Outsourced Information Services: Client Relations Success Factors

Annie Joan OlesenA9 Consulting, Denmark

Ulla de Strickerde Stricker Associates, Canada

When outsourcing information services is a success … what are the factors? Seasoned consultants asked themselves: Seasoned consultants asked themselves:

It can’t just be coincidence, can it? It can’t just be coincidence, can it?

Annie (the consummate entrepreneur) Annie (the consummate entrepreneur) obtained funding for a pilot studyobtained funding for a pilot study

Recruited fellow consultants willing to be Recruited fellow consultants willing to be interviewed (2004)interviewed (2004)

Clients were interviewed in 2005Clients were interviewed in 2005

Information Consultants Interviewed

We approached those in an We approached those in an advisory role, offering CI, BI, advisory role, offering CI, BI, research, and other strategic research, and other strategic servicesservices

As opposed to e.g. outsourced tech As opposed to e.g. outsourced tech services services

Two “modes” of consulting:

Independent consulting practiceIndependent consulting practice

Consulting done as part of a team Consulting done as part of a team in larger firm (e.g. Accenture)in larger firm (e.g. Accenture)

Similar themes emergedSimilar themes emerged

Overriding Themes

The Degree is only the beginning Formal education does not equip for

managing the client relationship

Our profession is a mystery to our clients Oh, surprise!

THE INDEPENDENT

Interviewees focused strongly on the Interviewees focused strongly on the client relationship (as opposed to client relationship (as opposed to professional skills we take for granted)professional skills we take for granted)

““Know and understand the customer”Know and understand the customer”

Client must perceive true value for Client must perceive true value for moneymoney

That was not a course in schoolThat was not a course in school

Key Points

Clarity about the Business Arrangement

Rapport and Consideration Trust and Reliability Marketing

Clarity about the Business Arrangement …

Can feel awkward to spell out in great detail what will be delivered, but it is a must

Range from coverage/scope of a report to time frame for return calls (etc)

Forestalls snags later on Different consulting roles bring up

different details (“temporary staff” vs. “miracle worker”)

Specifically …

1.1. Elasticity of consultant’s availabilityElasticity of consultant’s availability2.2. Contingency plansContingency plans3.3. SubcontractorsSubcontractors4.4. Milestone / time linesMilestone / time lines5.5. Amount of conferring and “checking in”Amount of conferring and “checking in”6.6. Room for departing from original plan if Room for departing from original plan if

new information or opportunity comes new information or opportunity comes to lightto light

Rapport and Consideration ““A successful relationship calls for a A successful relationship calls for a

higher standard of professional virtues ... higher standard of professional virtues ... we are in effect psychologists”we are in effect psychologists”

Breaking a challenge into manageable Breaking a challenge into manageable partsparts

Listening skills: The client is worriedListening skills: The client is worried Awareness of team dynamicsAwareness of team dynamics Interpersonal appropriatenessInterpersonal appropriateness Gauging client’s work styleGauging client’s work style Bringing “humanity” to bearBringing “humanity” to bear

Trust and Reliability

Imperative client has total trust in our Imperative client has total trust in our ability to deliver – and then someability to deliver – and then some

““You know you have built a good You know you have built a good relationship when the client relationship when the client instinctively turns to you no matter instinctively turns to you no matter what the subject”what the subject”

““Build a reputation as someone who Build a reputation as someone who can be counted on … no matter what”can be counted on … no matter what”

Marketing

““It’s not as if we are selling It’s not as if we are selling something everyone is clamoring something everyone is clamoring for”for”

No text books on marketing No text books on marketing information consulting information consulting

Trial and error (just as with price Trial and error (just as with price setting, contract negotiation, setting, contract negotiation, budgeting)budgeting)

CONSULTANT IN A LARGER ENTITY

Common constraint:Common constraint:

Business needs of the firm may Business needs of the firm may limit the scope and depth of what limit the scope and depth of what can be offered to clientcan be offered to client

A huge challenge for librarians A huge challenge for librarians who traditionally “over-service”who traditionally “over-service”

“Large House” Culture is Demanding

A challenge to be lone info specialist A challenge to be lone info specialist among cadre of Mgmt/IT consultants among cadre of Mgmt/IT consultants focusing on selling large contractsfocusing on selling large contracts

Mgmt/IT consultants often accustomed Mgmt/IT consultants often accustomed to working somewhat superficially (we to working somewhat superficially (we aren’t)aren’t)

Conversely: Support of colleagues, no Conversely: Support of colleagues, no need to sell to end clientneed to sell to end client

BUT: A need to market to the house BUT: A need to market to the house consultants to get them to include us in consultants to get them to include us in their bidstheir bids

Cost of Good Info Work Not Well Understood

House consultants may pressure House consultants may pressure for lower pricefor lower price

Info consultant must be a good Info consultant must be a good negotiator and explain ROI clearlynegotiator and explain ROI clearly

THE CLIENTS SPEAK

A variety of clients were asked to A variety of clients were asked to comment on their experience with comment on their experience with consultants overallconsultants overall

Not a rating exercise!Not a rating exercise!

Clients’ Focus

Most clients interviewed Most clients interviewed focused on the consulting focused on the consulting assignment PROCESSassignment PROCESS

Some key comments were Some key comments were made concerning the SALES made concerning the SALES processprocess

What we asked

What was the motivation for requesting What was the motivation for requesting external help? How did you go about external help? How did you go about finding the right consultant?finding the right consultant?

What was your experience with the What was your experience with the process from start to finish?process from start to finish?

What are some key consultant qualities What are some key consultant qualities that make for success?that make for success?

Looking back, what would you do Looking back, what would you do differently or the same way, and why?differently or the same way, and why?

Clients echo consultants but raise important ‘environmental’ aspects Clients are often in situations that are not Clients are often in situations that are not

straightforward (internal change, competing straightforward (internal change, competing organizational priorities, etc)organizational priorities, etc)

The assignment may therefore have The assignment may therefore have elements that are not clear cutelements that are not clear cut

Or the presenting symptoms may be Or the presenting symptoms may be associated with a deeper set of challenges associated with a deeper set of challenges (icebergs)(icebergs)

Clients’ Background Challenges

The direct client may face The direct client may face challenges associated with the challenges associated with the overall organizational IM/KM (etc) overall organizational IM/KM (etc) approachapproach

There can be artifical limitations to There can be artifical limitations to the budget for the project (etc etc)the budget for the project (etc etc)

Distinction bw “Purchase” and “Help”

Clients may want a clear cut Clients may want a clear cut delivery of X ”product” without delivery of X ”product” without further complexityfurther complexity

But may want extensive assistance But may want extensive assistance in defining issues, approach, etcin defining issues, approach, etc

Clients’ Point of Departure

Lack of time or expertise are frequent Lack of time or expertise are frequent motivators, but …motivators, but …

The client may know The client may know oror suspect a need suspect a need for change/repair/planning/opportunity for change/repair/planning/opportunity takingtaking

Project may encompass a discovery Project may encompass a discovery phase before firm project parameters phase before firm project parameters can be establishedcan be established

In other words, the consultant consults In other words, the consultant consults about the project before the project about the project before the project (can be an advantage for the consultant (can be an advantage for the consultant – IF the money corresponds!)– IF the money corresponds!)

Clients’ Selection Process

Word of mouth remains a powerful Word of mouth remains a powerful mechanism – how do we support it and mechanism – how do we support it and make sure the clients hear about us?make sure the clients hear about us?

Where RFPs are mandated, the process Where RFPs are mandated, the process of writing it can be a challenge in itself of writing it can be a challenge in itself if project parameters are fluid or open if project parameters are fluid or open to consultant input (so that consultants to consultant input (so that consultants have difficulty responding!)have difficulty responding!)

The Project Process: Challenges #1: Ensuring the consultant is thoroughly #1: Ensuring the consultant is thoroughly

oriented about all the details with a oriented about all the details with a bearing (lack of time was an issue to bearing (lack of time was an issue to begin with!)begin with!)

#2: Ensuring the c. understands the #2: Ensuring the c. understands the CULTURE in the organizationCULTURE in the organization

#3: Risk of misunderstanding if #3: Risk of misunderstanding if consultant lacks detailed knowledge of consultant lacks detailed knowledge of the industry or activity domain – effort the industry or activity domain – effort can be expended but `that was not quite can be expended but `that was not quite what was needed’what was needed’

Process Challenges Managing ongoing communication Managing ongoing communication

with consultant and keeping project with consultant and keeping project on trackon track

Managing staff perceptions and Managing staff perceptions and attitudes (e.g. anxiety) – using trusted attitudes (e.g. anxiety) – using trusted staff representative as liaison can be staff representative as liaison can be helpfulhelpful

Ensuring everyone maintains an open Ensuring everyone maintains an open mind toward possible solutionsmind toward possible solutions

Dealing appropriately with ”related” Dealing appropriately with ”related” findings appearing in association with findings appearing in association with the projectthe project

Management of the Deliverable (`the Report’)

3-page summary vs. 60-page report3-page summary vs. 60-page report

””Don’t leave me to dig through a long Don’t leave me to dig through a long report – help me decide”report – help me decide”

24 bullets: Tell me what to do24 bullets: Tell me what to do 8 – background8 – background 8 – what was done/discarded8 – what was done/discarded 8 – what to do now8 – what to do now

Appendices are handyAppendices are handy

Clients’ Perception of Our Value

Ongoing relationship & support: Distinguish Ongoing relationship & support: Distinguish between relationship and transactionsbetween relationship and transactions

Objectivity and fearlessness in telling it like it Objectivity and fearlessness in telling it like it is – ”point out the true issues”is – ”point out the true issues”

Previous experience & fresh approachPrevious experience & fresh approach Flexibility (meetings, date changes, etc – it Flexibility (meetings, date changes, etc – it

can be a challenge for consultants to limit can be a challenge for consultants to limit their willingness to ”jump”)their willingness to ”jump”)

Effectiveness in presenting to and dealing Effectiveness in presenting to and dealing with senior management (who may be with senior management (who may be surprised at the project outcome)surprised at the project outcome)

Clients comment on the Sales Process: A Key Lesson

Key takeaway: Some clients are not worth Key takeaway: Some clients are not worth the effort and aggravation!the effort and aggravation!

Consultants can be tempted to allow the Consultants can be tempted to allow the back-and-forth sales process to continue far back-and-forth sales process to continue far beyond what is appropriatebeyond what is appropriate

Consultants may lack strong skills in Consultants may lack strong skills in determining determining who is a buyer (or at least receptive to the pitch)who is a buyer (or at least receptive to the pitch) whether the decision makers are ready for whether the decision makers are ready for

changechange Whether there is budget and commitmentWhether there is budget and commitment

The Sales Process Concept of ”earning the right to sell” by:Concept of ”earning the right to sell” by:

Documenting how the offered services have Documenting how the offered services have helped the competition (or analogous helped the competition (or analogous organizations)organizations)

Documenting an understanding of the client Documenting an understanding of the client organization’s issues … BEFORE making the organization’s issues … BEFORE making the pitch!pitch!

””Being a lodestar vs a bearer of water: Being a lodestar vs a bearer of water: Don’t spill the water on the way to the Don’t spill the water on the way to the customer” (AJO)customer” (AJO)

IMPLICATIONS FOR PROFESSIONAL DEVELOPMENMT

Business Savvy is of course Business Savvy is of course neededneeded

But “soft skills” are crucialBut “soft skills” are crucial

Soft Skills: How To …

Gain trust and respect of executivesGain trust and respect of executives Inspire confidence in othersInspire confidence in others Create rapport and comfort to Create rapport and comfort to

support clear communicationsupport clear communication Deliver value at all levels of the Deliver value at all levels of the

business interactionbusiness interaction Leverage “whole person” thinkingLeverage “whole person” thinking

Call for a Curriculum

Launch and Management of an Info Launch and Management of an Info Consulting PracticeConsulting Practice

Marketing and Sales Management & Marketing and Sales Management & Business DevelopmentBusiness Development

Client ProspectingClient Prospecting

Client Relations ManagementClient Relations Management

A Thank You to our Colleagues

Mary Ellen BatesMary Ellen Bates Trine Sand BjerrumTrine Sand Bjerrum Richard HulserRichard Hulser Kirsten Eva JensenKirsten Eva Jensen Cynthia LeskyCynthia Lesky Rikke McKenzieRikke McKenzie Annette OstenfeldAnnette Ostenfeld … … moremore

… continued

Sylvia PiggottSylvia Piggott Suzanne SabroskiSuzanne Sabroski Deborah SchwarzDeborah Schwarz Deborah SeysDeborah Seys Xenia StanfordXenia Stanford Louise TemkinLouise Temkin Grace VillamoraGrace Villamora

Thank You – feel free to be in touch!

www.a9.dkwww.destricker.com