Consulting

Engineers solve problems, consultants sell their services.

Identify the most important problems to solve, care about solving them.

Content

• Protocol
• Checklists

Related

• Cost Centres
• Protocols

Protocol

Business Consulting Playbook

1. Problem-Solving:
   • Define the Problem: Always start by clearly defining the problem. Dig deeper to understand the root cause rather than just addressing symptoms.
   • Hypothesis-Driven Approach: Develop an initial hypothesis (IH) and test it with data. This approach ensures that solutions are based on facts rather than assumptions.
   • Issue Trees: Use issue trees to break down problems into smaller, manageable parts. This helps in structuring the analysis and ensuring that all aspects are covered.
   • MECE Principle: Ensure that your analysis is Mutually Exclusive and Collectively Exhaustive (MECE) to avoid overlap and ensure completeness.
2. Data and Facts:
   • Fact-Based Decision Making: Always rely on data and facts to support your hypotheses and recommendations. This builds credibility and ensures that solutions are grounded in reality.
   • Avoid Boiling the Ocean: Focus on the most critical data and avoid trying to analyze everything. Prioritize the most impactful areas to save time and resources.
3. Client Engagement:
   • Pre-Wiring: Before presenting findings to the client, engage in pre-wiring by discussing preliminary findings with key stakeholders. This helps in aligning expectations and reducing surprises during the final presentation.
   • Challenge the Client: Don't take the client's problem statement at face value. Ask questions, dig deeper, and challenge their assumptions to uncover the real issues.
4. Communication:
   • Clarity and Brevity: Communicate findings and recommendations clearly and concisely. Avoid overwhelming clients with too much information; instead, focus on the most critical points.
   • Elevator Test: Be able to explain your solution or recommendation in 30 seconds. This ensures that you understand the problem and solution well enough to communicate it succinctly.
5. Team Collaboration:
   • Leverage Team Strengths: Collaborate with team members to develop stronger hypotheses and solutions. Diverse perspectives often lead to better outcomes.
   • Delegate and Specialize: Focus on areas where you can add the most value and delegate other tasks. Specialization can be a significant advantage for smaller firms.

Checklists

Problem-Solving

1. Define the Problem:
   • Clearly articulate the problem statement.
   • Validate the problem with data and client input.
2. Develop Hypotheses:
   • Formulate initial hypotheses based on available data.
   • Test hypotheses with additional data and analysis.
3. Structure the Problem:
   • Break down the problem using issue trees.
   • Ensure the analysis is MECE.
4. Analyze Data:
   • Collect relevant data to test hypotheses.
   • Focus on the most impactful data points.
5. Propose Solutions:
   • Develop solutions targeting the root causes.
   • Validate solutions with data and client feedback.

Client Engagement

1. Pre-Wiring:
   • Discuss preliminary findings with key stakeholders.
   • Align expectations and gather feedback.
2. Challenge Assumptions:
   • Ask probing questions to understand the real issues.
   • Validate client assumptions with data.
3. Communicate Clearly:
   • Present findings and recommendations concisely.
   • Use the elevator test to ensure clarity.
4. Follow-Up:
   • Schedule follow-up meetings to discuss implementation.
   • Provide ongoing support and gather feedback.

Team Collaboration

1. Leverage Strengths:
   • Identify team members' strengths and assign tasks accordingly.
   • Encourage diverse perspectives and collaboration.
2. Delegate Tasks:
   • Focus on high-value activities.
   • Delegate lower-value tasks to appropriate team members.
3. Specialize:
   • Develop expertise in specific areas to differentiate from competitors.
   • Continuously build and refine specialized skills.

Growth Strategy

Understand customer needs, build relationships, and continuously adapt your approach to business development and marketing.

1. Focus on customer problems first: Prioritize understanding and solving real customer problems rather than pushing technology solutions without a clear need.
2. Provide free value: Offering valuable content or insights for free, like through podcasts or speaking engagements, can generate buzz and lead to business opportunities.
3. Leverage partner networks: Building relationships with larger organizations or platforms can create opportunities, but it takes time to develop trust and prove yourself.
4. Be strategic about speaking engagements: Choose conferences and events where your target audience is present to maximize the impact of your presentations.
5. Consider paid discovery offers: Offering tiered packages for initial assessments can help qualify leads and demonstrate value before larger engagements.
6. Qualify leads early: Ask about timing, budget, and decision-making authority upfront to avoid wasting time on prospects that aren't ready to move forward.
7. Differentiate through execution: In fields with a lot of hype, like AI, demonstrating the ability to build and implement solutions can set you apart from competitors.
8. Balance focus and flexibility: While focusing on a specific niche can be beneficial, it's challenging to execute and may require finding a middle ground.
9. Invest in prospecting: Make time for activities that help you connect with your ideal customer profile, even as your business grows.
10. Get out and meet people: Organizing or attending in-person events, even informal ones like happy hours, can lead to valuable connections and business opportunities.
11. Consider "event hijacking": Timing your own events around larger industry conferences can be a cost-effective way to connect with potential clients.
12. Be open to learning opportunities: When partnering with larger organizations, consider the value of learning about new markets or processes, even if it means being flexible on pricing.