The Consulting Bible. Alan Weiss
Examples of value might be:
Improved margins for the average new sale.
Improved profit per client annually.
More focus on strategy and less on tactics and failure work by senior management.
Value can sometimes be the same as objectives; for example, profit is both an objective and of high value. But profit has significant and varied impact: more investment in research and development, larger investor dividends, more favorable repute with Wall Street, building a reserve fund, and so forth.
Never accept the surface or obvious, but help the buyer to articulate the full range of value possible.
Questions for this include the following 10 inquiries:
1 What will these results mean for your organization?
2 How would you assess the actual return (on investment, assets, sales, equity, etc.)?
3 What would be the extent of the improvement (or correction)?
4 How will these results impact the bottom line?
5 What are the annualized savings (first year might be deceptive)?
6 What is the intangible impact (on repute, safety, comfort, etc.)?
7 How would you, personally, be better off or better supported?
8 What is the scope of the impact (on customers, employees, vendors)?
9 How important is this compared to your overall responsibilities?
10 What if this fails?
Hint: If the buyer asks why this is important, simply reply that the impact of the project will help determine joint priorities, scope, resources committed, and so on. There shouldn't be any suspicion that you're asking this to increase fees, because you've already established a trusting relationship. You can see the reason for the sequence, and why it's so vital to maintain it.
Conceptual agreement—objectives, measures, and value—are as simple as these past few pages suggest, but are as vital to your success in consulting as anything you'll learn in any book. You'll see later, when we discuss proposals, how they will enable you to briefly but powerfully create a win‐win proposition for your buyer.
And they create the basis for tremendous leverage.
Leveraging
Before leaving the philosophy of the business and pursuing specific marketing tactics, there is one more important strategic principle to explore: leveraging.
By “leveraging,” I mean the ability to exponentially improve your odds, your success rate, your number of successful outcomes, and so on, without any extra work, without relying on the alignment of the stars, and without bribing a public official. I've found that we can all do quite simple things to stack the deck in our favor.
The Gospel
When you play with someone else's equipment, on their turf, using their rules, and allowing them to hire the officials, you are going to lose that game.
The earlier and better you learn to leverage, the more dramatically your business will grow, and the more it will become second nature to you. Archimedes said, “Give me a lever, and I can move the world.”
All I'm asking is that you move a few clients. Here's the lever:
Principles of Leverage
1 Always provide a choice of “yeses.”Never give someone a “take it or leave it” choice if you can possibly avoid doing so. In a proposal, always provide options. But even in a next meeting, you enhance your chances by saying: “We seem to need more time to establish objectives for the project. I can meet you tomorrow, same place, same time; or if you'd prefer to get off site, breakfast or lunch is possible Thursday or Friday; or, if you prefer to do this by phone, then I can do that any afternoon this week if I can have an uninterrupted hour of your time. What's best for you?”3If you're dealing with a gatekeeper or intermediary: “You can introduce me to the vice president and set up a meeting for the three of us; or you can set up the meeting for me alone; or I can contact the vice president using your name. Which do you prefer?”My estimate is that you improve the chances of a favorable response by at least 50 percent by providing a choice of “yeses.” This is, as you can imagine, particularly crucial in proposals, and we'll delve into the technique more deeply once we arrive at that stage of the process.
2 Never bundle; always unbundle.A colleague of mine, Paul, provided tele‐sales training and improvement, which included:Discussions with management teamCustom tailoring of programPersonal deliveryCDs and text materialsFollow‐up with buyerSpouse programE‐mail and phone response for 30 daysTwo and a half days of onsite trainingRecording allowed for remote locationsInclusion in newsletter subscriptionAccess to new intellectual property (IP) as producedPaul charged $7,500 for this. I would have charged $75,000.Paul threw everything but the kitchen sink into his offer. I would have broken these into options and menu items.Paul focused on the deliverables. I would have focused on the results and value produced as a consequence of these deliverables.Most consultants tend to bundle their products and services because they basically are insecure about their worth and want to provide as much stuff as they can to justify fees. That's why my system begins with conceptual agreement on outcomes and value.Don't bundle. When you call a plumber, the plumber doesn't say, “And while I'm there fixing the drain, I can also caulk the tub and re‐grout the tile.”
3 Ensure that your full array of capabilities is manifest and understood.I actually still hear from consultants, “But if I claim to do all these things, won't I be seen as a jack‐of‐all‐trades?” Isn't it ridiculous how empty adages, this one from the early seventeenth century, affect so many people supposedly living in a modern world? “Jack‐of‐all‐trades, master of none.” This isn't a zero‐sum game, and we're not talking about laying bricks or tending cows.A very good client of mine, the CEO of an insurance company for whom I had been working for two years, said to me, “Can you recommend a keynote speaker for the American Council of Life Insurance annual meeting of CEOs? I'm the program chair.” It took me a day to convince him that I wasn't trying to create a gig for myself but that I was and am a highly sought (Hall of Fame) keynoter.He had never known. Why should he? I had never told him!Here's how to do this gracefully:Provide all your capabilities in your electronic and written materials.Gather testimonials about all that you do, regardless of frequency.Cross‐pollinate; for example, mention your consulting in your speeches, refer to a speech you made while talking to a consulting buyer, and so forth, whether it's coaching, facilitating, publishing, training—whatever.Never narrow yourself unduly. Maintain a broad value proposition. Don't focus on a niche. And ban the phrase “specialize or die” to the same trash bin as “jack‐of‐all‐trades.”
4 Gain referrals ruthlessly.Learn this phrase: “Referrals are the coinage of my realm.”Repeat it to yourself whenever you can, then say it glibly to your clients, as in: “Referrals are the coinage of my realm, and I'm wondering who you know who could also benefit from the kind of value I've provided here.” (Keeping with the choice of “yeses”: “You may introduce us, or I can merely use your name, or I'll keep your name out of the conversation—which do you prefer?”)You should be asking all of your contacts for referrals at least once a quarter. Virtually no consultants do this well. They feel as if they are asking for a favor instead of setting up a win‐win‐win scenario: good for the ultimate referral, good for the person making the referral, good for you.KEY: Ask by name or title. “I'd like to meet the president of your largest supplier” or “You keep mentioning Sarah James and I'd like to be introduced.”We all provide references to our doctors, lawyers, dentists, accountants, auto mechanics, and so forth as a common courtesy. What's different here? Nothing. But those people don't often refer others to you because they usually have more