As enterprises continue to plan, expand, or evolve their digital transformation efforts and shifts to the cloud, many are likely relying on IT consultants or considering hiring them for help.
Bringing IT consultants on board give enterprise IT leaders several advantages, not the least of which is quick access to needed expertise when it’s not available inhouse. But there are also risks, including potential cost overruns, lack of commitment and availability of the consultant, communications issues, contract breaches, and lack of needed skills.
Here are some tips for getting the most value from using IT consultants and ensuring that the engagement is successful and aligned with your objectives.
Lay the groundwork: Referrals, expectations, costs
Prior to engaging with IT consultants, IT leaders must address several key considerations, says Steven Bressler, management consultant at Strategic Technology Management and a former IT executive — the first of which is allocating sufficient time and effort to meticulously select the right IT consultancy.
“Merely opting for a consultant from a renowned company does not guarantee excellence,” Bressler says. “Based on my experience, the most favorable outcomes stem from referrals provided by trusted business associates.”
Another consideration is having a clear definition of expectations. “Define the expectations of the engagement comprehensively, outlining the goals, scope, and limitations,” Bressler says. “Clarity in these aspects ensures alignment between the IT consultant and the organization, fostering a conducive environment for success and minimizing misinterpretations.”
It’s also important in the early stages to consider costs. “Recognize the significant financial and temporal investment involved in employing IT consultants,” Bressler says. This is also the time to define the scope of the engagement. “Clearly delineate the inclusions and exclusions of the engagement to ensure the assignment of an IT consultant with the requisite skills and knowledge.”
Gain clarity before committing: Interviews and references
IT leaders need to make sure the consultants they’re hiring have extensive experience in the company’s industry and markets and will focus on its specific needs.
That means conducting extensive interviews to ensure that consultants are truly experts in the specific areas of IT that need improvement or that are strategically important to the organization — whether that means artificial intelligence, data analytics, cloud, infrastructure, or mobility, for example.
A consultant should put the client’s needs and priorities at the forefront of every interaction and decision, and “understand their business objectives, challenges, and preferences to tailor solutions that meet their specific requirements,” says Vijay Sonty, CIO at Community College of Philadelphia, who also works as an executive consultant.
“For example, a consultant working with a healthcare provider might customize a training program for their staff based on their unique patient population and service offerings,” Sonty says. In one project, Sonty engaged a consultancy firm specializing in education technology to implement a learning management system tailored to the college’s unique needs, resulting in improved student engagement and retention rates.
While interviews remain an indispensable aspect of the hiring process, it’s also important to tap other resources, such as professional networks, when evaluating consultants.
“By tapping into your network, you gain access to valuable references that affirm the candidate’s proficiency in specialized areas,” Bressler says. “These endorsements provide invaluable insights, offering assurance that the candidate indeed possesses the requisite expertise.”
This approach not only supplements the interview process, but also enhances the ability of IT to make informed hiring decisions, ensuring that only individuals who bring substantial value are onboarded, Bressler says.
Don’t neglect the details: Deliverables and deadlines
Create a detailed contract that covers factors such as costs, hours, milestones, deliverables, deadlines, and who pays for outside expenses.
“When reading/writing the contract, you must be specific,” says Charles Scharnagle, CIO at manufacturer Revere Copper Products. That means
including start/end dates, hourly rates, specific team members and their roles and responsibilities, and communication methods, he says.
“Dates for specific deadlines should be noted, penalties if missed and how a change to the process should be requested, granted, or denied,” Scharnagle says. “Clearly define all of your expectations and deliverables. There can’t be any grey areas or unknowns. Everyone should have an idea of what is expected of them. All pricing needs to be explained ahead of time. Again, no surprises regarding expectations around potential costs.”
Sonty related that in one instance the Community College of Philadelphia collaborated with a consultancy to revamp its data analytics infrastructure. “A detailed contract delineating project milestones and payment terms ensured transparency and accountability throughout the engagement,” he says.
Safeguard trust: Confidentiality and non-disclosures
In addition, CIOs should put in place confidentiality agreements to ensure that consultants don’t expose intellectual property, trade secrets, customer information, or any other sensitive data.
“When partnering with a consultancy to develop a proprietary software solution, we implemented stringent confidentiality measures to safeguard our competitive advantage and sensitive customer information,” Sonty says.
IT consultants often enjoy broader access to sensitive data than many company employees, including IT staff. “Given the gravity of this access, it is paramount that we implement meticulous measures to safeguard our organization’s confidentiality,” Bressler says.
To that end, the execution of carefully crafted non-disclosure agreements (NDAs) becomes indispensable before granting access to confidential information, Bressler says. “As the adage goes, ‘You cannot put the toothpaste back in the tube,’” he says. “Once information is disseminated, its retrieval becomes an insurmountable challenge.”
The implementation of robust NDAs serves as a critical safeguard against the unauthorized disclosure of sensitive data and mitigates the risks associated with unauthorized information exposure, Bressler says.
Ensure accountability: Metrics and progress management
Organizations can maximize the value of IT consultancy engagements by enforcing accountability for delivering results, Sonty says. “Establish clear project objectives, timelines, and deliverables from the outset,” he says. “Ensure both parties have a shared understanding of what success looks like. For example, before starting a market analysis project, clarify the scope, desired outcomes, and deadlines with the client.”
Schedule regular check-in meetings to review progress, address any concerns, and ensure alignment with the client’s goals. “These meetings can be weekly, biweekly, or monthly depending on the project’s timeline,” Sonty says. “For instance, a consultant working on a software implementation project might have weekly status meetings with the client’s project team to discuss progress and address any issues.”
Organizations can use project management tools to track progress, manage tasks, and ensure accountability. “These tools can include project management software, shared dashboards, or task tracking spreadsheets,” Sonty says.
It’s also important to have performance metrics in place. “Define key performance indicators [KPIs] or metrics to measure the consultant’s performance and the project’s success,” Sonty says. “These metrics should be aligned with the project objectives and regularly monitored throughout the engagement.”
For example, a consultant working on a sales performance improvement project might track KPIs such as revenue growth, customer acquisition cost, and sales conversion rates.
Foster collaborative partnership: Communication and feedback loops
Also important for accountability is maintaining open and transparent communication channels throughout the engagement. “Be proactive in sharing updates, challenges, and successes with the client,” Sonty says. For example, if unexpected obstacles arise during a process optimization project, communicate them promptly to the client and propose alternative solutions.
In addition to establishing communication channels and methods, Scharnagle suggests outlining how to address any conflicts that might arise.
“Know the process ahead of time regarding conflict resolution. Clear and concise communication will help provide the ability to be flexible as the project moves forward. Issues normally arise and both parties need to feel comfortable adapting as necessary to ensure project success,” he says.
Fostering a collaborative partnership between the IT team and external consultants that’s based on mutual respect, trust, and transparency is important for success. A consultant leading a business transformation initiative should collaborate closely with the client’s leadership team to develop a shared vision, roadmap, and implementation plan, Sonty says.
Consultants need to “maintain open and responsive communication channels with the client to address their inquiries, concerns, and feedback in a timely manner,” Sonty says. They should provide regular updates on project progress, milestones, and any potential roadblocks to ensure transparency and alignment.
“For instance, a consultant working on a technology implementation project might promptly respond to the client’s emails and calls, keeping them informed of any delays or issues,” Sonty says.
IT should establish a feedback mechanism where both the consultant and the IT team can provide feedback on each other’s performance and the overall progress of engagements, Sonty says. “This feedback loop helps identify areas for improvement and ensures continuous alignment with the client’s expectations,” he says.
Ensure adaptability and agility: New skills and adjustments
A consultant should be open to learning new skills and technologies to meet the needs of clients. To that end, the consultant should have a “growth mindset that views challenges and changes as opportunities for learning and development,” Sonty says, and be open to new ideas, perspectives, and approaches and continuously seek opportunities to expand skills and expertise.
For example, a consultant transitioning from traditional project management methodologies to agile approaches might enroll in training courses to learn agile principles and practices, Sonty says.
A consultant should be open to adapting quickly to changing priorities, deadlines, and scope, and be willing to pivot as needed. “For instance, a consultant leading a change management initiative might adjust their communication plan and training materials based on feedback from stakeholders and emerging challenges,” Sonty says.
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