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In our opinion, the best use of Consultancy Services is during Key Stages of the business transition. For example, when new projects are being proposed, when reviewing corporate IT strategy, or when the company is trying to create a new Road Map for future growth. This Paper explains what KEY STAGE CONSULTANCY is, and how it can best benefit clients.
This document was developed during the late 1990's, before the introduction of the U.K. Governments IR35 tax system, which effectively created a tax on one-man-consultancies. The issue being addressed by IR35 was that some so-called "contractors" were, in effect, being highly-paid permanent members of staff, being given work which would normally be associated with full-time employees. The only difference between them, and their permanent colleagues, was that the latter were paying National Insurance contributions (and probably Income tax) at a higher rate. IR35, in effect, makes it less cost-effective to be a "permanant-contractor", for tax reasons.
The reason for propounding Key Stage Consultancy, however, is a philosophical one, not financial. It has to do with Customer Service, and delivering the best benefit to the client.
Key Stage Consultancy: Some definitions
The best use of Consultancy Services is during Key Stages of the business transition. For example,
- A new programme of projects are being proposed,
- Reviewing corporate IT strategy,
- Defining a new Road Map for future growth.
- Architecture Reviews as part of a merger, takeover, or management buy-out.
Each of these stages has a number of characteristics. They are defining moments in the company's history. Decisions taken at this time will impact the future technology direction of the company for some time. At such a critical time, it is essential that the company invests in research and investigation, to ensure that the decisions are taken with the maximum visibility of the risks and issues. For this reason, it makes sense to bring in external consultants who :
- can advise objectively on technical and architecture choices, without being seen to be part of any vested interest or policy within the company,
- can view issues from a wider industry perspective, not just within the company itself,
- are independant from hardware, software or services vendors,
- are motivated by a desire to deliver at the Key Stage only, and are not expecting to be given lucrative contracts for ongoing long-term project development.
Why is Key Stage different from Ordinary Consultancy?
Key Stage Consultancy, by the above definition, has a different mind-set to ordinary consultancy functions. It involves a relationship with the client for a short, significant period of time.
In effect, this enables a client company to obtain the services of an impartial Non-Executive for the crucial period.
Many contractors and consultancy companies are interested (for understandable reasons) in long-term placements to have a real impact on the client's IT environment. Unfortunately, in some cases, this results not in a client-supplier relationship, but more of a symbiotic relationship (or should I say parasitic ?)
The Importance of Skills Transfer
A Consultancy should not only Supply Skills to clients, but also Transfer Skills. For this reason, in-house training of local staff should be an important feature of Consultancy services. Consultants should have a range of Technical Experience :- Skills which can benefit your organisation.
Too often, a consultancy service will provide "solutions", by tapping into their intellectual capital. This certainly delivers the required result - but how much of that skill is lost when the Consultant moves on ?
Working with the Client
There are a number of consultancy services which are built on the back of Software or Services suppliers. In that case, there is always the understanding that they have a hidden agenda - to sell more of their services.
By contrast, clients really want someone who will look objectively at their specific requirements, and act in the companies best interest to guide them through the key transition stage.
There is a crucial need for Genuine Impartiality when selecting a Key-Stage consultant.
Effectively, a client company needs to obtain the services of an impartial Non-Executive-Director for the crucial period.
Some Examples
Just a few examples of where we have seen genuine Key Stage Consultancy work, either with ourselves or with other consultancy companies who provide this sort of solution:
- A FTSE100 company had plans to improve the efficiency of the IT Service Delivery department by implementing new Problem, Change and Release Procedures. Dennis Adams Associates provided an interim IT Manager who defined and implemented these changes, thus effecting a "quantum leap" in the culture of the organisation.
- An Investment Bank had ongoing Infrastructure problems with one of their trading & settlement systems. Because of the complexity of the network and infrastructure, it was not clear whether this was a set of random glitches, or indicative of a bigger problem. A consultant was brought in to facilitate discussions between different Infrastructure teams (System Admins, DBAs, Networking etc.) to present a final set of conclusions and action plans to the Business. Being impartial, the consultant was able to help the company address the key issues without imposing a "blame culture".
- A medium-size Book Wholeseller had recently developed a new Database-driven ordering system, which had performance problems. A Consultant addressed these by re-tuning the database and system. As the company had not implemented any performance monitoring systems, he also recommended suitable software tools, but (most importantly) a strategy for identifying performance issues going forward.
- The Infrastructure division of a Finance Company was attempting to re-define itself as an "Insourcer", effectively making the transition from a Cost-Centre to a Profit-Centre. In the initial phases of this transition, it was necessary to implement a "Client-Facing" culture. This involved changes to time-tracking, planning, budget control and procedures. As with most cultural changes, procedures and changes to the way people work are only effective if they are reinforced by the message from the management team.
- A small manufacturing company (less than 100 clerical staff) organised a Management Buy-Out. As a result, they had to bring their IT systems in-house, rather than rely on the previous Parent Company. The mission was not only to implement the replacement IT systems, but also to create the basis for the new IT Manager and his team, and ensure that IT was included in the Company Strategy in an appropriate way.
Follow-up
If you are a Director, senior Developer, an IT Architect, or an IT Project Manager, and think your company could benefit from some of the insights which we have to offer, contact us by email at: keystage@dennisadams.co.uk.
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