Monday, December 26, 2011

Transition from Contracting to Consulting. Can a MBA degree help?


The joke goes, "A consultant is a person who provides a rationale for what the management wants to justify!" But jokes aside – Do we really understand what consulting is and what it takes to be a good consultant? I for a very long time had some very false notions about consulting until I got a consultant’s view on consulting. As they say, straight from the horse’s mouth. Whether I will become a good consultant will remain to be seen.  

I worked for close to six years in the IT Services Industry and for about three years in the US as a systems analyst and as a project lead, and I have always introduced myself for the sake of simplicity as an “IT Consultant” to folks at the apartment office, insurance agent and even during Immigration. And I actually believed I was one.

During that time I worked very closely with a colleague, an MBA who worked as a business analyst and was actually designated as a “Consultant” within the organization. He was versatile, a very quick learner and had great people skills as well as niche domain skills. We had developed a good working relationship and over our many conversations realized that he was very disgruntled and frustrated because of the fact that he wasn’t getting any real consulting engagements. And that caught me a bit by surprise. I asked him, “Aren’t you a Consultant”? He said to my bewilderment that while I am designated as a consultant, what I really do is contracting. And he went on to explain to me the difference between contracting and consulting.

A contractor usually works under someone’s supervision, to help complete part of a larger project. And he or she is told what to do, how to do, and when it needs to be done. Contractors, he said really are focused on a single type of mid-level activity—such as programming in a specific language or with a specific tool. They work on specific tasks and often are unaware of the scope, business goals, or impact of the overall project. Contractors generally fill a void in the skill sets of their clients or provide additional resources for accomplishing a goal. Often, these contractors really like what they are doing, are good at it, and don't have a desire to change roles. 
               
While a real consultant analyzes the business/technical problem and decides how to solve it, often using methods or tools that the client hasn’t even thought of or wouldn’t even have been exposed to. And the consultant is self-directed and does whatever it takes to deliver the solution that meets the client’s needs. Consultants aim to get an understanding of the overall scope and goals of a project, make sure that they understand the deliverables, and offer specific suggestions when it makes sense. A consultant should provide an increase in the breadth and depth of technical skills, an improvement in analytical skills, and the ability to clearly and concisely communicate important information in a timely manner.

While you might be good programmer, technical writer and so on, you are essentially following directions to create good work, which is a far cry from being creative, having initiative to assess a client’s needs, and determining the best way to solve the crisis. And I reluctantly accepted the fallacy of the idea that I was working as an “IT Consultant” and digested the reality which seemed a little harsh after 4-5 years in the industry.

Next up on our discussion was, given an opportunity to do consulting, how do we make the transition from being a contractor to a consultant?

First develop a niche and don’t be just another consultant. Once you develop expertise in a particular segment of the industry, there is rarely a paucity of work that’s profitable and interesting. Spend a lot of time learning as much as you can in one area, while not ignoring the other related areas. But how do pick your niche? Usually, it picks you. Go with something that interests you, especially if little is known about it and if there is a lot of growth potential.

Desire to Learn Continuously - Slowly and cautiously add more services and expertise to your "inventory” which requires continuous learning of new things. Most consulting projects are going to put you face-to-face with situations or contexts in which you must learn (and learn fast) in order to succeed.

Strong Interpersonal Skills - The essence of consulting is communicating, generating trust, and getting information from people who don't even know they have it. This requires the necessary interpersonal skills to know when to press, to be aggressive, to just listen, and much more. And above all, you need to get along well with people. No matter how technical your field, if you don't like working with people, and lack the required people skills, you'll have an uphill battle in the consulting business.

Be flexible - Consultants are subject to a great deal more uncertainty as to when and where they’ll be working. Some weeks they may be fully utilized, having a lot more to bite than they can chew, and other weeks they may be doing nothing. Consultants have to manage several relationships, and balance the needs of a group of clients to try to make sure everybody gets what they want.

Do some marketing - Market yourself well. Build a brand, a reputable one at that, and look for ways to get your name around and build your credibility at the same time. Conferences, publications and web sites are good mediums for raising your profile and establishing your credibility. A well-received presentation at a workshop one day might generate leads several months later.

Make some friends - The most powerful source of business for any consultant is networking. A personal recommendation from a friend or colleague to their client or employer carries a lot of weight.

Commitment to Personal and Professional Integrity - Consulting lifeblood is based on reputation and that is built on integrity, honesty, and ethics. Unless you set the highest standards for yourself, your customers and prospective customers will find out.

The qualities enumerated above would be applicable to consulting of any kind – management consulting, strategy consulting, operations consulting or any other niche domain within the industry (like corporate finance consulting). But how would an MBA help you develop the mindset required for a consultant?

A MBA curriculum provides the right kind of intellectual stimulation - exciting projects and case studies that help you develop a systematic approach to problem solving, and put in practice the knowledge, tools and techniques. Overall helps you build a strong foundation which you can only improve upon. And most importantly you will get to study with top-notch, talented peers from across various industries. You might also get an opportunity to rub shoulders with senior management (often CEO/CFO level professionals) and develop fantastic networks that can propel your career northwards.

I am sure we have only scratched the surface here and there ought to be a lot more to learn about consulting, but if you get the basics right, then there will always be plenty of time to learn the ropes as you go along and find a way of working that suits you best.

An MBA degree might not equip with you all the qualities that you need to become a good consultant, but it would at least open a few doors for an aspiring consultant. And as always it would be the attitude that would open the last door.

Authored by:
Hrishikesh C
GMP 2011-12








References:

·         Meredith Little, “The difference between contracting and consulting and why it matters” - Website: http://www.techrepublic.com/article/the-difference-between-contracting-and-consulting-and-why-it-matters/1028405

·         Chip Nickolett, “Are you a consultant or a contractor?”  - Website: http://www.techrepublic.com/article/are-you-a-consultant-or-a-contractor/5059462

7 comments:

  1. Hrishikesh, good article .. this is nice effort to demystify the consulting bandwagon that we MBAs generally utter.

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  2. Well written,Hrishikesh. This article would act as an eye-opener for many folks.

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  3. Beautifully articulated.....capturing the essence and exploring the direction....You have very good writing skills....

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  4. Nice one HR... lot of things i could relate to myself. Looking fwd for some more :P

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  5. Enlightening! Kudos!

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  6. NICE BLOG!!! Education is the process of bringing desirable change into the behavior of human beings. It can also be defined as the “Process of imparting or acquiring knowledge or habits through instruction or study”. Thanks for sharing a nice information.
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