What is an Internal Consultant?

A consultant is someone who possesses specialist or expert knowledge in a particular industry or sectors such as: medicine, engineering, management, manufacturing, design, or information technology.

In recent years, the concept of consultant has undergone a radical transformation. In the past, consultants were brought into an organization from the “outside.” Today, organizations are hiring full-time “internal” consultants to help plan, execute and manage change from within.

An internal consultant is a manager-consultant who works permanently for one organization. Internal consultants are sometimes described as “inside outsiders” or “change agents.”

Internal consultants work in the same way as any other consultants—giving advice or information, offering guidance, problem-solving, and helping to implement solutions. They may work as part of a strategic planning group or “think tank,” analyzing business information and looking for new organizational opportunities.

Internal consultants possess in-depth company knowledge in terms of culture, values, structure, and processes. They play an invaluable knowledge management role, sharing knowledge and best practice ideas throughout the organization. They offer flexibility and can be rapidly assigned to any part of the business and to different projects. As they see their various ideas implemented, internal consultants develop an accurate sense for what works well and what doesn’t.

The definition and role of both internal and external consultants is continually changing to reflect the different ways in which they operate. The emerging role of internal consultant is vital to organizations as they labor to serve the needs of a changing, increasingly global marketplace.

Methods for Deploying Internal Consultant Expertise

As an internal consultant, you may be deployed in different ways within an organization. How you apply your skills will depend on your company’s requirements and preferences.

The most common consultant deployment strategies are the consulting unit and sole practitioner.

Consulting unit – Internal consultants may be employed within a central and dedicated internal consulting unit in their organization. One of the benefits of this model is that expertise and experience is pooled and easily channeled when and where in the organization it is needed.

Sole practitioner – Alternatively, an internal consultant may act as a sole practitioner or champion in a department or corporate division. Sole practitioners and champions have local, specific knowledge that is applicable to their department.

There is no right or wrong model. Organizations simply adopt the kind of structure that is most suitable to their needs and the types of assignments their internal consultants will undertake.

Whether you work in an internal consulting unit or coach members of senior management from within a department, you can make an essential contribution to your company. However you are deployed, you have a prime opportunity to make a real difference to the way your company operates.

What Skills Does an Internal Consultant Need?

Internal consultants work in diverse occupational areas, such as IT, architecture, management, design, manufacturing, training, personnel, finance, and e-commerce. There is no ideal background or career path that must be followed to become an internal consultant. However, there are key attributes and qualities that may enable you to perform better in the role.

As a general rule, a consultant should have:

prior management experience
good decision-making, problem-solving, and communication skills
creativity—being an “ideas” person
in-depth organizational knowledge
specialist knowledge or experience.
Prior management experience is essential. People management, resource allocation and control, budgetary issues, strategic planning, and many other management issues play a key part in the role of consultant.

In addition, all consultants need to be able to make rapid and sometimes complex decisions. They must be prepared to resolve challenging problems, applying their knowledge on a daily basis as they interact with and assist their internal clients.

Excellent communication skills is another key to the success of an internal consultant’s mission. Your ability to communicate well both verbally and in writing will help you to probe and gather facts and win support for your ideas.

As a consultant, you must also be able to generate innovative ideas—ideas that “wow” internal clients and colleagues. Your own creativity can spark creativity in others such that the entire organization may be motivated to achieve higher levels of performance.

An internal consultant should also possess in-depth knowledge of their company’s culture, values, and principles. This level of insight will help you to target goals appropriate and acceptable to the organization. This, in turn, will increase the likelihood that your proposals will be accepted.

In addition, specialist or expert knowledge—for example in IT, human resources, or engineering—is a must for anyone hoping to become an internal consultant. This special knowledge is necessary for problem resolution.

The backgrounds and skills of internal consultants vary widely. Certain skills and abilities are important to the aspiring consultant, however, it is important to note that there is no such thing as an ideal candidate. Potentially, anyone with management skills, decision-making skills, the ability to communicate well both verbally and in writing, creativity, and organizational and specialized knowledge has something important to offer as an internal consultant. A rich variety of knowledge, experience, attributes, and background may make you an ideal candidate for the position.

What are the Main Responsibilities of an Internal Consultant?

Whether you have just been promoted into an internal consulting role or have been in the job for some time already, you should familiarize yourself with the tasks that are the mainstay of an internal consulting career.

A.N. Turner developed task categories to describe the main activities of consultants. These categories are:

supplying information to clients
analyzing client problems
diagnosing problems
devising proposals based on diagnosis
assisting with implementation of recommendations
client learning
improving organizational effectiveness.
Internal consultants often play a strategic role in an organization. For example, you may gather and analyze business information to support senior management for sensitive decisions, such as product launches, mergers, and acquisitions or restructuring.

This information collection and analysis role enables you to assess the feasibility of developing new brands, entering new markets, and making a range of other decisions that are crucial for organizational survival.

Keeping aware of trends is also vital. You should maintain a file on your competitors, finding out about their latest prices, products, and initiatives. Client and technological awareness will also keep your organization ahead of the game. While you may not always be responsible for gathering this information yourself, you will certainly be expected to analyze the impact it will have on the business.

Increasingly, internal consultants are responsible for knowledge management and best practices. Gathering and disseminating data comes high on the job description list. Every organization is “content-rich” and must fully utilize all the knowledge and experience it contains.

“Best practices” is another buzzword that is familiar to internal consultants. Using gathered data to ensure the promotion of best practices is a key responsibility in this role.

Internal consultants focus closely on corporate performance and strategy. They make significant contributions to direction planning, and also evaluate opportunities and threats.

Another important part of your role is to gather information and evaluate business data and scenarios for senior management, thereby facilitating decision-making.

As an internal consultant, you will play an instrumental role in directional planning. You will contribute to setting short, medium, and long-term goals using current information and ideas.

Using your skills and experience, you will analyze current business situations, extract the key information and make recommendations to senior management.

Motivating and enthusing teams to adopt new ideas, new processes, or follow new procedures will be one of your main challenges. Your proposals will only work if you “champion” them to generate enthusiasm.

You must be comfortable proposing innovative and radical ideas that stimulate, provoke, and excite management. You will also implement change successfully via negotiation, participation, and information.

You may be part of an organizational “think tank,” generating ideas and using the latest trends and analyses to steer the organization toward profitability, growth, and success.

Internal consultants are involved in many important tasks. You may find yourself responsible for individual projects as well as wide-ranging assignments that affect the entire corporation. A crucial aspect of your role is supporting individual managers and gathering and analyzing business information to support senior management and the board. In this capacity, you help company managers to make appropriate and strategic decisions about the future direction of the company.

Your job as an internal consultant is vital to the company. Ultimately, it is your job to challenge, excite, guide, and lead others to constantly achieve higher levels of performance in a challenging and ever-changing marketplace.

Choosing between Consultative Approaches

When working on assignments with internal clients, you need to consider your approach. How will you act toward the client? What role will you play? What style of consulting will you adopt to achieve your objectives. Will you act as a facilitator? A mentor? Would a “hands-off” relationship be more appropriate? To succeed as an internal consultant, you must tailor your consulting approach to the needs of your internal clients.

In 1988, Edgar H. Schein described three approaches to consulting. They are: expert, doctor-patient, and process consultation.

Expert
The expert role is where consultants adopt a strictly “hands-off” approach. Consultants are expected to bring their own opinions and perspectives to the client. However, interaction between the client and consultant is limited. With this consulting style, clients are purchasing the consultant’s expertise.
Doctor-patient
In contrast to the expert role, Schein also proposed the doctor-patient role. In this role, the consultant is primarily concerned with diagnosing a client’s problems and assessing threats to the organization. After diagnosis, the consultant recommends a treatment or solution. The relationship that develops between the consultant and client is personal, close, and based on trust.
Process consultation
In the process consultation approach, the consultant acts as a facilitator. The client provides information and internal expertise. The consultant then defines problems and suggests potential solutions. The client retains ultimate control and makes decisions. Process consultation is similar in method to psychoanalysis.
Other analysts offered similar interpretations of the consultant-client relationship. In 1985, D.B. Nees and L.E. Greiner suggested five consultative approaches or strategies.

Mental adventurer
As “mental adventurers” consultants assess long-term scenarios. They use economic models and leverage off personal experience to arrive at workable solutions to client problems.
Strategic navigator
In the strategic navigator role, a consultant uses quantitative data to make decisions. In adopting this role, the consultant may recommend actions objectively, with little regard for the client’s perspective. This feature of the strategic navigator role makes it less appealing to internal consultants.
Management physician
In the management physician role, consultants make decisions based on their knowledge of the organization, rather than the industry. This is obviously desirable for anyone working as an internal consultant. However, in their pursuit of a perspective on what is actually achievable, they may sacrifice objectivity.
System architect
Other characteristics apply when a consultant adopts the system architect role. This type of consultant assists the client by redefining and improving the internal dynamics of the organization. He examines internal processes, routines, and systems, and enjoys a high level of cooperation with the client.
Friendly co-pilot
The friendly co-pilot is a counselor and facilitator for senior management and does not adopt an expert approach. In this role, the consultant provides no new knowledge or ideas to the client.
When it comes to choosing an approach to consulting there are no hard and fast rules. The most appropriate consulting style is one that is tailored to the specific consulting assignment. You will want to consider the characteristics of each potential role and decide which are most appropriate for the tasks you have been assigned. You must also consider the preferences of your clients—how they like to work—and your own preferred style.

It is crucial that you put the preferences of your internal clients first. Find out as much as you can about their needs, motivations, and preferred style of working.

Is it a collaborative or “hands-off” assignment?
Does the client require a mentor or facilitator?
Will you provide expert or specialist knowledge?
Does the client want to learn from your experience?
Is the main focus internal or external to the organization?

And what about you? What is your own style of working? Do you have the ability and experience to meet the client’s needs for expertise or specialist knowledge, or can you share experience of past assignments?

Where are your strengths? Coaching, facilitating, or reflecting? Analyzing market and competitive dynamics? And how do you like to work with clients—in a collaborative or “hands-off” way?

In most internal consulting situations, collaboration with internal clients is imperative. You cannot recommend solutions without regarding client needs. This means that the strategic navigator approach is probably unsuitable—depending on the project.

The system architect role is attractive however. It focuses on internal processes and dynamics and encourages collaboration. The management physician approach also emphasizes the organization, rather than the industry.

A word of warning is advisable here. Talking too much about consulting approaches can make clients feel you are focusing on theory at the expense of practice or implementation! They may even believe that you are using the theory to prolong assignments. Such accusations can be dispelled by placing clients at the center of every intervention you propose and making sure their voices are heard.

So which role will you adopt? Remember that an ideal solution for your client may be a combination of many approaches, employed at different stages of the project.

You should never be afraid to pick and choose approaches from each consulting role theory in a bid to provide a more exacting solution—and to delight your client, which should be one of your prime motivators.

Choosing between Onsite and Offsite Consulting

As an internal consultant, you and your client must decide whether you will work onsite or offsite, or a combination of the two options. Each consulting venue offers different advantages and disadvantages. One venue may be more favorable than another, depending on the nature of the work you have been assigned.

As an internal consultant you may operate:

from within the client’s department
from within the client’s division
at a client’s subsidiary company
at a partner’s premises
at the premises of a potential acquisition.
The advantages of working offsite
Working offsite may be necessary if the client wants you to work on a “politically sensitive” project or investigate potentially unpopular but company-saving recommendations. Other clients simply don’t want anyone to know they have turned to a consultant for advice.

You may prefer to work away from clients at a central consulting group so you can benefit from other consultants’ knowledge and expertise. You can save time and money by learning from your colleagues’ prior experience and their mistakes.

Another advantage to working offsite is that it saves time. Traveling to and from a client location takes time that might otherwise be invested in the project.

Sometimes it may be necessary or preferable to place some distance between you and the client. If issues such as personality conflicts, favoritism, or accusations of discrimination are a concern, being based offsite may be the best option.

Another good reason to work offsite is to avoid needless interruptions or a client who constantly monitors and watches you. These behaviors can frustrate and distract you to the point that it affects your performance. Working offsite puts necessary distance between you and a client who tends to micromanage.

The advantages of working onsite
While working onsite has certain disadvantages, it also offers some important advantages. For starters, working onsite can help to foster a positive working relationship with your clients. There are other benefits, too.

Consultants based onsite can better absorb the culture and values of the organization. These and other observable data can provide you with important insights into the factors which may be contributing to your client’s problems.

Internal clients can often guide you to the solution in a problem-solving scenario, and this is more likely if you are onsite. Working directly with the client can help in passing on knowledge, getting a team on board, motivating others, and implementing solutions.

Working onsite also helps to keep solutions realistic. Because you can see how things really happen, you come up with more workable ideas. You can observe how the organization or department actually works—the teams, the structure, and the procedures. An onsite location is therefore preferred when you need to understand processes or identify operational improvements.

Other clients may simply feel more at ease and involved and may cooperate better when there is a consulting presence within their department or division.

In addition to these pros and cons, you should also consider what resources are available to you onsite and off. Resources such as equipment, materials, and the knowledge of your colleagues may be available offsite at your base, but not when you go to a client location. Other resources are only accessible or available onsite. As well as physical resources such as equipment or materials, you can gain insight from your clients.

When deciding where to be based, you should also consider your needs and those of your internal clients.

What are your requirements and preferences? Do you need access to resources that aren’t available elsewhere, such as colleagues’ experience? How do you work best? Are there features of the assignment that make one location more suitable than another? What are the client’s requirements and preferences? What will it say to the client if you decide to be based offsite? What are the client’s expectations? How does the client like to work? Do you need to observe working practices, or talk to team members onsite?

Where you decide to work can impact the internal client. Make sure that the location will not get in the way of what you need to achieve. If you need daily interaction with your internal client, be sure to schedule at least some time onsite.

You may want to be based onsite while fact finding, interviewing team members, and learning about routines, services, and processes. Then you may go back to your normal working location to analyze the information, resolve problems, and identify solutions, before returning onsite to implement recommendations or brief other team members.

In making a decision about where to work—onsite or offiste—always consider what needs to be accomplished. The goals of your assignment should suggest the right location at every phase of the work you must do.

The Reasons Organizations Hire Internal Consultants

Enlisting the help of a consultant is a relatively new trend. In the past, managers had to resolve situations alone. Executives at DuPont Company wrestled with how best to organize and structure the company between 1917 and 1921. And General Motors deployed their executive Alfred P. Sloan Jr. to solve a company crisis in 1920.

There are many different reasons why organizations employ internal consultants. For some companies, the prime motivators may relate to their level of insight or experience and the need for a focus on strategy. For others, having a dedicated band of consultants committed to steering a successful path and evaluating risks on the company’s behalf, can be an appealing prospect.

There are so many things to consider—so many corporate balls to juggle—to be successful. With increased global competition, it makes more sense than ever to have an army of specialists in the field.

Internal consultants may be used in a variety of situations.

Using internal consultants, rather than bringing in expertise from outside, can help to maintain confidentiality during mergers, acquisitions, product launches, and other sensitive activities.

Internal consultants may gather and analyze business information, proposing a change in emphasis or direction for the organization. This will ensure that the business remains competitive.

Internal consultants are frequently employed to ensure that knowledge and best practices are shared throughout the organization.

Internal consultants learn an organization’s values, goals, and constraints so they can propose and promote only those initiatives that will benefit the organization.

Typically, internal consultants are more cost-effective to employ than external consultants. More expensive external consultants may be brought in for special, short-term assignments when it is not financially feasible or necessary to retain their specialist knowledge continually.

Internal consulting teams can be used in situations where a rapid response is essential. A “cheetah team” may be assembled to quickly resolve a problem or develop a strategy.

In-depth organizational knowledge is a key aspect of an internal consultant’s success. In theory, an internal consultant will make better recommendations than an outside counterpart who is not as intimately familiar with the organization’s principles, values, culture, processes, and structure.

In an article in Management Today, Anita Roddick of The Body Shop claims that using an external consultant was the worst business decision she ever made. The external consultant the company hired was not in touch with the culture of the organization. Roddick admits, “He could have run a great army, but in terms of a creative, idiosyncratic, very feminine-run organization without much hierarchy [he] caused [a lot of] corporate anguish.” Other companies can learn from Roddick’s experience. A company should not always look for answers from strangers but instead consult their own internal experts.

The importance of organizational “fit” and the value of company knowledge and culture should not be underestimated. Internal consultants are more likely to have this knowledge—and to be more aligned with company direction.

Internal consultants are most often used for positive reasons: to enhance profitability and performance, to support senior management, or to manage change. Occasionally, an internal consultant may be asked to undermine a specific situation or team, to validate a particular point of view, to rubber stamp a process or even to share some of the blame.

To preserve your integrity and ensure your own success, you must be able to detect, and then decline, assignments with hidden agendas. Unless you remain impartial and define your role clearly, your reputation could be compromised.

This is where an external consultant has an advantage. External consultants are impartial and independent. They are not afraid to make unpopular decisions or propose actions that go against corporate values for the good of the company. As an internal consultant, such a risk-taking approach may prove more difficult because you are part of the organization.

There are many reasons for using internal consultants, and each decision is as unique as the assignments undertaken. Yet the value of their involvement is undeniable. Their insight, enthusiasm, and sometimes provocation, encourages and challenges management to think differently, ensuring the business remains competitive.

Avoiding the Most Common Consulting Pitfalls

As an internal consultant, you will have considerable responsibility. Clients will be looking to you for inspiration and direction, and this will be very satisfying and rewarding. To excel in your role, however, you must also be realistic. You will need to avoid common pitfalls, remain aware of your limitations, and recognize the telltale signs that things may be going wrong.

Among the most common errors internal consultants make are:

not setting or following a project brief
making unrealistic or costly recommendations
not considering internal factors such as culture, values, standards, budget, and staff needs
not understanding different parts of the business
failing to align the consulting assignment with organizational strategies and goals
overdelivery or underdelivery—giving too much or too little.
Other problems and limitations may be encountered at different stages in the consulting process. The most common process-related problems involve the entry or starting phase, planning, client decision-making, communication, delivery and implementation, interpersonal issues, and evaluation and feedback.

Entry or starting phase

Accepting your client’s initial assessment without question.
Failing to establish credibility.
Not stating the time, size, and total cost of the assignment.
Planning

Failing to determine targets, goals, or outputs in a brief.
Failing to assess client needs adequately.
Non-alignment with business goals or culture.
Failing to plan the assignment adequately–time, resources, and budget.
Not checking progress.
Client decision making

Clients feel unable or unwilling to reach a decision–procrastination.
Clients proceed but without considering who will be involved and the level of commitment required.
Clients change their minds partway through the assignment.
Communication

Information does not reach key decision-makers or stakeholders.
Limited dialogue with the client.
Failure to keep the client informed and involved.
Failure to get involved with the client, making consultantcy less effective.
Delivery and implementation

Delivering favored or standard solution to clients, regardless of needs.
Failing to maintain confidentiality.
Accepting diagnosis from a client without question.
Implementing own approach, rather than the solution required by the client.
Interpersonal issues

Information does not reach key decision-makers or stakeholders.
Limited dialogue with the client.
Failure to keep the client informed and involved.
Failure to get involved with the client.
Evaluation and feedback

Limited or no evaluation.
Client and consultant do not agree on success measures.
Recommending additional interventions as a means to get further work.
Not recognizing others.
No handover of responsibility, support, or ownership.
Another potential problem facing the internal consultant is that clients may tend to think you are not on their side, or representing their best interests—and you will need to win them over.

Let clients know what you are doing on their behalf. Even if you can’t reveal sensitive information, you can provide the gist. Showing them that you are committed to the assignment can pay dividends and help win their approval.

Being in an advisory role does not prohibit you from getting advice or assistance. Securing a mentor who will check your progress can be an invaluable aid in your development and may help you to overcome client animosity or lack of cooperation.

You should also understand your limitations. You won’t always get it right. The very nature of your position means that there will always be someone wanting your advice, asking for information, or requesting another service from you. No one can give perfect advice all the time. The important thing is that you learn from any mistakes you make and continue to develop new skills to deal with the challenges you face.

Awareness of the pitfalls inherent to internal consulting is simply the awareness of what can go wrong. Far from inhibiting your growth and performance, this awareness should spur you on to achieve higher levels of performance. Let it become an incentive for you to increase your skill and ability with each and every project.

Elements of the Communication Process

Good communication skills are essential to your success as an internal consultant. However, communication comes so naturally, and from such an early age, that we often fail to appreciate its complexity. You may not fully understand how the communication process works, even though you use it many times each day.

The communication process always begins with the sender or communicator. This will be you, if you are providing information or explaining an idea to one of your internal clients. The process terminates with the receiver. This is the internal client who receives the information or the details about your idea or proposal.

Communication between the sender and receiver sometimes can become distorted, and there may be misunderstandings. Most difficulties arise with the “encode” and “decode” stages of the communication process—in other words, with what you say and how it is understood by others.

To communicate effectively, you should be aware of the key elements of the communication process and how they work. Details about these key elements are provided below.

Sender. As an internal consultant, you act as the sender when you communicate an idea or message to an internal client, deliver a presentation about your proposals to management, or work with others to gain resources.
Idea. This is the information you are communicating, or the message you want to convey. It may relate to figures that support a recent proposal you’ve made, an actual creative idea you’ve had for an internal client, or something else.
Encode. This stage is most open to misinterpretation. The idea must be translated into a code using language, gesture, or action. What is the most effective way of getting across your idea? How should you put it? How will recipients get the most out of it?
Transmit. Your idea is transmitted via a particular channel. You may decide to transmit the idea face-to-face or remotely—electronically or textually—according to the purpose of your communication. Once the idea is transmitted, it is now out of the sender’s control, and it can be influenced by “noise,” or distractions, during transmission.
Receive. At this stage, the receiver receives your communication. However, the idea may have been influenced by “noise” in the environment.
Decode. This stage of the communication process is where the recipient tries to make sense of your communication. The receiver decodes the message by deciphering its “code”—gestures, words, and actions.
Understand. At this stage, the receiver interprets what you have said and considers what impact it will have. To interpret your communication, the receiver will look at it from different angles and evaluate it carefully.
Receiver. Your idea reaches its destination, and the receiver will attach meaning to it and act on it. Remember that you also are a receiver at times in a two-way communication process.
As noted above, the communication process can be influenced by noise. When an idea or message is being communicated, physical noise may distort it or make it difficult to understand. There also may be “mental” noise, when the feelings and values of the sender and the receiver affect the message. Any intrusions into personal space also can determine how the message is received.

Understanding and using this process can help you to sharpen your communication skills. Most difficulties arise during the decode and encode stages, so be clear about what you say, and consider how recipients may interpret your communications.

Further discussion is always advisable to ensure that internal clients have fully understood your communications. You can gather feedback by asking open questions and getting receivers to relay back their understanding of your proposals.

Choosing the Right Communication Channel

There are different methods of communicating—but do you always consider the full scope available to you before you communicate a message? For example, you could communicate your message in person or on the telephone, put it on paper, or use e-mail. With recent rapid developments in media, there has never been more choices.

With various types of communication available, it is essential that you use the appropriate method—based on the context and situation—for any internal consulting assignment. If others are to take on board your proposals and implement ideas in-line with your requirements, choosing the right communication channel is crucial.

To get your message across, you must consider what forms of communication—written and verbal—are available and which is appropriate for your needs. As an internal consultant, you can use different forms of communication at different times. Consider the following communication channels available to you.

Oral communication is useful when speedy or immediate communication is required. Plus, by picking up on non-verbal communication, you can immediately see the receiver’s reaction to what you are saying.
Face-to-face meetings can be useful for building rapport and getting to know clients. They also are useful when resolving problems, updating others about progress, or discussing solutions.
A presentation is the preferred means of communication when delivering ideas to a group of people. It ensures that everyone gets the same information. Presentations also are the accepted means of telling clients what you plan to do.
The telephone is good for relationship-building with your clients. Use this method to make and retain contact with clients and to provide informal progress reports. On the other hand, when using a telephone, you can’t gauge the receiver’s reaction or read any non-verbal cues during the discourse.
Written communications are particularly valuable when a permanent and lasting reminder is required. They are good for presenting complex information and financial data, as readers can continually refer to and digest what is being communicated.
When using any form of communication, you should always consider what the aims of the communication are. Confidentiality is a key requirement for any communication. You must build trust with the client and show your professionalism. You also must consider whether your communication:

requires an “knee-jerk” reaction or a considered response
has to be permanent or non-permanent
needs to be direct and immediate or can be delayed.
When determining which communication channel to use, consider what you are trying to communicate and identify the best way of doing this. Think about whether others would benefit from non-verbal communication, hearing the intonation in your voice, or eye contact. These can be important factors when you are building rapport and encouraging people to do something—common situations for internal consultants.

To enable others to benefit most from your communications, you need to apply the most appropriate method in each situation. How do you do this? Assess what methods of communication are available and can be used. Then identify the most suitable method that meets client requirements and apply it to the situation.

For example, internal clients may feel neglected if you fail to deliver information rapidly to them. For a personal or immediate approach, telephone and face-to-face communication methods are often preferable and help to build relationships. On the other hand, if you are presenting complex information, it may be better understood if it is provided in writing. Your internal clients will certainly appreciate the opportunity to digest data in this way.

Selecting an appropriate communication method can enhance your effectiveness in an internal consulting position. Success depends on getting a message across to colleagues and clients—whether you are selling an idea, providing essential information, or encouraging the sharing of best practices. Remember, choosing the right channel is the key to effective communication.

Effective Communication Skills in Action

It’s vitally important that, as an internal consultant, you listen to your clients, and learn to read clients’ non-verbal behaviors. Apart from the obvious need to discover client requirements, you will gain critical information by listening effectively and watching for non-verbal cues.

1. Listening effectively
By listening to your internal clients, you can learn a lot about their attitudes and feelings, motivations, resistance to change, concerns, viewpoints, and individual perspectives. Gaining this information is imperative if you are to succeed as an internal consultant. It also enables you to dispel any growing feelings of resentment felt by your clients.

When making recommendations or proposals to clients, remember that they should be doing most of the talking. You need to find out what is important to them, what their expectations are, and countless other details. Listening to what the client says in any meeting will be enlightening, and will indicate how you should proceed with the assignment.

By using non-verbal cues such as leaning forward, making eye contact, and nodding regularly, you can demonstrate that you are listening, which will encourage the speaker to open up and provide you with the information you need. Several other strategies you can use to listen more effectively are listed below.

Sincerity. It is important to be sincere and to show internal clients that you really care about their situations. Being distracted, looking away, or not paying attention will only hinder the relationship.
Openness. Active listening is all about building a collaborative partnership. It is not a point-scoring exercise. Don’t conceal information from clients—be open with them.
Empathy. As an internal consultant, it is crucial that you show empathy when listening. You don’t want your clients to perceive a “them” and “us” situation. Instead, demonstrate to your clients that you are in tune with their feelings and situations.
Patience. Try not to finish clients’ sentences. By doing this, you may miss out on essential information. Instead, you will need to be patient, and allow clients to vocalize their thoughts and feelings.
Match body language. It’s essential that you respond appropriately to what is said. You should ensure that your body language matches what the client is saying without being too intrusive.
Act as a reflector. Don’t let your emotions cloud your judgment, and make sure that you don’t argue or ignore the information that you’re given, whether it is good or bad news. Your role should be as a reflector, reflecting back to clients what they’ve said, so you can check your understanding and keep them focused.
It’s not always easy to use active listening skills. There may be many other distractions—thinking about deadlines, client motivations, the assignment, your skills and abilities, and countless other issues. However, such distractions can inhibit your performance. They prevent you from putting clients first and responding in a way they deserve.

2. Watching for non-verbal cues
Every face tells a story. In any dialogue or exchange, the internal client acts and you react, using verbal and non-verbal communication. It is vital that you pick up on all of the cues displayed by your clients. This enables you to respond appropriately to their feelings and concerns.

Your internal clients, and the people in your team, may reveal how they feel in a number of ways. The main non-verbal indicators are facial expressions, gestures, posture, and eye contact.

If you see positive cues, such as smiling or nodding, you’ll know that your current approach is effective. But if you see negative cues, such as frowning, you may need to alter your approach. Non-verbal cues are often very subtle. Watch carefully, or you may miss vital clues to the way your client feels.

There should be congruence between what internal clients say and how they are communicating non-verbally. While an internal client may indicate verbal agreement with your proposals, other non-verbal cues—such as tapping fingers, scratching the head, or frowning—may indicate true emotions, such as agitation or nervousness.

By honing your listening skills and understanding non-verbal cues, you can improve your communications with your internal clients. You will be able to avoid misunderstandings, resentment, and mistakes by correctly interpreting the information your client gives you. In addition, you can preempt difficulties by reading client feelings. By seizing the opportunities to communicate effectively with your clients, you will develop more productive and rewarding working relationships.

Planning Successful Consulting Meetings

As an internal consultant, you will find yourself spending a lot of time in meetings, so it is important that you ensure this time commitment is productive.

Think about some of the more successful meetings you’ve recently attended. Consider what contributed to their success. Chances are that adequate planning played a significant role.

Like all other types of communication, meetings need to be planned to be effective. Listed below are a number of important strategies you can follow when planning your internal consulting meetings.

Be clear about the purpose. Think about why you need to hold a meeting. In many instances, you may find that a simple phone call or e-mail is enough to get the same message across.
Consider who needs to attend. The entire project team may not need to attend every meeting. Think about who has the expertise or information needed, and who will have to take follow-up action. You may even consider who will be offended if they don’t attend.
Give people time to prepare. Give people adequate notice of a meeting. This gives them time to gather information and to consider questions they want to ask.
Circulate an agenda. A good agenda outlines all the topics that you aim to consider during the meeting. Knowing what will be covered gives attendees an opportunity to collect information, consider ideas, or reflect on their contributions.
Stick to a time. A meeting should always start and finish on time. Starting late undermines the importance of the meeting. Failing to finish on time can cause inconvenience and frustration.
Arrange a suitable location. It is unlikely that large meetings can be held in individual offices. Choose an appropriate setting for your meeting, since inappropriate surroundings can be distracting.
Ensure that follow-up action is taken. Most meetings conclude with some action that needs to be taken. The credibility of a meeting is undermined if these actions are not carried out. Clarify what action must be taken with all attendees. Record it in the minutes, and then circulate the minutes, so everyone is aware of the actions that must be taken.
If all that is required for a successful meeting is planning, why are some meetings unsatisfactory, boring, inappropriate, or ineffectual? There are several reasons why meetings fail. Common reasons include the following:

lack of clear purpose
poor preparation
inadequate communication
insufficient use of resources
failure to reach decisions
failure to take necessary action
the wrong people attend.
As an internal consultant, you need to know when to call meetings and how to make the most of them. Using the time appropriately and efficiently is important. To ensure your colleagues view the prospect of another meeting positively, you need to plan them thoroughly, and adopt the strategies described above. This can help you ensure the successful outcome of your internal consulting meetings.

Making Effective Consulting Presentations

Making presentations is a fundamental part of being an internal consultant. You may already have delivered a large number of presentations, but you can always improve them. You need to continually search for new and fresh ways to keep your audience engaged and get your message across.

Presentations combine the verbal and the visual. They offer the advantage of instant feedback and clarification. But as with all types of communication, planning is vital.

When you are developing a presentation, you need to decide on a style that suits you, since this will help you to appear confident. Make sure that you understand your audience and that you are well-prepared. Think about your recent presentations to see whether you could have done things differently.

Good presentations are logically structured and look professional. It is often tempting to develop elaborate visual aids to enhance your presentations. However, visual material should support, but not dominate, a presentation. Keep the following simple rules in mind when creating visuals for your presentations.

Keep images simple.
Use only bullet points for text.
Use lower-case letters where possible.
Use primary colors, because they have the most impact.
Sequence images to build up ideas.
In addition, remember that the impact of your presentation on your audience will depend as much on your manner and appearance as it does on the content and visual aids you use.

Two key points to remember when giving a presentation are to keep it simple and to know your audience. If you keep your presentation simple, you will be able to focus on your message and on getting the key elements right. Don’t be tempted to over-complicate your presentation.

In the same way that your audience is watching you, you need to observe them. You must pick up both positive signs—interest and enthusiasm—as well as negative signs of restlessness, boredom, or disapproval.

It is important to judge the mood of your audience, and respond to the non-verbal messages you receive. Plan to involve your audience in the presentation as much as possible. This often means providing the opportunity for questions.

There are a number of other key points you should always keep in mind when giving presentations. These points are listed below.

Appear confident but not brash.
Prepare well. It is better to use notes than to lose track.
Structure your presentation logically.
Encourage questions.
A well-planned presentation can be an invaluable vehicle for explaining and gaining support for your ideas, so you want to put the opportunity to good use. Of course, not everyone feels comfortable delivering a presentation. Some people continue to feel concerned even after much practice. But overall, preparation, planning, a positive attitude, and self-belief are the ultimate keys to successful presentations.

Effective Report Writing for Consultants

Effective writing is a vital skill for internal consultants. A project report will certainly be a significant part of your communication with your client—and possibly one of your most important deliverables.

A well-written and carefully constructed report is likely to have the impact you need—and it will help to enhance your reputation.

There is a saying that “hard writing makes easy reading.” The more effort you put into crafting the report, the more impact it should have on your client.

Take some time to consider reports you have recently written or read. What makes them good—or bad? Compile a list of factors that, in your opinion, make a good report.

There are several factors that are common to all well-written reports. Compare your list with the points below. To write an effective report, you should:

include only relevant material
edit out unnecessary words and phrases
use a direct and objective writing style
use tables and charts to support your points
include only “must know” information. “Nice to know” information can be included in the appendices.
Report writing is an important part of the internal consultant’s role. By improving your written communications, you will be able to satisfy client requirements and establish long-term, productive working relationships.

Managing Resources for Consulting Projects

Your success as an internal consultant will be measured in part by how well you manage project resources. Get it right, and the project will run smoothly. Get it wrong, and delivery may be delayed, with costs spiraling out of control.

To ensure the success of your projects and assignments, you will require many different types of resources. At a minimum, you probably will need:

human resources, such as external expertise, help from fellow consultants, client input, and colleague assistance from the client’s department
physical resources, such as machinery, materials, or equipment
financial resources
time.
As an internal consultant, you often will have to be flexible. One of your greatest challenges will be dealing with shortfalls in the resources you need to complete projects and assignments on-time and on-budget. To ensure your projects stay on track, you will have to be able to sort out any shortfalls you experience and remedy the shortfall situations.

Resource shortfalls can have a domino effect on other parts of a project. For example, if key team members are absent, it may take longer to meet your client’s deadline. And if the budget runs out, the entire assignment may have to be abandoned. Remedies for dealing with shortfalls in the four basic resource categories are listed below.

1. Shortfalls in human resources
Your own team members and the staff in your client’s department, may be absent due to vacations, training, or sickness. You will need to develop contingencies, so this shortfall does not adversely affect the project.

Possible remedies include getting additional help from other colleagues, using temporary staff to plug any gaps, postponing work, rescheduling appointments if key people are missing, or renegotiating the deadline in the worst case.

2. Shortfalls in physical resources
Equipment and machinery can be expensive, so are often shared. Not having access to the equipment, machinery, and materials you need can be a source of frustration. Equipment failure or breakdowns can place a strain on the project too.

Possible remedies include equipment or machinery leasing, or getting physical resources from other departments. However, you should do this only if other workloads will not be affected.

3. Shortfalls in financial resources
The bottom line is that your internal consulting projects must be on- or under-budget. But many factors can cause additional challenges. For example, a change in the scope of a project can have a domino effect on time, in turn bumping up costs.

Remedies include building in contingencies from the start, making accurate estimates of costs, budget-tracking, and offsetting any losses against savings made in other areas of the project. You should not reduce quality, or deliver less without client approval.

4. Shortfalls in time
There is always a deadline when working for internal clients. Time is always a limiting factor, and it should be balanced with cost. It is better to be realistic about what can be achieved from the start.

Remedies include setting milestones to review against targets, learning from past projects, using planning and control charts, bringing in other staff to share the workload, working overtime, or redefining the scope or deadline with clients.

Aim to be proactive when managing any assignment resources. It is far better to invest time at the planning stage to ensure that the right resources are identified to the right specification, and that they are available at the time you need them.

Fixing shortfalls, as you have seen, is not impossible, but it can be difficult. Devising flexible and realistic plans will carry you and your team through a project to ultimate success.

There may be a temptation to panic about resources when deadlines are imminent or when things go wrong. But there is a lot you can do to develop workable contingencies and plan for worst-case scenarios. Your forward planning can become your lifeline should shortfalls occur, giving you a path to success.

Managing Budgets for Consulting Projects

Most internal consulting projects have budgets, which require careful management and control. Your ability to manage a budget will affect how the project is perceived, and whether it is successful or not. Each project will usually have an associated profit or loss figure on which you are judged, so it’s important that you take effective action to control spending when necessary.

A budget can be stretched only so far. However, you shouldn’t cut corners, change the scope of a project without client approval, or use inferior materials in an effort to reduce costs.

Many internal clients will be sympathetic to your need to work within a budget, so never be afraid to discuss any problems that arise. If you keep your clients informed, they may be able to help solve financial shortfalls.

To effectively manage and control project budgets, you can use the following strategies.

1. Build in contingencies.
Prevention is better than a cure. It is preferable to plan and identify ways to manage a budget from the outset, instead of having to take remedial action to control spending at a later date. Accurately predicting what finances you will require and then ensuring that you comply with your forecast will prevent variance and budget overruns.

In addition, to effectively manage your budget, you can build contingencies into your forecast. In other words, you can overestimate in some areas to cover any underestimations you make elsewhere in your forecast. This “floating finance” will help you ensure that the project does not run into difficulties if you get a figure wrong.

2. Check spending regularly by looking at budgeted and actual figures.
Once you’ve accurately forecasted your spending for the entire project, make sure that you stick to the plan. It’s crucial that you keep checking actual and forecast figures and make adjustments at each project milestone as necessary.

3. Use financial tools to manage your budget.
You can use a number of financial tools to manage a project budget, including profit and loss statements and cashflow forecasts. The financial data that results from the use of these tools can provide many insights into the status of your project budget.

One of the best indicators of the success of your budget management is the profit and loss statement. Analysis of this statement will highlight potential budgetary issues, giving you an opportunity to take remedial action. In particular, it can help you to predict:

whether the project will be brought in on-, under-, or over-budget
whether you will encounter any future budget problems.
4. Identify over- and under-spending as quickly as possible and take remedial action when necessary.
Even the best-laid plans can go awry. Since all spending throughout a project determines whether or not you are ultimately successful, you should check your budget regularly, identify over- and under-spending as quickly as possible, and take remedial action to bring a project back on track or tighten spending if you fear a budget overrun.

How are you going to be judged at the end of a project? By your revolutionary idea? By your dedication and commitment to the client? These things are clearly important, but a budget overrun can compromise everything else you do for clients and dampen their enthusiasm for your future recommendations.

Remember that internal clients may be looking to you for inspiration on how to manage their own budgets. Set an example where possible by aiming for profit in every internal consulting project you undertake.

Make sure that you check spending during a project and think before taking action. Changing your spending plans may have a detrimental effect on the entire project outcome. Financial information can be deceptive. You may need to recalculate your figures to help you realize that tantalizing offers and a change of plan may not be the best solutions after all.

It is essential that you don’t distance yourself from the financial aspects of your projects. It is important to know what is happening and to take a proactive action. After all, if things go awry financially, your project may ultimately fail. By carefully managing and controlling your budget, you will thrill clients and the management team alike. What’s more, you may increase your spending power for the next project.

Avoiding Project Errors by Creating Terms of Reference

To excel as an internal consultant, you need to identify and meet client expectations and requirements. Knowing what your clients expect from you and the project will help you to focus on the priorities—but will this alone guarantee ultimate success?

Success can never be guaranteed, but there are many reasons why an internal consulting assignment might not get off to a good start. Some failures are connected with the nature of the project itself, while others depend on the approach taken by either the client or the consultant.

The most common errors in project planning and delivery occur when defining project scope, interpreting client needs, setting goals, and ensuring collaboration.

Defining project scope
There is often a sense of urgency attached to internal consulting projects. As a result of this haste, people give insufficient consideration to project scope and desired outcomes. The consultant may only receive hurried briefings from inadequately informed staff. In such rushed circumstances, scope statements, required deadlines and quality standards may be left unspecified.

Internal consultants must consider the time implications of any assignments. It is important that clients achieve project outcomes within appropriate schedules. You can avoid pitfalls at the very start of projects by clarifying scope and setting achievable interim goals.

Interpreting client needs
Inexperienced internal consultants may find client briefings difficult at first. They are often reluctant to ask for clarification, thinking that this will, at best, brand them a novice and, at worst, demonstrate incompetence. At the same time, some clients may use unfamiliar jargon, or assume a greater level of situational knowledge than the consultant possesses.

As an internal consultant, it is better to suffer a few moments of possible embarrassment by asking for further explanation than to risk jeopardizing the success of the assignment.

Setting goals
You may need to help clients to focus on realistic goals. This could mean breaking the project down into smaller goals that can be reached more easily.

It is also important to recognize that some clients will have unrealistic expectations, either of you as a consultant or of the project outcome. Some clients will be hoping not just for a resolution to a problem, but for a total transformation. Not only may this be outside the scope of the assignment, but even beyond the bounds of possibility. To avoid this common error, you must set clear, measurable, and attainable goals.

Ensuring collaboration
As an internal consultant, you must possess the ability to get on well with all kinds of people. You should also be flexible enough to fit into a variety of different situations. However, on occasion you will be asked to work with people whose views you do not share. This antipathy need not be disastrous, but you need to consider very carefully whether your different perspectives make collaboration impossible.

Consider your recent assignments as an internal consultant. It is likely that there were times when you misunderstood client requirements, or clients misinterpreted your roles and responsibilities. Think about each assignment in the context of the following questions, and develop ways of avoiding the pitfalls.

Was the project scope well defined?
Did you interpret the client’s needs accurately?
Did you set realistic goals?
Did collaboration go well?
If you could start over, what would you change?

Most misunderstandings arise as a result of poor or inadequate communication. An example is when people are too busy or too distracted to really listen to each other, and they don’t fully consider the implications of a project and what is required for it to be a success. The failure of many internal consulting assignments can be put down to this lack of communication.

Good communication and planning can ensure that you identify and understand all your clients’ requirements, which gives you a much better chance of meeting their expectations. As an internal consultant working within your own organization, you cannot just walk away at the end of an assignment. You therefore need to ensure that you retain your credibility.

In your initial meeting with your client, you need to focus on the problem and determine your involvement. In consultation with the client, you must consider the following:

What are the real, underlying issues?
What will a successful outcome look like?
What is your role, and who else should be involved?
What information is there about the situation?
What do other people think about the situation?

Developing “terms of reference” for the project will help you to focus on the main issues. The terms should be agreed upon by you and your client, and should clearly and concisely set out the project objectives and your role.

Because this is unfamiliar territory, you may find yourself reluctant to push a vague client—who might be your former manager—for details. But lack of clarity in the early stages can doom an assignment to failure. Do not assume that you will have the opportunity to correct initial misunderstandings later—the damage may already be done.

What should you include in your terms of reference?

Objectives – You need to be clear about what the client wants to achieve.
Background – You need to include some information on the history of the problem.
Boundaries – You need to be clear about where your job begins and ends. For example, your involvement may finish with the delivery of a report, or you may also be called on to implement some of your suggestions.
Resources – You need to agree on the resources—including people and time—that are available to you. Depending on the way in which internal consulting is dealt with in your company, you may also need to identify the cost of the assignment.
Assumptions – You need to outline any assumptions that you have about the project before you undertake further research.
Deliverables – You need to agree on the nature and frequency of reports. You should also agree on the milestones, the deadlines, and what the final outcome will be.
In an ideal world, nothing would alter during the course of the assignment; but in reality, client needs often change, additional work may be required, or the anticipated resources may be unavailable.

Creating terms of reference will help you to check that adequate progress is being made, and that your client’s requirements are still being met.

The Importance of Identifying Stakeholders

In recent years, companies have become increasingly aware of the potential impact of stakeholders on their activities. Stakeholders are the individuals or groups who have a “stake” or legitimate interest in the activities of the organization.

Stakeholders in an internal project fall into two distinct groups:

People who have an interest in your consulting assignment will be subject to your authority or that of your client.
People who are outside your authority or that of your client, but who have a vested interest in project outcomes.
As an internal consultant, you will need to try to meet the needs of both groups.

Every consulting assignment is different, but in most cases you will need to consider the views of all or some of the following internal stakeholders:

other managers
departmental staff
staff in related departments
staff representatives
the Board of Directors
There are also external stakeholders. The interests of these stakeholders may vary considerably. Some—like suppliers, contractors, shareholders, creditors, and competitors—may have a direct financial interest in your organization. Others—like local authorities, government agencies, taxpayers, and pressure groups—may be interested in your operation in the wider community.

Imagine that you are an internal consultant who has been asked to look at choosing and installing a new IT system. Your client is the Technical Director, but the system will have to serve the information needs of all departments. Your company also has a long-standing commitment to the environment and recently published a recycling policy. Whose views do you need to canvass if the design of the system is to be acceptable to everyone?

For starters, you have to know what reporting information each department needs from the system. You must also understand how the managers will use the information on a day-to-day basis.

The new system will have implications for the IT staff. They will be required to support the system once it is installed, and so you have to understand the potential impact of an increased workload for them.

The system must also meet the needs of staff in other departments. To address the needs of this group, you must understand how other departments use the current IT system as well as what they need from a new system.

Before you make proposals for the new system, you must be aware of any limitations, such as compatibility with existing equipment. Any system changes may affect your relationships with suppliers, and you need to make sure that you understand how.

There may be legislative requirements in terms of disposal of out-of-date IT equipment. Some local authorities also have extensive recycling programs and might be interested in donating old computers to schools or families.

Occasionally, clients and stakeholders have conflicting interests. For example, manager shareholders who want to reduce costs may conflict with marketing shareholders who want to increase spending on a promotion for the latest product. One of your strengths as an internal consultant is your ability to be objective. To overcome conflict, you need to remain detached and analytical.

Internal consulting projects are often more complex than you first imagine. But identifying all of your stakeholders will help you to see beyond the complexity to deliver a solution that is acceptable to everyone.

Gathering and Analyzing Useful Information

Every internal project starts with a problem or issue. To come up with a realistic solution, you need to do your homework. Before you propose a solution, you need to gather and analyze data which provides a basis for your recommendations.

To deliver project outcomes, internal consultants gather information using a variety of methods, including:

desk research
one-on-one interviews
group interviews
questionnaires
organizational processes
Desk research is likely to be the first thing that you do. This will give you a better idea of the current situation. Your client may have provided you with briefing documents, but if not, you should read widely to gain as broad a picture as possible. It is important to take the opportunity to find out as much as possible about the factors which might influence the outcome of your assignment. The sorts of documents that you might examine doing desk research include:

company reports
operational and procedural documents
departmental minutes
specialist press
government reports
industry surveys
competitor publications
financial press
One-on-one interviews allow you to show empathy with your client and to ensure that questions are fully understood. Interviews also provide you with time to clarify your understanding of the situation and give your interviewees the opportunity to express their opinions in full.

Individual and group interviews are more effective when they are well-planned and carefully structured. To gather useful information from interviewees you must:

Plan your questions. – Having done some initial desk research, you should know which questions to ask. You may need to have a bank of possible questions, so you can change course depending on your interviewees’ responses. You can be flexible, but stay focused.

Keep your interviewees informed. – You are more likely to get honest and helpful responses from people who feel that they can trust you. Provide interviewees with as much information as possible about the process. You need to make sure that the interview is more of a conversation than an interrogation.

Remember interview objectives. – Don’t lose sight of what you are hoping to achieve from this kind of research. Many respondents will raise interesting issues that may well be outside the scope of the current assignment. Background information can be helpful, but don’t get sidetracked.

Allow enough time. – You need to schedule enough time for each interview so that neither you, nor the interviewee, feel rushed. Confirm timing with the interviewee well in advance, and always give yourself enough time to make notes following each interview.

Listen. – Use a checklist of questions to remind you of what you need to say. Remember that you want to encourage your interviewees to do the talking—you should avoid too many interruptions.

Confirm your understanding. – Make sure that you clarify any points you are unclear about—but always avoid asking leading questions. Use open-ended questions at the beginning of the interview. Avoid using complex multiple questions which can be difficult to answer clearly.

Take notes. – You may find yourself doing a lot of interviews in a very short space of time. Keeping records of what was said will be vital. However, always make sure that the interviewee understands that you are taking notes and is happy for you to do so.

Stay objective. – Some of the issues that you are researching may well be emotive or contentious. It is important that you don’t get drawn into making comments on any controversial issues. You are being employed to take the “helicopter” view, and you need to retain your objectivity.

Well-designed questionnaires provide another valuable method for gathering data. They are particularly useful when the people you need to contact are geographically spread. But remember that, left to their own devices, people may be reluctant to complete and return forms, so you need to allow time and resources to chase respondents and collect the data.

Like one-on-one and group interviews, questionnaires must be well-designed to be useful. Questionnaires offer certain advantages over individual and group interviews because:

they are cheap
they can be used to collect data on a wide range of topics
they can provide valuable quantitative data
they can be completed anonymously
they can be widely circulated.
Like interviews, your questionnaires must be designed thoughtfully to provide meaningful data.

Another good source of information comes from process mapping, which provides a detailed understanding of existing operations.

Process mapping is particularly valuable, because it can help you:

identify non-value-added activities
provide information for reorganization or IT projects
provide a clear picture of organizational processes.
As an internal consultant, you will use strategic models to help you see patterns in the data you have gathered. The structured frameworks of models make it easier to see relationships between the various elements. They also help you to determine the implications for the company.

There are numerous methods for analyzing data. Some of the most common are:

Identifying the company’s strengths and weaknesses.
Identifying opportunities and threats for future business development.
Identifying core competencies (skills, structure, strategy, systems, style, staff, and shared values).
Identifying the company’s primary activities and support services.
Defining potential sources of competitive advantage.
Identifying the different stages in the life of a product (development, introduction, growth, maturity, saturation, and decline), and the various sales and costs associated with each stage.
Predicting the behavior of a company’s closest rivals.
Identifying competitor barriers to entry, competitor strength, customer bargaining power, supplier bargaining power, and substitution.
Identifying environmental issues which may affect a business, such as political, economic, social, technological, legal, and environmental.
In choosing one or more of these models, an internal consultant will consider several key questions. Was the model you used appropriate to the project? Was the model easy to apply? Did your client understand why you chose to use a model? Would a combination of models have been more appropriate? Did the model help you to achieve your project goals?

It is important to recognize that if you are going to change your data into information the correct model must be applied. You need to think carefully about whether you are looking at an internal situation or an external one.

Information overload is a popular expression today, with an increasing availability of access to sources of data. On an internal consulting project you must focus your data gathering needs carefully and structure the information so that it aids, rather than impedes, decision making.

The Roles Played by an Internal Consultant

As an internal consultant, you will be expected to perform well in many roles. You may have the skills, experience, or technical knowledge that is in short supply elsewhere within the company. You may also provide a greater objectivity—away from functional rivalry. Perhaps you have the time that your client lacks to investigate new procedures or gather wider information.

An internal consultant may be employed in a variety of different roles. Some of the most common and important roles are: technical expert, champion, researcher, facilitator, and advisor.

Technical expert – If you have technical expertise, specialized skills, or valuable experience, you may be asked to find the solution to a problem or identify areas for improvement.

Champion – You may be asked to “champion” new processes, procedures, structures and systems throughout the organization.

Researcher – You may be asked to head a research project. In this capacity you will gather data and information, evaluate it, and recommend solutions based on your findings.

Facilitator – You may be asked to act as a facilitator. In this role, you might guide the client through some process, or create a climate in which change can happen. Facilitators tend to be process specialists and their roles are to be catalysts.

Advisor – You may be selected for a particular project because you are in a better position to provide advice about processes or people than those already involved in the work. As an advisor, you will oversee individuals or groups, share knowledge and show people how to apply it.

Consider your most recent projects. Which roles did you adopt? Were you happy working in different roles? Do you have a preferred style of working? Awareness of your own role preferences will help you to adapt to the needs of the client and the project.

In the role of expert, consultants apply their expertise to the development, design or installation of new systems. They may be involved in designing operational methods or procedures, or making recommendations that require significant reorganization, or even the creation of new departments.

As a champion, a significant amount of the consultant’s time is spent on presenting and selling an idea to others and then supporting its introduction.

The emphasis of this role is on persuading others of the benefits of change, and helping them to understand the implications of that change. In this kind of situation, the need for change might have been identified before the consultant became involved in the project.

When consultants are employed as researchers, they need to gather data, make sense of it and present it back to the client in the form required. Researchers need to be organized and methodical in their analysis. They must possess good presentation skills and the ability to inspire confidence.

Where consultants act as facilitators, they need to present clients with a framework to help them solve the problem. The emphasis in this role is on empowering clients to identify their own solutions.

When companies employ internal consultants as advisors, they are looking for a greater degree of objectivity—for someone to take a look at the situation from a broader business perspective. If you are asked to act as an advisor, you need to:

avoid getting emotionally involved in the issue
be a good strategic thinker
have broad business experience
be analytical
be a good problem solver.
Each role implies a specific working relationship between consultant and client. The key is to ensure that you understand the requirements of each role and the differences between them.

Part of the attraction of internal consulting is that no two projects are identical. In each particular situation you face unique issues and play slightly different roles. By using your experiences with different assignments, you will become more flexible and adaptable, enabling you to satisfy your client’s expectations every time.

Where Does an Internal Consultant Get Power and Authority?

If you have recently moved into a consulting role, you might well be feeling a little uncertain about how to establish your authority without a title, staff, or even, perhaps, a permanent office of your own.

We are used to situations where people’s authority at work and the influence they have over others comes from their job title and their position in the organization. Symbols of this position—size of office, type of car or parking space—may also help to reinforce their authority.

But things are beginning to change. With today’s flatter organizational structures and a more inclusive management style, people are starting to recognize that “authority” or power can come from many different sources.

coercive power – This is power gained as a result of the force you are able to exert over others.
information power – This is the power that you have as a result of information that you have gathered. The increased emphasis now on the “knowledge economy” has highlighted the significance of this source of power.
resource power – If you own the football, you can control when the game ends! You can derive a lot of power or influence from the resources that you control.
position power – People inevitably have power as a result of their position with respect to others. If you are in charge of a department or section, you will have position power over those working “under” you in your department.
dynastic power – It is not what you know, but who you know that counts! Being able to call on the support of others in positions of influence can be a significant advantage.
expertise power – Your skills and ability will give you power or influence over others, particularly those who need the knowledge or expertise that you possess.
personal power – We all know that there are people who exercise power and influence solely as a result of their personalities, charisma, and their abilities to relate to others.
As a consultant, you do not always have power or authority in the conventional way. You may be advising and working with people who have more years in business than you, and who are in more senior positions within your organization. Your current internal clients may, until very recently, have been departmental colleagues.

Your influence as an internal consultant comes from your:

expertise power
information power
personal power
resource power
In some cases, your authority may come from a combination of these sources.

As a recognized expert in your field, you have power as a result of your knowledge and expertise. This power depends on the relevance of your knowledge to others. This is one of the most familiar sources of power for a consultant.

In the course of your work, you may have gathered a considerable amount of knowledge in specific areas. This information is a valued resource, and its possession provides a source of power.

As an internal consultant, communication and interpersonal skills should be among your strengths. Personal power, including the ability to persuade, is also an important source of power.

Another source of power is being in charge of resources. Resources can be money, people or machinery—the power comes from others having to come to you for allocation.

The sources of power available to you will often depend on the nature of the project and the role that you are being asked to play. You may have been asked to undertake projects by a senior manager. By association, then, you have some “share” of that authority, as well as possessing your own resources.

Personal power, technical expertise, possession of resources, and support of influential others provide the authority and power you need to influence others in your role as an internal consultant.

Leadership Skills for Internal Consultants

Leadership is an important aspect of an internal consultant’s job. In your role as a consultant, you will need well-developed leadership skills to help you to work effectively with many different teams on a variety of projects. What specific attributes and skills should you cultivate to perform well in a leadership role?

Effective leaders possess key attributes such as:

vision
confidence
the ability to set goals
emotional stability
enthusiasm
good communication
trust
flexibility
These attributes build credibility, respect, and trust among managers and peers.

In addition, most leaders also seem to have a certain charisma, often as a result of their enthusiasm and commitment.

The essence of contemporary leadership is summed up well in the following quote from Bill Gates of Microsoft: “Leaders will be those who empower others…Empowering leadership means bringing out the energy and capabilities people have and getting them to work together in a way they wouldn’t do otherwise.”

Getting people to achieve more together than they could as individuals, empowering them, and enabling them to use their skills are also essential characteristics for internal consultants.

Percy Barnevik, the successful Swedish industrialist and investor, highlighted another of the essential qualities of leaders: “The best thing you can do in my organization is to make the right decision. The next best thing is to make the wrong decision. What gets you fired is to make no decision.”

Theories on the subject of leadership suggest that a more involved leadership style is ultimately more productive, since it encourages greater commitment from the team, and a better focus on the task. However, theorists have also recognized that no one approach is universally appropriate. The most effective approach for any situation will depend on the nature of the task, the abilities of the staff and the personality of the leader.

Each scenario requires a tailored approach. The successful wartime commander doesn’t always make a successful peacetime governor. The Chief Executive Officer who rescues a company from the brink of commercial disaster may find that developing the business further requires quite different skills.

So, there are three things that determine the nature of leadership in any given situation:

the character of the leader
the nature of the task
the abilities of the led
Each internal consulting project is unique—different problems, different people, and different solutions. Inevitably, your leadership style needs to match each given scenario. You need to consider your own strengths and preferred style of working, as well as the demands of the project and the experience and expertise of those with whom you are working.

There are obviously many things about the nature of the project that you will want to establish before identifying the most appropriate style of leadership.

Is the project urgent? – If it requires that urgent action be taken, an autocratic style which relies on one person making a decision is probably most appropriate.

Do you have the staff you need? – Is all the information readily available, or is it vital that you consult other departments? You may need to direct and control resource flow to ensure success.

Do changes need to take place that will continue after your involvement in the project is complete? – If so, you need to mentor people and develop their skills so that they can become leaders themselves when you are gone.

Is the task structured and routine, or complex and open-ended? – An open-ended task will benefit from a team approach, and this will affect your leadership style.

In addition to the factors already reviewed, you have to consider the working environment. Issues such as prevailing culture, available technology, and even shareholder expectations may constrain the leadership style that you use. Matching your style to the task and people involved increases the chances of a successful outcome to your project.

Effective leadership can make the difference between success and failure for an internal consultant. To succeed, you must thoroughly understand the task, your own personal leadership style, and the characteristics of your team.

The Four Stages of Team Development

As an internal consultant, you will almost certainly be working with teams. You may be asked to form a team to do the work of a particular project. If you are asked to form a team, you should understand that transforming a group of skilled individuals into a successful team does not happen overnight. Team-building takes time, patience and commitment.

A team is more than a group of individuals. Oxford English dictionary defines a team as “a number of persons associated in some joint action,” and a group as “a number of persons in a certain relation or having a certain degree of similarity.” The key difference is that a team is formed around a joint purpose or goal. In fact, the team’s goal or purpose should drive every aspect of team development.

Team development is a multi-stage process. B. W. Tuckman identified four stages in team development: forming, storming, norming, and performing.

Stage 1: Forming – When a team is first formed it is a collection of individuals trying to establish a group identity. Team members are getting to know each other and exchange only inconsequential information.
Stage 2: Storming – Storming happens as the team is organizing itself. Often characterized by competition and conflict, everything is challenged—including the need for a team. For some groups this stage is fatal.
Stage 3: Performing – During the performing stage, skills within the group are utilized to the fullest. There is intense loyalty to the team, openness and trust. Differences of opinion are welcomed, and levels of creativity and productivity are high.
Stage 4: Norming – In the last stage—norming—competition becomes collaboration. The team identity and purpose are consolidated and there is open exchange of information. High levels of trust are established.
Tuckman proposed that groups must progress through each stage of development before becoming an effective team.

A team’s progression through the stages depends on its makeup, the experience of team members, and the nature of the task. Some groups get no further than the storming stage and are destroyed by the conflict associated with this phase. Other groups move rapidly through the early stages and quickly become efficient performing teams.

Recent analysis of the performance of teams has led to a fifth stage being added: adjourning. Many teams are created for a specific purpose and have a finite life. As the work comes to an end, the group’s attention turns away from its current task toward consideration of what will follow. The break up of an established team is often very emotional, and in the final stages this can distract from the performance of the group.

Knowing what to expect from each phase of team development will help you to increase the speed and efficiency of forward movement. When you understand that the early-stage of team development can be frustrating because little progress is being made, you can encourage your team with your patience and encouragement. You can work to remove roadblocks as your team establishes its identity, reminding individual team members of their common purpose and unique contributions. Ultimately, by recognizing the stages of team development, you will be able to create more effective teams.

The Importance of Identifying Team Member Roles

Have you experienced the elation of being a member of a highly successful team—one which always achieved or exceeded its goal? Have you also experienced the frustration of being involved with a group that argued constantly and that seriously under-performed?

Why do some teams work well together while other groups of equally talented people fail to achieve their objectives?

In the 1970s, R. Meredith Belbin undertook extensive research in the area of team management. His research demonstrated that, above all else, teams need balance. They need to be comprised of individuals with different—but complementary—skills and behaviors.

Belbin identified eight team roles that are equally important in the formation of a fully functioning team.

Chairmen – Chairmen are good coordinators and social leaders. They clarify goals and seek contributions from others. Chairmen are confident and controlled. They are calm and encourage decision-making.
Company workers or implementers – Implementers are well organized and self-disciplined. They are methodical, practical, dutiful, and hard-working.
Team workers – Team workers are good listeners and adept at coping with difficult people. They are sensitive, but can be gently assertive. Team workers will always put the group first and help to maintain morale.
Shapers – Shapers are dynamic and challenging. They are task-minded, and make things happen. Shapers tend to be very outgoing and energetic.
Monitor evaluators – Monitor evaluators are sensible and unemotional. They are able to take a strategic view, and offer dispassionate advice. Monitor evaluators can find flaws in any argument and will consider all factors before making a sound judgment.
Plants – Plants are creative and innovative. They bloom in most environments. They are individualistic, bright, and imaginative.
Resource investigators – Resource investigators are extroverts. They are skilled and diplomatic communicators with a wide circle of contacts. Naturally curious, they are enthusiastic about people, ideas, and anything new. Resource investigators like a challenge.
Completer finishers – Completer finishers are disciplined, conscientious, and orderly. They are perfectionists and detailed planners.
Understanding the different roles that contribute to a successful well-balanced team helps you to operate successfully as an internal consultant.

In a perfect world, this information would enable you to create the ideal team each time. In reality, of course, you may not have ultimate control over who will be on your team. Regardless, your ability to identify “missing” roles is important. Once you know which roles are missing, you can either recruit additional members or encourage certain team members to develop secondary roles.

Everyone has one team role that comes naturally, but up to four roles in which they can function comfortably. People will often modify the role that they play depending on the makeup of the rest of the team and the demands of the task.

By adding the right mix of new roles to an existing team, you may be able to invigorate it—changing the focus to compensate for deficiencies. But remember—maintaining a balance is most important.

A successful internal consultant is able to adapt to working in different roles on different teams. Recognizing the relative strengths and weaknesses of the team roles will enable you to promote cooperation and productivity in your teams.

The Characteristic Qualities of a Successful Team

Successful internal consulting projects depend on making teams work well. Achieving the correct balance in a team is vital, but there are other characteristics which distinguish successful and unsuccessful teams. Recognizing these factors for success improves your chances of reaching your project goals.

Think about your experiences of successful and unsuccessful teams, and try to list some of the characteristics of each. Team roles and the maturity of the team will have played some part, but what other features were significant?

Teams in which there are high levels of trust and a commitment to a common goal are more likely to share information, focus on problem solving, and develop effective decision-making processes.

The characteristics shared by successful teams are:

They are results-oriented.
Team members are interdependent.
There is high energy, enthusiasm, and morale.
There is a strong desire to achieve.
They are innovative.
They are comfortable with change.
Conflict is used constructively.
They are driven to stay on time and within budget.
Individual objectives are in line with project goals.
They have had previous success.
To ensure the success of your projects, you should aim to promote these characteristics. At the same time, you need to minimize the barriers to effective team development.

Negative views spread quickly and reduce team morale. Conflict, fear, or insecurity could be behind a lack of commitment to the project—individual discussions can turn the situation around before any long-term damage is done. Overall, you need to ensure that role conflict or power struggles do not sabotage the team. Identifying team roles and structure, and keeping the channels of communication open throughout the assignment can minimize this problem.

To ensure that you have an enthusiastic team, you need to foster a highly motivated one. It has been found that 65 percent of the working population would continue to work even if financial necessity was removed. So, if money alone does not motivate people, what does?

You need to recognize that the degree to which individuals commit themselves to the success of projects depends on how committed the company is to their own development and success. You may need to deal with inherent resistance to the project by finding ways to make its significance and importance to the company clear.

The team objectives must be clarified and the priorities set. Shifting priorities and goals can undermine the dedication of even the most committed team.

People want to believe that they will be rewarded for the amount of effort that they put in. If they feel that the reward does not match the effort or that others receive greater awards for less effort, they will be demotivated.

At the heart of all successful teams is open communication. This will ensure that everyone is aware of what is going on at all times—which boosts morale and helps the team to successfully meet its targets.

If you want to excel in your role as an internal consultant, it is important to remember that success breeds success. Successful teams are more likely to meet their goals and deliver results that satisfy team members and clients alike.

Change: Its Impact on Internal Consulting

Business consultants Robert Kriegel and David Brandt put it clearly: “When you’re through changing, you’re through. Change is a process, not a goal; a journey, not a destination.”

We tend to think of change as something fairly new. To a degree, that’s true. But in reality, there has been continuous change since the days of the Industrial Revolution, back in the 18th and 19th centuries.

Our forebears were at the forefront when wholesale change was introduced throughout the Industrial Revolution. This period stands out as a time of accelerating industrialization and technological change: the use of new materials and energy sources; the invention of machines; new organization of work into a factory system; and developments in communication and transportation. It was also a time of immense economic and social change.

In the past, management teams have often been accused of taking a “ready—fire—aim” approach to change management—a tendency to make change, and then to think about why it has been done afterward.

This is far from ideal. All types of change can be bewildering for employees, particularly if there is little justification for them. You need to identify what type of change is appropriate for the situation.

As an internal consultant, you will be expected to make your mark. Change will be an ongoing requirement. An instrumental part of your job will be to recommend improvements to:

processes
productivity
technology
Change usually falls into categories. It may be transformational—transforming the strategy, structure, values, or culture of the organization. Alternatively, change may be developmental—improving effectiveness within the company. There are three main types of change: technological, environmental, and internal.

As an internal consultant, change will be a core activity of your job. It is crucial for the survival of any organization. Understanding what type of change you are going to make, and why, can help you to ensure your company’s long-term health.

Understanding Lewin’s Three-stage Model of Change

All internal consultants recommend change of some kind. To bring about real benefits and lasting improvements for your company, you need to ensure that the climate is right for change.

Lewin’s Three Stage model of change is part of force field analysis. It consists of three key stages: unfreezing; making change; and refreezing.

Unfreezing – At this stage, the reasons for maintaining old habits are explored. Factors may include such things as perception, reinforcement by others, and reward.
Making change – This is where attractive alternatives are given to the internal client to promote new behavior.
Refreezing – In this stage, you have to reinforce the new behavior with formal and informal reward systems. Internal clients may reinforce the efforts made by others to change.
The unfreezing and refreezing parts of the model are the ones that are frequently neglected when change is implemented.

Lewin’s Three Stage model of change is invaluable for reminding you that change management is not simply about making the change. You need to break down the reasons why your clients may find it hard to change, or give up old habits.

Reinforcing new behavior is crucial if change is going to take hold. After all, when your involvement ends, you want your clients to believe that this is just the beginning of something new and better.

Evaluating Resistance to Change

When implementing change, you will probably encounter some resistance. Determining the level of resistance in advance of implementing the change will allow you to design an implementation strategy that ensures your change’s success.

The likelihood that a change will meet with success can be assessed using Lewin’s force field analysis. This physics model examines the forces for and against change, along with the relative strength of each.

According to Lewin’s model, movement (change) will only take place if the forces for change (drivers) exceed the forces against change (resistors). In other words, if the strength of the drivers exceeds that of the resistors, change will occur.

Drivers – are forces pushing for change, initiating change, or keeping the need for change going.

Resistors – are forces against change, acting to restrain or decrease the drivers for change.

In a situation where productivity must be improved, the drivers might include pressure from your manager, incentives, such as salary bonuses, increased competition, and consumer demand. The resistors might include apathy or hostility from team members, the cost of paying overtime, and poorly maintained equipment.

In a situation where new equipment must be implemented, drivers for the change might include poorly maintained equipment, increased output as a result of new equipment, greater job satisfaction, and others. The resistors might include the cost of new equipment, the level of disruption anticipated, or staff hostility or apathy.

In a situation where a change of culture is being proposed, the drivers for change might include clearer branding of the organization, expectations of consumers, or increased business potential. The resistors might be the costs of the culture change, the level of disruption anticipated, or staff apathy.

Once you identify your change drivers and resistors, you can assign an arbitrary value to each, indicating its relative strength or weakness. For this purpose, most consultants use a scale of one to five, where “1” is the weakest force and “5” is the strongest.

With relative numeric values assigned to each driver and resistor, you can plan your strategy. Basically, you have two choices when you encounter resistors. You can:

decrease the strength of resistors opposing the project
increase the strength of drivers supporting the project.
When analyzing the need for change, reducing resistance is always preferable to increasing the drivers. Regardless of how many drivers are pushing for change, this may have little or no effect on the situation unless resistance is reduced. Reducing resistance will also help you to avoid tension and conflict.

Using force field analysis won’t reduce resistance to your planned change. But it is an invaluable tool for visualizing the forces for and against change. It can help you to see at a glance the momentum of new strategies.

By listing the drivers and resistors, you can identify why change is necessary and appropriate. Analyzing them can help you to see the underlying reason why change is crucial—helping you to communicate your vision to others. By conducting an in-depth analysis of your change strategy, you can determine where there are hidden agendas, vested interests, or reasons why people may be resisting change.

Why Some Employees Resist Change

We all have a tendency to be fearful when asked to move outside our comfort zone. Existing working patterns become familiar, and we easily fall into a routine. It is little wonder then that we resist change.

Change is not always embraced and accepted by everyone. At times, you may encounter resistance, and your involvement as an internal consultant may be perceived as interference.

There are various internal and external reasons why change is resisted.

Employees have grown accustomed to the status quo – On a personal level, employees may find it difficult to accept changes to the “status quo.” Change may be seen as disruptive and unwanted; a source of conflict and anxiety.

External influences – External reasons such as obligations to shareholders or action taken by your competitors may also make change difficult.

Threats to power and interpersonal relations – Staff and managers may feel that changes are a threat to their positions, their relationships, or their power. Any perceived threat as a result of change may therefore be resisted.

Economic reasons – There may be economic reasons why change is resisted. A downturn in the economy may make change seem risky. In a buoyant economy, change may be perceived as unnecessary—”if it’s not broken, don’t fix it.”

There are many reasons why people tend to resist change, both internal and external. This resistance may be expressed in different ways. However resistance is expressed, you need to win people around to ensure that your vision gets results. Clients will expect you to make a difference.

Naturally, you want people to feel that they can voice any objections to your proposals. But resistance or dissent can be damaging if not managed correctly. Therefore, it is vital that you are aware of the key reasons for it, and common ways in which it is expressed. The team may need reassurance—taking time to dispel fears is crucial. That way, you can build bridges with the team and work effectively together to implement your plans.

Strategies for Overcoming Resistance to Change

As an internal consultant, it can be counterproductive to be seen as someone who recommends change, and then leaves colleagues to live with the effects. Instead, you must participate in change and help overcome resistance to change.

In 1979, Kotter and Schlesinger proposed a number of strategies to overcome resistance to change. They are:

Education – Educating clients about the change program can overcome resistance to change. Supplying information can help clients to understand why change is needed. It can also help you to gain support.
Participation – Participation is the most commonly used method for overcoming resistance. Involving clients in planning and implementation helps them to see the need for change and to understand the goals and objectives that must be met for the change to be successful.
Negotiation – Negotiation can be a useful strategy where a number of key resistors have been identified. Incentives are offered to ensure support for the change process. A common example is where early retirement is offered during restructuring.
Facilitation or support – Sometimes, resistance is encountered because clients are finding it difficult to adjust to change. With facilitation and support, you may offer more time or training to help with adjustment. Or you may let them voice their fears.
Manipulation or co-optation – With manipulation, you may make selective use of information or situations to gain influence and support for your proposal. But this is likely to make clients feel tricked. A sense of distrust will emerge in later projects.
Coercion – Coercion may be explicit or implicit. With explicit coercion, further resistance may result in removal from the process. With implicit coercion, there may be sudden barriers to a promotion, or withdrawal of help for other projects.
Each method for overcoming resistance has specific characteristics. The method you choose depends on the context and features of the situation. Specifically, it should depend on: the degree and type of resistance; the status of the person initiating the change and the status of those resisting; organizational risk; information; and the attitude of clients.

The degree and type of resistance – If there is large-scale, widespread resistance that cannot be ignored, you will need to use a slow method of overcoming resistance—such as education or participation.
The status of people initiating change and of the people resisting change – If you are in a position of power, a participative method may work better to overcome resistance. If you have less power, you can quickly counter resistance by using coercion or co-optation before those resisting the change mobilize.
Organizational risk – If rapid change is needed to “save” the organization, or if change is always going to be unpopular no matter what, coercion is favorable.
The amount of information that is required – If a large volume of information is needed from people in other parts of the organization, a slow and non-confrontational method of countering resistance may be preferred—such as negotiation, education, facilitation, or participation.
The attitude of the client – Your clients may see themselves as being on the “losing side” if your proposed changes go through, and so they resist. Negotiation is best in this situation—you can avoid a stalemate by offering incentives to them.
You work in the internal consulting group of the popular hotel and leisure group, Nu-Spa. For the last 18 months, you have been working with the IT department to devise tailored software for taking reservations. After much hard work, the system is nearing launch. But there’s resistance from Robert, the operations manager at one of the sites. He has opposed the idea all along.

Robert has been operations manager at Nu-Spa for ten years. He’s committed to the organization, but also set in his ways. He is anxious about the changes you propose, and as a result, he appears to be resistant to the change. You decide to seek advice from your colleagues in the internal consulting group about how to overcome his resistance. Your colleagues offer the following advice.

“I think that the time has come to get tough. You have been patient so far. But you now have to get Robert on board and fast. Otherwise this whole project is going to fall apart. You may need to be a little ruthless.”

“I can’t say that I’m surprised that he’s having trouble adjusting. Let’s face it, there has been a sudden shift in emphasis. I’d say it would be best to take a soft approach. Work through the change with Robert, and support him.”

“Have you considered how much Robert actually knows about the reasons for the change? You’re going to need to provide more details about the IT system such as how it will work and the benefits of using it.”

“You have to ask yourself how involved Robert feels right now. Put yourself in his shoes. He has had little or no input to this, and now you’re expecting him to run with it. You should get him more involved.”

Each colleague offers a valuable bit of advice. Getting Robert involved, informing him, encouraging him, while making the imminence of the change clear will help to overcome Robert’s resistance.

As an internal consultant, the changes you propose will occasionally be unpopular. That’s hardly surprising, since you will be upsetting the “status quo.” You may be forcing your people to accept something that they don’t want. You may be asking your people to break old habits or to confront their fears. Regardless, you can turn the situation around if the right methods are used—ensuring that change proceeds smoothly and with cooperation. There doesn’t have to be opposition and conflict.

Unless resistance is handled correctly, your program of change will not be a lasting success. Successful change management is about working together and listening to your clients and understanding their resistance. This simple approach will ensure that the change is implemented appropriately so that is received positively as the start of something better for your organization.

Making Change Happen with Kotter’s 8-step Plan

As an internal consultant, many of the proposals and recommendations you make will necessitate change of some kind. You will need to make things happen—whether you are resolving client problems, updating procedures, or encouraging the organization to share knowledge.

Implementing change is a rewarding, challenging, and worthy role to have. You can turn things around. And, for that, you will be greatly rewarded—in terms of appreciation and reputation.

To implement change, John Kotter put forward eight steps—beginning with the need to establish urgency, and ending with institutionalizing the new approach in the company. Each step must be followed in order.

Many companies now take time to share the vision for change with employees. They help them to see the broader picture by encapsulating it in a phrase or term that can be used to reinforce the message. Examples of this are Sony’s “pocketability, ” Federal Express’ “on-time delivery,” and Avis’ “We try harder” slogans.

It is important to establish credibility when you are new to an internal consulting position. To do this, it may be easier to focus on changes that are going to be quicker to implement, that have the highest profile, or changes that are likely to have a big impact first. This will help you to show others that you mean business. You will be able to establish a reputation for making things happen.

Kotter’s first four steps in implementing change focus on changing the status quo in the organization.

creating a sense of urgency
forming an alliance
creating a vision or strategy
communicating it to others
These first four steps are referred to as “warm-up” activities.

A sense of urgency is not created by holding meetings and circulating reports. A day-long meeting is a better way to start. Discuss what will be achieved, obstacles to change, how they can be overcome, and then devise an action plan.

You will need to form an alliance to implement change. This should consist of a wide cross-section of people with different experiences—all able to offer leadership, power, and credibility. This group will help to steer the change.

Create a vision, and then develop strategies to achieve the required change. Communicate your vision or strategy as widely as possible, using as many different means as possible.

Kotter’s final four steps focus on implementing change and new practices.

empowering others to take action
generating short-term wins
consolidating improvements
institutionalizing the change
Obstacles to change should be removed, and risk taking should be encouraged. Empowering others to act on the vision may also require you to change systems that are preventing change or undermining the vision.

Setting short-term goals and celebrating short-term wins improves your credibility and increases support. Short-term gains motivate everyone involved in the change process to produce more change in the form of continual improvements.

Change is an ongoing process. You will need to aim for visible improvements and reward employees involved in them. Ultimately, all the improvements can be consolidated into the process and may become a reference for future similar projects.

For change to take hold, it is essential that it become part of your organization’s culture. This means that you will need to show everyone involved the link between the change and organizational success. You will also need to ensure that change continues.

In any change program, your ultimate goal will be successful implementation of change. You need to consider how you can make change a reality for your clients. Kotter believes that change agents make four classic mistakes.

They fail to “light a fire” for change, and to inspire others to act; they under-communicate their vision, underestimate the complexity or time needed to create change, and believe their efforts are thwarted by those resisting change.

Clients will obviously be relying on you to implement change successfully. After all, they will be counting on your contribution and your ability to bring about change. By creating a sense of urgency and forming an alliance, your change plans will have the best start. Institutionalizing the change is the vital last step—otherwise all of your gains may fade away.

Change does not always guarantee prosperity for your organization. A series of phased changes may be required before you get it exactly right. But one of the secrets of successful change management is to get everyone on your side before anything happens. Cooperation and teamwork can boost a change strategy and ensure that your vision becomes a reality.

Assessing the Competitive Forces that Shape Every Industry

Decisions about a company’s future need to be made within the context of the wider environment in which the business operates. The strengths within the company—people, products, structure, and finance—need to be considered. But the state of the industry which the business is in is equally important.

A business must understand the structure of its industry and be aware of the opportunities and threats it presents and how this might change.

Porter’s Five Forces model provides a means by which the strength of competition and the potential profitability of an industry sector can be identified. This model looks at five competitive forces that shape every industry and all markets.

Bargaining power of suppliers – Every commodity is developed from a collection of inputs. Suppliers of inputs that are rare have more bargaining power.
Threat of substitutes – Are there other products that could satisfy the customer’s requirements equally well? The price a customer will pay for a product depends, to some extent, on the availability of substitute products.
Rivalry in the industry – How great is the rivalry between the companies which are already in the industry? When existing competition is high, there is pressure on prices, margins, and profits.
Bargaining power of customers – Can customers put pressure on manufacturers’ margins? Do they have power because they buy in considerable volume?
Threat of new entrants – How easy is it for new companies to enter the market? The easier it is to enter, the more likely there is to be competition. New entrants can totally change the market environment.
Companies are always attracted to industry sectors that are flourishing and that seem to offer the potential for healthy profits. To appreciate this, you need only consider the rush by many companies to join the dot.com industry. Analysis based on a careful use of the Five Forces model provides companies with the information that they need to help them to exploit, or influence, their industry sectors.

As an internal consultant, you may be asked to assess the attractiveness of a potential new area of business for your company. You know that you have the internal expertise and some funding to make this expansion possible. But is it the right move to make?

How much will it cost to enter this market? The capital costs and necessary compliance with regulations makes entry to the pharmaceutical industry, for example, almost prohibitively expensive for new entrants.

Will the strength of the customers prevent you from making good margins? Farmers have recently developed local cooperatives and farm shops. They sell through these, rather than to the supermarkets, to maintain viable returns.

Is your product sufficiently different from others on the market? Will you be able to gain—and maintain—brand loyalty?

What is the availability of the inputs that you require? Are you dependent on products from a small number of suppliers?

Is the competition between existing players already intense? Is the market growing, or can a company only achieve greater market share at the expense of one of its rivals?

Using the Five Forces model to analyze the strength of the various elements in an industry sector, consultants can determine whether a business should enter a new market or launch a new product.

A few years ago, a few car manufacturers wanted to enter the lucrative luxury car market. Profit margins were large on luxury cars, while those on smaller vehicles were being eroded. The luxury car market was dominated by Cadillac and Lincoln—and customers were brand conscious.

The four-wheel drive sector, however, was under-exploited. Consultants within the car companies could have used the Five Forces framework to assess the attractiveness and potential profitability of this market.

Having considered all of the elements, a consultant could then attribute high, medium, or low labels to each of the risks. Balancing the risks and the potential, the companies could then decide what future strategy to follow.

Once the analysis of the current and potential state of the industry or industry sector is complete, managers and consultants can reconsider their future strategies. They should think about how to influence the five forces to suit the needs of their organizations and what options are available to them. The options will be determined by the organization’s objectives, resources, and skills, as well as by the market environment.

By using Porter’s Five Forces model, you can focus on key impacts on your assignment or organization to pinpoint and overcome threats. You can also use the model to troubleshoot potential new areas of development—helping you to advise on organizational strategy.

As an internal consultant, you are often asked to make recommendations on strategic issues. Porter’s Five Forces model enables you to take an impartial view of the situation—and make appropriate and realistic suggestions.

Using the Product Life Cycle Strategically

The Product Life Cycle proposed by Everett Rogers and Theodore Levitt is a model used to help managers determine the right time to go to market with a product or service. It is also used to assess demand and growth. As an internal consultant, the Product Life Cycle will prove useful in deciding which strategies to recommend to your internal clients.

There are five stages in the Product Life Cycle:

Product launch or introduction
Growth
Maturity
Decline
Obsolescence.
In addition, there are five distinct groups of people who are active throughout the stages of the Product Life Cycle

Innovators – Just 2.5 percent of the population are innovators. They are the first to adopt new products and are active from a product’s launch. They are risk-takers, but not opinion leaders—innovators don’t pass on product news to the rest of the population.
Early adopters – Early adopters make up 13.5 percent of the populace. Unlike innovators, this group passes on information about a new product to others. Often it is the experiences of early adopters that determine whether or not a product will enjoy a long life cycle.
Early majority – The early majority give their seal of approval to a product after the early adopters have tried it. They constitute a big proportion of the population—34 percent. Adoption of a product by this group results in rapid growth.
Late majority – The late majority consider adopting a product once it has gained approval with the early majority—they are not risk-takers. Now the product has been adopted by 84 percent of the population. The product has now reached maturity.
Stragglers – Sixteen percent of the population are stragglers. They are fearful of trying new products and only adopt if there is no longer any alternative. A company may continue to provide products for stragglers, providing it is still profitable.
The launch or introduction stage of the Product Life Cycle is characterized by high expenses (especially marketing and development), low sales, but plenty of optimism. At this stage, a new product’s appeal is limited to innovators only.

A high pricing strategy, called “skimming,” can be adopted when you are launching a new product. If a product appeals to innovators, they are usually prepared to pay a higher price to be the first to own it. Occasionally, a lower pricing strategy may be adopted at the introduction stage. You might consider introducing a product at a low price if the product is easily copied as this will deter competitors.

The growth, maturity, and decline stages are the most active in the Product Life Cycle model. Early adopters influence sales during the growth stage. The company is likely to have a monopoly, and enjoys high sales and large profits. Competitors enter the market. Sales peak toward the end of this stage and the beginning of the next stage.

As a product matures, many competitors offering different models of the product saturate the market. During the maturity stage, it is essential to differentiate your products in order to attract consumers. Some companies may leave the market at this stage.

More companies leave the market during the declining stage. The product may no longer be in demand. Consumers may have switched to alternative products. Companies may continue to supply the product, but only if it is profitable.

The stragglers will eventually switch to an alternative product, often because the product is no longer produced—it is obsolete. Examples of products in this stage include Betamax videos and slide rules.

As an internal consultant, you will need to become proficient at rapidly identifying when products reach each stage of the Product Life Cycle. Then you can recommend appropriate marketing, pricing, or promotional strategies.

The Product Life Cycle is the ideal tool for managing products from launch to obsolescence. It provides a useful framework for determining what actions should be taken from growth through maturity and into decline. By using this model, you can launch products into success and reap the rewards for your internal clients.

Assessing Performance Using a Balanced Scorecard

There is an old saying: “If you can’t measure it, you can’t control it.” This hints at the strategic importance of being able to measure performance. But how do you measure performance when each department measures its performance differently and has a different perspective on what is important?

Robert Kaplan of Harvard Business School and David Norton of Knoll, Norton and Company developed the Balanced Scorecard as a way of linking an organization’s strategic and financial goals. By combining many elements of a business in one report, the Balanced Scorecard allows managers to see whether improvements in one area are made at the expense of others.

The Balanced Scorecard encourages managers to look at the business from four different perspectives.

The customer’s perspective – How do our customers see us?
The internal business perspective – What must we excel at?
The innovation and learning perspective – Can we continue to improve and create value?
The financial perspective – How do we look to our shareholders?
Kaplan and Norton describe the Balanced Scorecard as being like the dials and indicators in an airplane cockpit. Pilots need detailed information about a number of aspects of the flight, but reliance on one instrument alone could have serious consequences. In the same way, the performance of one part of the business will inevitably have an impact on other areas.

As an internal consultant, you can use a Balanced Scorecard to determine how the company’s broad strategic aims can be translated into goals for each of the four perspectives. With these goals in mind, you can find appropriate ways to measure achievement.

For example, customer service goals include factors such as product quality, performance and cost, as well as quality of service. Measures of success in meeting customer expectations include market share analysis, mystery shopper surveys, on-time delivery, the number of cooperative ventures, key account information, and customer satisfaction surveys. As you can see, the goals important to customer service determine how success in this department will be measured.

Internal business process goals relate to productivity, core competencies, employee skills, cycle time, yield rates, quality, and cost measures. Measures of internal business process include the number of health and safety incidents over a period of time, the number of new distributors who take your company’s products, cycle time, yield and unit cost, and trading margin.

Innovation and learning goals are harder to quantify, but may include the company’s ability to innovate, improve, and learn. Measuring innovation and learning may involve looking at time to develop new products, percentage of products that equal 80 percent of sales, employee surveys, training undertaken by employees, and qualifications achieved.

Financial goals are usually related to survival, growth, profitability, and shareholder value. Measures of financial performance that might be used include cash flow, return on capital investments, market share, volume of growth against the industry norm, earnings per share, and net margin.

Once you have evaluated the goals and performance measurements for each of the four perspectives, you can combine performance reporting into one report using the Balanced Scorecard. In this way, managers in every department can see how their efforts to improve performance potentially affected other departments. This process shifts the performance evaluation emphasis away from maintaining tight control and replaces it with an emphasis on choosing a strategy that benefits the entire organization.

Now, consider a project that you were involved in recently. Given your knowledge of these four perspectives, would you evaluate departmental performance differently?

All businesses need a clear strategy for future development. But to be effective, this strategy has to be linked to performance. The Balanced Scorecard aims to forge strong links between a company’s vision and strategy and the performance of everyone within it.

Strategies for Handling Conflict

In most internal consulting situations, your relationship with your project colleagues and your client will be amicable and positive. But when people work together, there is always the possibility of conflict.

Conflict does not need to be destructive. In fact, it can be constructive. The first step in making conflict constructive is to understand potential causes of conflict. Most conflict stems from one of the following causes:

misunderstandings – Many conflicts arise over a misunderstanding. Some comment or gesture may be taken out of context or a word may be used inappropriately.
different perspectives – Another potential source of conflict arises from different perspectives. People may see the same issue from different angles, and they may arrive at different conclusions. For example, an accountant may see cost savings where a worker sees job losses.
different approaches – People approach work, projects, and problems according to their personal value and belief systems. Because values and beliefs differ, approaches also differ and may become a source of conflict.
different expectations – Different expectations about how a process will work and what the outcomes of that process should be are another source of conflict. Job expectations and expectations about rewards and compensation are another source of conflict.
a personal attack – Conflict often occurs when people feel hurt, offended, or let down. The result is an emotional reaction which may not respond readily to reason.
limited resources – Conflict can also result from the competition for the available resources such as equipment, money, time, space, and labor.
Because you constantly deal with different people as an internal consultant, you must be able to face conflict and manage it. Avoiding it only delays or intensifies the problem.

So, how do you manage conflict? There are a number of different strategies for negotiating conflict and arriving at a constructive outcome.

Let conflict run its course – If the conflict is trivial, temporary, or likely to be constructive, you may opt to let it run its course. Allowing people to talk may well bring the situation to a close, but things must be closely monitored to ensure that they do not get out of hand.
Apply different containment strategies – Depending upon whether the conflict is short- or long-term, you can apply different containment strategies. Short-term strategies include persuasion or coercion. Long-term strategies involve separation or mediation.
Resolution is a long-term strategy. For example, there may be a need to establish common goals, or improve communication within a team. In extreme cases, you could choose to restructure the group. This involves developing long-term strategies to ensure that conflict does not arise. Other strategies include encouraging active listening, collaboration, and regular consultation, and the preservation of everyone’s dignity.

All strategies for resolving conflict depend on three important tenets. You must encourage the team to:

listen actively
preserve the dignity and respect of all involved
find common ground
The ancient Chinese philosopher Sun Tzu once said: “Build your adversary a golden bridge.” This proverb highlights an important point to remember when dealing with conflict. You must make it possible for people to change their positions on an issue without losing face.

How you deal with conflict has a big impact on the eventual outcome. To bring about a positive conclusion to conflict, you should:

Get the support of people who can maintain a clear, neutral perspective.
Be aware of the depth of your own feelings, and the impact that they may have on the situation.
Be sensitive to the needs of other people and show that you understand their viewpoints.
Avoid getting involved in other people’s aggression; this always causes the problem to escalate.
Don’t bring any past conflicts or slights into the argument. Never allow the memory of the past to color your judgment now.
Find a way out that allows each side to maintain its dignity. A situation where there are winners and losers helps no one. If people feel that they have lost, they will look for an opportunity to correct the balance.
Identify and agree on ways to monitor and evaluate progress.
No one likes conflict, but it can be constructive. Conflict prevents complacency and forces people to face issues they have previously ignored. If handled correctly, conflict can be resolved, and it may even result in more effective and productive working relationships.

Avoiding Overdelivery and Underdelivery

In your initial terms of reference or project specification, you identified the required project outcomes and deliverables. You need to make sure that you do not fail to deliver the things that are expected of you. However, you must also be aware of “overdelivering.” This can easily happen in your enthusiasm to satisfy your customers.

Before you begin any internal consulting assignment, it is important to understand why underdelivery may happen.

Underdelivery may occur as a result of:

an incorrect estimation of time or budget
poor time management
misunderstandings that were never resolved
poor prioritizing (spending too much time on irrelevant things)
failure to take into account the requirements of all clients
Overdelivery may occur when you:

work to a personal goal rather than the client goal
misread the client-consultant relationship
miscalculate when additional work might be appropriate.
As an internal consultant, you can take steps to avoid overdelivery or underdelivery of any project. Most steps revolve around organizing your time and priorities better, acknowledging potential problems, and maintaining good communication with your client throughout the project.

To avoid overdelivering and underdelivering, you must:

Know who your clients are. – Understand what your clients want, and the kind of approach they appreciate.

Talk to your clients. – Listen to clients carefully, and maintain a dialogue with them throughout the project.

Keep to project specifications. – If any changes have to be made, discuss the changes with the client, and make sure that everyone understands the implications.

Organize your time. – Identify your priorities. Realize that no one can do everything at once. Everything seems equally important, but you will need to prioritize tasks and allocate realistic amounts of time to each.

Acknowledge any problems. – Acknowledge problems and errors—don’t pretend that they do not exist or hope that they will get better. Discuss the difficulties with your team and, when necessary, with your client. Always act quickly to resolve problems as they arise.

Overdelivery may be the result of overenthusiasm or overconfidence on the part of the internal consultant. Underdelivery may stem from inexperience, or the consultant taking on too much work. Both scenarios are understandable, but either can sour a relationship with the client.

As an internal consultant, it is important not to overdeliver or underdeliver on any project. Underdelivery disappoints clients; overdelivery can frustrate them. Getting it right depends on you maintaining a dialogue with your client, and constantly monitoring the progress of the project.

Avoiding Cost and Schedule Overruns

Cost and schedule overruns are among the most common problems facing an internal consultant. To avoid cost and schedule overruns in your project, you need to understand what causes budgets and schedules to exceed the limits set forth in the project plan.

The most probable causes of cost and schedule overruns are: cost underestimates, the lack of a back-up strategy, poor motivation, inadequate control procedures, delays in decision making, insufficient authority, inadequate resources, and poor leadership.

Cost underestimates – Cost underestimates are the most common problem. Quotes are received for goods or services, but as the project progresses, the costs seem to increase.

Lack of back-up strategy – System failure coupled with the lack of a backup system can cause cost and/or schedule delays. Initially, it may be necessary to run two systems in parallel, since scrapping an old system before the new one has been fully tested may lead to problems that cause time delays.

Poor motivation – A project team may lack commitment to the project goals. The failure to get everyone to identify with and accept common goals can lead to schedule overruns and other difficulties.

Inadequate control procedures – Progress on tasks and assignments needs to be carefully monitored. Reviewing and updating budgets and schedules can help to give a detailed and accurate picture of the current situation.

Delays in decision making – There is nothing more frustrating than being unable to get decisions from your client when time is tight. Decision-making delays can be intensified when there are multiple clients involved in an internal project.

Insufficient authority – As an internal consultant, you may find that exerting enough influence over others to get things done is difficult or, in extreme cases, impossible.

Inadequate resources – It may be difficult to get the necessary resources at the beginning of the assignment. Or resources may be reallocated throughout the project. In either event, the lack of necessary resources is likely to cause problems for the project.

Poor leadership – Strong leadership directs the efforts of everyone involved in an assignment. Good leaders make the best possible use of each person’s skills, information, and abilities. Poor leadership often does not provide the necessary focus.

Once you have identified the main reasons why cost and schedule overruns occur, you can implement strategies to prevent these problems from arising.

Keeping track of all relevant paperwork will help you to monitor the progress of the project—and give you extra control as it progresses. You should also devise procedures for tasks to be undertaken during the project—and follow them.

It is vital to keep in regular communication with your client. If there is likely to be an overrun, it is better to inform the client—who can then deal with it. Always follow up decisions that may delay the project, and ask for support when you need it.

Good time management and prioritization are vital. High priority tasks are urgent and important; medium priority tasks are urgent, but not important; low priority tasks are important, but not urgent. The lowest priority tasks are neither urgent nor important.

Having the necessary staff, equipment, or finance lessens the likelihood of the project running into trouble.

Good support from management helps to ensure that you have sufficient authority. Committed managers also help to encourage quicker decision making.

It is important that you allocate sufficient staff to the tasks required for completion of the project. The ability to delegate effectively should also help to prevent schedule overruns.

It is important to keep the team motivated throughout the course of the project. Enthusiasm can drop as the project comes to a close—people become distracted; schedules and costs are overlooked.

It is natural to want to be involved in the “active” tasks—and easy to forget about the basic paperwork. But failing to keep track of expenditures can have a disastrous effect.

Cost and schedule overruns can easily undermine the good work that you do elsewhere on the project. To avoid damaging overruns, you must understand the most common causes of overruns and develop preventative strategies. In addition, you should carefully monitor each project’s budget and schedule looking for and routing out potential problems.

Sources of Change in an Internal Project

Many businesses today face continual change. Such change may inevitably have an impact on internal consulting assignments. “Change” is also the end result of many internal consulting assignments. But consulting projects themselves can also be subject to unforeseen change.

As an internal consultant, you may need to adjust to and manage a variety of changes such as:

Changes in client management – If your client or members of the senior management team change, you may need to consider the impact of this on the project. A new client may want to approach the project in a different way.

Changes in key staff – Changes in the project team may have an effect on the skills or information that are available to you.

Changes required when new information becomes available – During a consulting project, new information may become available that calls for a change in project emphasis, process, or goals.

Changes in specified resources which are no longer available – If crucial equipment is no longer available, you may need to renegotiate schedules or other project specifications.

Major corporate changes – Mergers or acquisitions may make the internal consulting assignment obsolete, or significantly change its focus.

The following situations may also warrant compensatory changes:

a budget overrun
if deadlines are likely to be missed
if a consultant becomes too busy
if the consulting team changes
Few people like change, but the need for it does not go away when you ignore it. It sometimes becomes obvious that certain features of the project need to be amended to incorporate changes within the organization. If this happens, you must take action immediately—even if it involves a change of direction. Your workload may become heavier, and there may be changes in your team as a result of these problems. But these problems are transitory, and the workload will return to normal in time.

Sometimes it may become necessary to redefine your project—and go back to the drawing board. You should not be afraid to do this, but recognize that change is an inevitable part of any process, and adapt as necessary.

Assessing Internal Project Outcomes

When you finally come to the end of an assignment, the most important question that you must ask is: “Was it successful?”

You will hopefully have a happy and satisfied client, who is pleased with what you have been able to achieve. From the list of deliverables agreed at the beginning of the project, you should be able to check them all off as having been completed.

But there are times when it is not so simple. Even identifying a successful outcome can sometimes be more difficult than expected. It may be that your project was just the first step in a much longer process. In this case, the success of your project may not become clear until others complete the change.

Consider an internal consulting assignment that you have recently completed. Did it go well, or badly? What criteria did you use to judge the success of the outcome? It is important that criteria for the measurement of success are established and agreed on at the outset of the project. If this is not done, it can prove difficult for the consultant and client to agree on a successful completion.

Take some time to create a list of questions that you might ask to decide whether your project has been a success. Try to come up with measurable criteria.

Now compare your list with the questions below. The criteria shown are all measurable, and they mostly relate to information that should have been included in the original terms of reference. If you can answer “yes” to all of these questions, you can be confident that your project has been successful.

Was the project completed on time?
Was the project completed to budget?
Were the resources utilized efficiently?
Were relationships between the involved parties good?
Did the project run smoothly with minimal disruption?
Has the project been carefully documented?
Can client staff continue to run the project?
When deciding whether a project has been successful or not, you also need to consider it from different perspectives.

Client perspective – Does the client think that things were handled well? Does the client remember there being any problems along the way?

Team perspective – Were relationships and communication within the project team good? Did the project team work well with other staff involved?

Client-consultant relationship perspective – Did you develop a good working relationship with your client? Would your client choose to work with you again or recommend you to others?

Opinion of others – Has the project been well received by the Board or other stakeholders? Are the client staff committed to continuing the work?

Czerniawska states: “Although as a consultant, you recognize that the prime responsibility for implementation lies with the client, you also know that your job is not done, or not done properly, until you have helped the client to achieve real results.”

By taking time to assess the outcomes at the end of each project, you will be able to ensure that you deliver client satisfaction—every time.

How Do You Hand-off an Internal Project?

The project is over, and it is time to move on to another assignment. It may be tempting to bid a fond, but speedy farewell, safe in the knowledge that the project had a successful outcome. You may also be driven by an eagerness to move on to something new. However, there are intellectual and emotional factors that need to be considered at the end of a project.

When a project ends:

the team may be distracted by other tasks as new projects begin.
the team may lose interest in the project.
changes in the company may affect the project’s importance.
the team may be reluctant to take responsibility for the project.
In addition, as an internal consultant, you may not want to let go—especially if you are a little uncertain about what the future holds for you.

It is a good practice to hand responsibility off to clients as soon as possible. But it is also important that you listen to your client’s concerns about what happens next.

When you hand over responsibility for the project:

Encourage your internal clients to reflect on the issues that arose and any discussions that were made as a result. This will help the client to understand the nature of any changes that were made and identify potential problems in the future.

Talk to the client about the success of the project. Is the client satisfied with the results? Were you, personally, satisfied with the outcome. Are there any loose ends that need to be tied up, questions or issues that need to be resolved?

Encourage your clients to reflect on the lessons that have been learned. This will help them to implement the current project and similar projects in the future.

Encourage your clients to discuss how they will cope with implementing the work after you have left. This is particularly important if a team has been set up to carry the project forward.

Agree on what involvement you will have after the project ends. Will you be available if the client has problems?

At the end of an assignment, you must ensure that all deliverables are signed off. You must also do the following:

Invoice the client, if appropriate.
Disband the team.
Return or reassign any outstanding resources.
Make supporting documentation available.
Submit a report assessing the project.
It may be hard to maintain everyone’s motivation during the closing stages of any project. But it is important to remember that your job is not complete until your internal client has taken back responsibility for the work.

It can be hard to give up a project that has been a part of your life for a considerable length of time. You inevitably feel very involved with the project and with the people with whom you have worked. Your client may be equally apprehensive about taking the project back from you. The client team may naturally have concerns about its ability—in terms of time, staffing, or skills—to run it successfully.

You need to consider how the transition of responsibility back to the client can be handled as smoothly and efficiently as possible.

For the consultant, there is the problem of stepping back and letting someone else take over. However, you must be ready to relinquish ownership. For the client, there are other difficulties associated with the handoff, such as:

picking up someone else’s ideas
owning the issue or the change
doing without the consultant’s support and advice
taking responsibility for implementation
not being able to hide behind the consultant
Handing back responsibility for a project to your client is a crucial stage in any internal consulting assignment. Consider the issues carefully, and make sure that you are leaving your client with a workable solution—and not a potential disaster.

Gathering Feedback before a Project Ends

So, you have completed a project. But was it successful? You need to know if the project met its objectives. And you also need specific feedback from your clients on your own performance.

Your work might have an impact on a number of different groups. You should, therefore, survey the responses of all of the people involved.

Of course, some people are not particularly good at giving feedback. So if you want to be able to make use of it, you must plan your request for feedback carefully.

There are several different ways to gain valuable feedback, including meetings, mail or telephone surveys, written reports, focus groups, and client surveys and interviews.

Meetings – It is usual to have a final meeting with your internal client, confirming that all the objectives have been met. At this meeting, you will hand responsibility for the project off to the client. In addition, random or scheduled meetings with the people involved with the project can help you to decide if everything went as you hoped it would.
Mail or telephone surveys – Mail or telephone surveys can help you to get information from people who are geographically spread.
Written reports – Written reports are often a useful way of gaining feedback from staff not directly involved in commissioning or managing the project, but who are affected by its implementation. For example, the end users of a system.
Focus groups – If you are involved in installing a new system, or implementing a new program, you may want to use a focus group to discover how well the system has been accepted by staff and how easy or difficult it is to use.
Surveys and interviews – You might need to get additional information about consumer or client use of a product or service. Issues highlighted in earlier surveys or interviews may help you to frame the questions.
Before you solicit feedback, however, you must be clear about what information you want. Besides confirming that objectives have been met and the outcome has been successful, you also need to learn:

what went well and why
what went less well and why
what you can learn from the experience
what you will do differently next time.
Gathering specific information about the project helps you to identify weaknesses and areas that need improvement, as well as the strengths that can be built upon.

Even if you:

have been criticized unfairly
don’t respect the person giving feedback
feel the feedback is too vague
feel the feedback has become too personal
feel the feedback is not solution oriented
try to remain objective.

Don’t take criticism personally. Consider the suggested solutions and incorporate them into your work. Ask for clarification of any points that you do not immediately understand.

Feedback is a vital part of the internal project process. Getting feedback helps you to successfully conclude an assignment. It also helps you to plan for the next one and enables you to put what you have learned into practice.

Profiting from Past Mistakes

In 1889, Edward John Phelps, the famous lawyer and diplomat, said: “The man who makes no mistakes does not usually make anything.” Phelps recognized that our most memorable learning experiences are the result of our reflecting on past mistakes. Unfortunately, there is a natural tendency to gloss over mistakes thereby missing an important opportunity to perform better in the future.

To profit from past mistakes, you have to study them. As you reflect on a recent project, you should consider how things might be handled differently in the future, then apply the lessons learned to your next assignment.

Most businesses today encourage thorough end-of-project reviews. During the review, the project team may use a variety of methods to suggest improvements. Knowledge management, benchmarking, and industry best practices are frequently used in identifying strengths and weaknesses in a project.

Knowledge management is one practice that helps an organization during the review process. Knowledge management involves collating data from each assignment for future use. By reviewing aggregate data, a team can compare past performances with current performance and recommend changes.

Another tool useful in reflecting on past performance is benchmarking. Benchmarking involves measuring performance and comparing it to the performances of other organizations, teams, or individuals.

Another way to assess your performance is to research industry best practices. A best practice is a method which has been shown to consistently yield the best results. By incorporating industry best practices into your business, you can expect to improve your performance.

Measuring your performance and reviewing the process and progress of a recently completed assignment will help you to do a number of different things. It will help you to:

confirm that all objectives have been met
identify areas of good practice
identify areas that could be done differently
identify areas that need to be done better
identify development or training needs.
Everyone wants to avoid making mistakes. But it is important to realize that mistakes can provide valuable experience and insights which enable you to improve performance. Obviously, you don’t want to make deliberate mistakes, but you should learn how to profit from the inadvertent mistakes that you do make by conducting a detailed end-of-project review.

Training to Improve Your Personal Performance

When it comes to continually improving your personal performance, you have a lot of options. You can take courses at a local university or community college. You might sign up for a seminar or enroll in a certification program. But for training to be truly valuable, you must take the time to choose courses that meet the needs of your training objectives and those of your organization.

There are several ways to identify your training needs, including:

line manager appraisals – Your regular appraisals will usually include some review of your development needs. You and your line manager should be able to identify training that supports your personal development.

project feedback – At the end of every assignment, ask for feedback from your internal client. This may help you to identify things that you could do better. It can point you in the direction of appropriate training.

peer evaluation – Peer evaluations involve your peers and subordinates in the appraisal process. This can sometimes be uncomfortable, but it can highlight areas where you might benefit from further training.

personal reviews – Most internal consultants want to do their own informal or formal reviews of each assignment. This, again, might clarify training needs.

personal development plans – These may be developed as a result of your line manager’s appraisal, or may be something that you work on independently. They help you to identify where you want to be in one, two, or three years’ time and what training or further experience you need to get there.

When you consider what training would be most appropriate, you should also think in terms of your preferred learning style. In the early 1980s, Peter Honey and Alan Mumford described four different learning styles: activists, reflectors, theorists, and pragmatists.

Activists – Activists are enthusiastic about anything new. They will try anything once. They thrive on challenges and like to be the center of attention. But they become bored very quickly when it comes to implementation and consolidation.
Reflectors – Reflectors like to have the opportunity to stand back and consider their experiences. They gather data and think things through carefully before coming to decisions. They prefer to observe, listen, and understand. They are cautious and thoughtful.
Theorists – Theorists like to construct frameworks into which they can fit their observations. They like to analyze and tend to be perfectionists. They remain detached, analytical, and dedicated to rational objectivity. They like to synthesize old ideas with new ones.
Pragmatists – Pragmatists like to try out ideas or theories to see if they work in practice. They like challenges and always want to see if there is a better way of doing things. They are practical “doers” and problem solvers and tend to become impatient with lengthy discussions.
Your preferred learning style should determine the type of training and course materials that you choose. Being aware of the different learning styles also helps you to review the appropriateness of training for your own staff members.

It may be tempting to think that you have all the experience and qualifications that you need. But the most successful people are able to adapt to new situations and “reinvent” themselves through appropriate training. When you recognize the need for additional training and choose training methods that suit your personal learning style, you become increasingly valuable to your organization.

Planning Your Personal Development

As with any other business operation, personal development will be more successful if it is carefully planned. You are probably used to planning all aspects of your internal consulting projects, but you may be less familiar with applying the same processes to your own personal development.

In planning your personal development, you should:

Define your objectives.
Generate and evaluate your options.
Identify the actions you must take.
Sequence your activities.
Identify your resources.
Review the plan.
Prepare action plans and schedules.
Monitor and control your progress.
It isn’t always possible to work through each of these stages sequentially. However, you cannot specify activities without knowing what objectives they are meant to achieve. Therefore, you first step must be to define your objectives. Then try to remain flexible in completing the other steps.

As you develop your plan, think about your most recent appraisal and ask yourself the following questions.

Do I need additional training?
What additional experience do I hope to gain?
Do I have timelines that I can apply to this development?
Will I be able to fund a course myself?
Do I need to take a step back or sideways to get where I want to be in five years’ time?
Do I have time to train?
Will my career be harmed if I don’t?
It is easy to overlook your personal development needs as you work on your project assignments. But planning your development with the same attention that you apply to planning projects will help you to stay on track careerwise.

A personal development action plan will help you to:

keep your objectives clear
monitor your progress
ensure that your objectives are measurable.
Planning for your own personal development may be the most important planning that you do, so make sure that you give it the time and attention that it deserves.