November 2004

Question

What is the general range of per diem or hourly fees for consulting for organizational redesign? I refer to services where an experienced consultant would work with an organization to examine both its current and desired state. Such a consultant would also offer counsel on the necessary change strategies to help participants get from the former point to the latter. Available information shows an enormously wide range of fees. More specific data would be helpful in advising internal clients.

Answer

Sounds like you have already done your homework. You say that your available information shows a wide range of fees and that is correct. I would guess you found a range from $500 to $5000 per day or more. Ultimately the client determines acceptable fee ranges. The factors that determine how much a client will pay fall into two categories. The first is the client: The industry, the size, location, demand, and reliance on the consultant in the past. The second factor is the consultant: Level of expertise, amount of time in the consulting field, stature in the profession, name recognition, and area of expertise. It sounds as if you work internally and are advising your organization about what to expect for a fee. If this is true, the advice that I would give is that your organization should interview the consultants they believe can provide the services. Once they have narrowed the group to a reasonable number, they should contact current and former clients of each of the consultants for references. Organizations must be sure they hire people who have satisfied customers and who get results. Fees alone can be very misleading. An organization may hire someone who has a lower daily rate, or who submits a lower bid for the job. However, if it takes the less costly consultant longer, or if no results are achieved, it will cost the organization more in the long run.

Question

I have been tasked to find consulting resources for associates who want to further develop their skills. I need to find resources for novice, competent, and expert consultants. They can be a blended learning approach. Any suggestions?

Answer

Suggest that you turn first to reading resources. The ASTD Bookstore is a good place to start. Then try Pfeiffer/Jossey-Bass Publishing out of San Francisco. You may also wish to contact associations for resources. Try the Independent Consultant’s Association (ICA). Finally, must-reads for all consultants are Peter Block’s, Flawless Consulting and Geoff Bellman’s The Consultant’s Calling. I also recommend that internal consultants read Consulting on the Inside by Beverly Scott.

Question

Recently, I have gained a significant level of interest in pursuing a career in corporate training/consulting. I have a BBA in Marketing and have spent roughly four years in business-to-business service sales. What opportunities would be available for someone with my experience? From my research, I have found that many companies require a Master's degree and/or field experience for training/consulting positions. Yet, I believe that there must be some opportunities for those with only an undergraduate degree and work experience. Any suggestions?

Answer

The amount of experience is usually a greater determining factor than the college degree you possess when searching for a consulting position. Of course more education can only help. It seems to me that you would want to obtain additional experience in an area that focuses you to become ‘the’ expert in the area. Four years is probably not long enough to sell yourself as the expert who can advise others. You could check out a small boutique firm, however, recognize that these organizations are also looking for experience and expertise. I mention them because they sometimes have more flexibility to create an entry-level position that provides you with the foundation skills you need. Most important, you should focus on getting a wide variety of experience.

Question

I have been a sub-contractor (1099) at our local school district in the field of tobacco, alcohol and other drugs. I provide presentations, educational group dynamics and behavioral modification to high school age students. My question is, I am starting to grow and have been asked to provide the same services to another school district within our county. How do I expand my services and contract with other sub-contractors? What reading materials do you recommend to walk me through the process of expanding and keeping my establishment small?

Answer

What a great opportunity for you! Congratulations. The first thing you need to do is to meet with your attorney and your accountant to identify the legal and financial ramifications of taking on subcontractors. The next thing you will want to do is to create a business plan. Be sure to share your business plan with your family so that everyone goes into this with your eyes wide open. Taking other sub-contractors is a big step for you. Now not only will you be managing your clients, but you will be managing others to manage clients. You may find that you need an office staff just to organize the workload. You will need to develop subcontractor agreements, establish quality guidelines, and hire qualified people. I recommend that you read one of Alan Weiss’ books. If you are looking for advice about how to set up your business, The Business of Consulting will help you.