By Greg Baranszky
After giving a presentation on the likely state (or states) of the consulting industry in the year 2020 at the recent Consulting magazine Summit in New York, I was approached by a KIA client. She told me that consulting fee benchmarking work that KIA had presented at the last Summit had helped her firm hold firm during fee negotiations with several important clients who were looking for deep cuts. She further offered to e-mail her CEO to inform him of the concrete value ($$) that KIA had created for her firm.
There seems to be a hemorrhage of advisors to the consulting industry dispensing folksy wisdom on how to market and sell consulting services today. Some of these folks do actually provide good advice culled from their own not insignificant experience. None of them, however, seem to back up their "ABC's of Consultative Selling" rap with a broad and deep data set that tailors their counsel and makes it truly actionable.
The ability to do this—to take a stringently evidence-based approach to providing such counsel—is what sets KIA apart. Based on ongoing research with a broad set of clients of all types (US Fortune 500 to family-owned business in Latin America to quasi-state behemoths in China), we have built an unparallel data set that covers all consulting segments (strategy, IT, etc.) and all industry verticals.
Even a small portion of that data set cannot be shared in this space, but we thought it would be useful to you to hear what we are hearing most often from the client side when it comes to engaging with consultants. If one listens closely, each of these Client Ten Commandments has in it the seeds of opportunity.
The client 10 commandments
1. $hare our Pain. Or Else.
Discounting is still rampant as we turn the corner from the downtown. The firms that know their competitors pricing strategies, the gap between book and actual rates, and can maintain a price umbrella while still stressing value have a huge competitive advantage.
2. I'm Sold… Now You Have to Sell Him.
Projects often require multiple sign-offs. This adds to opportunity cost but can be used to create additional touch-points within the client/prospect organization.
3. I'm Sold, He's Sold… Now You Have To Sell Procurement.
The role of procurement is naturally adversarial—to both consultants and procurement's own internal clients. But if the consultant understands procurement's agenda, he can create an ally and drive sales.
4. Let's Do the First Slice, Then See.
More and more project phases are being de-coupled, with the assessment piece now often a stand-alone. Correctly structuring and pricing this piece is, therefore, more critical than ever.
5. Work With Us, Not For Us.
Clients are now making consultants walk the walk when it comes to joint client-consultant teams. Another opportunity to build relationships and accomplish knowledge transfer—if done right.
6. Leave the Kids at Home.
The consulting staffing pyramid is under pressure, especially at its base. New engagement models are called for.
7. Just the Facts.
Evidence-based, rather than case or methodology-based, consulting is what more and more clients are demanding. This requires deep industry expertise and the systems to deliver it, and is a huge opportunity to differentiate for the firms that do it right.
8. I Need to Look Good On This One, Pal.
Client executives are under more and more pressure these
days. Consultants can employ specific tactics to bond with these under-the-gun clients, with both the client and consultant prospering as a result.
9. This Will Have A Tail On It.
Project tails are getting longer and longer. Use them to gather intelligence and sell the next project.
10. Even If We Don't Hire You, We Want Some Value.
Clients don't actually say this, but consultants must read between the lines and recognize that the client should walk away with something of value… even when they walk away from you. Partner-based selling has the big edge here over business developer-based selling. Use it to set up to win the next project, even if you didn't win this one!
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