Consultants (don't) add value

I was at this social gathering organized by one of the top global consulting companies for their current and potential customers. It had attendance from veteran industry leaders, founders of companies, CEOs and CFOs, sprinkled with a few Venture Capital heads and off-course partners from the sponsoring consulting company. I was the odd man out from IT representing my company; talking to a few known people in the room, introductions were made with some as the discussion veered from world economy to the best wine.

The Black Suits represented a diverse set of industries and functional experience easily mingling with each group and adding to the conversation. Enviously networking at its best, you could pick tips from these suave individuals on how to ease into a discussion and slide off without being rude. Their demeanor would teach many CIOs and CEOs how to conduct themselves in a senior gathering that expects you to merge in without getting technical or talking about IT barring a passing reference to the function you manage.

One of the cases under discussion revolved around a complex merger for a diversified group which was facilitated by the hosts. Everyone applauded the ease with which the deal was consummated, financially and culturally; a Partners remarked about a similar deal gone sour done by competition, stressing on the fact that quality matters when it comes to consulting and a little extra investment is worth the outcome. The wise men nodded and moved on to discuss multiple experiences and anecdotes around consulting that regaled the small gathering.

The comfort of the group with each other and the willingness to share and seek help from various quarters was a bit discomforting; these were industry captains that everyone looked up to. They controlled a large portion of the economy and influenced many strategic directions or shaped policy. They acknowledged the fact that every niche and skill has an expert or master who can do it better, faster, and consistently with successful outcomes. They sought these experts from the outside when they needed them.

That weekend mulling over the few hours spent, the big realization dawned upon me was the difference in the approach to solving problems taken by CIOs. Almost all CIOs believe that they are self-sufficient in their knowledge and skill to solve every problem that needs to be solved or opportunity to be explored using technology. They reach out to vendors and solution providers to discuss options; few subscribe to reports from IT research companies and engage their consultants to assist them. They hire consultants only when pushed by their boss.

Here’s a typical dialogue that happens with CIOs:

·         Do you need help with IT strategy or want to validate it ? That’s why I was hired !

·         Is there a business problem you want us to solve ? I know enough about the business to do that

·         Need help with any of your sticky projects where you’re struggling ? Everything is under control !

·         Are there any skills you need to augment in your team ? I will send my team for training !

It is not just the fact that CIOs are averse to seeking help from consulting companies, they even shun away individual consultants typically retired or out-of-work/in-transition CIOs. They are perceived as threats to their credibility and expertise. Why do you need to hire anyone to help you ? Not sure how many actually had the courage to go and ask their respective boss to seek external help. This is despite the fact that the enterprise may have a history of engaging consultants for various business activities, strategic or operational.

The strong individual is the one who asks for help when he needs it, said a wise old lady; how true it is in the current context of our work lives with the level of disruptions increasing day by day, expectations rising and uncertainty being the only certainty. Discussing the situation with many of peers I heard the same story again and again; no one wants to be seen as deficient in any skill or capability. All CIOs want to be superheroes, know it all and on top of every situation thereby digging holes for themselves to fall into all along.

In this case I hope CIOs will learn from their peer CXOs, it will help them be more successful.

Brand Value or Unbranded Value

Out of the blue I got this call from a friend who I remember was doing quite well as CIO of a large company where he had spent more than a decade. He had decided to hang up his boots and get off the corporate rat race and treadmill to become his own master. Curiosity getting better of me, I asked him about his decision and what prompted him to leave his well-settled and visible corporate avatar ? When did the entrepreneur bug bite him ? How had the first few months been ? He promised to meet and catch up.

We met over a cuppa; he had been asked this so many times that he started narrating his story. His planning had started almost a decade back with financial goals and family commitments post which he had his succession plan executed and made a clean break. I admired his long-term planning; consciously he took no extensions, no being a consultant and lingering on, no special assignments and no burnt bridges too. He wanted to pursue his passion and thus took the plunge; early results had been a mixed bag.

His new venture focused on a vertical which did not have too many people focusing or investing on; his early meetings got him good traction and agreement to work together with almost every stakeholder he met. He had chosen well and used his expertise and knowledge to create options and solutions. He had also thought of offering his experience as CIO to work with other CIOs towards research and analysis, benchmarking, and KPI review or aid any other activity where CIOs needed additional capacity or bandwidth.

Most CIOs he met knew him or knew of him and the success he had created; they would hear him out, agree they needed help but were reluctant to sign him up. The story repeated itself with the same outcome until one CIO candidly mentioned to him: I know you and I know the quality of work you can deliver; but how do I convince my team and management of the value proposition ? They need a credible brand which can withstand scrutiny from any quarters. It is not about where you have been or what you have done or can do.

Many moons later I met another CIO who had trained to become an executive coach; he too had sold his Ferrari and followed his desire to coach and mentor people. He was successful as a CIO and being highly vocal about his views, it made him a popular fixture in conferences. He was getting along with some training, workshops and coaching for aspirant leaders for a couple of companies. His branding was strong and as a mascot for his chosen industry, he wanted to encash the branding. He too had met with similar fate.

Quickly he realized the reasons behind the lack of conversions from proposal to projects. His CIO brand was well known, his consultant skills not so; his potential customers wanted a management consultancy or a research organization to provide the required respectability and branding. Most of them took his inputs and then went along to the tier one providers to provide the slideware that they could use within their organizations. He was disheartened and was mulling the option to join hands with one such firm; if you can’t beat them, join them !

Is branded advice such a big thing that differentiates it from what an independent consultant would offer ? Is the person offering his/her expertise reduced when there is no stamp of endorsement ? The reality is in almost all cases is yes ! Consulting and research houses have wealth of knowledge gained over hundreds if not thousands of engagements available to all their consultants. They are able to use this and also bounce ideas of a group of experts that gives them an edge over a lone ranger. This cannot be replicated by the individual.

If the strategic parts were to be separated with the operational, tactical and execution, there could be some traction that individual professionals branching into consulting could leverage. Collectively some individuals representing a company, their own outfit has a story, alone it’s a nonstarter. There are some who have done this and are gaining traction in the small and medium enterprises; they are not pitching to big enterprises. If you are on your own, think about joining hands with someone.

Is the CIO an Idiot ?

Congratulations on your new role ! We would like to come and meet you to understand your key priorities and challenges. We can help you in classifying your portfolio of applications, the technology landscape that you have, or consolidation and rationalization strategy, IT strategy and roadmap and help you align to the business. For multiple companies we have helped them optimize their IT operations and save costs. We can move dollars from BAU to innovation. Can we meet you in the next few days ?

Even if you are not new to the role, I am sure that all CIOs (at least I do) receive such messages from all kinds of vendors, consultants, research companies, and what have you with alarming frequency. They claim to have worked with companies who are highly successful in their use of IT; they make it appear that these customers would have remained in a challenged state if they had not come to the rescue with their frameworks and consulting practices that helped them get out of mediocrity to become winners.

They are aggressive in their approach and are willing to go across the layers of the company to get to you, as if the sky will fall by next week if you did not engage them. Some of them have retired or ex-CIOs as primary subject matter experts; most use decade old models as their base which were created by a few academicians. These frameworks can still be applied with reasonable success to most company’s IT portfolios throwing up opportunities for improvement or validating success for a well-run enterprise.

Having known some of their “subject matter experts” in their past avatars, I have never been too keen to connect with them with a bit of credibility crisis staring them in the face. Despite that, surprisingly the number of customers using one or more of these wonderful companies – who have answers to all the challenges faced by the CIO – appear to be overpowering with almost every enterprise that I know on the list. While I knew of some and their reasons, I found it hard to digest.

So I started connected with some CIO friends to ascertain what were their key drivers ? Did they face an identity crisis or they developed cold feet in putting forward their strategy, plan or take risks ? Behind the brave face that they put up in conferences and meetings, were they a bunch of scared or uncertain individuals struggling to figure out how to make things work ? I could not accept my own fears on this hypothesis and gingerly approached the subject lest I create a self-fulfilling prophecy.

Sigh ! The result was a mixed bag; in most cases the usage was to get endorsement or a stamp of approval from an authoritative source for higher credibility to the project or technology. In some I observed that the organization was risk averse or did not have the requisite confidence on the IT team and thus sought validation of the CIO proposals. Global and local research analysts and the models I referred to earlier give the requisite crutch or platform to the CIO to get endorsement and alignment.

The more interesting insight was with a few CIOs who did need the help to get there. They were bright individuals with technology expertise but limited ability to create a business case or put across a transformation agenda to the Management or Board. They were smart enough to work with these companies to find solutions thereby overcoming their limitations. I stopped applying my filter criteria for evaluation of the proposed engagements from this plethora of value providers.

Considering there is indeed a segment that finds value in engaging such companies (which is why they exist and continue to thrive, demand supply equation you know), my sincere and humble submission to all the wonderful companies is not to assume that everyone they talk to has a problem that they are unable to solve. All CIOs are not equally created, some are bigger Idiots than others, and others believe “I” stands for Intelligent or Innovation …. I think I was an Idiot for some time, and that will pass. 

Hiring Consultants !

CIOs are a lucky bunch, whenever they have a problem of any kind, all types of help is available to them from various sources; IT vendors, system integrators, business school professors, peer CIOs, and finally management or IT consultants big, small, and even individuals, ex-CIOs i.e. retired or in-between jobs. All of them bring different kind of experiences and solutions to the table; some with a genuine interest to help find the best solution, others with a vested interest to sell goods or services.

Recently when I moved to a new industry and assignment, there was a flood of offers to help from the entire gamut of consultants. Can we help you understand your new industry ? Would you like us to do a diagnostic of the current situation ? What about some help with IT strategy ? Can we offer you some interesting research papers on the industry and its challenges ? How are you planning to prioritize the various business pulls and pressures ? Is there an IT governance issue you want to address ? ….

Their insistence, persistence and perseverance created a few moments of shaken confidence ! Did I really need their help to get started ? I asked them for data on similar engagements where they had contributed to the direction and shaped the future for the CIO. My mailbox almost ran out of space ! There were local and global case studies, customer references, engagement frameworks and best practices. I was surprised with some names of good CIOs friends, while others were predictable.

More than a decade ago as a newbie CIO I had gained some benefit from the consultants and IT advisory and research companies; they helped fast track my learning. But these references were amongst the best of CIOs. So I decided to call them to find out why they engaged these consultants; what prompted them to spend, and on what did they invest ? Did they get any insights that eluded them or create a better strategy or help them in their success ? Should I too get some of them on board ?

The answers should not have surprised me but they did; the consultant brought credibility to the plan, documents on current status benchmarked to local and global metrics. The big name consultants were seen as the best options even when they put your words and common sense into fat documents and fancy presentations. Somehow the stamp of authority and approval made the difference to company management with higher acceptance. The CIO had validation of his/her choices and rub-off credibility from such engagements.

Now I am not averse to using consultants or industry experts in areas that need a different level of thinking and problem solving.  To drive company-wide change across different stakeholders can always do with some help ! I have had my share of good and mediocre; authority is not bestowed by the brand or the years, it comes from a deeper understanding of the issues and positive query; whereas the ridiculous ones tested endurance levels not to be recalled again.

In my current context I felt that whatever the consultants wanted to solve is what the company had hired me to do; that was my core competency and what I excelled in. By the time they came to the table I had most of the answers that had been discussed and accepted as the reality and way forward. I tested my hypotheses with a couple of big names; they acknowledged that I was on the right track.

Did I need a validation of my decisions ? I don’t think so and neither did the rest of the business leaders who found the rationale and direction to be credible in its articulation. I believe that the use of consultants is finally a matter of personal choice influenced by the organization culture and the locus standi of the CIO. The past record of success internally or with consultants determines what works better. I think for now I will continue to stay away from them.

Language curriculum for CIOs or ...

The Chairman of the Indian entity of a leading global IT vendor addressing a gathering of CIOs stressed on the (now so obvious) fact that CIOs should speak in business language. Everyone in the audience agreed and appreciated this repetition like the fact that “sun rises in the east”. The senior statesman then went on to present a dozen slides on why virtualization and consolidation should be on the CIO agenda.

A group of CIOs visited an international event hoping to learn from interactions with their global peers and gain different perspectives. While the IT vendor companies represented in the event were somewhat similar considering the global nature of the IT industry, the speakers were different providing a local flavour of the country. Majority of the sessions stressed on the same fact “sun rises from the east”, I mean CIOs need to speak the language of the business. They however presented in complex detail the technology solutions that they wanted the CIOs to buy.

Excuse me ? Did we (the CIOs) miss something? No, we did not doze off during the presentation and neither did we see you skip some slides in your presentation which may have connected to the obvious fact. We were attentive and so was everyone until the tech stuff started. There were many messenger, text, and email messages flying in the room to check that we were all in hearing the same thing. Excusez-moi or should I say Entschuldigen Sie, maybe if you like I can try another language. But where is the connection ? How many of the CIOs in the room were part of your sample size ?

Over the years, IT was nudged, pushed and coerced to discard techno-speak in favour of what everyone else speaks in the enterprise; the quick compliance and transition surprised many and helped bridge the perception about individual and team capability. Projects were no longer about the next big technology or the latest versions of the fancy devices, they embodied holistic discussions around internal process and external customers. On the other hand for some reason the industry refuses to acknowledge the change continuing to cite examples of a shrinking minority of change averse IT leaders.

So how can this perception be changed ? How do CIOs ensure that what they say is what the IT vendors and consultants hear ? I believe that it is time to start challenging the well-wishing speakers to cite examples when they talk about the language course CIOs need and not hide behind the global research reports of named companies to justify their spiel. Can they speak more from personal experience ? For them to be heard, maybe they need to talk business, unless this is a ploy to hide their inability to speak the new language of the CIO.

For the CIO, the sun indeed rises in the east, but maybe just maybe it needs to rise from the west for the vendors and consultants to notice that the CIO has passed the language course with flying colours; maybe it is the vendors and consultants who need the course after all !

Reality Check for IT Consultants

In an event for CIOs, I had the opportunity to meet with, and listen to a bunch of IT consultants from global consulting and IT companies. All of them presented their view of the CIO challenges and opportunities, and without exception sounded like they had dug into the same library or archive to create slides which said the same thing — though the words were different, to their credit. This presentation made to a gathering of more than 50 CIOs stunned the audience. And this was not because the CIOs were bowled over by the analysts’ insights, but because the presentation was disconnected from reality.

Consultants have a wonderful habit of looking down upon their audience in a condescending way while preaching their version of truth, which says, “I know better than you, and I have a prescription for the ills that pain you”.

So the consultants under discussion were attempting to advise CIOs of their current challenges, reality and cures for the situation. While the number of points was consistently at 10 (wonder why everything has to be “top 10”!), the order of appearance of the topics was not in sync. The most interesting part was that no one, I repeat no one, in the audience agreed with the consultants. So the questioning began:

1. Did you actually survey or speak to CIOs and CEOs to create this list?
2. What was the sample size?
3. How many of them were located in India (since the presentation is being made to Indian CIOs)?
4. Considering the sample of more than 50 CIOs in this room, did anyone here participate?

As the cross-questioning got uncomfortable, the consultants were tying themselves into knots and literally sweating (despite adequate air-conditioning). One of them had the audacity to state that, “I am the consultant and speaker for this session; you have to listen to me!”
That was the last straw for most, and the duel almost resulted in an unsavory situation. It was rescued by the organizers — just in time.

It is evident that the CIO has a better connection with reality and business. The challenges and opportunities for Indian CIOs do not revolve around Business Speak or Alignment, but Value Add, Enabling Business and Growth. Global consulting companies are slow in realizing this trend, as the world at large still revolves around the US for them (maybe because most of them are headquartered in US).

The post event networking saw a face-saving quote from one of the consultants. “I was asked to provoke the audience, and I succeeded in doing that”.