Hiring a consultant can be an expensive proposition, but sometimes not hiring a consultant can cost even more. The challenge for nonprofits and charities is to figure out how to maximize the value of the consultants they hire.
Anita Gaffney, administrative director of the Stratford Shakespeare Festival says, “To hire a consultant is a big deal for us. We have limited budgets and have to be really careful with how we spend our precious resources. We make choices, assess what will be the most effective, and use consultants strategically.”
At the same time, she adds that hiring a consultant can be “very worthwhile.”
CharityVillage set out to find out how to make the consultation process worthwhile and to know how organizations can get more bang for their consultation buck.
When to bring in a consultant
A consultant is useful to help an organization develop steps and strategies to get where they want to go. Anne Melanson, consultant with Bloom Non Profit Consulting Group says, “The best circumstances are those where a client says, ‘As an organization, this is where we want to go. We need you to figure out how to get there.’” When organizations only vaguely know that they should be doing something, Melanson says consultancy bills can soar.
Gaffney says the Festival brings in consultants “when we feel that we can access expertise to contribute to a particular issue or opportunity, or when we feel we need to be disturbed a little bit from our traditional ways of operating.”
Chris Houston, change consultant with The Change Alliance describes a good consultant as one who is “able to live on edge of we/they line” – neither a total outsider nor a complete insider.
Bringing in an expert in a key area can reap huge financial rewards. Melanson worked with a small charity that brings in experts to help them in areas of their operation that offer the biggest return on investment. She notes, “The difference between just doing direct mail and doing it really well has the potential to make significantly more money for an organization.”
Melanson adds, “The time to hire a consultant is not usually when you’re in a crisis. Bringing in a consultant during a time of chaos or panic can do nothing more than complicate that.” Instead she believes in bringing in a consultant “when you see a problem coming and you want to get in front of it.”
Houston observes that an organization should not ask a consultant to solve a problem the organization should address themselves. “If you can’t manage your own board, for example, hiring an outsider is probably not the right answer.”
Melanson also notes that sometimes organizations think they want a consultant when really what they need is a contract worker who can indeed reduce the load in a specific area.
Choosing a consultant
It almost goes without saying that choosing the right consultant is a key to success.
Houston says, “The most important criteria for choosing a consultant is word of mouth reference. Ask other organizations whether a consultant left things better than they found them.” Brenda Melles, a self-employed management consultant and writer/editor agrees, “99% of my work comes from recommendations or from clients I’ve worked with before.” Recommendations ensure competency and fit and helps stakeholders to have the necessary trust and confidence in a consultant. Asking other organizations about consultants helps a nonprofit know whether a potential consultant brings the type and breadth of experience needed. Houston says, “A consultant has to be very good to be helpful in the nonprofit sector. If a consultant isn’t good, you will end up in worse trouble.”
Another criteria is passion. Melles says, “I never bid for work where I don’t have a personal connection” while Houston says, “Competence matters but fit is everything; especially in a nonprofit, you want to work with someone who is motivated by the cause.” Melanson calls this “philosophical chemistry” and says a consultant who is genuinely enthusiastic about what you do puts them above and beyond others. She suggests organizations make sure a consultant clearly hears your situation and objectives – and is able to explain what they understand to be priorities.
Sometimes an organization may choose not to work with a potential consultant for no reason other than personality. Melanson says, “We’re all human with different personalities and biases and sometimes it’s just not a good fit.” However, she notes that a “client and consultant who love each other may get nothing done” while a slightly quirky or annoying consultant who is excellent at what they do is sometimes the best choice.
Avoid being seduced by what Houston calls a “flavour of the month” consultant. While fresh ideas and approaches can be useful, many organizations find success in building long term relationships with consultants they trust.
Houston also says nonprofit organizations should not choose a consultant based on “what we can afford.” Some consultants are willing to work pro bono or at a reduced rate for an organization that is a good fit. He also believes organizations are better served by investing in the services of an excellent consultant.
Working with your consultant
Every consultant and client we talked to emphasized that the most significant component to a successful, on-budget consultation process is the establishment of clear mutual expectations at the outset. Set aside time to establish clear expectations about the scope of the project, roles, timeline, and other requirements. Gaffney says, “You do extraordinary due diligence to determine what you need a consultant to do. Hiring a consultant forces an organization to be organized about its intentions.”
Melles suggests preparing a draft terms of reference document that can be used in dialogue with the consultant to “nail down the who, the why, the what and the how.” Melanson says when expectations are not clear, the role of the consultant can become muddled and ineffective and “the client may not get what they want.”
Another way to ensure clarity is to have only one person in the organization be responsible for supervising and communicating with the consultant. Melles finds that having multiple stakeholders manage a consultant leads to “messy experiences.” Houston says, “Be in charge. Push the consultant to deliver what you need. Do not be in awe of them. Manage them, demand what is needed, put a deadline to it, know what they are and aren’t good at, and manage the gap.” The point person needs to dedicate time to serve as a project manager. Gaffney says, “It’s a myth that hiring a consultant takes work off your plate. You really have to engage in the process, managing the consultant to make sure the process meets your objectives and you are coming out with a deliverable.”
While Gaffney says that managing a consultant is not significantly different than managing staff, there are some unique pitfalls. Houston says the most common problem he has faced is clients who try to do his job instead of theirs. His advice: Know what outcomes you want and then trust the consultant to figure out what is needed to get there.
Trust does not mean, however, leaving the consultant alone throughout the process. Melles establishes a minimum number of checkpoints to make sure she and the client are on the same path. She says, “Don’t neglect the consultant and don’t overshadow them but do insist on accountability along the way.” Gaffney says, “You have to be fastidious about managing deadlines.”
The organization’s point person also needs to manage other stakeholders in the process, whether this means coordinating between staff and the consultant or between consultants. Melles says, “A consultant depends on the organization to know who needs to be involved, who is using the information, and who the most important people are.” A consultant also needs access to the information and documents they require to work effectively.
Bad things happen
Houston once took on a project to be helpful to a client when “I should have said no” and eventually left the project. Melanson says, “No one should drag a consultation relationship on longer than it needs to. My mantra is you have to bless and release.” Sometimes this release is done by the consultant and sometimes by the client. Sometimes a consultant is useful for one part of the process and not others.
Hiring a consultant does not always result in fixing a problem: consultants can understand an organization’s challenges and prescribe solutions, but ultimately the execution of the plan is the responsibility of the organization itself.
It’s worth it
Several years ago, the Stratford Shakespeare Festival hired a consultant to help them re-imagine how they use their archives. The experience was very much worthwhile. Gaffney says, “We gained outside perspective from someone with exposure to other best practices. It shed light on our assumptions and on trends. In the long term, working with the right consultant is a good investment.”
General tips
Don’t just hire one or two hours of a consultant’s time – you’ll likely get the same quality of advice free on the Internet.
Don’t hire a fundraising consultant who wants to be paid in percentage of funds raised – this is an unethical practice.
A 2011 report examined client satisfaction with consultants (and consultants’ evaluation of their own performances). Read the report to find what factors actually influenced satisfaction with a consultant.
Pro bono or no pro bono? Anne Melanson says that sometimes nonprofits can get pro bono work from a large organization. “A certain amount of logic plays into it – pro bono is asking for a favour – people will say yes more readily if it’s something they care about. If it is an organization I’ve never heard of or from an area that isn’t of personal interest, there is no tie to me.” Chris Houston adds that if the perfect consultant has rates are higher than what you can afford, you can always ask them if they would be willing to work within your budget.
We’re a nonprofit – can we afford this? Chris Houston points out that “A consultant can always make considerably more money in the for-profit sector,” and adds “I do it because it matters.” He also believes that by investing finances in a consultation process, an organization engages more seriously in the process.
Working with a nonprofit is also more challenging than for-profits for consultants for a variety of reasons: Houston says, “Nonprofits don’t have the simple measurement system of a for-profit where the bottom line is the bottom line. Nonprofits are more nuanced because they have multiples stakeholders and there is more emotion and passion in a nonprofit.”
Susan Fish is a writer/editor at Storywell, a company that helps individuals and organization tell their story well. She has written for the nonprofit sector for almost two decades and loves a good story.
Photos (from top) via iStock.com. All photos used with permission.
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