What are your thoughts on the impact of the current economy on management consulting?

Brett, you asked this question, then closed the thread!

If our clients view our services as a luxury, as an expendable add-on for good times, then naturally they will cut us back, or fire us altogether. But if we're doing something they consider essential, then they'd be crazy to let us go.

The problem is, they come to take us for granted. "What have you done for us lately?" We had a good session on this at the City Club last year. And we take them for granted. We view some long-term clients as a place we go to do a job. We forget to remind them of the value we provide -- in dollar terms.

One of my Business Group members, who is a consultant to several large organizations, told me that the GM at one of her biggest clients announced that they were making across-the-board cuts, so she'd have to cut her hours by half. In the next breath he said he wanted her to handle this project and that project. Hmmm, more work, less money.

My advice to her: Focus on what he wants to have done, then tell him how many hours that will take. Show how you can make his job easier, take problems off his plate, and handle these issues for less than it would cost to a) get someone else, or b) ignore them.

And, if he won't commit to enough budget for you to handle these things, then be prepared to walk away.

She did this. They agreed on a scope that was a bit less than she had been doing. "Let's do it this way till January, then take a look," he said. "And if we need you for special projects, we'll have to up the budget." Fewer hours for her, but same hourly rate.

This guy knew he'd be in deep soup if she left. He just needed to be reminded. And it never hurts to ask your consultants to work for less money. They just might roll over . . .

mvh