March 2004

Project Proposals: Get Results, Not Surprises
By Linda Popky, President, L2M Associates

It happens all too often. You decide to engage a consultant on an important project. You interview prospects, choose a qualified candidate who seems a good fit, and negotiate an agreeable cost and timeframe. Next, there's a flurry of activity and, before you know it, the consultant is presenting you with an invoice. You know they've done a lot of work, but what they've given you doesn't match your expectations. What went wrong?

Client-consultant relationships are like any other relationship — it takes both parties working together on an ongoing basis to make them successful. Great intentions alone won't keep an undefined project on track, but a few simple steps in the proposal phase can help you avoid much aggravation down the road.

Clarify, Upfront, Exactly What You'd Like to Accomplish with the Engagement
Be sure to specify what's in and out of scope. It isn't always possible to be extremely specific — sometimes one of the tasks in a consulting engagement is defining future deliverables — but do the best you can. For example, "Define marketing deliverables to be produced in calendar year 2004" may be the scope of your current project, but the production of those deliverables is out of scope and a possible line item in a future project plan.

Define a Clear Set of Specific Responsibilities
Don't settle for open or ambiguous statements of work. Avoid overly broad or general statements that you can't easily quantify or may have different meanings. For example, "Deliver our PR campaign" is a simple statement that can be easily misconstrued. Does "deliver" mean produce a strategic plan or does it also include implementation? What timeframe does this cover? And what exactly do you, the client, expect a campaign to include? If you don't share this with the consultant, you may be surprised to find she has defined these things differently. A better statement would be, "Develop the strategy for our PR campaign, including press contacts, timing, resources, and when and how to implement."

Be Clear with Project Milestones and Deliverables
Be certain that both you and the consultant understand the business goals and the role this project plays in attaining them. Clearly identify what you expect the consultant to deliver. If you've agreed to project billing, what deliverables or milestones do you expect throughout the project? If the consultant is working on a per-hour basis, how many hours do you expect the project to take and do you require additional approval if it exceeds a certain dollar amount? Have you communicated this?

Understand Exactly What Methodologies and Processes the Consultant Will Use
Do you expect her to base her assessment on interviews, focus groups, existing data, or some other means? Is there an accepted process within your organization that you expect the consultant to follow, or do you want her to introduce her methodologies to your team? If the consultant is part of a larger group, come to agreement on who will actually work on the project. Is it one of the principals, an assistant, a subcontractor, or perhaps a combination of these resources?

Outline Accountabilities — Both for the Consultant and for Your Own Team
Ask the consultant to list exactly what her responsibilities include. Then define what you and your team expect to provide — information, data access, or perhaps ensuring that the right individuals are accessible when needed throughout the project. Be sure you capture all of this information in a written document.

Agree in Advance on How to Handle Changes
All projects encounter some twists and turns that necessitate tweaks to the original plan. Decide in advance how you'll handle any major issues that come up. How much leeway do you want the consultant to have in taking a different tack? At what point do you think it makes sense to revisit the strategy? How will you rework the schedule, deliverables, and compensation to account for a major change midstream?

Be Specific on Processes and Procedures
If your organization has established procedures for using consultants, make sure they're clearly understood. For example, the both of you should agree on expense reimbursement. What expenses are reimbursable and should they be preauthorized before they're incurred? If you have a policy for travel reimbursement, make sure to share this information in advance, including any per-diem expense guidelines. If you're paying your consultant an hourly or daily rate, agree on the amount charged for travel time on out of town engagements. Once you've identified these policies, put them in writing.

Treat the Consultant as Part of Your Team, Not Just a Hired Hand
Make sure she has access to key members in your organization, as well as to the information needed to complete the project successfully. A good consultant expects to sign nondisclosure or confidentiality agreements, and you can expect her to treat your company's information appropriately.

Communicate Freely, Openly, and Frequently
In fact, when in doubt, over communicate. Don't wait until the project is well underway to find out the two of you aren't on the same page. If something isn't clear or could be misinterpreted, take the time to check in and ensure that everyone understands the information.

These rules of thumb may involve your spending more time and effort at the planning and proposal stages, but this upfront work will help ensure that your next consultant project yields results that meet your expectations — without surprises.

Linda Popky is president of L2M Associates, a strategic marketing firm that drives technology companies to improve their bottom line by more effectively leveraging their marketing programs, processes, and people. Visit her Website to learn about common marketing myths and how to avoid them.