A couple of years ago, the Multiple Sclerosis Society of Canada took a strategic step outward. Though boasting a staff rich in expertise and vast in experience, they nonetheless decided to outsource an external consultant for an upcoming sponsorship program. While hiring outside help may not be the most common route for the society and other organizations, it is still often considered a significant step toward achieving mission goals.
Assessing your needs
The question is, when is it a good time to hire a consultant and how can organization determine if they’ve come to that point? In other words, when is outsourcing deemed a worthwhile investment and when is it considered gratuitous? “There aren’t any hard and fast rules,” states Liz Scanlon, Strategic Counsel at IMPACS. “Doing an assessment of what your strengths and weaknesses are as an organization would be the best place to start.” For example, if an organization already boasts a fundraising expert, hiring a fundraising consultant may not be the best plan.
Bridging the gap
For the MS Society, it comes down to filling in the missing links. “Operationally, we are pretty self-sufficient,” states Stewart Wong, national manager of media relations. Everything from fundraising to client services are run in-house. But, he explains, “when we feel we have a gap in knowledge or skill, we use consultants.” Those hired by the MS Society for their sponsorship program not only helped validate the society’s existing practices, they also helped provide direction for future growth and recommendations for short and long-term sponsorship programs.
Turning to consultants with specific skills that an organization lacks is especially valuable when there is no long-term value or benefit in developing that expertise in-house, says Wayne Amundson. As a result, “in some cases, it’s a one-off.” President of Calgary-based Association Xpertise Inc., which provides consulting, outsourcing and management services to help associations and nonprofits operate more effectively, Amundson is often hired in this context. “The amount of time and effort required to develop that capability in-house is just not feasible,” he further explains.
The gap analysis seems to take centre stage in the evaluation by other organizations as well. “The tasks we most often outsource are the ones that we don’t possess internal expertise on and aren’t part of our core business,” says Pam Jolliffe, president and CEO of the Boys and Girls Clubs of Canada. Of course, steps aren’t taken until an initial determination of available funding and, if appropriate, a consultation with their membership. But with a small staff serving 103 clubs across Canada, an external consultant can make a real difference when internal resources are lacking.
An expert was recently hired, for example, to research opportunities that would enable Boys and Girls Clubs to expand its reach and services to even more children and youth. “We are also working with a consultant to develop an online knowledge sharing and management resource for our clubs,” Jolliffe adds.
The power of objectivity
Aside from filling in the missing links, an external expert can also provide the oft-lacking but much appreciated ‘fresh eyes’ perspective. A frank and objective opinion can go a long way for an organization that has, over time, become somewhat myopic or biased in its views. An outsider, explains Wong, “has the ability to give recommendations that we would not have otherwise thought of because we are too close to the business.” Amundson sees it all the time. In fact he perceives a growing trend in the number of nonprofits turning to neutral outsiders to help fuel their organization forward in the right direction. “An association cannot afford to spend three hours turning in circles,” he says. And how does Amundson and his typical two-person team alleviate all that time-consuming spinning? With fresh eyes in tow, he “challenges them, pushes them to the point that they have to come up with something that will motivate the organization and create real change.”
One organization that has firsthand knowledge of Amundson’s expertise is Hostelling International Canada. When the organization merged two of its regions into one association, the consultant was hired to help ease the process. Amundson and his team provided direction, leadership and even board education sessions. And, while it was originally thought outsourcing would only be required at the initial stages of the merger, two and a half years later, Amundson is still a familiar face at board meetings. The benefits of his work are evident. “As a volunteer board made up of people from all different backgrounds, some with experience on a board, some without, a consultant can really provide guidance,” offers Alistair McLean, CEO of the organization’s Pacific Mountain Region. With that outside help, he continues, “productivity has shot up, knowledge has increased a lot quicker and, through the education and guidance, our board has seen a better way of governing.”
Moving beyond ambivalence
While Hostelling International Canada and many other organizations profess successful and happy marriages with their consultants, others remain reluctant to take the steps forward. They may lack skills and expertise and may be in dire need of objective insight and a motivational jumpstart, but still feel less than inclined to outsource. “The reluctance of groups to bring in people has come about because their past result has not had meaningful impact,” surmises Amundson. “But once they start to experience that meaningful experience, they are more willing to grow their budgets to get more.”
Approach with caution
Others may question the added expense or whether it’s even worth the effort. Often the answers to those questions depend on one’s expectations and approach. Even if a nonprofit determines that hiring an outside consultant is a step in the right direction, it would behoove them to properly evaluate the expert with whom that relationship is created. Finding the right consultant who will take the time to understand your business and internal culture is always a challenge, says Jolliffe. She adds that it’s important to “ensure you have communicated clearly your organizational objectives and the objectives of the project and have fully briefed the consultant on your organizational culture before selecting a company to work with.”
And beware of those who claim they can push some ‘easy button’ that automatically fixes all the challenges within an organization, advises Scanlon. “It is far more sustainable, rich, relevant and useful for a consultant to work with the unique assets of a group to facilitate the conversation and elicit those ‘magic bullets’ from within,” she says. As for the supposed heavy price tag, sometimes not taking the step can prove to be an even more expensive option. “It can often be more cost-effective to use a consultant than to train up your staff in particular skill areas,” Scanlon concludes.
Final tips
For extra care and due diligence, Jolliffe advises organizations to meet with at least three consultants to ensure a good personality fit. She also suggests checking references and to have a written contract in place that details the deliverables, expectations and a full cost breakdown so that there are no misunderstandings. Wong couldn’t agree more. “An unrealistic expectation is to assume the consultant knows the context in which you operate,” he says. Though skilled in their field, these experts are not mind-readers. Consistent communication and the setting of clear goals and objectives, as determined by all those involved in the process, is a necessary step toward a mutually beneficial relationship.
Elisa Birnbaum is a freelance print and broadcast journalist living in Toronto.
