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Consultant or Contractor. What are you looking for?

Consultant or Contractor What are you looking for?

Every so often I delve into the business consultant versus contractor conversation. When I started in the consulting profession, we were pure consultants providing solutions to complex problems being addressed by our clients. Over time the role of the business consultant has evolved into more of a blend between consultant and contractor where clients’ expectations changed from independent trusted advisor to tactical executors.

Appreciating the roles of business consultants versus contractors is pivotal yet distinct. Understanding the nuanced differences between these two roles is essential for organizations seeking to optimize their operations and strategic initiatives.

Business Consultants: Trusted Advisors

Business consultants are akin to architects in the realm of strategy and problem-solving. They are typically engaged for their deep expertise and the ability to provide high-level insights into a company’s challenges and opportunities. Consultants are the analytical thinkers who diagnose problems and devise strategic plans to steer businesses toward success.

Consultants work with senior management to refine business models, enhance competitive advantage, and improve overall performance. Their role is advisory in nature; they suggest, guide, and advise. They are not usually involved in the day-to-day execution of business operations but rather focus on long-term strategic goals.

Contractors: The Tactical Executors Contractors

Contractors are the skilled builders who turn blueprints into reality. They are engaged to perform specific tasks or projects with a clear scope and a defined timeline. Contractors bring specialized skills to the table, which might not be present within the organization, such as IT development, marketing campaigns, or construction work.

Unlike consultants, contractors are hands-on, working on the ground to deliver tangible results. They are the doers who manage their workload, tools, and methods to complete the task at hand.

Key Differences

The primary difference between a business consultant and a contractor lies in their engagement with the client organization:

Scope of Work: Consultants are engaged for their advice and strategic expertise, while contractors are hired to perform specific operational tasks1.

Duration of Engagement: Consultants may work on a project basis or provide ongoing support, whereas contractors are usually hired for a set period or until a particular project is completed.

Level of Expertise: Consultants bring a broad understanding of industry trends and strategic insights, while contractors possess specialized skills pertinent to the job at hand.

Outcome Focus: The consultant’s success is measured by the quality of their advice and the impact of their strategic recommendations. In contrast, a contractor’s performance is evaluated based on the successful completion of the assigned task or project.

Blended Options

In essence, business consultants and contractors serve different but complementary functions within an organization. Consultants are the strategists who provide the roadmap for success, while contractors are the operational experts who execute the plan. Both roles are crucial for an organization’s growth and efficiency, and understanding their distinct differences enables businesses to make informed decisions about whom to engage for their specific needs.

But here’s the rub, clients tend to blend their expectations when engaging consultants. Subsequently, consulting firms have, in many cases, responded by diluting their mission. From a business perspective, this is a great decision. Long term execution engagements are predictably forecastable. 36-month system implementation projects can be staffed and forecasted easily versus the need based 12-week consulting project. It makes total sense that most consulting firms have fallen into the blended consultant/contractor mix. A small, elite group of classic problem-solving consultants mixed with an army of contractor skill sets to execute the solutions road mapped by the consultants.

Picking the Right Option

Be intentional when looking for independent problem-solving help.  If the need is to replace or just implement a technology solution look for the specialized contractor that best fits your needs. Understand that the contractor will implement to the scope the client provides. Issues will be addressed as they arise in the context of the technology being implemented.

If the need is to solve complex multi-layered problems look for the consulting support that can evaluate the situation independently, provide insights you may have missed then offer options for addressing the challenges and highlight opportunities for success.

By leveraging the unique strengths of both consultants and contractors, you can navigate complex business landscapes, implement effective strategies, and achieve your objectives with precision and expertise.

June 11, 2024 Posted by | Uncategorized | , , , | Leave a comment

Branding…Does it really matter?

If your brand requires an explanation, it’s not a brand, it’s just a fictitious name. 

I submit that because of marketing oversaturation in every field of endeavor, unique branding has become irrelevant. I contend that the sheer volume of companies and branded products has diluted the impact of individual brands. Established brands are living off decades of saturation while new introductions get lost in the background.

Let’s consider the available data:

Number of Companies: As of 2021, there were approximately 333.34 million companies worldwide. This represents a significant increase from previous years, indicating a crowded marketplace where countless companies vie for attention. Although this number is enormous it doesn’t represent the single shingle service providers that proliferate every day so I’m adding a few more for mom and the kids, let’s call it 500 million for fun.

Branded Products and Services: While exact numbers are elusive, the proliferation of brands is evident. For instance, Nestlé alone boasts over 2,000 brands, and there are numerous examples of successful brands with numbers in their names, indicating a trend in branding strategies. Think about that for a second. One consumer company holds 2000 brands, pshaw you say, I’m not a consumer business I’m a B2B business.  OK then, let’s do some quick math on that; say 50% of the 500 million or so going concerns are B2B and have just a single brand. Oops, that’s in the neighborhood of 200 million unique, or so everyone thinks, brands.

The impact of this saturation is reflected in consumer behavior and marketing effectiveness:

Consumer Trust: Over-targeting and ad saturation have been shown to damage consumer trust in brands, with 54% of UK consumers objecting to being targeted based on past online activity.

Ad Fatigue: The phenomenon of ad fatigue sets in when a target audience is bombarded with ads from the same brand, leading to decreased engagement.

Brand Relevance: Despite the challenges, 44% of consumers enjoy ads that are directly relevant, suggesting that unique branding can still resonate when executed properly.

While the data indicates a crowded marketplace with a vast number of companies and products, the relevance of unique branding is not entirely negated. Instead, the challenge lies in cutting through the noise and connecting with consumers in meaningful ways. Unique branding, when aligned with buyer interests and executed with precision, can still hold significant value and relevance.

A brand stands as the silent ambassador of a company, embodying its values, ethos, and identity. encapsulates the quintessence of what a brand should represent—a seamless connection between the product and the buyer that requires no intermediary.

Think about your own businesses branding for a moment. Does it meet the criteria as a brand? Probably not. Most branding these days is around some whimsical made-up set of letters and symbols that mean nothing to anyone other than the folks that created it.

A brand is much more than a name or a logo:

  • It represents the emotional and psychological relationship a company has with its customers. Strong brands evoke a visceral response,
  • It generates a feeling of familiarity and trust that resonates with the buyer on a subconscious level.
  • An effective brand transcends the need for explanation because its essence is already known and felt. This immediate recognition is the hallmark of a successful brand.

The necessity for a brand to be self-explanatory also lies in the fast-paced world we live in. Consumers are bombarded with countless choices and messages every day. In such a saturated market, the ability of a brand to stand out without requiring a detailed backstory or rationale is crucial. A brand that needs to be explained is at a disadvantage, as it fails to make an instant connection with potential customers.

A brand that is self-evident is more likely to foster loyalty. When consumers understand what a brand stands for, they can align their personal values with the brand’s image. This alignment creates a strong emotional bond that is far more enduring than any rational explanation could provide. It is this bond that turns first-time buyers into lifelong customers.

Remember to consider the role of simplicity in branding. A brand that is too complex or abstract may struggle to communicate its message clearly. Simplicity in design and messaging allows a brand to be direct and powerful. A simple, yet strong brand cuts through the noise and delivers a clear message that is easy to remember and recognize.

Growing up my family would visit a butcher shop called “Meatland” no doubt there about the branding. Simple, elegant, and clear as a bell. You didn’t visit “Meatland” if you needed a tomato.

May 14, 2024 Posted by | Uncategorized | , , , , | Leave a comment

A Twisted Pair: Growth & Risk Mitigation

We are surrounded by opportunities. Each opportunity brings with it inherent risks. Just looking around at everything we do every day there is risk around every corner. From crossing the street to grilling on a barbeque, risk is all around us.  Navigating risk is the foundation of growth, both in life and in business.

Whether you’re a startup founder or a seasoned business leader, navigating risks effectively will significantly impact your company’s growth trajectory.  How we manage that risk makes all the difference.  Examples of typical risks include both internal and external factors.  Common internal risks include operational inefficiencies, talent management, inadequate financial controls, or poor strategic planning.  External risks range from economic downturns to regulatory changes or supply chain disruptions.  These are only a few of the risks that could be encountered on a regular basis.  What a mess!

I’ve found in my experience that an abundance of the potential risks can be determined well in advance of a crisis occurring if we keep our eyes open and ears to the ground.  Situation awareness is crucial for risk management to be an ally.  Seeing the whole picture of the business environment in context to your own endeavors will allow you to see well in advance of serious risks so that mitigation actions can be taken, and growth scenarios built.

Thinking about risk management is everyone’s responsibility.  I’ve highlighted a few things to consider in helping ensure growth and risk can work in synergy.

1. Identify and Assess Potential Risks

Before mitigating risk, you must understand what you’re up against. Conduct a comprehensive risk assessment by considering both internal and external factors. Execute the identification process deliberately as part of your planning cycle.  Log the risks, rank them for severity and probability of occurrence.

2. Plan for Potential Scenarios

Anticipate potential risks by creating various scenarios. What if demand suddenly drops? What if a key supplier goes out of business? Scenario planning helps you prepare for the unexpected. Develop contingency plans for each scenario, ensuring that your business can adapt swiftly when needed. This is where the latest in Artificial Intelligence (AI) can make a huge difference. The latest AI technology allows for rapid scenario analysis.

3. Spread the Risk

Diversification isn’t just for investment portfolios; it applies to business risk as well. Relying too heavily on a single product, market, or customer can be dangerous. Diversify revenue streams, expand into new markets, and build a resilient customer base. By spreading the risk, you hedge against the impact of any single risk event.

4. Build Resilient Operations

Build operational resilience by investing in robust processes, redundant systems, and disaster recovery plans. Regularly test these mechanisms to ensure they function seamlessly during crises. A resilient business can weather storms without compromising customer satisfaction or core operations.  Our recent experience with the global pandemic puts a fine point on resiliency.  During that period, I saw some of my clients scramble to implement remote communications processes for typically desk bound employees or rapidly invest in innovative methods to manage their disrupted supply chains. Build to weather any storm.

5. Watch the Data

Leverage data analytics to identify patterns and predict potential risks. Monitor key performance indicators (KPIs) and track deviations. Early detection allows you to take corrective actions promptly. Whether it’s detecting fraud or optimizing supply chain logistics, data-driven insights enhance risk management.

6. Embrace Change

Risk management isn’t static; it’s an ongoing process. Stay informed about industry trends, regulatory changes, and emerging risks. Maintain a high level of situation awareness. Adapt your strategies accordingly. A growth-oriented business embraces change and learns from both successes and failures.

7. Lead with Commitment

Risk management starts at the top. Leaders must champion a risk-aware culture. Encourage employees to report risks without fear of reprisal. When everyone understands their role in mitigating risk, the entire organization becomes more resilient.

The twisted pair of  business growth and risk management go hand in hand. By proactively identifying, assessing, and mitigating risks, you pave the way for sustainable expansion. Remember that risk isn’t the enemy—it’s an opportunity to innovate, adapt, and thrive.

May 6, 2024 Posted by | Uncategorized | , , , , , , | Leave a comment

THIRTY IS THE NEW TWENTY-ONE

Recently I’ve seen various pieces discussing why people don’t want to work anymore.  Is that true?

When I review the articles, they offer a list of circumstances that drive the perception that folks don’t want to work.  The reasons go from not enough pay to the rise of entrepreneurship.  Really!

In my experience interacting with clients, local universities, and just plain folk I don’t get the impression people don’t want to work anymore.  I do find that new graduates are much more selective about the roles and companies they choose to contribute their talents to for their work.  As is commonly the case with media of any type, social or print, hyperbole rules the day. 

Work drives self-confidence. Contribution to a cause or a goal in achieving a mission makes getting up every morning worthwhile. It’s just that these days young people want more than a paycheck. They have been so accustomed to the abundance of their childhood there’s a feeling that things continue status quo forever. 

I was chatting with a group of young associates the other day and they all were focused on discussing their next adventure in an exotic location or their personal fitness goals and preferred diet.  Of course, in their late 20’s none is married or has children.  Most live in rented apartments and drive older vehicles. So, I commented to them that the age of thirty is the new twenty-one. Boy was there an uproar.  “What do you mean?”  Well, being a baby boomer, the answer was clear. At the age of thirty most of my generation had a family, a mortgage, two cars, and had never been to Borneo on holiday.

The point here is that the impression that no one wants to work anymore is driven by the reality that work is a sideline to life for the generations succeeding baby boomers.  While boomers, like me, are in the waning stages of dedicated work lives. Hence, employers find it challenging to hire and retain a consistent workforce.

Culture, as described by language, rituals and artifacts of a civilization are changing in our time. No longer are the rituals of marriage and family associated with youth. The artifacts of success have changed from material wealth to a wealth of experiences and selfies. The language of work has been replaced by the language of health, fitness, and travel. 

Employers must be aware of the cultural change and adapt appropriately.

  • Clearly articulate the underlying mission of your organization so aspiring employees know what to expect.
  • Offer multiple accession tracks with off-ramps to accommodate a stop-out period for travel or mid-career maternity/paternity.
  • Be open to the virtual vagabond employee through planning where new hires may have an on-premises work requirement for a determined period before remote options are available.
  • Purposefully create cultural norms that represent the business to both internal and external stakeholders.

This cultural change is a tough nut for management.  It’s a 180-degree flip from what we as a culture have been accustomed to for over a century.  It’ll take time and effort to achieve the productivity desired of employees while meeting their intrinsic needs. Remember our friend Maslow?  Today’s workforce places self-actualization achievement over basic needs, they assume they will have their basic needs met somehow.

April 23, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Renew the Meaning of Work

Work, craftsmanship, artistry, pride, passion.  All words used to describe accomplishing tasks that make the world go around.  Imagine that NASA went to the moon with a 64K memory chip.  Crafting the software code was accomplished through pure artistry and efficiency.  In today’s world there’s more memory available in most digital watches.  Actors and athletes  constantly discuss improving their craft to achieve great performances.  Artists push the limits of their passion into each piece.  In each of these professions the true value of work is the finished product.

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Through the recent few decades work has become synonymous not with the underlying value and craftmanship of the product but by the financial value achieved by accomplishing the task.  More simply, it’s all about the money.  Today’s workforce strives for titles, monetary compensation and leisure time to pursue their passions versus putting that passion into their work.   Work represents each individual’s contribution to society and should be both engaging and productive.  If either is lacking something must change.

As leaders entering a new year it’s incumbent on us al to reinforce the value of work for all our associates.  Renewing the passion of our organization’s pursuit is an imperative.  Recharging the passion tank to build in the pride of craftsmanship for every job is our responsibility.

Personally, I’m renewing my committment to bringing out the best in my clients through artistic interpretation of their challenges and innovative methods to overcome those obstacles.

Have a fun, productive and prosperous 2013.

December 28, 2012 Posted by | Uncategorized | , , , | Leave a comment

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