When practicing consultants join the Institute of Management Consultants (IMC) and enthusiastically embark upon the journey to achieve Management Consulting Certification (CMC®), even the most experienced and confident consultants, with many years of professional and consulting experience under their belts, can temporarily stumble on the path.  Given the myriad of requirements needed to achieve certification and the intellectual ability of the typical experienced consultant, it is somewhat surprising to find that the place on the path that they commonly stumble is, remarkably, in one the two required certification exams – the Ethics exam.

It is a not uncommon, and personally embarrassing. surprise for a senior experienced consultant to discover that his/her presumed unwavering and reliable ethical compass may not point true north at all times and under all circumstances. But, rest assured, they do recover quickly, adjust their understanding, and pass.

The exam result is a wakeup call.  The good news is, that with a little bit of additional learning, coaching from IMC colleagues and deeper understanding, the potential for real-life ethical operator error is avoided and true north becomes easier to identify.

 

A Brief Background of CMC® Certification:

The Certified Management Consultant™ (CMC^®) certification is awarded to those select consultants (only 10,000 worldwide) who have met global standards for practice competence, ethics, and results.

To put that 10,000 number in perspective, recent research done by one of our local Northwest Chapter Board members revealed roughly 8,000 professionals who designate themselves as consultants just in the greater Portland, OR area.  If extrapolated, and adding in the number of organizations such as accounting firms, law firms, IT firms, engineering firms and the like, (who in reality are many times acting as advisory consultants), the number skyrockets. This leads to the likely conclusion that, in all likelihood, less than 1% of consultants worldwide are actually Certified in the practice of Consulting.

The IMC Certification process, which culminates with the bestowing of CMC® (Certified Management Consultant) designation to a member is, undoubtedly, a rigorous process.  It is, nonetheless, eminently achievable by those willing to dedicate the time, study and effort required.  The good news is that, unlike my college fraternity, there is no physical hazing or need to stand barefoot in the snow with beer poured on your head.  (Or was that just a bad dream?)

But back to the point.  The CMC® rigor is intellectual, requiring the compilation and proof of:

–     Experience: reinforced by client recommendations, professional expertise and stature, thought leadership, case studies and testimonials

–     Practice Competency – in managing client engagements, client relationships and your business practice disciplines

–     Understanding: proven by the requirement to pass two written exams – one covering a Core Body of Knowledge and the other IMC Ethics, and

–     An Oral Defense: of your petition for certification before a 3-person panel of senior Certified CMC’s

 

What are IMC Ethics and what creates the challenges?

The IMC Code of Ethics can be found on the IMC organizational website at http://www.imcusa.org/default.asp?page=ETHICSCODE .  They won’t be repeated here.

But reading them and understanding their applicability under real life business circumstances are two different things.  It’s in the real life application that the challenges are created and the scenarios presented in the exam truly challenge the taker.

The challenges of IMC-level ethics in real life can be illustrated in the points below.

 

1. Sometimes they demand we sublimate our personal self-interest

Most client-related ethical circumstances consultants come in contact with present us a pretty clear black and white set of ethical decisions – and some actually bring us the opportunity to do our job better.  For example: If we are an environmental consultant hired to verify the chemical levels of our client’s factory effluent the ethics are clear.  If the effluent is noncompliant we tell the client – with no regard for whether they will like what they hear or whether they will want to rehire us.

2. Sometimes they require courage

In the most extreme of cases, if test results are clear, their implications on health and safety real and expressed and recommendations for problem amelioration are not pursued, or if it is apparent that a request has been made to the consultant to falsify information or “lose” the data, these circumstances step way over the legal and ethical boundary. Then, there is the requirement to whistle blow.

Would you have that courage?

3. Sometimes they demand we put relationships second

It is not uncommon that in the course of a consultation a professional employee of the client will ask you to help them find another job because they are unhappy where they are.  This is particularly sticky if you have developed a personal relationship with that employee – perhaps even in several previous client engagements with other companies.

The favor cannot be accommodated – particularly if it would be harmful to the client to lose that employee.  Rather than finding that individual a job, energies must be brought to bear on resolving the source of the dissatisfaction in a collaborative way with the employee and their manager.  Diplomacy is required for sure, but IMC ethics always require you to work in the best interest of the client first.  The requirement is to work to resolve the issue collaboratively. Not work behind the back of the client.

4. Sometimes they require us to turn-down business

When a consultant develops a trusted-advisor relationship with a client, the client frequently seeks the consultant’s advice on a wider range of subjects than is the consultant’s specialty. IMC Ethics require a consultant not to accept an assignment that they know they are not qualified to service.

5. Sometimes they require us to be Absolutely Honest and confront people – even consulting colleagues

Another demanding application of IMC ethical standards is the requirement that one consultant call another on unethical behavior.  The good ol’ boy practice of looking the other way does not apply. In the worse cases such ethical breaches are required to be reported to the national certifying organization.

6. Sometimes they require consultation with other consultants

This is for the grey areas. I have, more than once, called upon my fellow IMC CMC®-certified colleagues to advise me on a situation bordering on an ethical dilemma. Fortunately, none of these situations involved life or limb, been on the edge of legal questions or dealt with vast sums of someone else’s money. 

So why did I need advice?  Because I wanted to be the best consultant I could be for my clients.

 

It’s all about the client.

People ask me frequently what the economic benefit is of IMC CMC® certification. Why pay even the modest extra membership fee? Why work for certification? Why go through the re-certification process every 3 years? Why bother?

My answer is always the same. The benefits are primarily in the CMC®’s ability to service their clients better – with better practice disciplines, improved ethical guidelines, a higher level of thought leadership, a higher level of service and professional proficiency, the ability to call upon highly qualified and experienced colleagues to assist in tough situations and a host of other client-centered reasons.

Is all that possible without a CMC® certification? Yes. But while Certification may appear difficult to achieve, it’s easier to walk a proven path with 10,000 other experienced, creative,certified travelers who continually improve that path, than forge your own through the woods.

 

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Collaboration—An  Essential Ingredient for Growth

It is quite common for members of professional groups or associations to look to one another for collegial support, the sharing of best practices and referrals. These interactions are just a few of the myriad of benefits. 

 

But for the most part these interactions are transactional and stand-alone. The interaction happens while each consultant goes about his or her own business.  There may be a referral fee exchanged—or perhaps a professional services fee for assistance with a practice challenge such as a web site, IT problem or personal coaching need.

While these interactions are undoubtedly valuable, they rarely result in the kind of fundamental structural change to a practice that enables significant revenue growth.  Achieving growth in a practice by increasing the size of   client engagements, almost always requires discovering ways to add both capacity and capability—in other words, additional consultants with complementary specialties.

A successful venture into multi-consultant engagements requires a strong collaboration model. In this white-paper we offer our shared experiences and a four-part model.

The Model:  The Four Circles of Consultant  Collaboration 

The Four Circle model is based on two premises. First, for a collaboration model to work, it must provide value to all stakeholders, clients and collaborators—clients first.  Secondly, an effective collaboration model must be congruent with the individual collaborators’ success models.  In this article we will focus on the first premise.  

The model depicted in Figure A posits a framework for a long lasting collaborative arrangement that will support continued practice and client growth.  The model creates long-term synergy.  It does not come together for a single engagement and then dissolve.

The four components are: a) Trust, b) Business Development, c) Thought Leadership and d) Project Execution. See the figure below

 

Trust:  The Foundation

Mutual trust means an explicit commitment to a common code of ethics and values. This is essential.  For us, as management consultants, there is no better starting point than the Institute of Management Consultants (IMC) Code of Ethics.

Our experience is compiled in a Ten Point Trust Checklist and will supplement that  “gut-feeling” concerning a potential collaborator.  The checklist helps to determine whether you invite this person to work with you and to meet your most valued client based upon a more meaningful and objective criteria than “He or she seems nice”. You owe your client meaningful due diligence when selecting collaborators.

For each item on the checklist, one should ask, “To what degree does this potential collaborator demonstrate…”

Ten Point Trust Checklist

1. Competence: client results, track record, testimonials, project management, case studies, industry expertise, academic accomplishment, thought leadership

2. Primacy of the Client: priorities and value to client; has the best interest of the client at heart at all times

3. Intra-Collaborator Communication: open and honest, tool savvy

4. Collaboration: track record of other successful collaborative projects

5. Discipline: process and project management

6. Documentation: reliable tools and methodologies

7. Client Communication: strong  verbal, written and people skills

8. Financial/Business Acumen: linking all activities to the economic benefit of the client

9.  Commitment: accountable and dependable

10. Integrity

There are two important trust links that must be solid.  The first is between you and your collaborators and the second is between the collaborator and the client.

Regarding interpersonal collaborator trust: trust does not typically happen overnight.  Nor does trust grow without continually building and reinforcing the points on the checklist.  Remember, it takes years to build trust— only seconds to destroy it. 

Regarding client trust: your client is depending on you to select only the best collaborator to work on his or her project.  By using the Ten Point Trust Checklist you can clearly articulate why you are making the recommendation you are.

Business Development: Also Known As Making Rain

Anyone desiring a successful practice needs to know how to capture new business. Collaborative projects where one or more of the collaborators simply burn-off project backlog landed by others, do not build effective long-lasting collaborations.  Each member of the collaborative team should be actively working to increase the visibility of the group and increase the probability of landing new opportunities.  Leaving the rainmaking to everyone else does not build a long term collaborative   relationship or trust. No free rides.

Business development is something we as consultants need to do everyday.  The challenge is that most of us are trying to balance our time between   execution, administration and selling. We typically spend more time in the delivery mode (where we actually use our expertise and do what we enjoy) than in developing new business relationships and opportunities.

Several years ago, Jerry brought on (hired) a collaborator with expertise in organizational management to assist in a two-year corporate turnaround project.  It was explicit; collaboration would require business development—not  simply execution. After 6 months it was apparent this individual could not, did not want to, and avoided at all costs, engaging in new business development activities. Yet, he was very good at what he did. The client loved him.

The solution: he became available to the client for full-time employment. That deal consummated, he was happier, the client was delighted and Jerry was free to begin work with a new  collaborator with a business development gene.

Thought Leadership: A Thoughtleading Frame of Mind

It is generally accepted in the consulting ranks that thoughtleading—      publishing, speaking on topics related to original thought, research, individual intellectual capital and work experience demonstrate competence and expertise.  If each collaborator in a group is actively engaged in thoughtleading activities such as these, the probability of additional opportunity for collaboration is more likely.  A thoughtleading frame of mind can generate greater market exposure and perceived expertise for the group.

Collaborating consultants have a dual responsibility; to their own practice and to their collaborative team to publish and speak.  This illustrates the concept of  “congruency” mentioned in our second premise.

In productive collaborations, published works and joint presentations as well as shared success stories, help build credibility.

A good example of collaborative thought leading synergy is the book “Absolute Honesty” by Bob Phillips and Larry Johnson.  These two individuals, with completely different expertise, worked together to develop a product that is useful to both individual practices. Bob is an Organizational  Development specialist and Larry is a  motivational speaker. Bob developed the “Straight Talk” workshop which was generated from the book, as a   major component of his practice and Larry uses the book’s concepts and principles as a major component of his keynotes.

When Larry asked Bob to collaborate on a book, the common ground for both was honesty and integrity in the workplace.  The basis for their collaborative efforts was their personal value system of relating to clients and others with a high standard of integrity and respect.

One can see the “Trust”, “Thought Leadership” and “Business Development” parts of our four circle model at work in this example.

Project Execution

The ultimate determination of success in a collaborative engagement is  “delivery” to the client.  There must be clear expectations; before, during and after the work is completed.

In a recent collaborative engagement with multiple people, projects and deadlines, Diane found using a project management worksheet was the best tool for managing deliverables.  Remember the Gantt chart?  Collaborators must discuss in detail and reach consensus on each of the deliverables to avoid jeopardizing the project or a negative impact to the client.  Open and honest communication is essential.  We suggest five categories around which to achieve collaborative clarity. 

Deliverables:  The first rule of deliverables—be clear and specific.  Be very, very clear and specific.  The   second rule—never agree to pay a   collaborating consultant an hourly fee in a fixed price contract.  While it may sound obvious, we won’t mention which   author fell prey to this. 

Deliverables should be clearly defined, specific and easily identifiable. Here’s a specific example: train 25 sales   people in 5 specific locations nationwide.  Here’s a non-specific and vague example: improve the productivity of the sales force.  And here’s an example that has the potential for trouble:     improve the sales force productivity by 30% in the next year.  While this last example is specific, it may be difficult to achieve because it is out of the consultant’s span of control. Whether   defining deliverables as a standalone consultant, or in a collaborative arrangement, task ownership and       expected results must be clear.

Milestones and Checkpoints:  If your client proposal does not reference a timeline for deliverables, you may want to consider one. Project management software and templates are plentiful.  However, a well-designed Excel spreadsheet may be sufficient for  planning, scheduling and monitoring   a project.

The timeline identifies various milestones, checkpoints and dependencies of the project.  It communicates to the client when the work should be completed.   It also helps both client and consultant in scheduling resources, staff, etc. and staying focused on priorities.

Fee Structure:  Building a fair revenue sharing model is key to avoiding many issues. If not addressed prior to the launch of a client engagement, a poorly planned fee structure can lead to a quick, one-project, bitter ending to what could have been a potentially great collaborative team.

Table 1 suggests a useful Financial Split Model.

  

Intellectual Property (IP):     Assure that ownership of any IP created in preparation for, during and/or after project completion is clearly defined.  Typically, IP agreements are written to cover inventions or techniques that may result from project execution. The basic issue is who owns what and under what conditions.

For example, IP related to the project itself (software developed, designs, tools) typically reverts to the client as work-for-hire outcomes. If a new “tool” is consultancy-practice-related, ownership will revert to the managing consultancy practice as long as specifically understood by the client and collaborators.  The tool, from that point on, is owned by the collaborator under whose business entity the project is being executed.

Whatever the circumstance, clarity between all parties is critical.P.S. The last 1% is set aside for the post-execution celebration.

Data Retention:  Every step along the way, documents and electronic communication must be managed.  It is vital that data created, collected and presented,  be retained and maintained.  Data and filing systems (paper  and electronic) should be easily accessible and well organized. If you or the client need a document during the project or post-project, records should be easy to retrieve.

In one case, the owner of a large firm expressed concern over the value of a major two-year transformation program.  The consultant volunteered a comprehensive project audit.  Because all project work had been well documented (proposals, work product, deliverables, communications, etc.) the audit turned a stern-faced confrontation to a delighted client experience and supplemental work. 

Conclusion

When problems arise in a collaboration, it is usually because details, deliverables, expectations, ownership, fees and accountabilities were not clarified, agreed to, documented and/or signed.

In addition to the contractual specifics of individual projects, it is imperative that collaborators understand and work within a mutually agreed upon and understood framework—a framework that extends beyond a single project to one that creates a long term business relationship. 

We have proposed a four-circle collaboration model with crucial and   distinct parts: Trust, Business Development, Thought Leadership and Project Execution. Understanding and  operating within this framework     creates the greatest congruency and synergy for all concerned.  

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About the authors:

Diane Gibson, is President and Founder of DMG Consultancy, Ltd. an organizational development and change management     consulting firm serving clients in Idaho, Washington and Oregon.

Bob Phillips, is a Principal with RW &  Associates, Inc. an organizational development consultancy headquartered in Bend, OR specializing in cultural ethics. Bob is co-author of “Absolute Honesty”, now in its 10th printing, and the book’s companion  “Straight Talk” workshop.

Jerry Vieira, CMC  is President and   Founder of The QMP Group, Inc., a Portland, OR. based management consulting firm that assists clients in growing the market value of their businesses through market strategy and marketing & sales organizational transformations.

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