September 2003

Question

Hello, I have just started a Masters of Organizational Leadership program at Cabrini College. How would you suggest I get started in consulting after completing my degree? I have in mind two choices after completing the program: 1) Consulting with an agency, 2) Working for an organization as an OD Practitioner. Could you give some advice from your experience on what you would suggest?

Answer

Quite honestly either will give you the experience you need. What's more important is whether you believe you will be a fit for the organization, it's philosophy, and it's mission. Good luck!

Question

Wondering what the standards are around retainer contracts, specifically, how over/unders are handled. For example, you agree on 5 hours/week or 65 hours per quarter but work only 50 hours. You are under the contracted amount. Or, on the other hand, what if you work more than the agreed upon 65 hours per quarter?

Answer

I am working on a retainer that is similar. In the first case the organization pays you for the full 65 hours you contracted. In the second case you will work the extra hours and still be paid for the 65 hours you contracted. If you decide to work on retainer, you must ensure that your contract describes explicitly what you will do. You must be able to define when the client might be going outside the scope of the project. This is called "scope creep" and you must bring it to the client's attention as soon as it occurs. Learning to accurately estimate how much time a project will take is a critical skill for consultants who will work on a retainer or charge by the project.

There are many more aspects that we could discuss, and space is limited. For example, your client's appreciation that you are willing to do what it takes to get the job done will most likely land you another retainer or at least a solid referral; or if information is not available to either the client or the consultant when you first establish the contract, there is always the possibility of re-opening the discussion. All consultants' reputations depend on how flexible they are when a project is underbid. Going the extra mile is better than any marketing plan for your future success.

Question

I have been doing HR consulting work involving developing employee handbooks, policy manuals, job descriptions, etc. I have recently begun to get more work in supervisory and employee training. I am a 1-man show and I am not incorporated. I have been purchasing professional liability insurance, but am now wondering if this is really necessary. It's an expense I could sure do without!

Answer

I highly recommend that you maintain your liability insurance. You may wish to check your professional or trade association for a more reasonably priced policy. In addition, I recommend that you incorporate as a sub-chapter S, especially if you intend to continue to do this sort of work for more than a year. None of us ever care to pay these expenses. However, both liability insurance and incorporation provide you with the protection you need.

Question

I am a student doing some research on business consulting. I am looking for some guidance on the growth of the marketplace for consultants and the most popular type of consulting. Also, "coaching" is becoming a popular term to use in business, how does that affect the market for consulting? What is the difference between coaching and consulting? Are they conflicting?

Answer

I consider Kennedy Information to be the leading source on consulting statistics. They publish Key Data Forecasts & Trends annually that may provide the kind of data you require. They are located in Fitzwilliam, NH.

Regarding your second question, coaching is a form of consulting and certainly not conflicting with consulting. Coaching and other types of consulting work in concert with each other. According to Barbara Pate Glacel, an executive level leadership coach, "Coaching is helping individuals to be successful." Her focus is to work one-on-one with individuals to help them relate to the situations they currently face. Career development coaches, on the other hand, help individuals to be successful in the future. And skill coaches are working more on job-related skills than concepts like leadership. So you see there are many types of coaches, and coaching is simply a type of consultant.