Why Having Performance Evaluations for Consultants Is A Profitable Idea

“The name’s Bob. I’m an efficiency consultant. What would you say you do all day, exactly?”

One day, at least two lifetimes ago, somebody where I was consulting handed me a wall sign that said: “A consultant is a person who borrows your watch to tell you what the time is.” Those who have spent years at business consulting will tell you that this is an evidence of black humor. I hazard to guess they had a few bad experiences in their lives.

Eventually I learned that the individual was unhappy because I had made many of the same recommendations he had made and two things had occurred: he was not trusted and recognized for his contribution, nor had he received the bonus (my fee) that he felt he deserved. This is not uncommon. Chances are, he didn’t give a second glance to the performance evaluation associated with his consulting work. Oops. Let’s dive into that.

Why Hire A Consultant?

Companies engage consultants for several reasons. Trust really isn’t the issue. The contributions of valued employees are acknowledged, if not recognized. No, more often the idea is that a consultant carries credibility not available to an employee. It’s the old saying: an “expert” is one who is more than fifty miles from home and has slides, and will be the one to blame if something doesn’t work.

Is There A Secret Agenda?

A consultant is often hired to accomplish an unstated and perhaps secret agenda. That the company paid to hire the consultant becomes leverage for a desired change without the risk of having to acknowledge what some might consider the real reason. Been there; done that, often without knowledge. The good consultant is an office politics sleuth, however, and often the fur flies while the corporate system goes through a purge.

When A Business Needs Unique Skills

The main reason I was hired was that I had skills and preparation not available within the company. To use those skills as needed, they didn’t have to pay a salary, grant benefits, or provide office space. I was used as needed and recalled only when my expertise was required. Fortunately my motivations were in order.

Measurement of Results

“With great measurement comes great responsibility.” -Spiderman (or something)

The nature of consulting to a business isn’t always a “did it work or didn’t it work” evaluation. Sometimes there are intermediate outcomes, which may be perfectly acceptable and become the learning platform for the next exercise. My clients and I worked out the following criteria:

• Exceptional (value 4): identified cost-savings or improved options. Demonstrated exceptional work and performance against deadlines.
• Exceeds expectations (value 3): Goes beyond contract requirements with the company. Few minor problems, which are self-corrected.
• Meets expectations (value 2): Performs the contract satisfactorily. Corrects problems within acceptable timeframes at no additional cost.
• Needs improvement (value 1): Unable to perform fully to contract. Can meet performance requirements with assistance or extra time. Cost of corrective action to be borne by consultant.
• Doesn’t meet (value 0): Performance is ineffective, requiring major assistance or contract cancellation. Company unable to obtain product in a timely manner and consultant unable ever to meet requirements. Company can bear financial loss.

Steps To Take

When you seek to use the services of a consultant, ask for very specific references. This consultant, if experienced, will have performed for other firms. Check those references carefully, recognizing that the consultant has provided known favorable responses.

One way to bypass this is to speak to employees who have been directly affected by the individual’s work. Seek whatever comments you can obtain about competency and ethics. (use the feedback flowchart!) Don’t be afraid to ask the consultant for a reference where he failed. His willingness to provide that speaks volumes.

In decades of doing effective consulting, I had a few unhappy customers — usually because I would not support a discovered private agenda. Sure, this didn’t help my consulting performance evaluation any, but it sure did help me sleep better at night.