A very common question asked by my prospective clients is, "How do you charge?" It's really difficult to answer such question when the prospects don't even know what they need me to do.

The following article provided by The Practising Management Consultant (PMC) might be helpful for those who want to know how to choose the right management consultant and also what information to provide to the consultant in order to get an accurate quotation for the professional fee..


Tips on choosing the Right Management Consultant  

Management consultants provide assistance to decision makers of a client organization to define and achieve their strategic goals through enhanced utilization of constrained resources. There are several factors to be considered when hiring a management consultant:

Step 1: Identify the need for management consulting services.
There are no hard and fast rules for deciding to bring in a management consultant since the reasons are unique to each company. Common scenarios to trigger the need may include:   

* the management of an organization believing that there is room for improvement, yet is unsure what action can be taken;   
* the company not having the specific knowledge and skills necessary to solve the problems identified; or   
* the company's management needing an independent, third-party advice.

Step 2: Know the project requirements.
After identifying the primary need for a management consultant, the next step is to determine what needs to be accomplished. The client will:   

* define and scope the problem clearly,   
* make a commitment for change,   
* establish timing preferences, and   
* identify budget constraints

Once this is done, the organization can start the process to select the right consultant.

Step 3: Carefully select the consultant based on knowledge, demonstrated skills, and competencies.
It is important to shortlist a few consultants whose expertise comes closest to the need(s) identified. Conduct interviews and ask the consultants to provide references to support his/her familiarity in handling similar situations and the outcomes.Once each consultant’s background has been confirmed and references checked, the company should consider the following factors before making the final selection:   

* Breadth of well-rounded experience that may become useful when additional needs are identified.   
* Relevant industry experience.   
* Adherence to ethics and standards.   
* Availability.   
* Ability to complete engagements within budget and on schedule.   
* Ability to work with relevant stakeholders of the organization to achieve minimal disruptions with maximum results.   
* Degree of trust and rapport established with management during initial contacts.   
* Professional fees and available budget.

Upon selection, the chosen consultant should submit a proposal. This proposal describes his/her understanding of the organization's needs, project approach and methodology, proposed deliverables, credentials, schedule, and professional fees.

Step 4: Work with the consultant to ensure the assignment is satisfactorily completed in accordance with the proposal.
Successful completion of the proposal can be attained by:   

* keeping everyone in the organization informed about the engagement of the management consultant and the nature of this engagement,   
* allaying any possible anxiety that may result during or after the engagement,   
* providing support to assist the consultant when gathering information and making recommendations, and   
* having regular meetings with the consultant to review progress.


Please note that the initial consultation fee will be charged before the submission of proposal in step 3.