Making the Consultative Connection: The Key To Closing the Value Gap
By Michael N. Abrams, M.A., Managing Partner
June 12, 2002
(Original Publication Date January 12, 2002)
Using a consultative approach, the IT consultant is involved early on in creating a strategic partnership with the client, dedicated to the identification, support and integration of technology solutions that are linked to specific business results.
As expenditures for technology continue to grow and become an increasingly substantial portion of the cost of doing business, IT functions have undergone increased scrutiny for their return on investment. In many organizations, internal constituencies from the executive suite to the shop floor don't feel that they are getting their money's worth. The perception frequently is that the increased expenditures for hardware, software and staff have not adequately created value by contributing to strategic outcomes. Comments such as, "they don't seem to understand our business," or "they can't tell me if this $5mm software will really solve my problem," illustrates the challenge at hand for many IT functions - show bottom line results and exceed customer expectations or risk the ultimate expression of customer dissatisfaction with many staff functions today - outsourcing.
Although many factors contribute to this situation, a big factor has been the way IT staff have traditionally approached their jobs. Typically, IT staffs have been involved extensively in the development and enforcement of existing systems and standards. Oftentimes they seem to play a larger role in telling internal customers what they can't do, than what they can. This orientation commonly leads line managers and senior executives to perceive IT as an obstacle rather than a resource. When genuine contribution becomes the criterion for continued existence of the IT function, organizational support quickly wanes. Consequently the imperative is for IT functions to change - and quickly!
So how can IT functions close this "value gap"? The answer is to take a more consultative, results-oriented approach to running their IT "business" and help staff transition from traditional to consultative IT roles. In doing so the IT function becomes strategically positioned to advise their internal customers on an ongoing, interactive basis through the identification, planning and implementation of integrated business solutions.
Traditionally IT functions have had a more reactive, transactional orientation to doing business with their customers. Often reactive, and generally project oriented, the traditional IT orientation does not focus on how the project fits into the broader organizational context and its strategic objectives. This is in sharp contrast to the more consultative approach in which the IT function is committed to developing ongoing client relationships that encourage earlier involvement in problem identification and resolution. Instead of waiting for the client to bring problems to the IT function, the IT consultant is involved early on in creating a strategic partnership with the client, dedicated to the identification, support and integration of technology solutions that are linked to specific business results. Joint participation and positioning oneself to sit at the strategic table with clients on an ongoing basis is key to successful consultant-client relationships.
Most importantly, a consultative orientation demands that the IT professional adequately diagnose the situation because they are responsible, along with the client, for the success of the solution. Traditionally a line manager would approach IT, for example, wanting to install a new contact management system. The line manager complains about the lack of results that sales staff are achieving, but believes that implementing this new "tool" will resolve the problem.
From a traditional perspective, the IT specialist would eagerly respond to this new "project" even though similar software existed in-house. Instead of working with the line manager to gain a clear understanding of the project's goals and objectives, the IT specialist enthusiastically picks up the project "baton" and runs with it even when they know that the existing tool is technically sound. They fail to challenge the thinking of the line manager, offer their insights, or make alternate suggestions for addressing the problem. Instead they carry on and once the new tool is successfully installed, the IT specialist passes the proverbial "baton" back to the line manager and says "there you go" considering their involvement complete.
A more consultative approach to this same scenario would have the IT professional engaging with the line manager to initially develop a clear understanding of the current situation and need. Oftentimes the identified "need" (i.e., wanting new software), is symptomatic of an underlying need, (i.e., sales staff not achieving their results). The IT professional develops an understanding of what prompted the line manager's request for help and what has been done in the past to address the problem (i.e., sales staff attended training but nothing changed). The consultant at this stage is developing an understanding of the current environment in terms of what's working, and what's not. Once a clear understanding of the current situation is obtained, the IT consultant can contrast that against the real need or "root cause" of the problem (i.e., installing a new contact management system versus addressing the sales forces inability to achieve their goals), and formulate a gap analysis. This analysis clarifies the nature of the problem along with expectations of what might be done. Given the circumstances provided in this scenario, the IT professional may identify the need to bring in an alternate resource to address the real need (i.e., bringing in a resource adept at addressing human behavior/sales performance issues).
An IT professional taking this type of consultative approach demonstrates broader ownership and understanding of the problem and subsequent solutions. They are actively assessing the ultimate impact that any technology change may have on the organization's business goals. By doing so the IT professional is demonstrating a value-added capability. This helps to ensure adequate returns on future IT investments. Relating back to our example of the client wanting a new contact management software, the IT consultant helps the line manager understand that the issue is not about adding a new sales tool to the mix, but about performance related issues. In taking this approach the line manager understands that they would be better served by working with a resource skilled at addressing this type of performance issue (i.e., organizational development). From this perspective the IT consultant plays a critical "value-added" role in identifying the underlying need (e.g., sales staff performance issues) while avoiding the expense of additional software and helping the client achieve their "real" business goal of improving sales force effectiveness.
Many organizations calling for a more consultative approach think of the change in orientation as relatively simple. Unfortunately, that's just not true. Role transitions are always difficult - even more so when they are subtle, as is generally the case as one moves from a technical to a more consultative capacity.
The role of a consultative IT professional requires a skill set that is significantly different than that used in the past when competence was defined purely by technical expertise. This doesn't mean that they will be required to have an entirely new set of skills. Some of the old ones will serve them quite well, but even here they may be using them in different ways. For example, they may find themselves presenting and interacting more before groups rather than on a one-to-one basis, or problem-solving with others as opposed to doing it individually.
Utilizing a consultative approach requires the ability to listen effectively, to lead and diagnose by asking questions, to create structure without taking over, to influence clients and those around them, to manage organizational politics and sensitivities - to name just a few of the skills a good consultant needs.
Not all IT professionals have the capability or desire to be consultative. One way organizations can address this issue is by creating a role that "buffers" traditionally oriented staff from clients (i.e., Business Analysts, IT Business Consultants). This role can be assigned to specific business units and explicitly tasked to develop relationships with key leaders that enables the consultant to gain critical insights into their client's business operations.
Clearly there is more to it than changing job titles to include the word "consultant." Failure to recognize the range of competencies required by this new role leads many organizations to simply apply the consultative mandate, "go forth and be consultative" and assume that the consultants-to-be will figure it out.
Organizations that want their IT functions and professionals to succeed at being consultative would do themselves a big favor by addressing some of the more common issues and potential pitfalls we have seen in almost two decades of working with client organizations. Key lessons that can be summarized here are:
- Undertake consultative practices with your eyes open. It's not as easy as it sounds. It takes more time, more training, and more skill than many people think if it's going to be done correctly.
- Take the initiative in thinking through and talking about what "being consultative" will mean in the context of your organization. Bear in mind the culture you're dealing with, and make adjustments accordingly. Be careful to clearly establish the ground rules and expectations regarding outcomes with potential clients up front.
- Recognize that, however successful you've been with enterprise-wide programmatic rollouts, the rules are different for consulting. It's best approached as a quiet, even underground effort until you've built a track record of success.
Is making the transition from a technical to consultative IT function easy? No. Is it necessary? Absolutely. Consultative IT functions can serve to improve, refine, customize and use technical expertise to gain competitive advantage while enhancing their viability as an internal resource. Keep in mind that you're only as good as your last performance. Good luck.
Michael N. Abrams is Managing Partner of Numerof & Associates, Inc., a strategic management consulting firm in St. Louis, MO, with over 20 years of cross-industry experience in the development of consultative staff function capability. Michael is an author, speaker and consultant noted for his focus on organizational assessment and change in the context of strategic business planning. He can be contacted at info@nai-consulting.com, through their website at http://www.nai-consulting.com or by calling 314-997-1587.
Copyright © 2002, Numerof & Associates, Inc. St. Louis, MO, All Rights Reserved.
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