10 obstacles to success
How to avoid the pitfalls that can arise when transforming your internal services function into a consulting organization.
In our experience working with our clients, we have found that dealing with the following ten hurdles was critical to successfully transitioning from an in-house service provider to an in-house consulting practice. This is true whether it is a function in Human Resources, IT, Project Management, Finance or Corporate Groups.
Introduction
Imagine human resource professionals within an organization serving as master marketers, able to sell their ideas, plans, and programs to leaders who support them. They see themselves as internal consultants and their bosses as clients, both aligned on common goals. They deftly understand the needs of their leaders and can translate all of their proposed initiatives into business value.
It sounds too good to be true? Well, all it takes is a new model: shift your internal service professionals into an internal consulting role. As a team, internal consultants are already familiar with the company’s strategy, processes, internal operations, and needs. Whether in human resources, information technology or finance, they add value to the business by continually adapting their products and services. Meanwhile, the intellectual capital of each project stays within the company.
Avoid obstacles on the way to success
When working with professionals who want to become internal consultants, I hear two main concerns:
a) How do you work differently with clients?
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b) Our organization may not be ready.
It is true that if the organization does not understand the new role of the consultant and its benefits, or if those at the top do not support the new role, it is almost impossible to move forward. To help ensure your company is well positioned for a shift to internal consulting, I’ve identified the top ten obstacles to becoming an internal consultant.
Pitfall #1: Confused Purpose and Strategy
The worst that can happen is that the team doesn’t have a clear direction for the change and doesn’t understand how it connects to business goals. Learn why you’re moving to an internal consulting model, the resulting benefits to the team and organization, and the plan for how you’ll get there. In short, build the case for action.
Questions to ask
How clear are you about why you are moving to a consulting model? Are you and your team able to articulate the change and how does it align with the business strategy? Can you describe the rationale and benefits to your customers?
Obstacle number 2: Senior management is not engaged or visible
As with any change effort, if top management is not committed, willing and able to visibly support the change, it is doomed to fail. Make sure senior management is on board and supports you. Work with senior leaders to help them understand the benefits of the change to the organization and its goals, and describe their role in supporting the change in terms of behavior. Think about what they need to say, do and acknowledge to support the change.
Questions to ask
How visible is senior management support for becoming a consulting organization? Are they able to describe the benefits of the change for the entire organization? Do they know their role and what are the key messages for change? Do they know what to say, do and reinforce (acknowledge) to support the change?
Obstacle number 3: neglecting the team
Internal consultants build credibility by their ability to consistently deliver. Know the skill and experience level of the team and provide development where needed. Make sure the team has the ability and willingness to function as internal consultants.
Questions to ask
Do all team members have a development plan? Are team members clear about their roles? How will the team be organized? By portfolio, skill, client?
Obstacle number 4: absence of a marketing plan
Without a marketing plan, it’s hard to know how your customers define success and which products and services add the most value. A marketing plan helps you define your value proposition and develop measures for success. Write a marketing plan that clarifies what your customers want and how they define value. Make sure you have defined your value proposition and the ultimate benefits of your products and services in terms of the customer.
Questions to ask
What are your key products and services and how do they add value for your customers? What is your core value proposition? Can you link this to your clients’ business? Have you identified key performance metrics? How will you measure performance?
Obstacle number 5: Lack of early success
Developing a consulting practice can be daunting. Early in the process, identify wins by identifying successful behaviors and outcomes for the team and organization. Look to the leaders in the organization who support you and with whom you can work. Work with those leaders who understand what you are trying to do and support you. Build trust and show the organization the benefits of the consulting role by working with these managers. Communicate these victories.
Questions to ask
Have you identified quick wins? Do you know where the support for your project is in the organization and which managers support you? Have you worked with your team to develop quick wins that can be communicated and used to build momentum?
Obstacle number 6: the organization is not ready
You have given yourself the luxury of reading, studying, thinking and planning. To you, the benefits and purpose of building an in-house consulting organization are pretty clear. But remember, the organization hasn’t had the same preparation and may not see the benefits as clearly as you do. Note that the organization will not immediately accept the new HR role. It will take time and success. To get started, take quick profits to prove the value of your strategy. Build credibility. You don’t have to turn the tables on the naysayers; consulting success with support managers will create a positive effect and help move the organization forward.
Questions to ask
Have you developed a change plan for the project? Does the plan include a sponsorship plan? Do you know who in the organization supports your project and who does not? Do you have risk strategies?
Obstacle number 7: Lack of a disciplined process
Without a consistent approach, it’s hard for your team and your clients to build positive working relationships. A consulting approach allows both the consultant and the client to see how they will work together and come to an agreement on the process and the results. Use a disciplined and planned consulting approach to working with your clients. Be sure to identify clear results and deliverables.
Questions to ask
Has your team developed/identified a consulting process or approach? Is this approach consistently used to deliver services? Are your customers clear about the process?
Obstacle number 8: lack of accountability
As a service provider in the organization, you appear on the cost side of the general ledger. Be sure to develop metrics that are meaningful to your role, your team, and the goals of the organization. Develop a scorecard for the consulting organization so you can see areas for improvement and communicate value effectively with the business.
Questions to ask
Have you developed an internal consulting skills scorecard? Do you know your critical measures and have you set meaningful goals?
Obstacle number 9: disconnected from the business
The barrier for many internal service providers is that they are not the core business of the organization and cannot communicate the benefit of their business role as applied to the organization’s goals. Therefore, unless RR. HR, IT, and finance may be the organization’s core business, it must help the company understand how becoming a consulting organization will serve the company’s goals and purposes. As business partners, internal consultants draw on their expertise to meet the needs of the organization.
To be seen as supporting overall business objectives, they must have knowledge and understanding of the business. Identify your value proposition.
Questions to ask
Can you communicate the value of a consulting model in terms of business interests? Are you able to articulate your value proposition in terms of benefits for your customers? Can your customers articulate your value? What metrics are used to measure its value? What is your performance plan?
Obstacle number 10: lack of communication
Organizations are complex entities. Communication is not only difficult, it is essential to the success of any business. Don’t assume managers know what you and your team are doing. The best managers I’ve ever worked with were excellent communicators, keeping their bosses and clients informed about what they were doing, and constantly telling the story of how their team added value to the business. Communication is not about information. It is a behavior change. Provide success stories to senior leaders sponsoring the internal consulting project. Let them know that their support is working and that you appreciate their efforts.
Questions to ask
Does your change plan have a communication strategy and plan? How do you communicate the success of the project to the organization? How do you involve key stakeholders in the communication plan? What behaviors does the communication plan support? Remove?
Resume
By avoiding these top 10 pitfalls, internal consultants can lay the foundation for a successful value-based consulting relationship aligned with their “customers.” We hope these 10 Roadblocks to Success in Running an Internal Consulting Organization have helped you think through the factors that need to be considered and planned for in this venture.