Sure, there are always firms that try to break this mold with products like surveys, or packaged research. And there are some firms that experiment with gain sharing, a percentage of revenue increased or costs saved. In my experience, that creates a conflict between client and consultant, especially if the fees exceed the norm. For the rest of consultants, Consulting Success = Billable Hours.
Successful consultants get good at time management. They get good at estimating how much time a piece of work will take, and continuously improve on that time. This is a useful skill outside of consulting. I got reasonably good at this skill, but it never transferred to my weekend To-Do List. I still try to cram a week’s worth of work into two hours on a Saturday morning.
Consultants must maximize their billable hours, so that the client is paying their salary plus a multiplier of 2 ½ – 5 times salary. This is how consulting firms pay for marketing, training, all overhead, and then make Money. Firms track consultant “application rate” or “utilization rate,” the percentage of time a consultant is billable. Even partners, whose primary responsibility is sales, must be applied 20-40 %. Juniors are expected to be utilized up to 80%.
There are times when client demand simply doesn’t match staffing level. The unapplied people are described as “on the beach.”
This euphemism is the worst I have ever experienced. It sounds nice – waves, white sand, and sunshine – when actually it is a warning sign that you could be let go, and soon.
Staffing is done differently at various consulting firms. Some have a team of “on the beach” senior consultants do it. Some make staffing the exclusive purview of partners. However it is done, consultants are told “Do NOT attempt to do your own staffing.
And yet…
Consultants are seriously penalized if they are under-applied….
First, never be seduced by the “time-off” sound of the phrase. Do NOT take vacation time, unless you have a project lined up that will start in one week more than what time off you have planned. There are plenty of opportunities to schedule vacations in consulting, don’t take one that is imposed upon you.
You need to be visible, so do not “work from home.” Go to the office. Work on building your capability and that of the firm. Hear are some ideas:
If you worked for yourself, or in a small firm, or network, and you’re “on the beach,” you would be laser focused on one thing: FINDING A CLIENT!
Marketing, client acquisition and development, sales, whatever you call it, finding clients is never far from the mind of an independent consultant. I spent twenty-three of my thirty-seven years in consulting working for myself in one structure or another.
So if you’re an independent, you learn never to get so wrapped up in a delivery that you can’t leave twenty-five percent of your time available for finding your next project. Unless you’re famous, it takes between three and six months to find a client. I found clients exclusively through referral, so I kept in touch with previous clients and asked if they “knew anyone I should be talking with.”
Other independents I know write (a lot), or do speaking engagements, or work social media and mailing lists. I know some that work with telemarketers and make cold calls.
If you are inside a firm, you can do these things too.
I know, I said you will be told NOT to manage your own staffing, because it is done by someone else. I don’t recommend that you deliberately, publicly defy firm policy. However, virtually every successful consultant takes responsibility for their own staffing. Here are some things I’ve seen successful consultants do:
You can’t start these only when you need a project. These things should be a part of your habits from the beginning. However, if you need a project and don’t have a mentor, find one. Talk to colleagues, sometimes two people solving the “I need a project” problem together is 1+1 = 3. You can “buddy-up” on capability building too.
If you are thinking like an independent, you’ll have a client acquisition mindset, which is the primary criteria for promotion to partner. In any case, it will get you “off the beach,” which is where you want to be.
More ideas for new consultants
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