Outsourced Information Services: Client Relations Success Factors

1. Outsourced Information Services: Client Relations Success Factors

2. Annie Joan OlesenA9 Consulting, DenmarkUlla de Strickerde Stricker Associates, Canada

3. When outsourcing information services is a success … what are the factors? • Seasoned consultants asked themselves: It can’t just be coincidence, can it? • Annie (the consummate entrepreneur) obtained funding for a pilot study • Recruited fellow consultants willing to be interviewed (2004) • Clients were interviewed in 2005

4. Information Consultants Interviewed • We approached those in an advisory role, offering CI, BI, research, and other strategic services • As opposed to e.g. outsourced tech services

5. Two “modes” of consulting: • Independent consulting practice • Consulting done as part of a team in larger firm (e.g. Accenture) • Similar themes emerged

8. 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!

11. THE INDEPENDENT • Interviewees focused strongly on the client relationship (as opposed to professional skills we take for granted) • “Know and understand the customer” • Client must perceive true value for money • That was not a course in school

12. Key Points • Clarity about the Business Arrangement • Rapport and Consideration • Trust and Reliability • Marketing

13. 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”)

14. Specifically … • Elasticity of consultant’s availability • Contingency plans • Subcontractors • Milestone / time lines • Amount of conferring and “checking in” • Room for departing from original plan if new information or opportunity comes to light

15. Rapport and Consideration • “A successful relationship calls for a higher standard of professional virtues ... we are in effect psychologists” • Breaking a challenge into manageable parts • Listening skills: The client is worried • Awareness of team dynamics • Interpersonal appropriateness • Gauging client’s work style • Bringing “humanity” to bear

17. Trust and Reliability • Imperative client has total trust in our ability to deliver – and then some • “You know you have built a good relationship when the client instinctively turns to you no matter what the subject” • “Build a reputation as someone who can be counted on … no matter what”

19. Marketing • “It’s not as if we are selling something everyone is clamoring for” • No text books on marketing information consulting • Trial and error (just as with price setting, contract negotiation, budgeting)

22. CONSULTANT IN A LARGER ENTITY • Common constraint: • Business needs of the firm may limit the scope and depth of what can be offered to client • A huge challenge for librarians who traditionally “over-service”

24. “Large House” Culture is Demanding • A challenge to be lone info specialist among cadre of Mgmt/IT consultants focusing on selling large contracts • Mgmt/IT consultants often accustomed to working somewhat superficially (we aren’t) • Conversely: Support of colleagues, no need to sell to end client • BUT: A need to market to the house consultants to get them to include us in their bids

25. Cost of Good Info Work Not Well Understood • House consultants may pressure for lower price • Info consultant must be a good negotiator and explain ROI clearly

26. THE CLIENTS SPEAK • A variety of clients were asked to comment on their experience with consultants overall • Not a rating exercise!

28. Clients’ Focus • Most clients interviewed focused on the consulting assignment PROCESS • Some key comments were made concerning the SALES process

29. What we asked • What was the motivation for requesting external help? How did you go about finding the right consultant? • What was your experience with the process from start to finish? • What are some key consultant qualities that make for success? • Looking back, what would you do differently or the same way, and why?

30. Clients echo consultants but raise important ‘environmental’ aspects • Clients are often in situations that are not straightforward (internal change, competing organizational priorities, etc) • The assignment may therefore have elements that are not clear cut • Or the presenting symptoms may be associated with a deeper set of challenges (icebergs)

31. Clients’ Background Challenges • The direct client may face challenges associated with the overall organizational IM/KM (etc) approach • There can be artifical limitations to the budget for the project (etc etc)

32. Distinction bw “Purchase” and “Help” • Clients may want a clear cut delivery of X ”product” without further complexity • But may want extensive assistance in defining issues, approach, etc

33. Clients’ Point of Departure • Lack of time or expertise are frequent motivators, but … • The client may know or suspect a need for change/repair/planning/opportunity taking • Project may encompass a discovery phase before firm project parameters can be established • In other words, the consultant consults about the project before the project (can be an advantage for the consultant – IF the money corresponds!)

34. Clients’ Selection Process • Word of mouth remains a powerful mechanism – how do we support it and make sure the clients hear about us? • Where RFPs are mandated, the process of writing it can be a challenge in itself if project parameters are fluid or open to consultant input (so that consultants have difficulty responding!)

35. The Project Process: Challenges • #1: Ensuring the consultant is thoroughly oriented about all the details with a bearing (lack of time was an issue to begin with!) • #2: Ensuring the c. understands the CULTURE in the organization • #3: Risk of misunderstanding if consultant lacks detailed knowledge of the industry or activity domain – effort can be expended but `that was not quite what was needed’

36. Process Challenges • Managing ongoing communication with consultant and keeping project on track • Managing staff perceptions and attitudes (e.g. anxiety) – using trusted staff representative as liaison can be helpful • Ensuring everyone maintains an open mind toward possible solutions • Dealing appropriately with ”related” findings appearing in association with the project

37. Management of the Deliverable (`the Report’) • 3-page summary vs. 60-page report • ”Don’t leave me to dig through a long report – help me decide” • 24 bullets: Tell me what to do • 8 – background • 8 – what was done/discarded • 8 – what to do now • Appendices are handy

38. Clients’ Perception of Our Value • Ongoing relationship & support: Distinguish between relationship and transactions • Objectivity and fearlessness in telling it like it is – ”point out the true issues” • Previous experience & fresh approach • Flexibility (meetings, date changes, etc – it can be a challenge for consultants to limit their willingness to ”jump”) • Effectiveness in presenting to and dealing with senior management (who may be surprised at the project outcome)

39. Clients comment on the Sales Process: A Key Lesson • Key takeaway: Some clients are not worth the effort and aggravation! • Consultants can be tempted to allow the back-and-forth sales process to continue far beyond what is appropriate • Consultants may lack strong skills in determining • who is a buyer (or at least receptive to the pitch) • whether the decision makers are ready for change • Whether there is budget and commitment

40. The Sales Process • Concept of ”earning the right to sell” by: • Documenting how the offered services have helped the competition (or analogous organizations) • Documenting an understanding of the client organization’s issues … BEFORE making the pitch! • ”Being a lodestar vs a bearer of water: Don’t spill the water on the way to the customer” (AJO)

42. IMPLICATIONS FOR PROFESSIONAL DEVELOPMENMT • Business Savvy is of course needed • But “soft skills” are crucial

45. Soft Skills: How To … • Gain trust and respect of executives • Inspire confidence in others • Create rapport and comfort to support clear communication • Deliver value at all levels of the business interaction • Leverage “whole person” thinking

47. Call for a Curriculum • Launch and Management of an Info Consulting Practice • Marketing and Sales Management & Business Development • Client Prospecting • Client Relations Management

48. A Thank You to our Colleagues • Mary Ellen Bates • Trine Sand Bjerrum • Richard Hulser • Kirsten Eva Jensen • Cynthia Lesky • Rikke McKenzie • Annette Ostenfeld • … more

49. … continued • Sylvia Piggott • Suzanne Sabroski • Deborah Schwarz • Deborah Seys • Xenia Stanford • Louise Temkin • Grace Villamora