Talk to as many consultants as you can before hiring one. Even if you have one person or firm in mind, interview at least a few others as a sort of due diligence. You will probably learn more about what you need by talking to different professionals in the field.
1. Cost Cutting vs. Revenue Raising
"Most consultants focus on two areas: cutting costs and raising revenues. What do you see as the relationship between the two functions? Which do you do better?"
Cost cutting is typical consultant expertise. Good consultants understand customer value through direct engagement. "What does the customer value? Is it time? Is it quality? We define that."
2. Professional Background
"What was your professional experience before you became a consultant?"
Ideal consultants possess bottom-line sensibility, typically from CEO or turnaround specialist roles, bringing experience with cost controls and results-driven thinking.
3. Firm Size
"How many professionals work with you or at your firm?"
Consultants fall into two categories: solo practitioners handling strategic issues, and teams managing detailed number crunching. Each serves different needs. Neither is inherently superior. The distinction affects project scope and timeline.
4. Confidentiality
"Will you sign a letter of confidentiality? Will you refrain from working for our competitors?"
All consultants should sign confidentiality letters. This prevents unwitting disclosure of proprietary information and creates a paper trail for protection.
5. Client References
"Who are some of your other clients? Who are some people and companies with whom you've worked before? Can I call them?"
References from similarly-sized companies better predict consultant effectiveness than big-name clients. Avoid being impressed by large corporate clients where consultants worked as part of massive teams.
6. Client Load and Responsiveness
"With how many clients do you work at one time? Do you have enough time to devote to our company to accomplish our goals?"
Expect same-day response times. Major restructuring projects warrant consultant focus on two or three clients maximum.
7. Training and Independence
"Will you teach us to do this work for ourselves and become self-sufficient? How long will this take?"
Building staff capability prevents dependency and enables post-engagement independence. Quality consultants should teach your staff to become self-sufficient, reducing long-term dependency and establishing clear project completion timelines.
8. Published Work
"Have you written anything—published or not—that deals with issues like the ones this company faces?"
Consultant publications reveal their thinking about markets and business factors affecting your company.
9. Fee Structure
"How do you charge for services? Do your fees include travel time and other miscellaneous charges or are those billed separately?"
Payment models vary (flat fee, fee-plus-bonus, contingency). Establish clear budgets and expense parameters upfront. Set predetermined budgets and require written warnings if projects exceed scope or timeline.
10. Documentation Ownership
"What kind of documentation will you give us when the project is completed? Who will own that documentation?"
Documentation provides tools for future reference and establishes clear records. All work a consultant does for you is your property. Establishing clear ownership boundaries upfront is essential.
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