the latter–all people do. So why do most companies act differently when engaging external consultants? They pay for time, and not for value.
Ask yourself at each engagement of external consultants, “Do the delivered results ("deliverables") create real value for my organization?” Be honest: how many purchased consulting hours did not deliver full value? 20%? 30%? More?
The time is ripe to shift the paradigm.
When being paid per hour, many consultants have a natural self-interest in extending the amount of billable time. It is in your hands to stop this practice. We are convinced that the consulting market will change drastically over the next few years. This will happen because you, the customer, will demand value instead of hours for your money.
See here how you benefit from the new way of consulting.
With traditional consulting...
- you pay for hours or days
- you get often deliverables instead of value
- you have high investment uncertainty
- consultants have a natural self-interest in prolonging their engagement so they can charge for more hours
- the engagement often lasts much longer than expected and the cost is often more than was planned
With packages consulting...
- you fix value-related objectives and scope precisely before the consultation period starts
- the engagement lasts for the planned period of time until the agreed value is delivered
- you pay exclusively for value-generating results
- you have no extra costs for additional consulting hours
- you have 100% investment security
There is an important precondition that you should look at before engaging any consultancy:
Clarify your objectives internally and make them measurable. A consulting provider who is used to this exercise can help you with that step before you even sign any contract.